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Westpac 2025 Group Annual Report and Appendix 4E

Full Year Results2 November 2025WBCFinancials

ASX RELEASE


Westpac Banking Corporation

Level 18, 275 Kent Street

Sydney, NSW, 2000




3 November 2025


Westpac 2025 Group Annual Report and Appendix 4E


Westpac Banking Corporation (“Westpac”) today provides the attached Westpac 2025

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.



i
ASX APPENDIX 4E

ASX Appendix 4E

Results for announcement to the market

1

Report for the full year ended 30 September 2025

2

Revenue from ordinary activities

a,b

($m)up4%to22,384

Profit from ordinary activities after tax attributable to equity holders

b

($m)down1%to6,916

Net profit for the period attributable to equity holders

b

($m)down1%to6,916

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 2024.

Dividend distributions (cents per ordinary share)Amount per securityFranked amount per security

Final dividend7777

Interim dividend7676

Record date for determining entitlements to the final dividend07 November 2025

As at

30 Sept 2025

As at

30 Sept 2024

Net tangible assets

Net tangible assets per ordinary share ($)18.2517.75

1.This document comprises the Westpac 2025 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 2025 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 2025 ANNUAL REPORT
This page has been intentionally left blank.

2025
ANNUAL

REPORT

WESTPAC

WESTPAC 2025 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

The 2025 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. The information in this report relates to our 2025 (FY25) reporting period unless stated otherwise.

Our Annual Report forms part of our broader 2025 reporting suite which includes:

•Full Year Financial Results Announcement;

•Financial Results Presentation and Investor Discussion Pack;

•Sustainability Report;

•Pillar 3 Report;

•Notice of Meeting;

•Corporate Governance Statement; and

•Risk Factors.

The 2025 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.

The full reporting suite is available online at westpac.com.au/2025annualreport.

In this 2025 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 refer to Reading this report

(page 238).

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, refer to Reading this report (page 238). 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

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
3

Contents

STRATEGIC REVIEW4

About Westpac4

Operating environment5

Chairman’s report6

CEO’s report8

Our Strategy10

Top and emerging risks12

Our approach to sustainability13

How we create value14

Creating value for shareholders16

Creating value for customers22

Creating value for our people28

Creating value for the community32

Creating value for the environment36

Transformation40

Data, Digital and AI41

Risk Management42

Corporate Governance50

Directors’ Report54

Board of Directors54

Executive Team58

Remuneration Report69

Information on Westpac101

FINANCIAL REPORT103

Income statements104

Statements of comprehensive income105

Balance sheets106

Statements of changes in equity107

Cash flow statements109

Notes to the Financial Statements110

Consolidated Entity Disclosure Statement227

Statutory Statements230

ADDITIONAL INFORMATION237

Reading this report238

Shareholder information248

Other Westpac business information258

Glossary of Abbreviations and Defined Terms260

Contact Us265

4WESTPAC 2025 ANNUAL REPORT
ABOUT WESTPAC

As Australia's first bank, we've been taking action to support people,

businesses and communities for more than 200 years.

Established in New South Wales in 1817, Westpac has grown to be one of Australia’s largest companies and employers.

We’re proud to contribute to the prosperity of Australia and New Zealand. We support 13 million customers with

a range of banking products and services, including helping them into homes, starting and growing businesses and

supporting large corporates with their banking needs.

We help foster stronger, more inclusive communities by promoting financial inclusion and literacy, investing in regional

banking services and respecting human rights.

Since founding our first charity in 1879, we've broadened our social impact through the independent Foundations and

Trusts

1

. These have contributed more than $100 million in the past decade to create meaningful change in people’s lives.

For our 35,000 employees, we strive to create a workplace where they feel valued, inspired and motivated to reach

their potential.

As part of our environmental commitment, we support businesses in transitioning to a low-carbon future and adapting

to climate change, while continuing to reduce our operational emissions and build climate resilience.

This year, we paid $6.6 billion in salaries, $5.2 billion in shareholder dividends, $3.5 billion in taxes and levies and spent

$4.74 billion with suppliers inside Australia

2

.

As we evolve, we're inspired by customers, their needs and our purpose of taking action now to create a better future.


Market share

AUSTRALIANEW ZEALAND

Household deposits

aa

21%

Consumer lending

b

18%

Mortgages

a

21%

Deposits

b

17%

Business lending

a

16%

Business lending

b

16%

a.APRA Banking Statistics, September 2025.

b.RBNZ, September 2025.

1.In FY25, Westpac Group provided 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.

2.Refer to the 2025 Sustainability Index and Datasheet for details.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
5

OPERATING

ENVIRONMENT

1

Australian economy recovering despite productivity challenges

The Australian economy is showing signs of improvement after a sustained

period of below trend growth. However, the transition from the public to the

private sector as the dominant driver of activity has been more challenging than

expected. GDP growth is improving and expected to rise to 2.4% in 2026. Stronger

growth should be underpinned by rising real wages, falling interest rates and

a robust labour market. Productivity growth remains elusive with improvement

requiring a coordinated response across both public and private sectors.

Households navigate uneven recovery

After an extended period of cost-of-living pressures, Australian households have

begun to experience some relief. Real disposable incomes are rising, supported

by easing inflation, declining interest rates and steady wage growth. Spending

has recovered yet consumers remain cautious. Mortgage stress remains evident

but has started to decline. Both demand and supply side factors are contributing

to housing under-supply. This structural imbalance is expected to persist with

house prices and credit demand expected to increase by 9% and 6.5% respectively

in 2026.

Business conditions improve as SMEs show green shoots

Australian businesses have begun to emerge from a period of subdued activity,

supported by easing inflation and interest rates. A recovery is underway though

it remains uneven as the economy transitions from public to private sector

led growth. Larger businesses have fared better than small and medium-sized

businesses (SME). However, the share of SMEs experiencing an improvement in

cash flows has risen for the third consecutive quarter in 2025 to its highest level

since 2022. While private sector investment has moderated, total business credit

demand remains strong and is expected to grow by 7.2% in 2026.

New Zealand economy slows amid policy support

New Zealand’s economic recovery has been slower than anticipated, despite the

Reserve Bank of New Zealand delivering 300 basis points of monetary easing

since mid 2024 to stimulate the economy. Export activity has been dampened

by global trade uncertainty and broad-based industry weakness. Household

spending remains constrained by elevated living costs, labour market softness

and the delayed impact of rate cuts due to the prevalence of fixed rate

mortgages. While the recovery in economic activity has been delayed, lower

interest rates has supported housing demand with credit growth expected to rise

to 5.7% in 2025 and 6.3% in 2026.

Monetary easing supports a balanced global outlook

The global economic backdrop remains mixed. Inflation is broadly within target

ranges across most advanced economies, enabling a gradual easing in monetary

policy. This has supported modest global growth, with GDP expected to expand

by around 3% in both 2025 and 2026. However, risks to the outlook remain

elevated. These include ongoing global trade tensions, geopolitical uncertainties

and lingering inflationary pressures, all of which continue to weigh on sentiment

and investment.

1.All dates refer to calendar years unless otherwise stated. Forecasts by Westpac Economics and Westpac NZ Economics.

6WESTPAC 2025 ANNUAL REPORT
CHAIRMAN’S

REPORT

It was a defining year for the

company, with renewed leadership,

a clear growth strategy and

the delivery of UNITE’s first

initiatives as part of our major

transformation agenda.

Dear fellow shareholders,

Following a year of global uncertainty, Westpac

maintained its resilience and balance sheet strength

to support customers, communities and the economic

stability of Australia and New Zealand.

It was a defining year for the company, with renewed

leadership, a clear growth strategy and the delivery

of UNITE’s first initiatives as part of our major

transformation agenda.

Our financial position is unquestionably strong, supported

by disciplined financial management and a robust balance

sheet. Capital, funding and liquidity remain well above

regulatory minimums, including a Common Equity Tier 1

(CET1) capital ratio of 12.5%. This capital strength places

Westpac in the top quartile of banks globally.

We completed the Customer Outcomes and Risk

Excellence (CORE) program, designed to strengthen

Westpac’s risk practices and culture.

In response, APRA released the remaining $500 million

operational risk capital overlay in October. This milestone

reflects five years of meaningful change to strengthen

Westpac’s risk management, governance and culture.

While embedding these changes has been demonstrated,

ongoing improvements in risk will be prioritised.

Financial performance

The financial performance reflected our strategy of

balancing growth and return while investing for the

future. Profit after tax was down 1% to $6.9 billion. This

resulted in a modest decline in return on tangible equity

(ROTE) to 11%, which remains well above our cost of

capital. Earnings per ordinary share were stable at 201.9

cents, with the execution of the share buyback adding

three cents to earnings per share.

The steady financial performance and strong capital

position allowed the Board to declare a final ordinary

dividend of 77 cents per share, taking full year dividends,

fully franked, to $1.53 per share. This equates to a payout

ratio of 75% of Profit after tax, excluding Notable Items.

Total shareholder return for the year was 29%. That

places Westpac first among its major bank peers for

total shareholder return over one, two and three year

time horizons.

While it is pleasing to see investors acknowledge the

progress made in recent years, the return on tangible

equity remains below the market leader. Improving return

is a priority as we aim to improve our market position and

cost base relative to peers.

The Board determined it is prudent to carry surplus

capital in an uncertain operating environment. This

enables us to balance the investment required for ongoing

transformation and business growth, while maintaining

the flexibility to return surplus capital to shareholders.

In this regard, we are conscious of the company's

significant franking credit balance and in addition, there

is approximately $1.0 billion remaining of the previously

announced on market share buyback.

Renewed leadership and strategic clarity

Anthony Miller stepped into the role of CEO on

16 December following Peter King’s retirement.

In his first nine months, Anthony has brought renewed

focus and momentum to Westpac’s strategy. He is driving

execution and strengthening employee engagement with

a whole-of-bank to customer approach, while setting a

clear path for growth.

Our ambition to be our customers’ number one bank and

partner through life continues to guide how we improve

and invest in products and services to reflect their needs.

Progress is reflected in a more visible banker and regional

branch presence, enhanced digital capabilities, faster loan

approvals and stronger scams and fraud protection.

We’ve begun leveraging data analytics and AI to help our

people anticipate customer needs and deliver safer, more

personalised banking experiences.

With a capable leadership team in place focused

on executing our strategy, supported by an engaged

workforce, we are well-positioned to deliver sustainable

returns for shareholders.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
7

Delivering the transformation agenda

The UNITE program is central to Westpac’s long-

term growth and competitiveness. It will help address

legacy complexity by simplifying products, processes and

systems for better customer and employee experiences,

while reducing operating costs.

The completion of extensive planning allowed us to

shift focus this year to execution, with eight initiatives

completed and 51 underway across the four businesses.

In 2024, the Board established a UNITE Oversight

Group, drawing on its relevant expertise and experience.

A dedicated transformation office is driving the

program’s implementation, supported by independent

advice and assurance.

UNITE is a strategic priority and we will keep shareholders

informed throughout its journey. While completion and

financial benefits will deliver over the term of the

program, UNITE represents a critical investment in

Westpac’s future.

Attracting and retaining the best people

Our people remain our greatest asset and pleasingly,

despite a year of change, our employee engagement

remains in the top quartile globally. The Board continues

to support inclusion and diversity alongside professional

development, advancing female careers and programs to

help our people to reach their full potential.

Regular engagement with teams across the bank

has deepened the Board’s insights, to strengthen

our risk culture and operational excellence. We

also remain focused on Executive and employee

remuneration, ensuring alignment with performance and

shareholder outcomes.

Sustainability and community impact 

The Board oversees Westpac’s sustainability strategy,

which is aligned to the broader corporate strategy.

It focuses on three areas: climate transition, housing

affordability and regional prosperity.

As Australia’s largest lender to greenfield renewable

projects, we’re scaling support for activities that

accelerate decarbonisation while helping to maintain

energy security and affordability.

We have continued to reduce our operational emissions

in line with our 2030 targets. We're also realigning our

lending, reducing our thermal coal exposure to zero while

identifying growth opportunities in sustainable finance.

This year, sustainable finance lending rose 37% while our

share of sustainable bond facilitation increased by 40%.

It is important we continue to engage with customers

to understand their decarbonisation plans and provide

tailored solutions to support their journey. In May,

we published updated lending requirements for carbon-

intensive sectors. We have since released a Sustainability

Report in readiness for mandatory climate reporting from

next year and a new Climate Transition Plan.

To support the community more broadly, the independent

charitable Foundations

1

will align with national education

goals next year to improve literacy and numeracy for

disadvantaged children.

Westpac Scholars has awarded 1,000 scholarships in the

past decade, supporting the growth of young Australian

talent. We thank David Curran for his leadership of

Westpac Scholars as he steps down after many years of

service and welcome Margie Seale as she takes up the

role of Chair.

Governance and oversight

With a stronger risk culture, operating structure and

balance sheet, we are positioning the company for the

future while remaining mindful of the lessons of the past.

The Board continues to focus on managing current and

emerging non-financial risks. This includes reviewing the

company’s preparedness for issues that are particularly

relevant in today’s environment, such as cyber incidents

and data breaches. With the CORE program complete, our

focus on risk remains central as we deliver UNITE.

Consideration also extends to fostering strong

relationships with government and regulators to support

our shared interest in upholding the integrity of the

financial system.

This year, we transitioned to a new external auditor

KPMG, following an independent selection process to

appoint a new auditor after 55-years with former

auditor PricewaterhouseCoopers.

Board renewal and capability

Westpac's Board continues to evolve, strengthening

its collective skills, diversity and experience. This year,

we welcomed Debra Hazelton, David Cohen and Pip

Greenwood, who bring deep expertise across financial

services, governance and transformation.

Margie Seale, who has made a significant contribution to

the Board for many years, will retire as Chair of the Board

Remuneration Committee. Debra Hazelton will assume

this role with effect at the conclusion of the 2025 Annual

General Meeting.

Outlook

The rise of private and non-regulated credit, elevated

global debt levels and ongoing geopolitical tensions

present ongoing economic challenges. While the global

outlook remains uncertain, Westpac is well-positioned to

navigate this environment while executing its strategy and

supporting customers.

On behalf of the Board, I extend our gratitude to

shareholders, customers and the community for their

continued support as we focus on investing for growth

and delivering sustainable returns.

Yours sincerely,

Steven Gregg

CHAIRMAN,

WESTPAC

1.Refer to Creating value for the community (pages 32-35).

8WESTPAC 2025 ANNUAL REPORT
CEO’S REPORT

With renewed energy, clarity

and purpose, we are taking action

to make Westpac easier to bank with,

a better place to work and

simpler to operate to benefit

our stakeholders.

Dear fellow shareholders,

It has been a privilege to serve my first year as CEO, after

joining Westpac in 2020.

As Australia’s first bank, our company has a proud and

vibrant history of supporting customers and communities

for more than two centuries.

With renewed energy, clarity and purpose, we are taking

action to make Westpac easier to bank with, a better

place to work and simpler to operate to benefit our

stakeholders. This direction, shaped by feedback from

shareholders, customers, employees and regulators, is

designed to further strengthen our foundations and

address legacy challenges to become a more resilient,

customer-focused bank.

We began from a position of strength, with a robust

balance sheet and capital position that provide capacity

and flexibility to invest for growth. This is underpinned

by a diverse portfolio of trusted businesses serving

13 million customers.

Our areas of focus centre on five clear strategic priorities:

customer, people, transformation, risk and performance,

as outlined on page

10. We’re focused on executing

these with excellence, knowing that how we deliver is just

as important as what we deliver.

Customer: Improving service for deeper relationships

We’re determined to become the market leader by

consistently delivering excellent customer service that

builds trust, loyalty and stronger relationships to support

our growth.

Across our digital channels, branches, virtual teams and

Customer Care, we’re working as one team to deliver

the full breadth of our products with more timely and

personalised service. Our refreshed brand along with

our superior banking app, is helping us attract and

retain customers. With this whole-of-bank approach and

continued focus on the customer journey, we’re improving

our products, service and support. (Refer to page 24)

We track progress using two connected metrics: Net

Promoter Score (NPS®) and Main Financial Institution

(MFI). Improvements in NPS reflect growing customer

trust, which leads to greater engagement and more

customers choosing us as their MFI.

Transaction banking sits at the heart of customer

relationships and is the key driver of MFI. We’ve elevated

onboarding, loyalty rewards and everyday banking to

deepen engagement and support long-term growth.

We’re expanding in growth regions through new service

centres that combine retail and business banking, building

on our co-location strategy to improve efficiency. More

bankers with specialised expertise are helping lift NPS

and deepen relationships in priority segments.

Financial crime remains a national challenge and our

market-leading scam and fraud prevention tools are

helping to build trust by protecting customers in real time.

They helped to prevent $360 million in potential losses

over the past year.

These are some of the key initiatives we're working on to

support customer and brand advocacy. I was pleased to

see Consumer NPS improve to equal second place and in

Business, we lead in SME and Commercial however must

improve service to small businesses. While progress in

MFI was encouraging, particularly in Business & Wealth, it

remains below our aspirations.

People: Creating the best workplace

For our 35,000 people, we want to be the best workplace.

Diversity, equity and inclusion are essential to who we are

and how we operate. We’re committed to reflecting the

communities we serve and fostering a workplace where

everyone feels valued and respected.

We’re fostering a culture where service excellence and

customer obsession are central to everything we do. To

support this, we're investing in our people's professional

development while building skills in critical areas such as

generative AI, cyber awareness and data protection. We

have relaunched the Business Performance Academy, with

approximately 2,000 employees completing courses so far.

Meanwhile, the delivery of UNITE, which forms part of

our broader transformation, aims to streamline how our

people work and serve customers, helping to create a

more unified workplace.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
9

Risk: Excellence in execution

We see risk management not just as a form of protection,

but as a differentiator for Westpac. I am grateful to

our people who have embraced the effort to strengthen

our risk culture, governance and accountability. With

the CORE transition phase complete, APRA released the

remaining $500 million operational risk capital overlay

in October. Strengthening our risk practices remains an

ongoing priority.

Risk touches every part of our business and we're seeing

tangible benefits. For example, 77% of simple business

credit deals are auto-decisioned, freeing credit officers

to focus on more complex needs. Banker-led credit

approvals have risen from 8% to 28% over two years,

reflecting clearer credit settings, a stronger risk culture

and improved training. This has supported growth in

key segments.

Transformation: Investing for the future

While we have scale, unlocking its full potential requires

us to create an efficient operating environment by

addressing structural legacy issues that have persisted

for more than a decade.

UNITE aims to address these challenges. It is focused

on simplifying and removing duplication across the

bank by identifying the products, processes and

systems that represent our ‘One Best Way’ and

consolidating these onto a single technology stack. This

transformation aims to deliver better experiences for

customers and employees, reduce operating costs and

enhance our ability to compete and deliver sustainable

shareholder returns.

A newly formed Chief Transformation Office is overseeing

UNITE. We are also undertaking other strategic initiatives

such as Westpac One and BizEdge. These will deliver

market-leading capabilities that support our competitive

position. (Refer to page 40 for more information).

Performance: Balancing growth with returns

Financial performance reflected our strategy of balancing

growth with returns, while making the necessary

investments to support our future. We strengthened

our position in Business and Institutional banking while

improving performance in Consumer and New Zealand.

Business lending grew by 15%, with strong momentum

across priority sectors including health, professional

services and agriculture. Transaction deposits rose 8%.

In Institutional, deeper client relationships drove loan

growth of 17%. Progress was reflected in stronger

rankings across key Financial Market industry surveys

and a higher Markets income.

Consumer deposits increased 10%, underscoring the

strength of our business. While this is encouraging, we

recognise there’s more to do and are allocating resources

to improve our proprietary mortgage offering.

The transformation agenda has necessitated a period of

elevated expense growth, contributing to a rise in our

cost-to-income ratio to 53.1%. To address this, we’re

taking action to structurally lower costs through our Fit

for Growth program, which will help to offset expense

growth in FY26. Our medium-term objective is to deliver

an improved financial performance, culminating in a below

peer average cost-to-income ratio and an above peer

average ROTE.

Building stronger, more resilient communities

Beyond our five priorities, we’re proud to play an active

role in advancing social and economic prosperity in

Australia and New Zealand through our corporate giving

programs, targeted lending, supplier partnerships and the

independent charitable Foundations

1

.

Supporting customers in financial difficulty is another

way we help. We provided 46,485 hardship and disaster

support packages, helping three-quarters of these

customers get back on track by year-end.

For businesses, we extended $1 billion in working capital

solutions to help manage cash flow. We also doubled

our support for female entrepreneurs to $1 billion, which

has helped more than 1,800 women start or grow their

businesses since 2023.

In regional areas, we're improving banking access and

investing in sponsorships, scholarships and ag-tech to

help farmers tackle industry challenges.

Creating a better future

Australia’s strong governance and regulation have

historically made it attractive for global capital and talent

but this is not guaranteed. Weak productivity and over-

reliance on government risk undermining our success. A

smarter balance calls for bold, coordinated action across

government, regulators and the private sector.

From next year, our sustainability efforts will focus on

how we can further support three national priorities.

These reflect areas where we believe targeted action can

support the country's long-term prosperity and resilience.

•Accelerate Australia’s energy transition: Speeding

up the shift to renewable energy is essential to meet

climate goals and create economic opportunities;

•Build more homes for Australians: Addressing the

structural under-supply of housing in the $500K price

range; and

•Grow Australia’s regional cities: Investment is vital

for population growth, economic diversification and

national resilience.

Looking ahead, I’m pleased with our direction and

energised by the opportunities ahead. With a clear

strategy driving our momentum, Westpac is well placed

to deliver long-term value for shareholders and help build

a better future.

Yours sincerely,

Anthony Miller

CEO

1.Refer to Creating value for the community (pages 32-35).

10WESTPAC 2025 ANNUAL REPORT
OUR STRATEGY

Our refreshed strategy outlines five priorities that will help us achieve our

ambition: To be our customers' number one bank and partner through life.


PERFORMANCE

CUSTOMER

PEOPLE

TRANSFORMATION

RISK


For customers, we are focused on delivering a seamless banking experience across every channel; in branch, digitally

and by phone. A whole-of-bank approach seeks to bring our people together, to offer the full breadth of our products

with more timely, personalised service. This, combined with digital innovation and investment in platforms such as

BizEdge, Westpac One and Digital Banker, supports our ambition to lead in Consumer and Business Net Promoter Score

(NPS

1

) and for Institutional, to achieve the number one position in the Relationship Strength Index (RSI

2

).

For our people, we recognise we must provide a market-leading employee proposition to deliver superior customer

experiences. To sustain high engagement and attract and retain the best talent, we’re committed to equipping our

people with future-ready skills and creating a more rewarding, supportive work environment.

Proactive risk management is central to Westpac's strength and resilience. Through the completion of the CORE

program, we’ve taken steps to significantly transform our risk culture, governance and management practices.

Sustaining and continuously strengthening these improvements across Westpac remains a priority.

Transformation is critical to our future success. Our cornerstone program UNITE aims to unlock long-term value

simplifying products, processes and systems to help deliver improved customer experience, make work easier for

our people and reduce operating costs. Complementing UNITE are two flagship digital innovations, BizEdge and

Westpac One.

We measure performance by market position and return on tangible equity (ROTE). We are pursuing growth that

delivers sustainable returns, focusing on areas where we can differentiate Westpac's customer offering. Maintaining

cost discipline remains important, with simplification through UNITE expected to play a key role in reducing our cost

base and closing our cost to income gap relative to peers.

1.

Refer to the Glossary (pages 260-263) for more information on NPS.

2.Coalition Greenwich Voice of Client 2025 Australia Large Corporate Relationship Banking Study.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
11

Foundations for sustainable growth

BALANCE SHEET STRENGTH


DIVERSIFIED PORTFOLIO


EMPLOYEE ENGAGEMENT


Capacity to invest and

grow for the long term

Enviable portfolio mix across

four business segments

Top quartile of

workplaces globally (OHI)

Our business segments

SegmentWho we serveKey execution focus areas

Consumer

Helping more Australians into their

home, save for the future and manage

their money through a range of banking

products and services offered through

the Westpac, St.George, BankSA and

Bank of Melbourne brands.

•Elevate experiences through

personalised, digital first service;

•Deepen relationships and expand

in priority segments; and

•Grow proportion of

proprietary lending.

Business & Wealth

Serving the needs of small to medium

businesses, commercial and agribusiness

customers across Australia. The segment

includes Private Wealth, supporting high-

net-worth individuals, as well as BT

Financial Group, which provides wealth

management platform services. It also

includes Westpac Pacific, operating in Fiji

and Papua New Guinea.

•Continue lending momentum

through BizEdge;

•Deepen relationships and enhance

transaction banking capability; and

•Expand banker presence, training

and expertise.

Institutional

Delivering financial services to corporate,

institutional and government clients

through three areas of specialisation:

Corporate & Institutional Banking,

Global Transaction Services and

Financial Markets. Clients are supported

throughout Australia and via branches

and subsidiaries located in New

Zealand, New York, London, Frankfurt

and Singapore.

•Rollout Westpac One and

payments innovation;

•Deepen client relationships and grow

share of FX and commodities; and

•Invest in expert bankers enabled by

data, analytics and AI.

New Zealand

Providing banking and wealth services

for consumer, business and institutional

customers in New Zealand, through the

Westpac New Zealand, Westpac Life and

BT Funds Management (NZ) brands.

•Target growth in business lending;

•Invest in digital capability; and

•Improve market position and returns.

12WESTPAC 2025 ANNUAL REPORT
Top and emerging risks

We regularly assess our operating environment to identify changes, emerging risks and opportunities. The factors

1

below may affect Westpac’s ability to create value over the short, medium or long term.

For further information, refer to Risk Management (pages 42-49) and 2025 Risk Factors.

Geopolitical risk

Uncertainty around world trade policy remains a key

global risk, with potential impacts on trade, supply

chains and investor confidence.

Combined with broader geopolitical tensions and

ongoing global conflicts, these factors may influence

export demand, commodity prices and inflation not

only in Australia and New Zealand but also in other

markets where Westpac operates.

Our response

Credit markets where Westpac operates remain resilient,

supported by strong domestic fundamentals and a

stable financial system. Westpac’s capital position and

balance sheet remain strong. We will continue to monitor

developments closely and, as part of our origination process,

assess all known risks at the time of origination to help

manage risk whilst meeting customer needs.

Refer to Credit Risk and Market Risk (pages 44-49).

Technology risk

Technology remains a key priority for Westpac,

enhancing our ability to create long term value

for stakeholders. The adoption of AI is progressing

rapidly within the financial services industry. AI will

have positive impacts such as improving operational

efficiency however it is important to ensure its safe

and responsible use.

Our response

Westpac continues to invest in technology and has

introduced Responsible AI Principles and an AI Risk

Management Standard, which is designed to support

effective management of AI-related risks. Its implementation

is supported by awareness campaigns and training programs

aimed at strengthening overall risk management capabilities.

Refer to Strategic Risk (pages 44-49).

Cyber risk

The cyber threat landscape poses a risk to

financial stability by targeting critical infrastructure,

undermining public trust, and exposing institutions

to operational, legal and reputational harm.

High levels of interconnectedness and dependence

on third party suppliers, combined with rapid

technological change, such as the adoption of AI and

a rise in international threats, are contributing to

increased cyber risk.

Our response

We continually assess and strengthen our cyber resilience

to defend against increasingly sophisticated and capable

threat actors. We also actively work with government,

regulators, and industry stakeholders to bolster Australia’s

cyber defences, including through threat intelligence sharing

and support for cyber security reforms.

Refer to Cyber Risk and Operational Risk (pages 44-49).

Culture and capability

Managing and responding to expectations from

customers, 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.

Our response

Risk is one of our top five strategic priorities. We

regularly assess our risk culture and have strengthened our

risk management and governance through the successful

delivery of the CORE program. We aim to build on these

improvements by ensuring our people and processes are

aligned to deliver our purpose and strategy.

Refer to Reputational and Sustainability Risk and Compliance

and Conduct Risk (pages 44-49).

Competition

Competition in the lending market remains elevated,

driven by financial institutions and non-bank lenders

seeking to expand market share. At the same time

the increasing share of brokers is placing pressure

on returns.

The potential for regulatory arbitrage between bank

and non-bank lenders is reshaping the lending

landscape, influencing how lenders compete across

risk, capital and service delivery.

Our response

We actively manage the impact of external changes that may

affect our ability to deliver on our strategy.

Continued simplification, innovation, and investment in

technology are critical to delivering more consistent

high quality customer service, products and value

at scale and maintaining operational resilience in a

competitive environment.

Refer to Credit Risk and Strategic Risk (pages 44-49).

1.Not exhaustive. Refer to Risk Management (pages 42-49) for full table of material risk categories.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
13

Our approach to sustainability

At Westpac, sustainability is about creating long-term

value for our stakeholders. By identifying what matters

most to them, we aim to ensure their priorities and

concerns are considered in our decision-making, helping

to strengthen our long-term value.

Our approach is anchored in our Sustainability Strategy

which aligns with our corporate strategy and refreshed

purpose. It outlines how we will embed sustainability

across the strategic pillars and the focus areas of climate

transition, housing affordability and regional prosperity.

The Chief Sustainability Officer (CSO) reports directly to

the CEO and is responsible for developing and overseeing

the Sustainability Strategy and a suite of supporting

policies, positions and plans.

Progress on how we manage, implement and deliver our

strategy, frameworks and initiatives is regularly reviewed

through Board and executive-level governance forums.

External engagement with our stakeholders also plays an

important role by bringing wider perspectives to inform

our approach. This supports our decision making and the

annual materiality assessment.

Our Sustainability Strategy is available on

our website.

Sustainability-related disclosures

Westpac’s sustainability reporting aims to provide

stakeholders with insights into performance over time and

against key benchmarks.

It covers progress on climate action, natural capital,

human rights and support for Indigenous Australians,

providing details of our impact and connection with

global standards. This includes the Sustainability Report

and Sustainability Index and Datasheet, available on

our website.

Sustainability Report

The 2025 Sustainability Report details Westpac’s strategy,

targets, and approach for managing climate-related risks

and opportunities. The report also provides updates on

our efforts to reduce emissions, assist customers in

their transition and improve climate resilience. Replacing

Westpac’s previous Climate Report, the document

prepares us for mandatory climate reporting from

next year.

Climate Transition Plan

This year marked the end of the 2023-2025 Climate

Change Position Statement and Action Plan. This has

been replaced by a Climate Transition Plan (CTP). Built

on stakeholder feedback, the CTP outlines our targets and

approach to achieving our climate ambition of becoming a

net-zero, climate resilient bank. 

Our sustainability disclosures can be found on

the website.

Material sustainability topics

Our method for determining material topics is guided

by the Global Reporting Initiative (GRI) Universal

Standards. We report on material topics throughout

this report.

For detailed information on how we engage with our

stakeholders, identify and assess these topics, please

visit our website.

Financial Performance

Compliance and Regulation

Technology

Simplification (UNITE)

Refer to pages 16- 21

Vulnerable customers

Data Privacy and Security

Financial Inclusion

Housing affordability

and security

Fraud and scams

Refer to pages 22-27

Employee engagement

Health and safety

Diversity, equity and inclusion

Communities

Indigenous peoples

Refer to pages 28-31

Human rights and

modern slavery

Sustainable supply chain

Tax transparency

Refer to pages 32-35

Climate Change

Natural Capital

Refer to pages 36-39

Artificial Intelligence,

Cybersecurity and Data

Refer to page 41

Ethics and business conductRefer to page 50

Anti-money laundering/

Counter-Terrorism Financing

Refer to page 101

HOW WE CREATE VALU E
• 208-year heritage

• Customer needs

• Competition

• Regulatory environment

•Technology and artificial

intelligence (AI)

• Geopolitical and climate risks

• Financial strength

• Customer relationships

• 35,000 motivated people

• Proactive risk management

• Digital and physical infrastructure

• Diverse partnerships

Provide financial products and services to

13 million customers in our core markets

of Australia and New Zealand, focusing

on five priorities:

What shapes us What we do

What we rely on

Customer: Customer obsessed

People: Best team, trusted experts

Transformation: Brilliant at delivery

Risk: Safe and Strong

Performance: Execution Excellence

Our purpose

TAKING ACTI ON NOW TO

CREATE A BETTER FUTURE

14WESTPAC 2025 ANNUAL REPORT

The value we create
Shareholders

Deliver sustainable returns

and disciplined growth.

Customers

Support customers and

businesses to achieve their

financial goals.

Our People

Develop engaged,

empowered and accountable

people, working as a team.

Community

Foster financial inclusion and

prosperity while advancing

human rights.


Environment

Support the energy transition,

manage our climate risk and

reduce our carbon footprint.

29%

Refer to pages

17 to 21

total shareholder

return

13M

Refer to pages

22 to 27

Customers

80

Refer to pages

28 to 31

OHI score

$199M

Refer to pages

32 to 35

in community

investment

1

37%

Refer to pages

36 to 39

increase in sustainable

finance lending

2

1. Figure includes commercial sponsorships and foregone fee revenue.

2. Refer to 2025 Sustainability Report for definitions and detail.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION

15

Jordan
Mobile Lending Manager

Broadbeach, QLD

16WESTPAC 2025 ANNUAL REPORT

CREATING

VALUE FOR

SHAREHOLDERS

By maintaining a strong balance

sheet and focusing on service

excellence, we aim to strengthen

our market position and deliver

long-term value for shareholders.

Related material topics (refer to page 13)

•Financial performance

•Compliance and regulation

•Technology simplification (UNITE)

Key highlights

153c

FULL YEAR ORDINARY

DIVIDENDS PER SHARE

29%

TOTAL

SHAREHOLDER RETURN

201.9c

BASIC EARNINGS

PER SHARE

12.5%

CET1 CAPITAL RATIO

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
17

Shareholder returns

To create value for our 571,800 shareholders we aim to sustainably improve

returns.

The modest decline in net profit resulted in an 11 basis

point reduction in ROE to 9.7% and a 24 basis points

decrease in ROTE, excluding Notable Items, to 11.0%.

Basic earnings per ordinary share were 201.9 cents, up 1

cent on 2024.

Our total shareholder return (TSR) was 29%.


ROE (%)


9.89.7

FY24FY25

ROTE, EXCLUDING

NOTABLE ITEMS(%)

11.2

11.0

FY24FY25

Dividends

This year, shareholders will receive $5.2 billion through

fully franked ordinary dividends. Ordinary dividends were

up 2 cents per share, or 1%.

This year’s payout ratio is 76% on a net profit basis and

the adjusted dividend payout ratio was 75%. Dividends per

share increased to $1.53.

In 2024, in addition to ordinary dividend we returned

$0.5 billion of capital through a 15 cent special dividend.

ORDINARY DIVIDEND PER ORDINARY SHARE (CENTS)

142

151

153

70

75

76

72

76

77

InterimFinal

FY23FY24FY25

We are focused on building stronger customer relationships while investing to

improve our market position to deliver long term value for shareholders.

Deeper relationships

With a large customer base and an extensive product

and service offering, we have a significant opportunity

to deepen relationships with customers to meet the full

breadth of their needs.

To support this, we have adopted a whole-of-bank

approach to help deliver personalised, seamless and

secure banking experiences. We have also expanded

our presence with more bankers and new regional

service centres.

Our banking apps, extensive branch network, virtual

teams and dedicated Customer Care reflect our

commitment to meeting customers where they prefer ‒

digitally, in-person and by phone.

Stronger relationships will support more customers

choosing us as their main financial institution.

Refer to Creating value for customers (pages 22-27)

for more.

Investing for the future

We are transforming the company through our ‘One

Best Way’ philosophy, driving simplification, consistency,

efficiency and innovation to help make banking easier and

more effective. Total investment spend was $1.9 billion.

The UNITE program accounted for 34%, growth and

productivity initiatives were 30% and 36% was directed

towards risk and regulatory activities.

The UNITE program aims to unlock long-term value by

addressing structural legacy issues that have hindered

our progress for more than a decade. It is focused

on simplifying products, processes and systems to help

deliver improved customer experience, make work easier

for our people and reduce operating costs.

Other strategic imperatives that remain critical to

our transformation agenda include – WestpacOne

and BizEdge.

Refer to Transformation (page 40) for more.

Unless otherwise stated, all figures in the Creating value for shareholders section relate to the year ended

30 September 2025 with comparative period the year ended 30 September 2024. Certain amounts, measures and

ratios are not defined by Australian Accounting Standards (AAS). These non-AAS measures are identified and

described in Non-AAS financial measures (refer to pages 240- 245).

18WESTPAC 2025 ANNUAL REPORT
Growth in our core markets

Deposits and loans grew by 7% and 6% respectively, reflecting solid

deposit growth across all segments and momentum in Business and

Institutional lending.

Australian household deposits growth of 1.0x APRA system demonstrates

the health of our franchise. Business deposits increased 6% primarily in

transaction balances driven by new account openings and retention.

Growth in Australian housing loans, excluding RAMS

1

, of 5%, or 0.8x APRA

housing system, was mainly in owner occupied mortgages. The proportion

of investor lending increased over the year reflecting our targeted strategy.

Total Australian housing loans growth was 3%.

In Business, lending was up 15%. This included strong loan growth

in our target sectors of agriculture, health and professional services

performing well. Institutional lending growth of 17% reflected activity in the

infrastructure, resources, energy and property sectors.

New Zealand deposits grew by 2% with solid growth of 0.3x RBNZ system

in household deposits partly offset by a strategic decrease in Institutional

term deposits which have a lower liquidity value compared to other

sources of funding. Loans increased by 4% due to growth in housing and

business lending.

CUSTOMER DEPOSITS ($BN)

673.6

723.0

Sep-24Sep-25

GROSS LOANS ($BN)

811.3

856.4

Sep-24Sep-25

Solid financial result

$6.9BN

Statutory net profit, down 1% on FY24

$7.0BN

Net profit excluding Notable Items, down 2% on FY24


Net profit was delivered through disciplined management of net interest margins and balance sheet growth across

our businesses. The rise in operating income reflected our strategy of balancing growth and returns. The increase in

operating expenses included a restructuring charge of $273 million in the Second Half of 2025 to support targeted

productivity initiatives under our Fit for Growth program. Excluding this charge, the growth in operating expenses was

driven by the ramp up in UNITE investment, wage growth and higher software amortisation. The low level of impairment

charges reflected credit quality improvements across all segments.

$mFull Year 2025Full Year 2024Full Year 2023% Mov't 2025-2024

Statutory net profit6,9166,9907,195(1)

Notable Items(56)(123)(173)(54)

Excluding Notable Items:

Net profit6,9727,1137,368(2)

Net operating income22,46421,76321,5423

Operating expenses(11,916)(10,944)(10,232)9

Pre-provision profit10,54810,81911,310(3)

Impairment charges/(benefits) to average loans5 bps7 bps9 bps(2 bps)

Performance measures excluding the impact of Notable Items are non-AAS measures used by management as

they better reflect underlying performance. Pre-provision profit is also a non-AAS measure which management

consider useful as it provides a view of the operating performance of the Group. The definitions and a

reconciliation to the statutory equivalent are provided on pages 240- 245.

1.RAMS was closed to new business from August 2024.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
19

Net operating income excluding Notable Items

Net interest income increased 3% driven by growth in average interest earning assets.

The NIM was 1.94% and comprised:

•Core NIM of 1.81%, down 1 basis point, with slightly lower lending and deposit spreads

more than offsetting benefits from higher earnings on capital and hedged deposits.

•Treasury and Markets, contribution of 13 basis points.

Average interest-earning assets increased by 3% to $1,003 billion, including growth of

11% in business and 2% in housing loans.

Non-interest income increased by 5%. Key movements included:

Fee income increased by 4% mainly reflecting higher Institutional lending and cards fees.

Trading and other income increased by 7% mainly due to higher foreign exchange income

and favourable derivative value adjustments.

Net wealth management income increased by 8% from higher funds under administration.


$19.5bn

Net interest income

FY24 $18.9bn


1.94%

Net interest margin (NIM)

FY24 1.95%


$3.0bn

Non-interest income

FY24 $2.8bn


Performance measures above exclude the impact of Notable Items. These measures together with Core net

interest income and Core NIM are non-AAS measures used by management as they better reflect underlying

performance. The definitions and a reconciliation to the statutory equivalent are provided on pages 240- 245.

Operating expenses

Operating expenses increased 9%. The increase included a restructuring charge of

$273 million in the Second Half of 2025 to support targeted productivity initiatives under

our Fit for Growth program. Excluding this cost, operating expenses increased by 6%.

Key movements included:

Staff expenses increased by 7%

a

mainly due to wage growth, UNITE and the investment

in bankers. Average FTE increased by 1% with the increase to support UNITE and the

investment in bankers more than offsetting reductions from productivity initiatives.

Occupancy expenses decreased by 7% with further reductions in the Group's corporate

and branch footprint.

Technology expenses were up 13% due to higher costs related to the UNITE program, an

increase in software amortisation related to projects completed in prior years and higher

software maintenance and licensing costs.

Other Expenses decreased by 3%

a

due to lower professional and servicing costs and

higher costs in the prior year from the closure of RAMS, partly offset by higher litigation

and remediation costs, and advertising spend.

Fit for Growth restructuring expenses to support targeted productivity initiatives were

$273 million in the Second Half of 2025.

The expense to income ratio increased to 53.2% and excluding Notable Items the ratio

increased to 53.0%.

$11.9bn

Operating expenses

FY24 $10.9bn


53.2%

Expense to income ratio

FY24 50.7%


53.0%

Expense to income ratio

excluding Notable Items

FY24 50.3%


a.Excluding the impact of the Fit for Growth restructuring expenses.

There were no Notable Items impacting operating expenses in FY25 or FY24. The expense to Income ratio

excluding Notable Items is a non-AAS financial performance measures used by management as it better reflects

underlying performance. The definition of these items is provided on pages 240- 241.

20WESTPAC 2025 ANNUAL REPORT
Credit quality sound, strong balance sheet

Credit quality improved and we maintained a strong financial position with

capital, funding and liquidity all above regulatory minimums.

Credit quality

Credit impairment charges represented 5 basis points of average gross

loans compared to 7 basis points in the prior year. The low level of

impairment charges was driven by our prudent lending practices and

customer resilience across both households and businesses.

The improvement in credit quality metrics reflects a more favourable

operating environment and the reduction in household cost of living

pressures as inflation has eased and interest rates have declined in both

Australia and New Zealand.

We remain appropriately provisioned with credit impairment provisions of

$4,987 million, $1.9 billion above the expected losses of our base case

economic scenario. Over the year provisions decreased by 2% with an overall

improvement in portfolio credit quality more than offsetting an increase in

the downside scenario weight and higher overlays.

STRESSED EXPOSURES AS A %

OF TCE

1.45

1.28

Sep-24Sep-25

Capital

The CET1 capital ratio of 12.5% is above our target ratio

of 11.25% in normal operating conditions. This equates

to $3.1 billion of capital above the target after payment

of the second half 2025 dividend.

The CET1 capital ratio increased 4 basis points as net

profit was largely offset by the payment of dividends

and increases in Risk Weighted Assets (RWA).

CET1 CAPITAL RATIO

12.512.5

18.318.3

APRA basisInternationally comparable

Sep-24Sep-25

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 $28 billion of new long term wholesale funding. Long

term wholesale funding needs in 2025 were lower compared to recent

financial years, reflecting growth in household deposits and lower wholesale

funding maturities.

The bank maintained stable short term wholesale funding balances, with

movement mainly driven by changes in FX rates. Long term wholesale

funding where the residual maturity is less than one year increased.

LCR AND NSFR (%)

133

112

137

113

LCRNSFR

84.9%

Deposit to loan ratio,

up 137bps on Sep-24

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
21

Segment performance

Our operating segments including Group Businesses contribute to Group performance. For descriptions of Consumer,

Business & Wealth, Institutional and New Zealand refer to page

11. Group Businesses includes Treasury, Enterprise

services and other costs not directly attributable to segments. In 2025, the composition of our segments was revised to

improve operational alignment. Prior year comparatives have not been restated. The key changes included:

•The merchants services business was transferred from Business & Wealth to Institutional given strategic alignment

with management of payments infrastructure;

•The contribution from the auto finance portfolio which was sold in March 2025 was transferred from Business &

Wealth to Group Businesses; and

•Centralisation of Finance and Human Resources into Group Businesses.

The impact of Notable Items on net profit, income and expenses have been excluded from the Segment Performance

section. These measures are used by Westpac for management reporting and is consistent with the disclosure in Note 2.

Consumer

Net profit increased 4% to $2,282 million and pre-provision profit increased 4% to $3,492 million.

Segment composition changes had a minimal impact, with pre-provision profit also rising 3%.

Operating income rising 4% and operating expenses increasing 4%. The increase in operating

income reflected 3 basis points of net interest margin expansion with disciplined growth in

mortgages and strong deposit growth. Expense growth was driven by a step up in UNITE spend

and inflationary pressures, partly offset by benefits from productivity initiatives. Impairment

charges to average loans were 4 basis points, compared to 5 basis points in the prior year. The

decrease reflects the improvement in credit quality metrics.

33%

Contribution to

Group net profit

Business & Wealth

Net profit decreased 7% to $2,186 million and pre-provision profit fell 4% to $3,383 million.

Excluding the impact of segment composition changes, pre-provision profit fell 1% with a 3%

increase in operating income more than offset by a 10% increase in operating expenses. Operating

income reflected strong growth in lending balances, partly offset by a lower net interest margin,

while operating expenses increased due to the step up in UNITE spend and investment in front line

bankers. Impairment charges to average loans were 23 basis points, compared to 14 basis points

in the prior year. The increase reflects an increase in the downside scenario weight and higher

overlays, while credit quality metrics improved.

31%

Contribution to

Group net profit

Institutional

Net profit increased 15% to $1,575 million and pre-provision profit increased 6% to $2,161 million.

Excluding the impact of segment composition changes, pre-provision profit rose 2%, with a 5%

rise in operating income more than offsetting an 11% increase in operating expenses. The growth

in operating income reflects lending growth and higher earnings on capital. The 11% increase in

operating expenses was driven by increased investment spend, including the step up of UNITE

and higher software amortisation, in addition to an increase in bankers to support growth. The

impairment benefit of $1 million, compared to a 13 basis point charge of $120 million in the prior

year. The decrease reflects the improvement in credit quality metrics.

23%

Contribution to

Group net profit

New Zealand

Net profit increased 13% to NZ$1,197 million and pre-provision profit increased 8% to

NZ$1,618 million, reflecting an 8% increase in operating income which more than offset a 7%

increase in operating expenses. Operating income reflected growth in lending and a higher net

interest margin, while operating expenses were driven by higher staff expenses, third party vendor

costs, software amortisation and higher investment spend. The impairment benefit was 4 basis

points of average loans, compared to a charge of 3 basis points in the prior year. The decrease

reflects the improvement in credit quality metrics.

16%

Contribution to

Group net profit

Group Businesses

Net loss of $161 million compared to a net profit of $227 million. Excluding the impact of segment composition

changes pre-provision profit also decreased 92%, reflecting an 11% decrease in operating income and a 34% increase

in operating expenses. The decrease in operating income reflects lower income on surplus capital, while operating

expense growth reflects the restructuring charge as part of the targeted productivity initiates through the Fit for

Growth program.

22WESTPAC 2025 ANNUAL REPORT
CREATING

VALUE FOR

CUSTOMERS

By adopting a whole-of-bank

approach, we are creating

more personalised, seamless

and secure banking

experiences that build long-

term trust and value.


Related material topics (refer to page 13)

•Vulnerable customers

•Data privacy and security

•Financial inclusion

•Housing affordability and security

•Fraud and scams

Key highlights

13M

CUSTOMERS

#

1

MOBILE BANKING APP

1

21%

AUSTRALIAN MORTGAGE

MARKET SHARE

2

#2

CONSUMER NPS

3

RANKED

EQUAL SECOND

1.The Forrester Digital Experience Review: Australian Mobile

Banking Apps, Q3 2025.

2.APRA Banking Statistics, September 2025.

3.Refer to the Glossary (pages 260-263) for more information

on NPS.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
23

Australia’s best banking app

Westpac’s banking app continues to set the benchmark

for digital banking in Australia, ranked #1 for a third

consecutive year

1

.

To recognise and reward customer loyalty, we launched

a dedicated Westpac Rewards hub. This is designed to

make it easy for customers to find, track and redeem

rewards across multiple channels.

Customers received more than $159 million in rewards

value across multiple loyalty channels, including our

market first partnerships with ShopBack and Woolworths

Everyday Rewards.

Westpac customers can access essential everyday

banking features alongside valuable money management

tools, such as Cashflow and Smart Search, which support

decision making and financial goal setting.

The Savings Finder feature analyses annual spending

on subscriptions and recurring expenses to identify

potential savings opportunities, enhancing customer value

and engagement.

Across all digital channels, an average of 1.1 million

customers each month use money management tools

to budget, track spending and understand their

financial position.

To support safe digital banking, we expanded our market-

leading security features designed to protect customers

from scams and fraud. Westpac SafeCall and SafeBlock

are our latest Australian-first innovations.


Refer to Innovating to protect customers (page

25) for more information on our suite of

digital innovations.


Enhancing financial literacy

We are committed to improving the financial wellbeing

of customers and the community through free financial

education initiatives.

We have a long-standing partnership with Year13, an

online financial literacy platform designed for young

Australians. The program offers engaging and practical

content to build lasting financial habits. We connect with

this important demographic through relatable examples

and interactive content, such as videos, quizzes and self-

paced modules, delivered via the social channels they

use most.

We also invest in digital tools and youth engagement

programs. Our banking app’s Pocket Money and Chores

feature supports parents in teaching children about

saving and spending in a fun, engaging way. An online

Financial Literacy Hub offers tailored learning resources

for kids, teens and school leavers.

In a new collaboration with an online influencer, we

produced a 12-part series called Financial Fresh Start,

focused on building good financial habits and awareness,

along with steps customers can take with support from

their bank.

In New Zealand, 12,206 people participated in Managing

Your Money workshops, representing a 9% increase on the

previous year. These were delivered alongside targeted

seminars through our partnerships with Chambers

of Commerce.

In the Pacific, we deliver culturally relevant financial

education in Fiji and Papua New Guinea, reaching

thousands of people and small business owners through

webinars and workshops such as Financial Basics for

My Business.

1.

The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q3 2025.

SECURE LIVE CHAT SUPPORT

Customers now enjoy secure conversations with bankers

via the Westpac Live app, with the ability to access chat

history for up to 30 days and receive push notifications.

All conversations are encrypted through Westpac’s

secure messaging network. This enhancement, delivered

under UNITE, involved consolidating two chat platforms

into one and migrating approximately 8 million

customers to a single live person chat system.

The initiative cost $7.3 million and is expected to deliver

$3.7 million in annual expense savings.

24WESTPAC 2025 ANNUAL REPORT
CREATING VALUE FOR CUSTOMERS

Delivering service excellence

Exceptional customer experiences depend on many

factors, including ensuring our people, systems and

processes work together seamlessly to deliver timely,

consistent and personalised service.

We are focusing on connecting the full breadth of

our capabilities, across every operating segment and

customer touchpoint, to bring the whole bank to

customers. This integrated approach aims to remove

customer pain points, strengthen advocacy and build

deeper relationships over time.

Through mapping, measuring and improving more than

15 critical customer journeys across our Australian

operations, we are helping teams to walk in customers’

shoes and drive cross-functional collaboration. This also

provides us with better insights to help customers achieve

their financial goals. While the program is a recent

initiative, early feedback indicates customers are engaging

with a broader range of our products and services.

In addition, we are extending the rollout of the single

banker platform, Digital Banker, to support approximately

20,000 employees across Consumer and Business.

This portal captures customer interactions and needs,

providing better insights and experiences for customers

and bankers.

Prioritising safety in products

and services

We were proud to develop Australia’s first Safety

by Design Toolkit for financial institutions, placing

customer safety and rights at the centre of product and

service design.

In collaboration with the Australian Banking Association,

the toolkit includes customer vulnerability personas, lived

experience videos and mandatory eLearning for product

managers. It has been shared with peer organisations to

help support more Australians, regardless of who they

bank with.

Westpac remains committed to sector-wide reform,

advocating for Safety by Design across banking and

beyond, so customer safety is built-in from the start.

Providing support in tough times

We understand that anyone can fall on tough times so our

Assist team provide a range of

tailored solutions to help

customers regain financial stability.

This can include short-term options such as payment

pauses and reduced repayments, as well as longer-

term assistance plans designed to support recovery.

We also connect customers with our wider network of

external partners, extending support into wellbeing and

financial empowerment. By collaborating with respected

organisations, we hope to help strengthen families and

communities, break cycles of disadvantage and build

lasting financial confidence.

We supported customers with 46,485 tailored hardship

assistance and disaster relief packages, giving customers

financial reprieve and the chance to get back on track. At

the end of the financial year, 10,870 accounts remained

in hardship.

Through UNITE's collections migration, we are

consolidating multiple legacy systems into a single

platform to support customers and reduce complexity. It

includes new tools to help teams respond to customers in

hardship with greater consistency and care.

Resolving complaints

Complaints are a second chance for us to make things

right for customers. Our monthly average resolution

time is stable, with 94% of complaints resolved without

need for escalation. Our Customer Advocate also

provides advice, while recommending policy changes and

supporting vulnerable customers.

Listening to feedback helps us to continuously improve

our products and services. Importantly, we are using

complaints as a key input into the customer journeys

initiative, ensuring we have a genuine view of pain points

and the end to end customer experience. For example,

through UNITE, we introduced the option for eligible

Westpac home loan customers to set up multiple offset

accounts with no additional fee – providing more choice

and control in how they manage their finances. More than

35,000 offset accounts have been set up since February.

Listening to customers

We proactively and continuously seek customer

feedback, using insights from Net Promoter Score (NPS)

1

surveys, complaints and direct feedback which helps us

to measure progress and identify areas for improvement.

To be Australia’s best bank, we recognise there is

more work needed to lift customer and brand advocacy.

In Consumer, NPS

1

improved during the year, despite

intense competition. We are currently ranked equal

second in Consumer NPS

1

.

In Business, we hold an NPS

1

score of minus one

and have established clear leadership in the SME

and Commercial sub-segments. We are prioritising

improvements in our service offering for small business

customers, recognising the importance of this segment

to our Business & Wealth strategy.

For our Institutional customers, we aim to be their bank

of choice, supporting all their banking needs through

strong relationships and comprehensive solutions. Our

Relationship Strength Index (RSI

2

) rose by 19 points,

marking our highest score in a decade. While we are

currently in equal third position, our focus on deepening

relationships positions us well for continued growth in

this segment.

1.

Refer to the Glossary (pages 260-263) for more information on NPS.

2.Coalition Greenwich Voice of Client 2025 Australia Large Corporate Relationship Banking Study.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
25

Innovating to protect customers

We continue to play a critical role in safeguarding

customers from the growing risk of cyber threats and

financial crime. Through digital innovation, AI and a multi-

layered security approach, we continuously enhance our

real-time protections.

We were the first Australian bank to offer the benefits of

SaferPay and more recently SafeCall, which verifies

Westpac calls for customers directly through the app.

SafeBlock was also launched along with Confirmation of

Payee, which builds on our existing Verify technology and

has been adopted industry-wide.

Our suite of digital innovations helped to further reduce

reported customer losses by 21% and prevented

$360 million in potential losses. This outcome reflects our

commitment to supporting customers’ financial wellbeing

by helping them stay safe in a complex digital

environment.

WESTPAC SAFECALL

Customers receive calls via the

banking app that are Westpac

branded, verified by Optus and

show a reason for the call to

remove uncertainty about who is

contacting them.


WESTPAC SAFEBLOCK

Allows customers to instantly

lock their eligible accounts

and cards, including blocking

outgoing payments, transfers,

and purchases, if they suspect

fraud or a scam, while allowing

deposits and scheduled payments

to continue.


CONFIRMATION OF PAYEE

Alerts customers when there is a

potential account name mismatch

by checking if the account name

entered by a payer matches the

details held by the receiving

bank, further reducing the risk of

misdirected payments.


Educating and empowering customers

Prevention and detection go hand in hand, which is why we work proactively to keep customers informed about

emerging threats. Our Cyber Response Playbook and Scam Spot video series inform customers and the community on

new tactics. To empower customers, our app offers additional security tools including the Security Wellbeing Check,

Westpac Protect SMS Code, Dynamic CVC and biometric authentication to help customers safeguard their accounts.

Providing timely support

Fraud and scams can have devastating and widespread impacts. While we make every effort to recover funds sent to

scammers, this is unfortunately not always possible. Our dedicated Fraud and Scams team, supported by AI and

automation, detect suspicious patterns and risks to support customers in critical moments. We launched a new feature

in the app that enables customers to report scams, fraud, or mistaken payments quickly and securely. Our Online

Banking Security Guarantee

1

and Fraud Money Back Guarantee

1

continue to offer peace of mind in certain situations.

Advocating for change

We continue to advocate for a whole-of-ecosystem approach to scam prevention. We supported the development of the

new Scams Prevention Framework Act 2025, which requires all parties, including banks, telcos, and social media

platforms, to take preventative steps to protect consumers. We continue to work closely with industry peers to inform

policy and regulatory settings under this new legislation.

SAFERPAY PROTECTS RETIREES FROM INVESTMENT SCAM

An elderly couple attempted to transfer $500,000 to what they believed was a legitimate high-interest

term deposit. The offer came from scammers posing as financial advisers, complete with official-looking

documentation. Their online transactions triggered real-time SaferPay prompts that exposed inconsistencies. Our

team intervened immediately, preventing any financial loss.

The customers were incredibly relieved that SaferPay had stepped in to protect them.

1.Refer to Online Banking Terms and Conditions and relevant Card Terms and Conditions.

26WESTPAC 2025 ANNUAL REPORT
CREATING VALUE FOR CUSTOMERS

Maintaining community presence

We recognise that many customers prefer face-to-face

support, particularly when making important financial

decisions. We provide trusted support across 621

branches which includes 125 co-located branches.

This represents the second-largest branch network in

Australia, with more than 37% of these located in regional

areas. We have the largest fee-free ATM network in

the country.

Complementing our branch network is a Virtual Banking

team, providing secure, expert support via phone, video,

and chat. From early 2026, customers will also have

access to a new Book a Banker tool, facilitating

appointments with lenders when it suits them. Our long-

standing partnership with Australia Post offers another

face-to-face banking option through 3,300 Bank@Post

outlets nationwide.

Supporting Indigenous customers

Westpac supports Indigenous customers across multiple

channels including a dedicated Indigenous Call Centre

with translators 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 and support their

banking needs.

Promoting regional prosperity

Regional Australia plays a vital role in the nation’s success

and we believe unlocking its full potential is key to

driving sustainable economic growth. This is a focus of our

refreshed sustainability strategy, which aims to support

regional business growth, local employment and positive

community and environmental outcomes.

In response to the unique needs of regional communities,

we listened to customer and community feedback by

reflecting on how we could improve our service offering.

We have introduced a new regional banking model

through integrated service centres that bring retail and

business banking under one roof.

This model delivers a more personalised and

comprehensive banking experience, which helps to build

trust and stronger, more enduring relationships over time.

We committed to three service centres in new locations,

with more planned in the future. This was bolstered

by our growing business banking and agribusiness

team with deep industry expertise. Our pledge to keep

regional branches open has been extended to mid-2027,

providing greater certainty for customers, employees

and communities.

Importantly, our focus isn’t limited to financial support

and services. A resilient and stronger future for regional

and rural Australia also relies on unlocking potential

through innovation. Our agri-tech investments combined

with agriculture-related sponsorships, scholarships and

partnerships are fostering the next generation of farmers,

helping them to solve critical industry issues.

Faster lending decisions

Following our operational improvements last year to

reduce time to decision for home loan customers,

we’ve continued to simplify mortgages end-to-end by

streamlining policies and processes and accelerating

automation. We have also improved our home loan

same-day settlement performance, now ranked number

one among Australia’s major banks

1

. This supports

our strategic focus on improving service and fostering

deeper customer relationships. We halved documentation

requirements for self-employed applicants through the

introduction of a one-year income assessment option. This

is helping to make the home-buying journey simpler for

self-employed Australians.

In addition, we commenced the roll-out of a simplified

digital experience for personal loans. The initiative aims to

reduce manual processing and improve turnaround times

for both new and existing customers.

ANNUAL MEDIAN HOME LOAN TIME TO DECISION (DAYS)

a

5.6

5.2

4.6

9.7

5.8

5.0

1st Party3rd Party

FY23FY24FY25

a.Prior periods have been restated

Driving efficiency for businesses

In March we launched BizEdge, a new digital platform that

simplifies and accelerates loan decisions. This streamlines

the end-to-end lending process and reducing manual

effort for bankers and customers alike. Since launch, it

has facilitated $4.8 billion in business lending applications.

(Refer to page 40)

We were the first Australian bank to activate Mastercard’s

mobile virtual card solution to simplify business payments

for corporate and government clients. This capability

replaces manual processes with faster, safer payments,

real-time visibility and automated reconciliation.

To support our ambition to restore Institutional to

number one, we're investing in our people and fostering

enduring client relationships through expert, personalised

service across all channels. Our bankers and product

specialists bring deep sector expertise and long-standing

partnerships, helping clients to navigate complexity and

unlock opportunities.

Meanwhile, our investment in Westpac One aims to

bring together real-time treasury management, foreign

exchange, trade and lending with powerful data insights.

(Refer to Modernising technology on page 40)

1.

According to Property Exchange Australia (PEXA) data as at September 2025.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
27

Inclusive and accessible banking

Inclusive and accessible design is part of how we serve

and support customers. Our new

Access & Inclusion Plan

2025-2028 outlines how we’ll continue to enhance banking

so every customer can engage in a way that suits their

needs. We are committed to meeting diverse accessibility

needs by, for example:

•Providing space for assisted devices and personal

support in branches;

•Promoting awareness of assistive technologies

such as screen readers, chatbots and text-to-

speech functionality;

•Supporting customers who wear a Hidden Disabilities

Sunflower accessory;

•Offering multiple communication options including

interpreters, translation services, AUSLAN and the

National Relay Service;

•Delivering cultural awareness training for staff; and

•Providing training and resources to support non-binary

and gender-affirming customers.

Responsible marketing

and advertising

We regularly review and enhance our policies,

procedures, and processes to ensure they consistently

support positive customer outcomes. This commitment

also applies to how we market our products and

services towards suitable customers, as detailed in

our Responsible Marketing and Advertising policy on

our website.

Safeguarding data and privacy

Earning and maintaining customer trust is essential to our

long-term success. All employees complete mandatory

annual training on data privacy and cybersecurity. Our

Privacy Statement outlines how we protect personal

information, while our Cybersecurity Statement details

our alignment with global and ISO standards. We continue

to invest in secure-by-design policies and infrastructure to

meet evolving expectations and requirements.

Supporting female entrepreneurs

We have doubled our commitment to supporting women

in business, increasing this to $1 billion to help more

women overcome the challenges of starting or growing

a business.

Since launching the initiative two years ago, we

have helped more than 1,800 women in a range of

industries, including retail, healthcare, creative services

and hospitality.

Assisting vulnerable customers

We continue to strengthen protections for vulnerable

customers through specialist support teams and proactive

monitoring of payment descriptions and power of attorney

accounts to identify potential misuse. We also offer self-

serve product features such as gambling blocks and

parental controls.

To respond to threats and improve safeguards,

we work closely with community organisations and

law enforcement. Customers with eligible government

concession cards can also open a basic bank account,

which has no monthly account keeping or overdrawn fees.

Our teams are trained and equipped to identify and

support vulnerable customers, and to connect them with

external partners where additional assistance is needed.

PRACTICAL PATHWAYS TO HOME OWNERSHIP

Westpac is proud to be the founding partner of Head Start Homes,

supporting more Australians into safe and stable housing through

practical pathways to home ownership.

This partnership supports First Nations and single-parents to become

proud homeowners through bespoke services such as savings plans

and home-buying guidance.

Head Start Homes has supported more than 225 households to begin

their journey to home ownership while helping to free up social

housing for other families in need.

Learn more about Kamini (pictured) on the Head Start Homes website.

Brittany
Mobile Home Finance Manager

Broadbeach, QLD

28WESTPAC 2025 ANNUAL REPORT

CREATING

VALUE FOR

OUR PEOPLE

We strive to be Australia’s

best workplace, where people

feel valued, supported

and inspired to deliver

for customers and reach

their potential.

Related material topics (refer to page 13)

•Employee engagement

•Health and safety

•Diversity, equity and inclusion

Key highlights

80

ORGANISATIONAL

HEALTH INDEX

49%

WOMEN IN

SENIOR LEADERSHIP

1

$6.3BN

PAID IN SALARIES

35,236

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 2025.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
29

190,000

employee recognition moments

AMPLIFY

new employee listening platform

3,600

employees participated in

AI Shark Tank

Creating a culture where

people thrive

To become Australia’s best workplace, we are shaping a

high-performance culture where people feel supported,

accountability is clear, positive behaviours are recognised

and it is safe to speak up.

Receiving the ‘Employer of Choice’ award for large

organisations at the Australian HR Awards recognises the

progress we’ve made in making Westpac a great place

to work.

We are building on this momentum under the guidance

of a new Chief People Officer, while executing UNITE to

help make our working environment simpler and more

rewarding for our people.

With a renewed Purpose, our values were updated in July

to three clear, actionable commitments: Always deliver,

safely; Make an impact; and Own it. We are embedding

these into processes to align expectations and shape a

service mindset.

We’re actively supporting our leaders to help shape

our culture. One way we do this is by embedding

skill boost sessions into weekly team rhythms. These

activities encourage open conversations around positive

risk behaviours such as speaking up, admitting mistakes

and taking initiative.

In June 2025, our final Voice+ survey including the

Organisational Health Index (OHI) was completed. The

score remained at 80, reinforcing Westpac's position in the

top quartile of organisations globally.

This reflects our progress in recent years to reset culture

and strengthen risk practices through the CORE program,

which is now complete. For more detail, refer to page 43.

Listening and acting on feedback

Feedback is essential to building a culture of trust and

continuous improvement. It ensures people feel heard,

empowered to act, and aligned to our purpose.

To capture more dynamic employee insights and drive

further improvement, we’ve transitioned from Voice+ to a

new Amplify platform.

Amplify enables leaders at all levels to act on

team feedback, strengthening engagement and risk

management. Insights help leaders and teams agree on

priorities and turn feedback into measurable change,

supporting our goal of becoming the best place to work.

We also engaged with our people to understand how they

want to use AI to work more effectively and provide better

service to customers.

Our inaugural CEO-sponsored AI Shark Tank program

drew significant engagement, with 3,600 employees

participating and 1,200 ideas submitted. It highlighted

a keen interest in embracing AI across the company.

10 standout opportunities were selected by Executives

for implementation.

We also responded to employee feedback through our

continuous improvement platform Ignite, which uncovered

valuable ways to boost productivity, improve customer

experience and reduce risk.

In addition, leaders have regular conversations with their

team members to provide performance and development

feedback to engage and motivate our people.

RECOGNISING GREAT OUTCOMES

The recognition of our people is embedded in our culture. We

have formal mechanisms in place to encourage and recognise high

performance, including those linked to excellent risk outcomes.

The Great Employee Moments (GEM) platform captured 190,000

recognition moments, which informed our award winners. The annual

CEO Awards (pictured) at the end of each calendar year are the

pinnacle of our recognition framework, celebrating individuals and

teams who exemplify excellence, leadership and impact across the

business. Each quarter, the Board directly recognise individuals who

demonstrate positive risk outcomes, exceptional courage, innovation

or leadership beyond the expectations of their role.

30WESTPAC 2025 ANNUAL REPORT
CREATING VALUE FOR OUR PEOPLE

Attracting and retaining talent

Attracting and retaining talent sparks innovation and builds a workforce that reflects the diversity and capability needed

to deliver great results. We are advancing this through several targeted strategies.


Onboarding and Orientation: We introduced a refreshed onboarding and orientation program for

new talent, featuring customer immersion sessions, hands-on activities and engagement with our

Executive team.

Graduate Program: We rank in the top ten of Australian Financial Review 'Top Grad Employers for 2025’

for our award-winning graduate program. We hired 135 graduates, comprising 58% female and 52% from a

STEM background.

Licensed to recruit: A new Licenced to Recruit training program is strengthening the capability of People

Leaders making hiring decisions. To date, more than 1,500 leaders have completed face-to-face training

across Australia.

Internal talent mobility: We saw a second consecutive year of improvement in internal talent mobility,

which is up 5% from FY23. This was driven by the launch of a new Internal Careers site with enhanced

employee tools and the introduction of the Westpac Talent Community. We continue to support redeployed

employees through job-matching tools and reporting dashboards that help identify opportunities and

track outcomes.

Diverse hiring: We maintained our commitment to diverse hiring, with 49% overall female representation,

even as recruitment efforts pivoted towards male dominated technology-focused roles. Notably, MobTech

welcomed 11 new Indigenous cadets. Our dedicated female talent initiative, EmPOWERUp, creates a

pathway for women to reignite their careers after an extended leave break. It continues to build a strong

candidate pool across all levels and disciplines, with approximately 1,300 women engaged to date.

Developing leadership capability

People leaders are critical to our success. They shape our

culture, drive performance and role model the behaviours

that enable teams to thrive. We have three signature

leadership programs to develop leaders at all levels.

The Horizon program for executive leaders resumed with

its fourth cohort. This is part of a broader leadership

development strategy aimed at strengthening executive

capability and driving cultural transformation.

To further align broader leadership behaviours with

performance outcomes, we launched the Westpac

Leadership Qualities framework, which will be reinforced

in a new Executive Leadership Group

1

Scorecard

from FY26.

We introduced two new leadership programs designed

to strengthen capability for more than 4,000 employees

through to FY27. Elevate supports our senior leadership

cohort, while LEAD is tailored for mid-level and emerging

leaders. These programs focus on executive coaching and

developing adaptive leadership, high-performance and an

enterprise mindset.

We are committed to supporting the development

and progression of women at Westpac. This includes

accelerating the impact of programs such as Illuminate,

our female sponsorship initiative and Step-Up, a new

career development program. Refer to page 31 for

more information.

Investing in skills for the future

Equipping our people with future skills and capabilities

is at the heart of our learning and talent strategy.

It encompasses both mandatory and optional training,

leadership development as well as addressing capability

gaps across the organisation.

Mandatory training is completed by all employees and

covers compliance, privacy and data protection, risk

awareness, identifying hazards and conflicts of interest.

We expanded optional learning in emerging areas such

as AI, sustainability and cybersecurity. More than 10,000

employees completed training in generative AI through

our Microsoft 365 Copilot rollout. See Data, Digital and AI

on page 41 for more information.

In Business & Wealth, we relaunched The Business

Performance Academy, offering targeted training to 3,000

employees to build confidence and advance their careers.

This is complemented by learning programs designed

to build confidence in discussing sustainability matters

with customers.

A new self-directed leadership program, IMPROVE, was

developed by the NeuroLeadership Institute and is

designed to enhance feedback skills for leaders using

contemporary research.

Our people also accessed degree programs and

certification training, supported by paid study leave.

1.

Includes approximately 190 senior leaders, including Group Executive direct reports (General Managers (GM) and Chief of Staffs) and key

GM1 roles.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
31

11,000+

employee advocacy group members

135

new graduates joined Westpac

10,600

Microsoft 365 Copilot licences

Strengthening diversity, equity

and inclusion

We are a proudly inclusive employer, committed to

fostering a workplace where our people feel valued,

respected and safe. One way we advance inclusion is

through 10 employee advocacy groups, connecting more

than 11,000 people who champion diversity across areas

such as gender, disability, LGBTQ+ communities and

cultural backgrounds. We also refreshed the

Access and

Inclusion Plan, marking a 25 year commitment.

We have a zero-tolerance approach to sexual harassment

and related unlawful conduct, encouraging respectful

behaviour and accountability. We encourage our people

to be upstanders and speak up against inappropriate

behaviours. Our policy includes training, dedicated

reporting channels, a no-bystander rule and investigation

and support processes. We also delivered training to

the Board and Executive Team on their positive duty

obligations under recent legislative reforms.

We continue to champion gender diversity, with women

holding 49% of senior leadership roles. To build on this,

we aim to achieve a 40:40:20 balance at all levels by FY30,

with 40% women, 40% men and 20% of any gender. In

a submission to the Workplace Gender Equality Agency

(WGEA), we reported an overall average gender pay

difference of 2% based on similar roles or levels. The

median gender pay gap reduced by 1.2% to 28.1% and

this figure is heavily influenced by the composition of our

workforce, with many women employed in contact centres,

operations and branches. Our new gender diversity target

is designed to help address this.

The Illuminate program supported 82 aspiring female

leaders through GM sponsorship, with more than 35%

advancing to new or expanded roles. As the first bank

to join Diversity Council Australia’s RISE Project, we are

supporting 20 women from diverse racial and cultural

backgrounds to advance their leadership careers.

We are investing in specialised programs to recruit, retain

and develop Aboriginal and Torres Strait Islander people,

supported by a dedicated First Nations Engagement

Manager. Refer to page 35 for more information.

Prioritising health, safety

and wellbeing

We recognise health, safety and wellbeing play a vital

role in how our people show up at work. We are

committed to fostering a safe, secure and supportive

environment, focused on protecting people from physical

and psychological harm, supporting mental health and

providing a respectful and inclusive workplace.

The mental health strategy is shaped by our Chief Mental

Health Officer. Reviews of each segment were conducted,

which helped develop targeted action plans to address

psycho-social risks and better understand the factors

influencing wellbeing at work. This was complemented

by mental health training in partnership with the Black

Dog Institute. For our Retail bankers' safety, we delivered

face to face de-escalation training to 157 branches and

psychological first aid training to 375 Consumer leaders. 

Wellbeing remains a core part of our employee

value proposition. We launched a new mobile

Wellbeing App with personalised content and holistic

wellbeing assessments to encourage healthy living.

This complements our other health initiatives including

fitness incentives, access to 24/7 counselling and free

flu vaccinations.

Flexible working arrangements support a healthy work-

life balance. In addition, our latest EVP introduced new

leave benefits including doubling Culture, Lifestyle and

Wellbeing Leave to four days, increasing Compassionate

Leave from three to five days per occasion, as well as five

days leave to support employees to attend appointments

related to fertility treatment, surrogacy, adoption and

foster care. We also make superannuation payments

during unpaid parental leave, rather than waiting until

employees return to work.

We offer market-leading banking benefits for employees,

contractors and their families. Eligible employees receive

a Salary Continuance Insurance benefit, also known as

Income Protection Insurance, in case of illness and injury.

In addition, a MyDiscounts employee portal continues to

offer exclusive offers and discounts from leading brands.

BUILDING STRONGER CUSTOMER CONNECTIONS

We believe it’s essential for our people to understand how their roles contribute to better customer outcomes.

We created opportunities for all teams, including business functions like risk, legal and compliance, to connect

with customer experiences supported by Customer Obsession Learning and Service Mindset sessions attended by

1,000 people. Additionally, 2,500 people completed Immersion training and 600 participated in Customer Journey

Bootcamps. We're building a workplace where everyone feels empowered to deliver great customer outcomes.

32WESTPAC 2025 ANNUAL REPORT
CREATING

VALUE FOR

THE COMMUNITY

We are determined to make

a meaningful difference in the

community by empowering our

people and the organisations

we support.

Related material topics (refer to page 13)

•Communities

•Indigenous peoples

•Human rights and modern slavery

•Sustainable supply chain

•Tax transparency

Photo: Ngutu child Thelma with her educator Melissa

at Ngutu College, supported by BankSA Foundation.

100

SCHOLARSHIPS

AWARDED EVERY YEAR

1

65,538

HOURS VOLUNTEERED

BY WESTPAC EMPLOYEES

$199M

IN COMMUNITY

INVESTMENT

2

$56.1M

SPENT WITH

DIVERSE SUPPLIERS

3

1.By Westpac Scholars Trust which is supported by Westpac Group

but operates independently as a non-profit organisation.

2.Figure includes commercial sponsorships and foregone

fee revenue.

3.Refer to the 2025 Sustainability Index and Datasheet for definition.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
33

Since establishing our first charity in 1879, we

have remained committed to building stronger, more

inclusive communities.

Our approach continues to evolve and is guided by where

we can deliver the greatest impact for customers and

their communities.

Westpac offers a range of community investment

initiatives that encourage employees to contribute their

time, skills and experience to causes they are passionate

about. These initiatives also help to foster trust and

deeper connections with the communities we serve.

Australian employees receive one day of paid volunteer

leave each year. This offers valuable opportunities for

personal and professional development while delivering

meaningful benefits to the community.

Our people contributed 65,538 hours to initiatives

ranging from volunteer firefighting to mentoring social

enterprises. In addition, 140 people also participated in

Jawun secondments, the Community Ambassador and

Westpac Board Observer programs.

Through our workplace giving initiative, Westpac matched

$1.6 million in employee donations to 200 charities.

New chapter, stronger commitment

We spent time assessing how to maximise our impact for

current and future generations.

To align with Australia’s national education and

productivity goals, from 2026 the Westpac and

Regional Foundations and our community initiatives

will unite next year behind a single, critical objective:

improving literacy and numeracy outcomes for children

facing disadvantage.

We believe every child should have the tools to

unlock their potential, regardless of background or the

challenges they face.

Refer to our

2025 Foundations Impact Report for

more information.

Westpac Foundation

1

The Westpac Foundation awarded $2.2 million to 8

new social enterprise partners to support job creation.

It has positively impacted hundreds of communities in

the past 20 years by providing meaningful employment

opportunities for people facing barriers to work, achieving

its ambitious goal to create 10,000 jobs by 2024.

Regional Foundations

1

The Regional Foundations have helped to lay the

groundwork for our focus on education, with 40% of

grants since 2023 supporting inclusive education. They

awarded $3.3 million this year to programs that boost

educational and wellbeing outcomes for young people

facing disadvantage (refer to case study).

Westpac Scholars Trust

1

The Trust's landmark pledge is to award 100 scholarships

a year, forever. The Trust awarded $5.1 million to scholars

this year, bringing its collective impact to $50 million

since 2015.

Te Waiu O Aotearoa Trust

2

The Trust awarded $5,000 scholarships to eight Māori

recipients across Aotearoa to support their tertiary

studies in business, banking and finance.

Investing in local communities

Since 2014, we have supported Little Wings, a children’s

charity providing free aeromedical transport for seriously

ill children in regional and remote communities. Operating

from Bankstown, Cessnock and Brisbane airports, Little

Wings completes more than 2,300 missions annually. Our

partnership, formalised in 2020, helps fund its Medical

Wings program, which brings city-based specialists to

regional clinics each month.

Building on the success of our existing partnership with

National Rugby League, we announced a new sponsorship

with Cricket Australia. Our support directly contributes to

initiatives that elevate participation and visibility of both

sports, from grassroots clubs to elite competition. This

includes pathway and development programs for schools,

young females and First Nations talent to grow the next

generation of players and leaders.

BUILDING BRIGHT FUTURES

Country Education Foundation of Australia (CEF) is a volunteer led

organisation helping thousands of young people in regional, rural and

remote communities to pursue education and training after school.

Operating through 49 local foundations across five states and

territories, CEF is powered by more than 400 dedicated volunteers who

fundraise, award grants and mentor students, ensuring that distance

and disadvantage don’t stand in the way of opportunity.

St.George Foundation has awarded a three-year, $300,000 Inspire

grant to CEF to help students like Piper (pictured) continue their

studies and build bright futures.

1.In FY25, Westpac Group provided 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.

2.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.

34WESTPAC 2025 ANNUAL REPORT
CREATING VALUE FOR THE COMMUNITY

Respecting and advancing human rights

We recognise that our activities and relationships can affect the human rights of our people, customers and

communities. We are committed to respecting these rights and actively seek opportunities to support and

advance them.

We have a long-standing commitment to social impact and human rights leadership, having introduced our first Human

Rights Position Statement and Action Plan a decade ago. We continue to progress and update our approach where

appropriate, to ensure it remains relevant, aligned to our purpose and reflects expectations and standards.

The current Human Rights Position Statement and Action Plan sets out our stance on respecting and advancing human

rights and the actions we are taking. We also support the UN Guiding Principles on Business and Human Rights,

which informs the way we identify, assess and address human rights and modern slavery risks and impacts across our

operations and supply chain. The outcomes of customer and supplier assessments are published each year in the 2025

Sustainability Index and Datasheet.

More information on Westpac's approach to human rights due diligence, grievance mechanisms and remedy can

be found on the Human Rights section of our website and in the Modern Slavery Statement.

We are making good progress on the actions outlined in the Human Rights Position Statement and Action Plan, with

delivery expected by May 2026 across five strategic priorities.

Strategic focus areasFY25 Progress

Addressing our salient human

rights issues

Completed the final phase of our Human Rights Risk Assessment (HRRA).

This identified eleven salient human rights issues that represent our most

significant areas of human rights risk. Refer to the 2025 Sustainability Index

and Datasheet for detailed results.

Strengthening grievance

mechanisms and approach

to remedy

Developed a grievance mechanism to respond to human rights concerns from

people impacted by our lending to large businesses, incorporating feedback

from human rights experts, investors and civil society. We expect to pilot the

mechanism in FY26.

Supporting and advancing

human rights through a just

and inclusive transition

Developed principles and three action areas to guide our approach to a just

transition as we support those more impacted by extreme weather events

and the transition to a net-zero economy. Refer to the Climate Transition

Plan for more information.

Strengthening a focus on

child safeguarding

Launched a Safety by Design Toolkit for free use by the banking sector, in

partnership with the Australian Banking Association. The Toolkit provides

guidance on designing products and services to better safeguard customers

from financial harm, including children and young people.

Strengthening the foundations

of our human rights approach

Developed an approach to deliver enterprise-wide human rights and modern

slavery training and capability improvements. We also finalised a monitoring

framework to track and report on our salient human rights risks.

SAFEGUARDING CHILDREN

Since 2020, Westpac’s Safer Children, Safer Communities (SCSC) Program has committed more than $80 million

to more than 50 organisations across Australia and Asia.

While funding under the SCSC initiative is now fully allocated, our commitment to child safeguarding continues

through our participation in the On Us: Australian Business Coalition for Safeguarding Children and associated

Child Safeguarding Business Principles, which guide businesses in recognising and managing their potential or

actual risks on children’s safety and wellbeing. 

The Principles align with national efforts led by the Australian Government to improve child safety across

industries and provide a clear, actionable framework for embedding child safety into business operations, risk

management and culture. 

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
35

Ensuring reliable access to cash

Maintaining access to cash in communities across Australia carries significant cost. We continue to balance these costs

against our responsibility to ensure financial inclusion, particularly for vulnerable customers and regional communities.

Our total cost of supplying cash services to Australians was approximately $350 million. This included our continued

financial support for Armaguard to help maintain the stability of the national cash distribution system. We are working

with government, regulators and industry partners to shape a long-term, sustainable solution for Australia's wholesale

cash supply. For information on the other ways we're supporting regional Australia, refer to page

26.

Maintaining a sustainable and diverse supply chain

We aim to build a stronger, more inclusive society by supporting businesses that create positive change. Through

our Supplier Inclusion and Diversity program, we support 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. We spent $56.1 million with diverse suppliers

1

,

an increase of $18.2 million from last year. Please refer to the table below for information on how we support

Indigenous-owned businesses.

Supporting Reconciliation and Indigenous peoples

Our vision for reconciliation is an Australia where Aboriginal and Torres Strait Islander peoples have equitable

opportunity for economic participation and financial wellbeing. We seek to achieve this through a focus on creating

impact for Indigenous customers, employees and communities. The outcomes of the 2022-2025 RAP set out below

demonstrate our ongoing commitment to achieving our vision.

Our new 2026-2028 Reconciliation Action Plan (RAP) signifies a sharper focus across five priority areas, including

Indigenous banking, supporting suppliers, home ownership, Westpac careers and Free, Prior and Informed

Consent (FPIC).

RAP FOCUS AREAFY25 PROGRESS

a

Valuing culture: building

relationships based on trust and

respect; valuing cultures and

histories and recognising the

importance of self-determination.

•Maintained cultural capability with 99.8% of employees completing mandatory learning.

•Celebrated and supported Indigenous culture by hosting more than 30 events internally

and externally for National Reconciliation Week and NAIDOC Week.

•Platinum Sponsor of Garma, a major event celebrating Indigenous culture.

•20 Westpac staff completed a Jawun secondment this year, bringing the total to 100

secondments since April 2022.

Meaningful careers: investing

in Indigenous careers through

dedicated programs to recruit,

retain and develop Aboriginal and

Torres Strait Islander people.

•Aboriginal and Torres Strait Islander workforce representation rose to 1.15% though

retention challenges have slowed progress towards our 1.5% target. To address this,

we’ve appointed a First Nations Engagement Manager to develop and implement a

retention and development strategy for Indigenous employees.

•We recruited 11 new cadets through MobTech, all of whom secured permanent roles

at Westpac.

Better banking experiences:

making it easier for Indigenous

customers to do business with us

and improving financial inclusion

and economic participation.

•18,008 unique customers have been supported through our Indigenous call centre since

April 2022.

•Since 2022, we’ve delivered 146 Remote Services.

Backing Indigenous enterprise:

helping more Aboriginal and

Torres Strait Islander people

to grow their businesses

as customers, suppliers

and partners.

•We spent $35.1 million with Indigenous-owned suppliers this year, bringing the total

since April 2022 to $67.9 million. This significantly exceeds our RAP target to spend

a cumulative $8 million with Indigenous-owned suppliers between 1 April 2022 and

30 September 2025.

•Skilled Volunteer Network supported 26 First Nations-focused organisations, including 7

First Nations-led organisations.

Respect for self-determination

and a deeper understanding of

FPIC: working with customers,

stakeholders, experts and

communities to share knowledge

and improve outcomes.

•Guided by First Nations perspectives, we developed a framework to support

conversations about engagement with customers and partnered with an Indigenous-led

organisation to strengthen these principles.

•Our 2022-2025 RAP leadership project supports FPIC implementation at Westpac.

a.Refer to the 2025 Sustainability Index and Datasheet for further information.

1.Refer to the 2025 Sustainability Index and Datasheet for further information.

36WESTPAC 2025 ANNUAL REPORT
CREATING

VALUE FOR

THE ENVIRONMENT

We are taking climate

action by reducing

our operational emissions,

supporting customers to

transition and providing

sustainable finance across

Australia and New Zealand.

Related material topics (refer to page 13)

•Climate change

•Natural capital


Photo: Aerial photo of Cooktown, Queensland.

Key highlights

1

89%

REDUCTION IN

SCOPE 1 AND 2 EMISSIONS

SINCE 2021

42%

REDUCTION IN SCOPE 3

UPSTREAM EMISSIONS

SINCE 2021

37%

INCREASE IN

SUSTAINABLE

FINANCE LENDING

40%

INCREASE IN SUSTAINABLE

BOND FACILITATION

1.Refer to 2025 Sustainability Report for definitions and detail.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
37

To support our purpose and climate ambition to become

a net-zero, climate resilient bank, we continue to actively

support the transition to a lower-carbon economy and

enhance Westpac's climate resilience.

This year we made good progress on our climate

strategy. We further reduced operational emissions,

advanced towards Westpac's 2030 financed emissions

sector targets and recorded solid growth in sustainable

finance and bond facilitation.

We have also lifted our capability to analyse and assess

climate-related risks and opportunities, by improving

scenario analysis, introducing a climate risk policy and

expanding training.

This positions us well for the future by supporting our

resilience and ability to meet new prudential standards

and legislative reporting requirements.

Westpac's new Climate Transition Plan (CTP), shaped by

stakeholder feedback, outlines our targets and approach

to supporting progress towards our climate ambition.

The CTP supersedes our 2023-2025 Climate Change

Position Statement and Action Plan.

Refer to the 2025 Sustainability Report for more information.

Reducing the direct impact of

our operations

We believe in leading through action, demonstrated by

our progress towards achieving our operational emissions

reduction targets. In FY23, we met our 2025 scope 1 and 2

operational emissions reduction target.

In FY24, we delivered our 2030 operational emission target

six years ahead of plan.

Despite this, we remain focused on further reducing our

impact, with scope 1 and 2 operational emissions declining

a further 22%, largely from the transition of our fleet

towards hybrid or electric vehicles (pictured). The 89%

reduction since 2021 places us comfortably ahead of our

2030 target of a 76% decline.

We have continued to source the equivalent of 100%

of electricity from renewable sources. This has been

supported by our long-term virtual power purchase

agreements with the Bomen Solar Farm in New South

Wales, Ararat Wind Farm in Victoria, and Berri Solar Farm

and Battery in South Australia.


Westpac’s operational emissions

Upstream scope 3 emissions were down 2% in FY25 and

42% lower than the 2021 baseline year, putting us on track

to achieve our target of a 50% reduction by 2030.


FIGURE 1: WESTPAC'S OPERATIONAL EMISSIONS

(MARKET-BASED) (TONNES OF CO

2

EQUIVALENT)

133,570

82,092

63,146

Scope 1, 2 and scope 3 Upstream emissions

b

2021

a

20232025

a.The 2021 reported emissions (above) differ from our 2021 baselines

for scope 1, 2 and scope 3 upstream targets as the baseline was

adjusted for COVID pandemic and other factors.

b.Refer to 2025 Sustainability Report for the scope 3 upstream

emissions categories included.

38WESTPAC 2025 ANNUAL REPORT
CREATING VALUE FOR THE ENVIRONMENT

Supporting the customer transition 

With more than 99% of emissions linked to lending,

reported as scope 3 financed emissions, helping

customers to transition is where we are focusing our

efforts to drive meaningful change.

Our aspiration is to reduce Westpac's financed emissions

in line with the goals of the Paris Agreement. It

is complemented by 13 sector targets, including high-

emitting industries. This year we reported improved

progress for more than 70% of our financed emissions

sector targets.

We report financed emissions one year in arrears, so the

most recent available data is from FY24. Westpac's total

financed emissions were 40.7 MtCO

2

-e for FY24

1

, slightly

higher than in FY23. This was primarily due to:

•Adoption of a higher-quality source for emissions

factors used to estimate customer emissions; and

•A rise in the share of Business and Institutional

lending for which we estimate financed emissions.

As a part of managing sustainability risks in our lending,

we updated our Carbon-Intensive Sector Requirements

during the year. Existing customers in-scope of these

requirements are now subject to a Customer Climate

Transition Plan (CTP) Evaluation when they seek new

or renewed corporate lending or bond facilitation. These

requirements apply to customers operating in oil and

gas, metallurgical coal mining and coal-fired power

generation sectors and outline how we engage and

consider financing decisions.

The CTP Evaluation rates customers’ CTPs on a four-point

scale of A to D and informs the actions we will take

depending on the rating.  If a customer CTP is rated ‘D’

they would not currently be eligible for new or renewed

corporate lending or bond facilitation unless financing

supported National or Energy Security

2

.

As we have worked to implement these requirements,

we conducted a preliminary analysis of existing in-scope

customers’ CTPs.  In that review, approximately 55% were

rated ‘A’ while 9% were rated ‘D’.  Further information can

be found in the 2025 Sustainability Report.

We have delivered on our FY25 commitment to reduce

corporate lending to institutional thermal coal mining

customers

3

to zero. 

In FY25, we had in-depth engagements with more than

130 institutional and corporate customers in Australia

and New Zealand on their climate transition plans. Of

these, 83% had a public report outlining their climate

transition strategy. With the introduction of mandatory

climate reporting, the maturity of our customers’

disclosures varies.

To support our agriculture financed emissions sector

targets, we have continued engaging with customers,

industry bodies, and at key events. This included

sponsoring Meat & Livestock Australia (MLA) Carbon

EDGE workshops, which aim to help farmers reduce

emissions through best practices in productivity, animal

welfare and environmental management.

In 2023, as part of setting 2030 Agriculture financed

emissions sector targets for Dairy and for Beef and Sheep,

we expressed a commitment to no deforestation

4

from

31 December 2025 for customers in scope of our targets,

and to engage with customers on this commitment.

Since that release, we have engaged with rural

research and development corporations, members of the

agricultural supply chain, peak industry bodies and with

customers to understand how this would affect the sector.

Following our consultation, we have refined our

approach, no longer requiring a formal ‘no deforestation’

commitment, but continuing to develop practical ways to

help customers manage deforestation risk effectively. This

includes supporting industry efforts that help farmers

assess and verify deforestation free status for supply

chain reporting. For more detail, refer to the 2025

Sustainability Report.

Engaging with customers to better understand their

decarbonisation approaches is critically important. By

doing this, we can identify where we can offer support and

play a meaningful role in the broader climate transition.

Strengthening insights

We took steps to broaden our scenario analysis by

incorporating new data sources to evaluate risks at

the customer property level. We also used geospatial

mapping to identify regions more susceptible to climate-

related impacts. This is improving our understanding of

physical risks across our lending. In turn, it enables us

to provide more targeted support to customers to help

strengthen their climate resilience.

Growing sustainable finance

Sustainable finance and bond facilitation play a role

in assisting customers as they transition. Supported by

our Sustainable Finance Framework, sustainable finance

lending has reached $39 billion and increased 37% during

the year. Cumulative sustainable bond issuance has

totalled $22 billion since the start of FY22 and rose 40%

in FY25.

This progress underscores our support for customers'

sustainability objectives. It also helps to position

us to achieve our 2030 targets of $55 billion in

sustainable finance lending and $40 billion in cumulative

bond facilitation.

1.

Total financed emissions for scope 1 and 2, and for certain sectors where we estimate scope 3 emissions.

2.National or Energy Security – Circumstances where a government or regulator determines that additional supply, or maintaining current

supply is necessary for national or energy security and Westpac’s funding is able to support such additional supply, in which case it may need

to be escalated to an appropriate committee.

3.At 30 September 2025. In line with our Sustainability Customer Requirements, we have zero corporate lending and will no longer provide bond

facilitation for Institutional customers with ≥15% of their three-year rolling average revenue coming directly from thermal coal mining.

4.Refer to the 2025 Sustainability Report for the full definition of deforestation.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
39

Natural capital 

We continue to build capability and knowledge on nature-

related risks and opportunities, in alignment with our

Natural Capital Position Statement. This has helped us

better understand our role in supporting customers and

suppliers across our value chain on nature topics that are

most material to them.

At 30 September 2025, 14.2% of lending is in sectors

defined by the Taskforce on Nature-related Financial

Disclosures (TNFD)

1

as having material nature-related

dependencies and impacts. Further information is

available in the 2025 Sustainability Index and Datasheet.

Understanding material nature topics relevant to

institutional customers

We analysed nature-related disclosures of Australian

institutional customers in TNFD priority sectors to better

understand their material nature topics

1

and inform our

ongoing customer engagement.

Of the customers reviewed, more than 35% identified at

least one nature topic as a key sustainability topic

2

, with

freshwater, land and biodiversity most commonly cited.

This was most prevalent in the food and beverage, paper

and forest products, metals and mining, infrastructure

and energy sectors.

Progressing our approach in agriculture

Using the TNFD LEAP framework

3

we piloted an approach

to assess nature-related dependencies for Australian

agribusiness customers. The pilot used geospatial

analysis to evaluate the potential dependency on water,

native forest and world heritage sites. It provided

insights into how agribusiness customers depend on

nature and helps build understanding of potential risks

and opportunities.

We participated in the Australian Sustainable Finance

Institute (ASFI) Natural Capital Advisory Group and

Agriculture and Land Taxonomy Expansion Pilot Advisory

Group, helping to shape draft criteria for the Integrating

Nature into Finance research paper.  

Sustainable financing

We continue to offer sustainable finance that encourages

improved land use and biodiversity management.  In

FY25, Westpac: 

•Coordinated Arranger and Bookrunner for AirTrunk’s

SYD1 and SYD2 term loan financing, supporting

biodiversity, conservation and disaster relief, delivered

through its social impact program;

•Supported the structuring and issuance of an

innovative nature-focused Sustainability-Linked Bond

for Auckland Council. Refer to case study; and

•Provided Sustainable Farm Loans to 48% of total

agribusiness term lending in New Zealand, totalling

NZ$4.02 billion.

Supplier engagement

We work with Westpac's Australian suppliers to

understand their approach to circularity and nature. This

has resulted in positive outcomes such as a reduction

in packaging of IT equipment, increased volumes of

forestry certified paper and the reuse of equipment

and materials across our operations and value chain.

Additionally, we strengthened our responsible sourcing

program by introducing new criteria to assess circularity,

reduce deforestation risks and impacts on critical habitats

for medium and large suppliers.

Environmental performance

We also continue to monitor the environmental

performance of our operations.  Further information is

available in the 2025 Sustainability Index and Datasheet.

SUSTAINABILITY-LINKED BOND

FOR AUCKLAND COUNCIL

Westpac supported the structuring and issuance of

an innovative nature-focused Sustainability-Linked

Bond for Auckland Council.

The NZ$250 million three-year wholesale bond is

the first in Australasia to include a nature-based

target, with Auckland Council targeting to plant

one million native ngahere (forest) stems across its

regional parks by the end of 2027.

If the target is not achieved, Auckland Council

will make a donation to organisations supporting

the restoration of native ngahere across the

Auckland region.

Typically, Sustainability-Linked Bonds include

additional payments to investors for missed

targets. The structure of Auckland Council’s

Sustainability-Linked Bond ensures that the

Auckland community benefits, irrespective of

whether the planting target is met.

1.

Taskforce on Nature-related Financial Disclosures. (2024). Sector Guidance Additional Guidance for Financial Institutions v2.

2.Nature is identified as a key sustainability topic if the customer identifies land, freshwater, ocean, biodiversity or nature in general as a key

sustainability topic or the customer has set a nature-related target.

3.LEAP is short for Locate, Evaluate, Assess and Prepare.

40WESTPAC 2025 ANNUAL REPORT
TRANSFORMATION

Our transformation agenda is building a more efficient

technology environment to help deliver better outcomes

for customers, employees and shareholders.

We have established a dedicated transformation office,

led by a Chief Transformation Officer and supported

by a skilled team, to drive effective transformation

across Westpac.

UNITE, our business-led, technology-enabled

transformation program, is a cornerstone of this agenda.

It aims to simplify operations and enhance experiences by

consolidating technology stacks, decommissioning legacy

systems and streamlining our product suite to make

banking simpler for customers.

To choose the best path for UNITE, we’ve adopted a 'one

best way' approach to deliver Westpac consistently across

our channels, processes and products.

UNITE comprises four stages: Discovery, Simplify,

Implement and Decommission. The Discovery stage

is complete, with 51 initiatives underway and

eight delivered.

Modernising technology

Complementing UNITE are two flagship digital

innovations, BizEdge and Westpac One. BizEdge, our

new business lending origination platform, is accelerating

digital capabilities for bankers, with AI-powered tools that

support faster, more confident decision-making.

Westpac One, our new Institutional platform, will

integrate treasury, FX trade and lending with real-time

data insights to enhance customer experience and

operational performance.

These initiatives reflect our commitment to making

Westpac simpler, while modernising how we work to

deliver better outcomes for customers and our people.

UNITE: ONE PRIVATE BANK

We completed a successful transition of customers

to a single, Private Bank under the Westpac brand.

This strategic initiative was designed to enable

more customers to benefit from Westpac's

enhanced digital experience and improved

service offering.

Customers who transitioned gave positive

feedback, which reflected in a strong Brand NPS

1

result for Private Bank.

The initiative cost $5 million to complete

and has cut related processes and systems

by 50%, reducing duplication and streamlining

banker workflows.

Additionally, it supports our aim to grow

Private Bank's balance sheet and funds

under management.

BIZEDGEWESTPAC ONE

Fast, simple, digital business lending originationLeading banking capability for large businesses

Objectives

•A single digital business lending origination

platform that reduces both customer input and

banker processing time by 50%

FY25 progress

•$4.8bn in applications since launch in March

•Average time to decision reduced by 45%

•Quick and easy log in

•Automated company and Personal property

Securities Register searches

•Built-in National Credit Code assessment

•Real-time application tracking

Objectives

•Progressive, three-year rollout of next generation

transaction banking for large organisations

•Modern hyper-scalable core banking platform

•Real-time corporate treasury management services

•Digitised servicing and virtual assistant support

•Intelligent AI automation and data insights

FY25 progress

•Real-time deposit ledger implemented

•Connected to the domestic payment scheme (NPP)

1.

Refer to the Glossary (pages 260-263) for more information on NPS.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
41

DATA, DIGITAL AND AI

15,724

people using GenAI

to support how they work

700

mortgage assessors using AI

for faster processing

#1

banking app in Australia,

three years in a row

Data analytics, digital innovation, and AI are supporting our evolution into a smarter, safer and more productive bank.

As part of our transformation agenda, we are leveraging artificial intelligence and data insights to improve decision-

making, accelerate speed to market and enhance customer satisfaction. This investment in modernising technology and

data is essential to our AI readiness by improving the integrity, accessibility and usability of data.

To centralise and strengthen our efforts, we have appointed a new Group Executive for Data, Digital and AI to support

our strategic focus on improving experiences while embedding AI responsibly. We are also equipping our people

with the skills needed to gain benefits from these technologies. GenAI training uptake has been strong, with 19,000

eLearning modules and educational sessions completed.

More than 3,600 people engaged in the CEO-sponsored AI Shark Tank, showcasing the energy and creativity of our

people in applying AI to real-world challenges. Refer to page 29 for more information.

Responsible AI and governance

We are committed to the ethical, safe and transparent use of AI, supported by a robust governance framework and

evolving risk reporting mechanisms to ensure responsible development. We’re guided by Westpac’s Responsible AI

Principles, along with our AI Risk Management Standard (AIRMS) and Responsible AI Playbook. Together, they shape

how we use AI while ensuring we maintain an external lens that reflects both community expectations and regulatory

requirements. Our leadership in this space was recognised internationally, with Westpac shortlisted for the 2025 DataIQ

Awards UK in the category of 'Best Responsible AI Program', highlighting our commitment to safe, scalable and ethical

AI innovation.

Accelerating AI innovation

We have been using AI in different forms for more than a decade. Our focus today is on scaling proven generative AI

solutions that have tangible benefits through our AI Accelerator. It has delivered 33 solutions to date with a further

27 in delivery. Some of its benefits include:

•AI for customer safety: Our Fraud and Scams team are assisted on calls by 'JESS', our Joint Expert Scam Spotter.

This AI capability delivered real-time guidance during 20,000 customer calls, yielding unique insights and helping

to protect customers from scams and fraud.

•AI for faster lending decisions: The Mortgage AI Assessor introduced last year is now supporting 700 assessors

to process mortgage applications, saving more than 12,000 hours of assessor time annually.

•AI to empower our people: 15,724 employees are actively using Gen AI tools, exceeding our FY25 target of 10,000.

We've deployed 10,600 Microsoft 365 Copilot licenses, including access to personal agents via Copilot Studio Lite,

enabling staff to interact with data using natural language in a secure environment. A pilot group is now live on

Copilot Studio's advanced AI agent capabilities, expediting AI Shark Tank opportunities.

•AI for efficiency: Our use of Agentic AI in Data Products is transforming how we work, enabling autonomous AI

agents to deliver outcomes up to twelve times faster and helping scale GenAI solutions across the organisation. In

recognition of this innovation, we were proud to be named a finalist in the 2025 Finovate Awards in New York.

FINANCIAL CRIME AI: SMARTER SURVEILLANCE AT SCALE

Westpac has developed an innovative AI-based system to improve its financial crime investigation capability.

It can automatically summarise analysis from large volumes of data, making it easier to identify risks and act

quickly. By cutting down on manual work, the system supports teams to make faster, more consistent decisions.

This helps us to focus on new threats while freeing up our teams to support more customers.

42WESTPAC 2025 ANNUAL REPORT
RISK MANAGEMENT

Proactive risk management and a strong risk culture are essential to Westpac’s strength and resilience. They guide the

organisation’s operations and decision-making and support our ability to adapt to a changing environment.

Westpac’s risk management framework (Framework) outlines how the organisation manages its material risks and

delivers better outcomes for customers, communities, its people and other stakeholders. The Framework is centred

around customers, a strong risk culture and an effective Three Lines of Defence (3LOD) model.

The Risk Management Strategy, which incorporates the Framework, is approved by the Board. It is supported by risk

class frameworks, risk appetite statements and policies. These are all reviewed regularly to maintain the effectiveness

of the Framework.

For further information on the risks we face, refer to 2025 Risk Factors.

RISK MANAGEMENT FRAMEWORK COMPONENTS


CUSTOM

ERS

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

R

i

s

k

C

u

l

t

u

r

e

T

h

r

e

e

L

i

n

e

s

o

f

D

e

f

e

n

c

e

CUSTOMERS

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
43

Strengthening risk management

In December 2020, Westpac entered a Court Enforceable Undertaking (CEU) with The Australian Prudential Regulation

Authority (APRA). We committed to remediating specific prudential weaknesses identified by APRA in our culture,

governance and accountability, and address the root causes of these issues.

In response, Westpac established the Customer Outcomes and Risk Excellence (CORE) Program and appointed an

independent reviewer. Prior to this, APRA had imposed a $500 million operational risk capital overlay on Westpac in July

2019 and an additional $500 million operational risk capital overlay  in December 2019.

In recognition of the progress and improvements in risk management under CORE, in July 2024, APRA reduced its

operational risk capital requirement by $500 million.

In October 2025, APRA removed the remaining $500 million risk capital overlay, satisfied that the CORE program is

complete and the specific prudential issues identified by APRA have been addressed.

Promontory Australia, the independent reviewer noted in their final report on the CORE program: “The depth of change

to the organisation, both structurally and culturally, means that Westpac is now a simpler, stronger bank."

Three Lines of Defence (3LOD)

PRINCIPLES

First Line owns and manages the risks they originate:

−The First Line proactively identifies, evaluates, owns, monitors, manages and

controls the existing and emerging risks in their business. It manages business

activities within approved risk appetite and policies.

−In managing its risk, the First Line establishes and maintains appropriate

governance structures, controls, resources and self-assessment processes,

including issue identification, recording and escalation procedures.

The 3LOD work together to deliver effective risk management outcomes to

achieve the Group'sPurpose.

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 provides 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.

3LOD IN WESTPAC

Second Line provides insight,oversight and challenge of First Line activities:

−The Second Line is an independent function that develops risk management

frameworks, defines guardrails, provides objective review and challenge

regarding the effectiveness of risk management within the First Line business,

and executes specific risk management activities where functional independence

and/or specific risk capability is required.

−Its approach is risk-based and proportionate to First Line activities.

THIRD

LINE

Independent

Assurance

Audit Function

SECOND LINE

Insight, Oversight and

Challenge

Risk Function

FIRST LINE

Own and manage risk

All Divisions and Functions

excluding Risk and Audit Functions

44WESTPAC 2025 ANNUAL REPORT
RISK MANAGEMENT

Material risk categories

Westpac has identified 11 material risk categories, among other potential risks, that could impact its business activities.

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

and Conduct

Risk

9

Financial

Crime Risk

10

Cyber

Risk

11

Reputational

and

Sustainability

Risk

For each material risk category, the Board establishes a risk appetite which is articulated in the Board Risk Appetite

Statement (RAS). The RAS lists our material 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.

MATERIAL RISK CATEGORIES


1

Capital Adequacy Risk

The risk that Westpac has an

inadequate level or composition

of capital to support its

normal business activities

and to meet its regulatory

capital requirements.

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; and 

•Target operating range for key capital ratios.

Areas of focus include:

•Continuous monitoring of capital forecasts;

•Considerations of capital headwinds; and

•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 indicates a bank’s capacity to

absorb losses.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
45

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; and

•Fund lending growth with stable funding sources.

Further information on funding and liquidity risk management is in Note 21

(page 175).

Areas of focus include:

•Executing the wholesale funding plan to support balance sheet growth

and refinance maturing debt; and 

•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); and

•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:

•Board approved credit risk limits and approval authorities which are

cascaded through the bank;

•Clear boundaries to guide appropriate credit risk strategic choices

•Reviewing settings and appetite on a regular basis to adjust for changes

in the operating environment; and

•A range of policies, processes and systems to support credit risk

monitoring and management.

Further information on credit risk management and provisioning is in Note

10 (page 135) and Note 11 (page 145) to the financial statements and in the

September 2025 Pillar 3 report.

Areas of focus include:

•Responding to heightened credit risk from domestic and international

factors including cost of living pressure, higher interest rates,

ongoing geopolitical risks, trade disruptions and a more uncertain

economic environment;

•Stress testing our credit portfolio including for climate related change

and the transition to net-zero emissions; and

•Assessing the impact of any external events, and provision modelled

outcomes including lending growth and conditions for specific customer

groups (e.g. including by geography, industry etc.)  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.

46WESTPAC 2025 ANNUAL REPORT
RISK MANAGEMENT

4

Market Risk

The risk of an adverse

impact on Westpac’s earnings

and economic value resulting

from changes in the value

of Westpac’s positions due

to a change in financial

market factors, such as foreign

exchange rates, commodity

prices, equity prices, credit

spreads and interest rates.

This includes earnings at risk

– the risk to net interest

income from interest rate

changes, and economic value

sensitivity – the risk of variability

in the Group’s banking book

capital requirements.

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 175).

Areas of focus include:

•Upgrading/replacing market risk systems and supporting

infrastructure; and

•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 Treasury and Financial

Markets businesses.

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 and seek to adapt

to changes in the external environment in a timely manner.

Areas of focus include:

•Technology simplification and transformation;

•Delivery of regulatory commitments; and

•Invest in digital and data, with the aim of improving the

customer experience.

Examples of a Risk Appetite measure

•Actual ROTE against the Target ROTE; and

•Allocation of balance sheet to Australia and New Zealand

(% of book in terms of Exposure at Default).

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
47

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:

•Leader led role modelling and training;

•Continuing to review, monitor and improve our tools and processes to

support the management of risk culture;

•Supporting improved capability across key behavioural change areas,

including speak up, decision making, ownership, challenge and maturing

action planning to drive behavioural change; and

•Executing on an integrated culture plan to support driving change at

all levels.

Example of a Risk Appetite measure

•Internal survey results – score for respondents who feel free to speak up

without fear of negative consequences.

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:

•Strengthening the control environment, including risk prevention and

automation; and

•Strengthening our operational resilience and adopting read-across

processes to fully understand underlying issues.

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 prevent:

•Breaches of regulatory requirements;

•Conduct that causes unsuitable, unfair or unclear customer outcomes or

adversely impacts the integrity of markets; and

•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, privacy risks and the oversight of regulatory reporting; and

•Improving our tools and processes to support alignment of our

behaviours and business practices to fair customer outcomes and

market integrity.

Example of a Risk Appetite measure

•Average calendar days to complete all Compliance Assessments.

48WESTPAC 2025 ANNUAL REPORT
RISK MANAGEMENT

9

Financial Crime Risk

The risk that Westpac fails to

prevent products and services

being used to facilitate financial

crime, fails to protect customers

and Westpac from fraud and

scam events or fails to comply

with applicable global financial

crime regulatory obligations.

Risk Appetite and Mitigation

Westpac is committed to protecting the integrity of the Australian financial

system and importantly keeping our community safe. This aligns with our

purpose of ‘Taking action now to create a better future’. 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.

Westpac continues to invest significant resources to assist AUSTRAC, law

enforcement and the Australian Government (including through the Fintel

Alliance) to detect, deter and disrupt financial crime.

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; and

•Uplifting of Know your Customer (KYC) processes and enhancing

customer lifecycle management through digital capabilities and

automated controls.

Example of a Risk Appetite measure

•Volume of High/Very High Financial Crime residual risk ratings across

Westpac's businesses.

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 help 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; and

•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; and

•Embedding a consistent cyber risk management framework.

Examples of a Risk Appetite measure

•Control effectiveness against external cyber threats; and

•Supplier security assessment outcomes.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
49

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, aiming to balance

the commercial aspects of decisions with stakeholder expectations. Our

approach includes considering potential impacts on people, communities

and the environment. We recognise that ESG issues can involve

interconnected and sometimes competing considerations.

Areas of focus include:

•Continuing to improve assessment of customers and our supply chain

for reputation and sustainability risks through existing governance

processes and tools;

•Continuing to embed the Climate Risk Policy, aligned with APRA’s

CPG 229, including performing a Climate Risk Materiality Assessment

to understand the intersection of climate risk across our material risk

categories; and

•Expanding our salient human rights assessment to include our role as a

financial services provider, employer and supporter of communities.

Example of a Risk Appetite measure

•Reputation ranking from external ranking agency (such as RepTrak)

which provides independent assessments of a company’s reputation,

brand and ESG.

50WESTPAC 2025 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 both empowered and

accountable for making decisions that affect our

business, operations, customers and stakeholders. The

framework establishes the roles and responsibilities

of Westpac’s Board, management team, employees

and suppliers. It also establishes the systems, policies

and processes for monitoring and evaluating Board

and management performance, and the practices

for corporate reporting, disclosure, remuneration, risk

management and engagement of security holders.

Our approach to corporate governance is based on a set

of Commitments and Behaviours that underpin our day-

to-day activities. Our Commitments and Behaviours are

designed to promote transparency, fair dealing, and the

protection of stakeholder interests, including customers,

our shareholders, our 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 our performance.

As Westpac’s principal listing is on the Australian

Securities Exchange (ASX), we have followed the ASX

Corporate Governance Principles and Recommendations

(fourth edition) (ASXCGC Recommendations) published

by the ASX Limited’s Corporate Governance Council

(ASXCGC) throughout the year. Westpac’s ordinary shares

are also quoted on the NZX Main Board, which is the main

board equity security market operated by NZX Limited.

Board areas of focus in FY25

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 to enhance

customer and employee satisfaction and operational efficiency;

•the appointment of Anthony Miller as Westpac's Chief Executive Officer (CEO), who commenced on

16 December 2024;

•initiatives to deliver five key priorities:

–Customer – striving to be #1 in customer service through a 'whole of bank to whole of customer' approach;

–People – investing in our people and fostering a culture of accountability and empowerment;

–Risk – completing the Customer Outcomes and Risk Excellence (CORE) program transition;

–Transformation – simplifying technology and adopting a 'one best way' approach; and

–Performance – improving return on tangible equity and cost-to-income ratio while strengthening our

market position;

•the introduction of Westpac's updated purpose – 'Taking action now to create a better future' alongside

behaviours aligned with three key commitments – Always Deliver, Safely; Make an Impact; and Own it;

•ongoing initiatives designed to deliver customer service excellence, including support for customers experiencing

hardship and protections against scams;

•the Group’s financial and operating performance, including progress in improving the Group’s financial

performance relative to peers;

•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 the approval of our updated Climate Change Position and

Climate Transition Plan;

•ongoing consideration of Board and senior executive succession, as well as Board and Board Committee

composition; and

•transition of the Westpac Group's external auditor from PricewaterhouseCoopers to KPMG.

Westpac's Board and Board Committee Structure is available in the 2025 Corporate Governance Statement.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
51

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

Westpac Group, its business plan and significant

corporate strategic initiatives;

•appointing the CEO and Chief Financial Officer (CFO),

and approving the appointment of Group Executives,

the Chief Audit Officer and any other person the

Board determines;

•overseeing culture across the Group by setting

the tone from the top, approving Westpac Group’s

Code of Conduct and Purpose, Commitments

and Behaviours, 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;

•oversight of the Group’s technology strategy and the

implementation of key technology initiatives;

•approving the Westpac Director Appointment

& Renewal Policy and determining Board size

and composition;

•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

(FAR) (Accountable Person), any person performing

a role specified by the Australian Prudential

Regulation Authority (APRA) and any other person

the Board determines;


approving the annual financial targets and financial

statements, and monitoring financial performance

against forecast and prior periods;

•reviewing and approving capital management

initiatives, including determining our 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 risks;

•approving the 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, setting standards and

monitoring compliance with our sustainability policies

and practices, and approving the Westpac Group's

sustainability strategy and its position on material

sustainability matters;

•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 by

providing oversight of the

implementation and operation

of the risk management

framework, 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.

52WESTPAC 2025 ANNUAL REPORT
CORPORATE GOVERNANCE

Board skills, experience

and attributes

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 FY25 these

focus areas included technology developments and key

environmental, social and governance topics (amongst

others), which were facilitated through a combination of

structured workshops, targeted deep dives, and site visits

aligned with strategic priorities. 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 2025


SKILLS

AND EXPERIENCEDESCRIPTIONNUMBER OF DIRECTORS

Customer

focus

Experience in developing and overseeing 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

management

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 overseeing the application of technology in

large and complex organisations, including in areas such as

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, including legal, compliance,

regulatory and public policy issues 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

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

In addition to the skills outlined above, the Westpac Board seeks to ensure that it operates as a cohesive team,

bringing together a range of perspectives to guide the Group and oversee management. The Westpac Board also

expects its members to be committed to supporting our Purpose and upholding our Commitments and Behaviours.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
53

Board diversity

A diverse group of skilled Directors helps us be a stronger

organisation that makes better decisions. In relation to

gender diversity, for 2025, the Board Nominations &

Governance Committee confirmed its objective of 40%

women, 40% men and 20% any gender for the composition

of the Westpac Board. In FY25, this objective included the

Managing Director and CEO. From FY26, the Managing

Director and CEO will be included within the Executive

Team objective, with the Board objective applying only to

Non-executive Directors.

As at 30 September 2025, the gender composition of the

Board was 64% male and 36% female.

Board tenure

The average Board tenure as at 30 September 2025 is

set out below. The length of service of each Director is

outlined in the Directors’ Report (pages 54-100).

Refer to our

2025 Corporate Governance Statement

for more information on our corporate governance

framework, policies and practices at 2 November

2025. The Statement, along with the Board and

Committee Charters, principles and policies are

available at westpac.com.au/corpgov.

Ethical decision making and

key policies

Ethical and responsible decision making is critical

to decision-making at Westpac. Our Purpose,

Commitments 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

The Westpac 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 outlining our commitment to sustainable

business practices and behaviours. These include our

Purpose, Commitments and Behaviours, policies and

position statements addressing sustainability themes

such as 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

The Westpac Group Speaking Up Policy encourages

all eligible persons to raise any concerns about our

activities or behaviours that may be unlawful or

unethical. Our senior management are committed to

supporting those who speak up. Westpac does not

tolerate detrimental conduct related to a Speaking

Up report. A person can raise a concern using

our whistleblowing channels, including our reporting

system ‘Concern Online’ and our Whistleblower Hotline.

The Board Audit Committee, in conjunction with

the Board Risk Committee, oversees Westpac’s

Whistleblower Program. Material whistleblower

matters raised under the Westpac Group Speaking

Up Policy are reported to the Board Risk Committee

and may be escalated to the Board Audit Committee

as appropriate.

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.

54WESTPAC 2025 ANNUAL REPORT
DIRECTORS’

REPORT

Our Directors present this report

together with the financial statements

of the Group for the financial year

ended 30 September 2025.

1

Board Committee Member Key

Chair of each Committee is noted with a red icon.

Board AuditBoard Remuneration

Board Nominations

& Governance

Board Risk

Board of Directors

Steven Gregg

BCom

Age: 64

CHAIRMAN AND INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 7 November 2023 and Chairman since 14 December 2023.

Board Committees: Chair of the Board Nominations & Governance Committee.

Experience: Steven has more than 36 years' experience in global financial services, strategy

consulting and professional services across Australia, Asia, Europe and the US. He 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,

Chairman since August 2017), The Lottery Corporation Limited (May 2022 to March 2024) and

Challenger Limited (October 2012 to October 2023).

Other principal directorships and interests: Chairman of the Lorna Hodgkinson Foundation

(and a Director of Unisson Disability Limited).

Board Committees:

Anthony Miller

LLB (Hons), BA

Age: 55

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER

Appointed: Director since 16 December 2024.

Board Committees: Nil.

Experience: Anthony was appointed Westpac Group Chief Executive Officer in December 2024.

Since joining the Westpac Group in 2020, Anthony has also held the roles of Chief Executive,

Business and Wealth and Chief Executive, Westpac 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.

Directorships of listed entities over the past three years: Nil.

Other principal directorships and interests: Director of Australian Banking Association,

Director of the Institute of International Finance and Director of Financial Markets Foundation

for Children.

Board Committees:

Nil

1.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 2025, and the period for which each

directorship has been held, are set out in the following pages.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
55

Tim Burroughs

MA (Hons), B Psy

(Hons), FCA, FAICD

Age: 71

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 10 March 2023.

Board Committees: Member of the Board Remuneration and the Board Risk Committees.

Experience: Tim has over 41 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: 61

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 1 September 2017.

Board Committees: Member of the Board Audit and the Board Risk Committees.

Experience: Nerida has over 39 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:

David Cohen

BA LLB, FAPI

Age: 65

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 1 April 2025.

Board Committees: Member of the Board Risk Committee.

Experience: David has over 21 years’ experience in financial services and was Deputy

Chief Executive Officer of Commonwealth Bank of Australia (CBA) from November 2018 to

December 2023. As Deputy CEO, David oversaw business divestments, facilitated mergers

and acquisitions, and improved handling of customer complaints. Prior to this role, David

was Group General Counsel, Group Executive Human Resources, Group Executive Corporate

Affairs and Chief Risk Officer at CBA. During his 16 years at CBA, he also led the bank through

the Hayne Royal Commission into the financial services sector. David’s roles prior to joining

CBA include General Counsel at AMP and a Partner at Allens Arthur Robinson.

David is Chairman of TAL Life Limited and a Panel Member of Adara Partners (Australia) Pty

Ltd. He was previously a director of ASB Bank Limited (NZX).

Directorships of listed entities over the past three years: ASB Bank Limited (NZX) (February

2019 to February 2025).

Other principal directorships and interests: TAL Life Limited (Director since April 2025 and

Chairman since May 2025), TAL Life Insurance Services Limited (Director since April 2025) and

Panel Member of Adara Partners (Australia) Pty Ltd.

Board Committees:

56WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Pip Greenwood

LLB

Age: 59

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 1 August 2025.

Board Committees: Nil.

Experience: Pip has more than 25 years' of experience in financial services, capital markets,

mergers and acquisitions, and governance, and was one of New Zealand’s leading commercial

lawyers and a partner at Russell McVeagh, where she advised on many high-profile New

Zealand corporate transactions. Pip also previously served as Board Chair and interim CEO of

Russell McVeagh and was a member of the New Zealand Takeovers Panel from 2007 to 2011.

Pip is the current Chair of Westpac New Zealand Limited (WNZL) and Chair of The a2 Milk

Company Limited.

Directorships of listed entities over the past three years: The a2 Milk Company Limited

(Director since July 2019 and Chair since 16 November 2023), Fisher & Paykel Healthcare

Corporation Limited (June 2017 to September 2025) and Vulcan Steel Limited (August 2019 to

October 2022).

Other principal directorships and interests: Chair of WNZL.

Board Committees:

Nil

Debra Hazelton

BA (Hons),

MCom, GAICD

Age: 72

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 4 March 2025.

Board Committees: Member of the Board Remuneration Committee.

Experience: Debra has over 30 years' experience in global financial services, with a particular

focus on Australia and Japan. Her executive experience includes national CEO roles in Japan

(CBA) and Australia (Mizuho Bank) as well as treasury, corporate/project finance, and human

resources/organisational culture.

Debra is an experienced Chair and Non-executive Director currently serving as Chair of Export

Finance Australia, Vice President of the Australia-Japan Business Co-operation Committee,

and a Director of the boards of Persol Holdings Co., Ltd (Tokyo Stock Exchange) and Australia

Post. Debra was previously Chair of AMP Ltd and AMP Bank.

Debra holds graduate and postgraduate degrees in Economics and Finance as well as

Philosophy and Japanese and studied at University of Sydney, UNSW, and Keio University

(Tokyo) and was recently awarded the Japanese Minister of Foreign Affairs Commendation

for 2024.

Directorships of listed entities over the past three years: Persol Holdings Co., Ltd (Tokyo

Stock Exchange) (since June 2023) and AMP Limited (June 2019 to April 2024).

Other principal directorships and interests: Chair of Export Finance Australia, Vice President

of the Australia Japan Business Co-operation Committee and Director of Australia Post.

Board Committees:

Andy Maguire

BA, BAI

Age: 59

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 15 July 2024.

Board Committees: Member of the Board Remuneration Committee.

Experience: Andy has over 36 years’ experience in financial services, and began his career in

banking at Lloyds Banking Group. From 2014 to 2020, he served as 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 Chair 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 p.l.c. (since March 2021).

Other principal directorships and interests: Chair of Thought Machine Group.

Board Committees:

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
57

Peter Nash

BCom, FCA, F Fin

Age: 63

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 7 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 until September 2017, 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 (October

2017 to October 2025), Mirvac Group (since November 2018) and ASX Limited (June 2019 to

September 2025).

Other principal directorships and interests: Director of the General Sir John

Monash Foundation.

Board Committees:

Margaret

(Margie) Seale

BA, FAICD

Age: 65

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 1 March 2019.

Board Committees: Chair of the Board Remuneration Committee. Member of Board

Nominations & Governance Committee.

Experience: Margie has more than 26 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).

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: 74

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: Director since 3 April 2023.

Board Committees: Chair of the Board Risk Committee. Member of the Board

Audit Committee.

Experience: Michael has more than 41 years' experience in international banking, finance and

professional services. Michael was formerly the Deputy Group Chief Executive Officer of 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 Chair of the subsidiaries Great Western

Bank (US) and JB Were. Prior to NAB, Michael was at CBA, 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 from December 2011 to November 2024 and Chairman from November 2018 to

November 2024).

Other principal directorships and interests: Member of the National Gallery of Victoria

Foundation Board.

Board Committees:

58WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Retired Directors

Peter King was appointed a Director on 2 December 2019 and retired as CEO and Managing Director on 15 December

2024, Nora Scheinkestel was appointed as a Director on 1 March 2021 and retired as a Director on 6 November 2024

and Audette Exel was appointed as a Director on 1 September 2021 and retired as a Director on 13 December 2024.

Executive Team as at 30 September 2025

Anthony Miller

LLB (Hons), BA

Age: 55

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, WESTPAC GROUP

Anthony was appointed Westpac Group Chief Executive Officer on 16 December 2024. Since

joining the Westpac Group in 2020, Anthony has also held the roles of Chief Executive,

Business and Wealth and Chief Executive, Westpac 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.

Scott Collary

BA, Humanities

Age: 61

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 35 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 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 in the United States.

Kate Dee

FCIPD, BA

Age: 47

CHIEF PEOPLE OFFICER

Kate was appointed Chief People Officer in August 2025, joining Westpac with more than 25

years’ experience across a range of industries.

Prior to joining Westpac, Kate was the Chief People Officer at Bupa Asia Pacific, a role she

held since 2018. Prior to that, she was the General Manager of Talent at National Australia

Bank from 2015 to 2018 after returning from Europe where she oversaw Global Organisational

Development as an Executive Director for Time Warner in London.

Kate holds Bachelors degrees from Victoria University of Wellington New Zealand. She is a

Fellow of both the Chartered Institute of Personnel and Development UK and the Australian

Human Resource Institute as well as a member of Chief Executive Women.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
59

Shannon Finch

BA (Hons),

LLB (Hons),

MAICD, FGIA

Age: 55

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

AICD Law Committee and was formerly on the Advisory Committee to the Australian Law

Reform Commission’s Review of the Legislative Framework for Corporations and Financial

Services Regulation.

Shannon has experience as a Non-executive Director of Bell Shakespeare (in the Not-for-

profit sector), 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.

Paul Fowler

LLB, BCom

(Hons, Finance)

Age: 46

CHIEF EXECUTIVE, BUSINESS & WEALTH

Paul was appointed Chief Executive, Business and Wealth in May 2025. He oversees banking

services for small, medium and commercial sized businesses, Westpac’s wealth businesses

including Private Wealth and BT, and Pacific Banking.

Prior to joining Westpac, Paul spent 10 years at Commonwealth Bank of Australia where

he held various roles, including Executive General Manager of Regional and Agribusiness

Banking, Chief Financial Officer of Institutional Banking and Markets, and Executive General

Manager, Group Mergers and Acquisitions.

Paul spent the first 13 years of his career in investment banking, holding positions at Goldman

Sachs and Citigroup in Australia and offshore, where he advised financial services firms on

mergers and acquisitions, divestments, and capital management.

He holds a Bachelor of Laws and a Bachelor of Commerce (Hons) from the University of New

South Wales.

Peter Herbert

Age: 43

CHIEF TRANSFORMATION OFFICER

Peter was appointed Chief Transformation Officer in March 2025 and has responsibility for

transformation across the Group, including working across divisions and technology on the

delivery of the business-led simplification program, UNITE.

Prior to this, Peter was the Acting Chief Executive, Business & Wealth responsible for

providing a range of banking and wealth services for customers across Business Lending,

Merchant Services, Private Wealth, Westpac’s Pacific banking business and BT. Peter is a

seasoned banking executive who joined Westpac in 2020 as the Chief Transformation Officer

for Consumer and Business Banking, and the Chief Operating Officer, Business & Wealth.

Before joining Westpac, he had an extensive career at HSBC most recently as Chief Operating

Officer, Asia Pacific, Retail Banking & Wealth Management.

Carolyn Hoy

BA (Hons),

LLB (Hons)

Age: 49

ACTING GROUP EXECUTIVE, CUSTOMER & CORPORATE SERVICES

Carolyn was appointed the Acting Group Executive, Customer & Corporate Services in May

2025. She is responsible for operations, customer solutions, fraud prevention, property,

procurement and resilience, corporate affairs, and HR and finance services.

Carolyn has 25 years’ experience and a background in legal and risk. She has held a range

of roles throughout her almost 20-year Westpac tenure, including Head of Group Corporate

Legal, Chief of Staff to the CEO, Chief Risk and Compliance Officer for BT, and General

Manager Property, Procurement and Resilience.

Carolyn holds a Bachelor of Arts (First Class Honours) and Bachelor of Laws (First Class

Honours) from the Australian National University and is also a Fellow of the Governance

Institute of Australia.

60WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Nell Hutton

BCom (Hons),

MPhil, GAICD

Age: 49

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 a member

of the AICD and Chief Executive Women.

Carolyn McCann

BBus (Com), BA,

GradDipAppFin,

GAICD

Age: 53

CHIEF EXECUTIVE, CONSUMER

Carolyn started at Westpac in 2013 and joined the Group Executive team in 2018. She

is currently Chief Executive, Consumer. The Consumer bank provides banking products

and services including mortgages, credit cards, personal loans and deposits to customers

in Australia.

Previously, Carolyn was Group Executive, Customer & Corporate Services, responsible for

operations, customer solutions, scams and fraud prevention, property, procurement and

resilience, corporate affairs, and HR and finance services.

Before joining Westpac, Carolyn spent 13 years at Insurance Australia Group in several

senior roles, including Group General Manager, Corporate Affairs & Investor Relations. With

more than 27 years’ experience in financial services, Carolyn holds 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 AICD and Chief Executive Women.

Catherine

McGrath

LLB/BCom

Age: 54

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.

Dr

Andrew McMullan

PhD (Statistics)

Age: 48

CHIEF DATA, DIGITAL AND AI OFFICER

Dr Andrew McMullan joined Westpac in September 2025 to lead the transformation of

the bank’s data, digital and artificial intelligence capabilities. He plays a key role in

driving innovation, improving customer and employee experiences, and supporting Westpac’s

strategic program, UNITE.

Andrew joined Westpac from CBA, where he was Chief Data and Analytics Officer. He

previously served as Chief Analytics Officer, helping scale platforms that enhanced decision-

making and customer outcomes. With a career spanning global financial institutions, Andrew

is a recognised thought leader in responsible AI and data strategy. He brings deep

expertise in delivering secure, scalable and customer-centric solutions that enable innovation,

operational efficiency, and trust.

Andrew holds a PhD in Statistics from the University of Glasgow.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
61

Michael Rowland

B.Comm, FCA

Age: 64

CHIEF FINANCIAL OFFICER

Michael joined Westpac Group as Chief Financial Officer (CFO) in September 2020

a

. 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 executive positions at ANZ from 1999 to 2013. These included

CFO Institutional Banking, CFO Wealth, CFO New Zealand, CFO Personal Financial Services,

CEO Pacific, Managing Director Mortgages and General Manager, Transformation. Michael

commenced his career at KPMG, where he was promoted to 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.

Fiona Wild

PhD (Chemistry)

Age: 53

CHIEF SUSTAINABILITY OFFICER

Fiona was appointed Westpac’s Chief Sustainability Officer in March 2025, leading the bank's

work on climate, nature, social policy, human rights and Indigenous strategy and engagement.

Fiona has more than 25 years of experience working in sustainability.

Before joining Westpac, Fiona was the Group Sustainability and Social Value Officer at BHP,

accountable for all climate and sustainability-related public policy issues. She joined BHP in

2010 and held a range of senior roles including Vice President Environment, Vice President

Climate Change, and Group Climate and Sustainability Officer.

In December 2015, Fiona was appointed a permanent member of the Financial Stability

Board’s Task Force on Climate-related Financial Disclosures, reporting to the G20. She has

also held several Board positions, including Deputy Chair of the Global Carbon Capture and

Storage Institute (GCCSI).

Fiona holds a PhD in Chemistry from the University of Edinburgh.

Ryan Zanin

CFA

Age: 63

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 40 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.), FGIA

Age: 50

COMPANY SECRETARY

Tim was appointed Company Secretary in November 2011.

Previously 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.

Tim holds a LLB Law (Hons) with options in French from the University of Aberdeen, is a fellow

of the Governance Institute of Australia and a member of the Law Advisory Board of the

University of Technology, Sydney. Tim is an international lawyer - being a qualified solicitor in

Scotland, England + Wales and Australia.

a.Michael Rowland retired as CFO and Nathan Goonan commenced as CFO effective 8 October 2025.

62WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Operating and financial review

Principal activities

The principal activities of the Group during the financial year ended 30 September 2025 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 2025.

Operations and financial performance

Net profit for 2025 was $6,916 million, a decrease of 1% compared to 2024. The decrease in net profit reflects an

increase in operating expenses partly offset by higher income and lower credit impairment charges. Basic earnings per

share remained stable at 201.9 cents.

The following is a summary of the movements in major line items in net profit for 2025 compared to 2024.

Net interest income increased by $627 million or 3% driven by growth in average interest earning assets of 3% and

stable net interest margin. Key movements in net interest income included:

•Improved interest income from growth in average interest earning assets; and

•Disciplined management of deposit funding costs in response to falling asset yields.

Non-interest income was $169 million or 6% higher. The key movements included:

•Favourable market movements on the value of financial instruments measured at fair value in 2025 of $38 million,

compared to a loss of $24 million in 2024;

•Higher wealth management income mainly due to volume growth of funds under administration; and

•Improvements in transaction fee income, mainly resulting from higher line and guarantee fees.

Operating expenses were $972 million or 9% higher. The key movements included:

•Higher employee costs of $686 million mainly from restructuring costs and additional staffing attached to our UNITE

program; and

•A $181 million increase in technology services expenses from inflationary pressure and the impact of our UNITE

program; and

•A $110 million increase in amortisation and impairment of software assets from projects completed.

Credit impairment charges of $424 million represented 5 basis points of average gross loans compared to 7 basis points

in 2024. The decrease primarily reflected higher write-back and recoveries partly offset by higher charges from collective

assessed exposures.

The effective tax rate of 30.97% in 2025 was slightly higher than the Australian corporate tax rate of 30%, mainly due to

non tax deductible hybrid instrument distributions.

A review of the operations of the Group and its segments and their results for the financial year ended

30 September 2025 is set out in the Creating value for shareholders (pages 16- 21) section which form part of this

Directors' report. Further information about our financial position and financial results is included in the Financial Report

which forms part of this Directors' report.

Dividends

Westpac has announced a final ordinary dividend of 77 cents per Westpac ordinary share, totalling $2.6 billion. The

dividend will be fully franked and will be paid on 19 December 2025.

In 2025, an interim ordinary dividend of 76 cents per Westpac ordinary share totalling $2.6 billion was paid as a fully

franked dividend on 27 June 2025 (2024: ordinary dividend of 75 cents and a special dividend of 15 cents per share

totalling to $3.1 billion).

For the year ended 30 September 2024, a fully franked final dividend of 76 cents per ordinary share totalling $2.6 billion

was paid on 19 December 2024.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
63

Significant changes in state of affairs and events during and since the end of the 2025 financial year

Significant changes in the state of affairs of the Group during the financial year ended 30 September 2025, or that have

occurred since that date, were:

•On 16 December 2024, Anthony Miller commenced as CEO and Managing Director.

•Following approval by Westpac’s shareholders at the 2024 AGM on 13 December 2024, KPMG commenced as

Westpac’s external auditor for the 2025 financial year.

•Following completion of the Integrated Plan (IP) in December 2023 (required under the enforceable undertaking

entered into with APRA in December 2020 in relation to our risk governance remediation), Westpac continued to

focus on the sustainability and effectiveness of the IP uplifts via a transition phase.  On 31 December 2024, we

completed the transition phase, as confirmed by Promontory Australia (as Independent Reviewer) in February 2025.

•On 15 October 2025, APRA announced its decision to lift the CEU and remove Westpac's remaining $500 million

operational risk capital overlay. The removal of the $500 million capital overlay will mean Westpac’s Common Equity

Tier 1 (CET1) capital ratio will increase by approximately 17 basis points, reflecting a reduction in risk weighted

assets of $6,250 million. This change applied with immediate effect.

For a discussion of these changes and other significant developments, please refer to Significant developments (pages

101-102) which forms part of this Directors' report.

The Directors are not aware of any other matter or circumstance that has occurred since 30 September 2025 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- 102) and in Significant

developments (pages 101-102) which form part of this Directors' report.

Further information on our business strategies and prospects for 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 the Group.

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 42-49) which forms part of the

Directors' report. For additional information on risks relating to Westpac, refer to 2025 Risk Factors as disclosed on the

ASX on the same date as this report.

64WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Directors’ interests

Directors’ interests in securities

The following particulars for each Director are set out in the Remuneration Report (pages 69-98) of the Directors’

report for the year ended 30 September 2025 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 2 November 2025

Number of Relevant Interests

in Westpac Ordinary Shares

Number of Westpac

Share Rights

Westpac Banking Corporation

Current Directors

Steven Gregg75,208-

Anthony Miller261,171

a

368,811

b

Tim Burroughs67,302-

Nerida Caesar13,583-

David Cohen1,253-

Pip Greenwood--

Debra Hazelton

c

1,350-

Andy Maguire6,615-

Peter Nash15,260-

Margaret Seale

d

10,438-

Michael Ullmer

e

12,570-

Former Directors

Peter King

f

385,807448,117

Audette Exel

g

11,952

Nora Scheinkestel

h

17,225

a.Anthony Miller's interest in Westpac ordinary shares includes 14,662 restricted shares held under the Equity Incentive Plan.

b.Share rights issued under the Long Term Variable Plan and Equity Incentive Plan.

c.Debra Hazelton and her related bodies corporate also hold relevant interests in 10 Westpac Capital Notes 7 (ASX:WBCPJ), 16 Westpac Capital

Notes 9 (ASX:WBCPL) and 2 Westpac Capital Notes 10 (ASX:WBCPM).

d.Margaret Seale and her related bodies corporate also hold relevant interests in 100 Westpac Capital Notes 7 (ASX:WBCPJ).

e.Michael Ullmer and his related bodies corporate also hold relevant interests in 300 Westpac Capital Notes 9 (ASX:WBCPL) and 1,000 Westpac

Subordinated Notes.

f.Peter King's interest in Westpac ordinary shares includes 54,310 restricted shares held under the Equity Incentive Plan. Figure displayed as at

Peter King's retirement date of 15 December 2024.

g.Figure displayed as at Audette Exel's retirement date of 13 December 2024.

h.Figure displayed as at Nora Scheinkestel's retirement date of 6 November 2024.

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) or BT Investor

Choice Cash Management Trust (formerly Westpac Cash Management Trust) (ARSN 088 187 928).

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
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 2025, 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 4,376,980 share rights outstanding in relation to Westpac ordinary shares, held by

111 holders. The latest dates for exercise of the share rights range between 1 October 2026 and 2 December 2039.

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 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Environmental disclosure

The Westpac Group’s environmental disclosure is summarised in this Annual Report (pages 36-39) and detailed in our

2025 Sustainability Report and our 2025 Sustainability Index and Datasheet which are available on our website.

Additional environmental disclosure is in our Climate Transition Plan which outlines how we are working to achieve our

ambition to be a net-zero climate resilient bank and our Natural Capital Position Statement, which looks at how we

assess the risks and opportunities associated with nature.

This year, our Sustainability Report works towards aligning with Australia’s new Australian Sustainability Reporting

Standard AASB S2. Westpac will need to fully comply with the new climate-related disclosure standard, AASB S2

in FY26. Westpac is also a climate reporting entity under the Financial Markets Conduct Act 2013 (NZ) and our 2025

Sustainability Report complies with the Aotearoa New Zealand Climate Standards (NZCS).

In Australia we also 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.

We are not aware of the Group incurring any material liability (including for rectification costs) under any

environmental legislation.

Human rights disclosure

Our Human Rights Position Statement and Action Plan sets out Westpac Group's commitments and approach to

respecting and advancing human rights. It outlines our approach to respecting human rights across our roles as a

financial services provider, lender, purchaser of goods and services, employer, and supporter of communities, and

integrates our position on child safeguarding. More information on our approach and the Group’s salient human rights

issues can be found on the Human Rights section of our website and 2025 Sustainability Index and Datasheet.

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 FY24 on behalf of itself and certain reporting entities that

addressed the requirements of both Acts.

For more information, see the Westpac Group’s 2024 Modern Slavery Statement, published in March 2025.

We will release the Group’s FY25 Modern Slavery Statement in March 2026.

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.

Political engagement

In line with Westpac policy, no cash donations were made to political parties during the financial year ended

30 September 2025.

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 customers, suppliers, shareholders

and employees.

Political expenditure on these events in Australia for the financial year ended 30 September 2025 was $182,406.87. This

included expenditure of $120,730.65 with the Australian Labor Party, $59,176.22 with the Liberal Party of Australia, and

$2,500 with the National Party of Australia, across Australian state and federal government jurisdictions.

In New Zealand, political expenditure for the financial year ended 30 September 2025 was NZ$5,874.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
67

Directors’ meetings

The Westpac Banking Corporation Board met 9 times during the financial year ended 30 September 2025. 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.

BoardCommittees

Scheduled

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

Director

Steven Gregg

d

99n/an/an/an/an/an/a44

Anthony Miller

e

66n/an/an/an/an/an/an/an/a

Tim Burroughs

f

9988n/an/a88n/an/a

Nerida Caesar

g

995544n/an/an/an/a

David Cohen

h

4444n/an/an/an/an/an/a

Pip Greenwood

i

22n/an/an/an/an/an/an/an/a

Debra Hazelton

j

55n/an/an/an/a55n/an/a

Andy Maguire

k

99n/an/an/an/a66n/an/a

Peter Nash

l

998844n/an/a44

Margaret Seale

m

99n/an/an/an/a8844

Michael Ullmer

n

998844n/an/an/an/a

Former Director

Peter King

o

44n/an/an/an/an/an/an/an/a

Audette Exel

p

333311n/an/an/an/a

Nora Scheinkestel

q

2222n/an/a22n/an/a

a.There were no out of cycle Board meetings called.

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 or Board Committee meetings that the Director attended as a member.

d.Chairman of the Board and Chair of the Board Nominations & Governance Committee.

e.Appointed as a Director on 16 December 2024.

f.Member of the Board Risk Committee and Board Remuneration Committee.

g.Member of the Board Audit Committee. Appointed as a member of the Board Risk Committee with the appointment taking effect on

13 December 2024.

h.Appointed as a Director and a member of the Board Risk Committee on 1 April 2025.

i.Appointed as a Director on 1 August 2025.

j.Appointed as a Director and a member of the Board Remuneration Committee on 4 March 2025.

k.Appointed as a member of the Board Remuneration Committee with the appointment taking effect on 6 November 2024.

l.Chair of the Board Audit Committee and member of the Board Risk Committee and Board Nominations & Governance Committee.

m.Member of the Board Nominations & Governance Committee and Board Remuneration Committee. Appointed Chair of the Board Remuneration

Committee with the appointment taking effect on 6 November 2024

n.Member of the Board Audit Committee and the Board Risk Committee. Appointed Chair of the Board Risk Committee with the appointment

taking effect on 13 December 2024

o.Retired as a Director on 15 December 2024.

p.Retired as a Director on 13 December 2024.

q.Retired as a Director on 6 November 2024.

68WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
69

Remuneration Report

LETTER FROM

THE CHAIR

of the Board Remuneration

Committee

2025 was a year of renewal,

marked by refreshed leadership

and a focus on positioning

Westpac for long term growth.

Dear shareholders,

On behalf of the Board, I am pleased to present the 2025

Remuneration Report.

Group performance

We invested for the future while delivering sound financial

results. Excluding Notable Items, NPAT achieved our

target while ROTE was narrowly below target.

Our costs were higher than planned, reflecting decisions

made for the long term. Cost management will continue

to be a priority. We gained market share in business

lending while mortgages growth in Australia was at

target. Overall, we delivered a total shareholder return

of 29% for the financial year.

We completed the CORE transition phase, resulting

in APRA announcing the release of the remaining

$500 million operational risk capital overlay, and made

progress on the Group's transformation agenda.

We delivered 88% of the 2025 UNITE priorities and

delivered the first phases of the Westpac One and the

BizEdge platforms. We have completed UNITE program

discovery and made the decision to consolidate to a single

deposit ledger.

Overall, our customer experience needs to improve.

Consumer NPS improved, with performance at target, but

we have more work to do on Business NPS. Pleasingly,

Westpac's relationship banking RSI was the highest in

10 years.

Our people remain engaged and advocate for Westpac.

Our Organisational Health Index score was 80 despite

significant restructuring, exceeding our target of 77 and

within the top quartile of workplaces globally. We have

more to do to improve the representation of women in

senior leadership.

Executive performance and remuneration outcomes

2025 short term variable reward (STVR)

The 2025 Group STVR Scorecard included four key

priorities: Financial performance, Strategic execution,

Serving customers, and People.

This year we increased the weighting of financial

performance from 45% to 50% and increased the

weighting of the strategic execution category from 15%

to 30%, including risk management which was a separate

category in 2024. These changes recognise both feedback

from investors and our completion of the CORE program.

The Board assessed the CEO's STVR outcome at 85%

of target. The CEO’s outcome was impacted by below

threshold performance on the Group cost base measure.

For Group Executives, STVR outcomes ranged from

92% to 102% of target, reflecting the differentiation of

performance outcomes for their respective divisions and

individual performance.

2022 long term variable reward (LTVR)

The 2022 LTVR award was tested against a relative total

shareholder return measure. Westpac delivered a total

shareholder return of 77% over the four year performance

period, resulting in a 62.5th percentile ranking relative to

the financial services comparator group.

As a result, the CEO and eligible Group Executives

received 75% of their 2022 LTVR. It is pleasing

that improved performance has led to a partial

vesting of the LTVR. This demonstrates the alignment

of our remuneration framework with the experience

of shareholders.

2025 total target remuneration

As foreshadowed in last year’s report, we increased

the total target remuneration for four Group Executives.

The increases recognised market comparisons and role

accountabilities and were implemented for Carolyn

McCann (10%), Catherine McGrath (6%), Michael Rowland

(2%) and Ryan Zanin (4%). Carolyn McCann has since

been appointed Chief Executive, Consumer and received

a further 9% increase.

70WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

CEO transition and executive leadership

team renewal

In December 2024, Anthony Miller (previously Chief

Executive, Business & Wealth) succeeded Peter King

as Westpac’s CEO. In his first year, Anthony has led

the renewal of the Executive Team, advanced the

implementation of the UNITE program and continued to

reorient the organisation to be more customer focused.

The new executive leadership team includes both internal

and external appointments and the Board is confident we

have the team to deliver on the strategy.

Total target remuneration for new appointments

So that the remuneration of our executives is

appropriately positioned, each year we review internal

and external benchmarks. Most of our new executive

appointments, except for one, have been appointed on

packages lower than their predecessors. Further details

are included in the Summary of appointment and exit

arrangements (page 71).

Buy out awards for remuneration foregone

In order to secure the talent required, we follow common

market practice and provide buy out awards where

necessary. When determining buy outs, our key principle

is that the candidate should be no better or worse off

and only compensated for remuneration foregone. Further

details are included in the Summary of appointment and

exit arrangements (page 71).

Executive notice periods

Following a market review we implemented changes to

our executive employment agreement. We reduced the

notice period required when an executive leaves Westpac

from twelve months to six months. This is effective for all

new executives that commenced from January 2025.

Remuneration for our people

Home finance manager pay framework

In 2025, we increased the maximum variable reward

opportunity for home finance manager roles from 50%

to 80% of fixed pay. We made this change to remain

competitive, attract talent and reward outperformance.

We have made, and continue to make, refinements to

the home finance manager pay framework so we remain

tightly focused on risk and conduct management.

Gender pay

We are determined to pay our people fairly and

equitably. We have pay equity for like-for-like roles and

have reduced our median gender pay gap for total

remuneration from 29.3% to 28.1% for the 2024-25

reporting year. There are a range of programs in place

to improve gender diversity across levels, including

our sponsorship and career development programs for

women. There is more to do to ensure the gap continues

to reduce. Refer to Creating value for our people (pages

28-31) for further information.

Looking ahead

2026 short term variable reward

The Board has set the 2026 Group STVR Scorecard

to support the delivery of our priorities. We will

maintain a 50% weighting to financial performance,

with the remaining weightings of the Group STVR

Scorecard focused on UNITE, customer, people, risk, and

sustainability. In addition, we have added a leadership

behaviours modifier in the Group Executive Scorecards

aligned to our objectives to 'always deliver, safely', 'make

an impact' and 'own it'.

2026 total target remuneration

After reviewing market relativities, the Board determined

that Catherine McGrath would receive an increase

of 6% to her 2026 total target remuneration. There

were no other increases as part of the annual

remuneration review.

CEO minimum shareholding requirement

To strengthen the CEO's alignment with shareholders,

the Board increased the CEO's minimum shareholding

requirement from 200% to 300% of fixed remuneration.

This change is effective from 1 October 2025 and Anthony

will have a five year accumulation period from the date he

was appointed as CEO. We are pleased that Anthony is

well progressed in achieving the increased requirement.

We hope you find the report informative and always

welcome your feedback.

Margaret Seale

CHAIR

BOARD REMUNERATION COMMITTEE

CONTENTS

1.Snapshot of remuneration for 2025725.Further detail on executive

remuneration arrangements

83

2.Key management personnel746.Non-executive Director remuneration88

3.2025 remuneration outcomes and alignment

to performance

757.Statutory remuneration details89

4.Remuneration governance81

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
71

SUMMARY OF APPOINTMENT AND EXIT ARRANGEMENTS

During the year, the Board appointed new executives to lead Westpac’s next phase of transformation and growth. The

appointments include a mix of internal executives, reflecting the depth of talent and capability at Westpac, as well as

external executives. Biographies of our executives are outlined in the Executive Team section of the Annual Report.

A summary of executive appointment and exit arrangements is outlined below, with further details included throughout

the report.

KMPAPPOINTMENT ARRANGEMENT

Anthony Miller

Managing Director & Chief

Executive Officer

•Total target remuneration of $7,875,000 in line with the previous CEO.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

Kate Dee

Chief People Officer

•Total target remuneration of $2,600,000.

•Buy out award comprising cash and equity components totalling $2,240,820.

•Not eligible for 2025 LTVR or STVR.

Paul Fowler

Chief Executive, Business & Wealth

•Total target remuneration of $3,550,000.

•Buy out award comprising cash and equity components totalling $2,882,409.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

Nathan Goonan

a

Chief Financial Officer

•Total target remuneration of $3,900,000.

•Buy out award comprising cash and equity components estimated at $7,830,093.

Peter Herbert

Chief Transformation Officer

•Total target remuneration of $2,700,000 as Chief Transformation Officer.

•Total target remuneration of $2,100,000 as Acting Chief Executive, Business & Wealth.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

Carolyn Hoy

Acting Group Executive, Customer &

Corporate Services

•Total target remuneration of $1,700,000.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

Carolyn McCann

Chief Executive, Consumer

•Total target remuneration of $4,028,000 as Chief Executive, Consumer.

•Total target remuneration of $3,925,000 as Acting Chief Executive, Consumer.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

Megan Rutter

Acting Group Executive,

Human Resources

•Total target remuneration of $1,525,000.

•Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR.

•Ceased as an Acting Group Executive on 4 August 2025.

a.Nathan Goonan commenced on 22 September 2025 as an Enterprise Executive and was not considered a KMP for 2025. For the period 22

to 30 September 2025, Nathan received fixed remuneration of $33,244. Nathan was not eligible for any variable remuneration while in the

Enterprise Executive role. Nathan commenced as Chief Financial Officer on 8 October 2025. The total value of Nathan's buy out is subject to

confirmation prior to being awarded. Further details will be disclosed in the 2026 Remuneration Report.

FORMER KMPEXIT ARRANGEMENT

Peter King

Former Managing Director & Chief

Executive Officer

•Notice period in line with contractual requirements.

•Eligible for pro rata 2025 STVR.

•Not eligible for 2025 LTVR.

•Unvested equity remains on foot.

Christine Parker

Former Group Executive,

Human Resources

•Notice period in line with contractual requirements.

•Eligible for pro rata 2025 STVR.

•Unvested equity remains on foot.

Michael Rowland

a

Former Chief Financial Officer

•Notice period in line with contractual requirements.

•Eligible for pro rata 2026 STVR.

•Not eligible for 2026 LTVR.

•Unvested equity remains on foot.

Jason Yetton

Former Chief Executive, Consumer

•Notice period in line with contractual requirements.

•Eligible for pro rata 2025 STVR.

•Unvested equity remains on foot.

a.Michael Rowland is due to leave Westpac on 12 December 2025 and is included as a KMP for the full year in the 2025 Remuneration Report.

72WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

1. Snapshot of remuneration for 2025

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

Our executive remuneration framework is designed to align with our strategy, market practice, investor expectations and

compliance with Prudential Standard CPS 511 Remuneration (CPS 511).

The minimum shareholding requirement is equivalent to two times fixed remuneration for the CEO and one times fixed

remuneration for the Group Executives. The minimum shareholding requirement for the CEO will increase to three times

fixed remuneration from 1 October 2025. Refer to Section 5.6 for further details.


REMUNERATION MIX

The remuneration mix is designed with a significant proportion of total remuneration 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.

1.

The mix shown in the graphic above applies to all individuals in KMP roles with the exception of the Chief Financial Officer (Michael Rowland)

and the Chief Risk Officer (Ryan Zanin). Their maximum remuneration mix is comprised of 33% fixed remuneration, 31% maximum STVR, 18%

LTVR restricted rights and 18% LTVR performance rights. These roles will transition to the above remuneration mix over time.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
73

PERFORMANCE SNAPSHOT

Financial

performance

$6,972m NPAT

excluding Notable Items

10.97% ROTE

excluding Notable Items

Strategic

execution

88% UNITE

2025 priorities delivered

$500m operational risk

capital release

Serving

customers

+1 in Consumer NPS

-5 in Business NPS

relative to major bank average change

21% reduction

in losses from scams

People

80 Organisational Health

Index score

48.6% women

in senior leadership

Performance achievedTarget

Further detail on performance against all measures of the Group STVR Scorecard is set out in Section 3.3.


REMUNERATION OUTCOMES

85%

CEO's 2025 STVR

outcome

as a % of target,

or 68% as a % of maximum.


92% to 102%

Group Executive

STVR outcomes

range of STVR outcomes

as a % of target,

or 74% to 82% as % of maximum.


75%

LTVR vesting outcome

2022 LTVR vesting outcome.

Reflects a TSR of 77% over the four

year performance period.

74WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

2. Key management personnel (KMP)

The remuneration of KMP for 2025 is disclosed in this 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

Anthony Miller

a

Managing Director & Chief Executive OfficerFull year

Group Executives

Scott CollaryChief Information OfficerFull year

Kate DeeChief People OfficerCommenced on 5 August 2025

Paul FowlerChief Executive, Business & WealthCommenced on 12 May 2025

Peter Herbert

b

Chief Transformation OfficerCommenced on 5 November 2024

Carolyn HoyActing Group Executive, Customer & Corporate ServicesCommenced on 12 May 2025

Nell HuttonChief Executive, Westpac Institutional BankFull year

Carolyn McCann

c

Chief Executive, ConsumerFull year

Catherine McGrathChief Executive Officer, Westpac New ZealandFull year

Michael RowlandChief Financial OfficerFull year

Ryan ZaninChief Risk OfficerFull year

Former Executives

Peter KingManaging Director & Chief Executive OfficerCeased on 15 December 2024

Christine ParkerGroup Executive, Human ResourcesCeased on 1 June 2025

Megan RutterActing Group Executive, Human ResourcesCommenced on 2 June 2025 and ceased on 4 August 2025

Jason YettonChief Executive, ConsumerCeased on 11 May 2025

Current Non-executive Directors

Steven GreggChairFull year

Tim BurroughsDirectorFull year

Nerida CaesarDirectorFull year

David CohenDirectorCommenced on 1 April 2025

Pip GreenwoodDirectorCommenced on 1 August 2025

Debra HazeltonDirectorCommenced on 4 March 2025

Andy MaguireDirectorFull year

Peter NashDirectorFull year

Margaret SealeDirectorFull year

Michael Ullmer AODirectorFull year

Former Non-executive Directors

Nora ScheinkestelDirectorRetired on 6 November 2024

Audette Exel AODirectorRetired on 13 December 2024

a.Anthony Miller was the Chief Executive, Business & Wealth until 4 November 2024 after which he was appointed as the Chief Executive Officer

Designate on 5 November 2024 while remaining on the same remuneration arrangements. Anthony Miller was then appointed as the Managing

Director & Chief Executive Officer effective 16 December 2024. Anthony's remuneration for all three roles is aggregated and disclosed together

for the year.

b.Peter Herbert was appointed the Acting Chief Executive, Business & Wealth on 5 November 2024. On 3 March 2025, Peter Herbert was

appointed the Chief Transformation Officer whilst continuing as the Acting Chief Executive, Business & Wealth until Paul Fowler commenced.

c.Carolyn McCann was the Group Executive, Customer & Corporate Services until she was appointed as the Acting Chief Executive, Consumer on

12 May 2025. Carolyn was appointed Chief Executive, Consumer on 12 August 2025.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
75

3. 2025 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

20252024202320222021

CEO STVR outcome (% of maximum)

a

68%83%60%52%47%

CEO STVR outcome (% of target)

b

85%104%90%78%70%

Average Group Executive STVR outcome (% of maximum)

a

75%82%60%53%48%

Average Group Executive STVR outcome (% of target)

b

94%102%89%79%73%

LTVR outcome (% vested)75%50%0%0%0%

Net profit after tax attributable to owners of WBC ($m)6,9166,9907,1955,6945,458

Net profit after tax (excluding Notable Items) ($m)

c

6,9727,1137,3686,5686,953

Return on tangible equity (ROTE) (statutory basis)10.89%11.01%11.39%9.17%8.82%

Return on tangible equity (ROTE) (excluding Notable Items)

c

10.97%11.21%11.67%10.58%11.23%

TSR – four years77.11%113.10%(9.27%)(11.15%)(1.95%)

TSR – five years168.98%34.24%(4.05%)(13.82%)10.34%

Total ordinary dividend (cents per share)153151142125118

Special dividend (cents per share)015000

Share price – close$38.97$31.72$21.15$20.64$26.00

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.For additional information refer to the Non-AAS financial measures section of the Annual Report for a reconciliation of these measures.

3.2. 2022 LTVR vesting outcome

We tested the 2022 LTVR on 1 October 2025. Our TSR for the four year performance period was 77% resulting in a 62.5th

percentile ranking relative to the comparator group. This resulted in 75% of the 2022 LTVR award vesting.

Performance

hurdle

Performance

start date

Test date

Performance range

Outcome

%

Vested

%

Lapsed

ThresholdMaximum

Relative TSR

(100% of

award)

1 October

2021

1 October

2025

Percentile ranking is

at the median

Percentile ranking is at the

75th percentile or higher

62.5th percentile ranking

relative to the

comparator group

75%25%

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)

20212022202320242025

0

2,000

4,000

6,000

8,000

40

60

80

100

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)

20212022202320242025

0

4

8

12

40

60

80

100

120

TSR

(Four year period ending 30 September 2025)

TSR


(%)

WBCPeer 1Peer 2Peer 3

2022202320242025

-40

0

40

80

120

TSR AND LTVR VESTING OUTCOME

(Percentile rank over the prior four year period)

TSR


over


4


years

(percentile


rank)

LTVR


award


(%


vested)

TSR over four years (percentile rank)

LTVR award (% vested)

20212022202320242025

0

40

80

20

60

100

0

40

80

20

60

100

76WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

3.3. 2025 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.

For 2025, we increased the financial performance weighting from 45% to 50% to emphasise our focus on delivering

value. Risk measures were included within the ‘Strategic execution’ category, which was weighted at 30%.

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

(50%)

Deliver current year

financial performance

(excluding Notable Items):

•Net profit after tax

-5%$6,971m+5%

$6,972m result was at target.

We delivered sound financial results against our targets. NPAT (excluding Notable Items) was at target and ROTE (excluding Notable Items) was

narrowly below target, supported by a lower credit impairment charge and a higher than targeted net interest margin.

Pre-provision profit was below target and our cost base was below threshold. We made decisions in the long term interest of Westpac which

necessitated a period of elevated expense growth, including restructuring costs and an increase in UNITE investment spend. As a result, expenses

were 3% adverse to target.

We have a long-term focus on balance sheet strength with key metrics including the Common Equity Tier 1 capital ratio, Net Stable Funding Ratio,

and Liquidity Coverage Ratio all above target operating ranges. Our strong balance sheet position provided us the capacity for dividends to be at

the top end of the payout range.

We have gained momentum in Australian business lending which increased to 1.37x of ADI financial system growth, which was at stretch. We

maintained pricing disciplines and provided consistent service delivery in Australian mortgages with growth at 0.84x of ADI financial system, which

was at target.

We assessed Financial performance at below target.

•Pre-provision profit

-5%$10,901m+5%

$10,548m result was below target.

•Return on tangible equity

-5%11.05%+5%

10.97% result was below target.

•Cost base

+2%$11,618-2%

$11,916m result was below threshold.

Grow market share in key segments

compared to system growth

<0.8x0.8x>1x

Growth in Australian mortgages was 0.84x of ADI

financial system growth, which was at target.

0.8x1.0x1.2x

Growth in Australian business lending was 1.37x of

ADI financial system growth, which was at stretch.

Strategic

execution

(30%)

Demonstrate sustainability and

effectiveness of the CORE outcomes

through the transition phase


-Target-

On target completion of transition phase as assessed

by Promontory, and APRA announced the release of

the remaining operational risk capital overlay.

Our people have embraced excellence in risk management, demonstrated by our improved risk culture, governance and accountability through the

CORE program. We successfully completed the transition phase and APRA announced the release of the remaining $500 million operational risk

capital overlay.

We made progress with the Group’s transformation agenda, and we are focused on executing UNITE, delivering 88% of 2025 UNITE priorities. The

program scope is now finalised and we have embedded a new operating model under the Chief Transformation Officer. This included repointing

and co-locating key UNITE resources to support delivery, efficiency, and clear accountability. On broader strategic transformation, we made

demonstrable progress in improving our capabilities including the Westpac One transaction banking platform and our BizEdge platform.

We have reduced customer losses from scams and the number of days to refund customers for fraud events, both achieving stretch performance.

On demonstrating our sustainability and climate strategy, we increased our sustainable lending (total committed exposures and balances) to

$39.4bn while we facilitated $6.3bn in bonds in 2025 aligned to our sustainable finance framework. We have engaged 109 institutional customers

and 158 commercial customers to support their decarbonisation plans.

We assessed Strategic execution at above target.

Deliver the 2025 UNITE program

priorities and change initiatives to

transform the bank


-Target-

Significant delivery of 2025 UNITE priorities and the

BizEdge and Westpac One platforms.

Progress our sustainability and

climate strategies

-Target-

Customer losses from scams reduced by 21% and

days to refund fraud reduced to <5 days, which

was at stretch. $39.4bn of lending at 30 September

2025 and $6.3bn bond facilitation over 2025 for

sustainable finance.

Serving

customers

(10%)

Improve customer advocacy of

Westpac (measured in points relative

to major bank average change)

0+1+2

Consumer NPS was +1 relative to the major bank

average change, which was at target.

We want to be our customers' number one bank and took significant steps this year to deliver on our strategy. Australian Consumer NPS increased

+1 more than the major bank average change, achieving target. Business NPS although up year on year, disappointingly was behind the major bank

average change. Westpac New Zealand Consumer NPS improved +9 (+5 compared to the major bank average change).

Our mobile banking app was #1 for the third year in a row as rated by Forrester. Both branch experience and mobile banking maintained their

position in major bank NPS rankings (source: Mozart Proprietary Market Study) however were assessed as below target. We have more to do to

improve our customers' channel experience across branches and our mobile banking app. Westpac's relationship banking RSI (source: Coalition

Greenwich Voice of Client 2025 Large Corporate Relationship Banking Study) was the highest in 10 years and achieved stretch performance. We

have mobilised our customer journeys multi year program resulting in time savings for our customers and our people.

We assessed Serving customers at below target.

+1+2+3

Business NPS was -5 relative to the major bank

average change, which was below threshold.

Improve customer experience of

our products, service and channel

propositions (measured against

major banks)

-Target-

Westpac branch NPS was #1 relative to other

major banks.

Westpac mobile app NPS was equal #2 relative to

other major banks.

People

(10%)

Maintain top quartile organisation

health through Organisational

Health Index (OHI)

-7780

Westpac Group OHI was 80 maintaining our position

in the top quartile resulting in stretch performance.

We want to be the #1 place to work and we are refreshing our employee value proposition focused on learning and development, employee

banking, and health and wellbeing. We set ourselves a high benchmark and achieved top quartile for organisational health with an OHI score of 80,

demonstrating that our people remain engaged and our employees are advocates for Westpac.

Women in senior leadership was at 48.6% at the end of 2025, which was marginally below the threshold of 48.8%. We continue to invest in building

a pipeline of leaders through our development programs for women.

We assessed People at below target.

Improve representation of women

in senior leadership

48.8%50%>51%

Women in senior leadership was 48.6% resulting in

below threshold performance.

OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT

85% OF TARGET

68% OF MAXIMUM

The Group STVR Scorecard has a modifier that allows the Board to take into account risk and reputation, people risk management and any other

matters as determined by the Board. Refer to Section 3.5 for further detail on individual outcomes.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
77

Overview of how STVR outcomes are determined

Target

STVR

×

Scorecard

assessment

±

Scorecard

modifier

=

Final STVR

outcome

75% of

fixed remuneration

Performance against

Westpac and

divisional measures

Accounts for any aspect

of performance not

reflected in the Scorecard

50% delivered as

deferred equity for

shareholder alignment

The Board has discretion to adjust all variable reward downwards, including to zero.

Significant risk, compliance or conduct matters are assessed against our guidelines, independent of the STVR assessment.

Key priorityMeasureOutcomeOutcome commentary

Key:

Threshold

50-99%

Stretch

10 1- 125%

Target

100%

Performance assessment

Financial

performance

(50%)

Deliver current year

financial performance

(excluding Notable Items):

•Net profit after tax

-5%$6,971m+5%

$6,972m result was at target.

We delivered sound financial results against our targets. NPAT (excluding Notable Items) was at target and ROTE (excluding Notable Items) was

narrowly below target, supported by a lower credit impairment charge and a higher than targeted net interest margin.

Pre-provision profit was below target and our cost base was below threshold. We made decisions in the long term interest of Westpac which

necessitated a period of elevated expense growth, including restructuring costs and an increase in UNITE investment spend. As a result, expenses

were 3% adverse to target.

We have a long-term focus on balance sheet strength with key metrics including the Common Equity Tier 1 capital ratio, Net Stable Funding Ratio,

and Liquidity Coverage Ratio all above target operating ranges. Our strong balance sheet position provided us the capacity for dividends to be at

the top end of the payout range.

We have gained momentum in Australian business lending which increased to 1.37x of ADI financial system growth, which was at stretch. We

maintained pricing disciplines and provided consistent service delivery in Australian mortgages with growth at 0.84x of ADI financial system, which

was at target.

We assessed Financial performance at below target.

•Pre-provision profit

-5%$10,901m+5%

$10,548m result was below target.

•Return on tangible equity

-5%11.05%+5%

10.97% result was below target.

•Cost base

+2%$11,618-2%

$11,916m result was below threshold.

Grow market share in key segments

compared to system growth

<0.8x0.8x>1x

Growth in Australian mortgages was 0.84x of ADI

financial system growth, which was at target.

0.8x1.0x1.2x

Growth in Australian business lending was 1.37x of

ADI financial system growth, which was at stretch.

Strategic

execution

(30%)

Demonstrate sustainability and

effectiveness of the CORE outcomes

through the transition phase


-Target-

On target completion of transition phase as assessed

by Promontory, and APRA announced the release of

the remaining operational risk capital overlay.

Our people have embraced excellence in risk management, demonstrated by our improved risk culture, governance and accountability through the

CORE program. We successfully completed the transition phase and APRA announced the release of the remaining $500 million operational risk

capital overlay.

We made progress with the Group’s transformation agenda, and we are focused on executing UNITE, delivering 88% of 2025 UNITE priorities. The

program scope is now finalised and we have embedded a new operating model under the Chief Transformation Officer. This included repointing

and co-locating key UNITE resources to support delivery, efficiency, and clear accountability. On broader strategic transformation, we made

demonstrable progress in improving our capabilities including the Westpac One transaction banking platform and our BizEdge platform.

We have reduced customer losses from scams and the number of days to refund customers for fraud events, both achieving stretch performance.

On demonstrating our sustainability and climate strategy, we increased our sustainable lending (total committed exposures and balances) to

$39.4bn while we facilitated $6.3bn in bonds in 2025 aligned to our sustainable finance framework. We have engaged 109 institutional customers

and 158 commercial customers to support their decarbonisation plans.

We assessed Strategic execution at above target.

Deliver the 2025 UNITE program

priorities and change initiatives to

transform the bank


-Target-

Significant delivery of 2025 UNITE priorities and the

BizEdge and Westpac One platforms.

Progress our sustainability and

climate strategies

-Target-

Customer losses from scams reduced by 21% and

days to refund fraud reduced to <5 days, which

was at stretch. $39.4bn of lending at 30 September

2025 and $6.3bn bond facilitation over 2025 for

sustainable finance.

Serving

customers

(10%)

Improve customer advocacy of

Westpac (measured in points relative

to major bank average change)

0+1+2

Consumer NPS was +1 relative to the major bank

average change, which was at target.

We want to be our customers' number one bank and took significant steps this year to deliver on our strategy. Australian Consumer NPS increased

+1 more than the major bank average change, achieving target. Business NPS although up year on year, disappointingly was behind the major bank

average change. Westpac New Zealand Consumer NPS improved +9 (+5 compared to the major bank average change).

Our mobile banking app was #1 for the third year in a row as rated by Forrester. Both branch experience and mobile banking maintained their

position in major bank NPS rankings (source: Mozart Proprietary Market Study) however were assessed as below target. We have more to do to

improve our customers' channel experience across branches and our mobile banking app. Westpac's relationship banking RSI (source: Coalition

Greenwich Voice of Client 2025 Large Corporate Relationship Banking Study) was the highest in 10 years and achieved stretch performance. We

have mobilised our customer journeys multi year program resulting in time savings for our customers and our people.

We assessed Serving customers at below target.

+1+2+3

Business NPS was -5 relative to the major bank

average change, which was below threshold.

Improve customer experience of

our products, service and channel

propositions (measured against

major banks)

-Target-

Westpac branch NPS was #1 relative to other

major banks.

Westpac mobile app NPS was equal #2 relative to

other major banks.

People

(10%)

Maintain top quartile organisation

health through Organisational

Health Index (OHI)

-7780

Westpac Group OHI was 80 maintaining our position

in the top quartile resulting in stretch performance.

We want to be the #1 place to work and we are refreshing our employee value proposition focused on learning and development, employee

banking, and health and wellbeing. We set ourselves a high benchmark and achieved top quartile for organisational health with an OHI score of 80,

demonstrating that our people remain engaged and our employees are advocates for Westpac.

Women in senior leadership was at 48.6% at the end of 2025, which was marginally below the threshold of 48.8%. We continue to invest in building

a pipeline of leaders through our development programs for women.

We assessed People at below target.

Improve representation of women

in senior leadership

48.8%50%>51%

Women in senior leadership was 48.6% resulting in

below threshold performance.

OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT

85% OF TARGET

68% OF MAXIMUM

The Group STVR Scorecard has a modifier that allows the Board to take into account risk and reputation, people risk management and any other

matters as determined by the Board. Refer to Section 3.5 for further detail on individual outcomes.

78WESTPAC 2025 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 for KMP roles in relation to 2025

and 2024. For 2025, this includes the 2022 LTVR award and for 2024, this includes the 2021 LTVR award. Termination

payments and buy out awards are not included. 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

Anthony Miller, Managing Director & Chief Executive Officer

a

20252,250,412718,500792,8962,434,8496,196,657811,616

20241,277,944478,000706,7951,925,4624,388,2011,925,462

Group Executives

Scott Collary, Chief Information Officer

20251,300,279445,500725,2932,548,0985,019,170849,366

20241,293,976508,500706,4441,927,4124,436,3321,927,412

Kate Dee, Chief People Officer

2025129,809---129,809-

2024--------------------- Not a KMP in 2024 ---------------------

Paul Fowler, Chief Executive, Business & Wealth

a

2025442,256151,500--593,756-

2024--------------------- Not a KMP in 2024 ---------------------

Peter Herbert, Chief Transformation Officer

2025775,066300,400--1,075,466-

2024--------------------- Not a KMP in 2024 ---------------------

Carolyn Hoy, Acting Group Executive, Customer & Corporate Services

2025323,561112,800--436,361-

2024--------------------- Not a KMP in 2024 ---------------------

Nell Hutton, Chief Executive, Westpac Institutional Bank

20251,283,715464,000296,565-2,044,280-

20241,278,338502,000--1,780,338-

Carolyn McCann, Chief Executive, Consumer

20251,206,295438,000575,9511,512,1033,732,349504,034

20241,062,447437,500484,0981,149,4413,133,4861,269,346

Catherine McGrath, Chief Executive Officer, Westpac New Zealand

20251,032,402345,588522,1001,625,5443,525,634541,822

2024981,129311,189502,028-1,794,346-

Michael Rowland, Chief Financial Officer

20251,303,016448,500668,7461,970,5294,390,791656,843

20241,274,390500,500577,7731,588,6683,941,3311,588,636

Ryan Zanin, Chief Risk Officer

a

20251,774,107677,000818,8581,182,6034,452,568394,175

20241,699,186674,000504,105-2,877,291-

Former Executives

Peter King, Managing Director & Chief Executive Officer

2025517,836132,8001,515,9933,680,6255,847,2541,226,862

20242,502,920975,0001,442,8982,990,4017,911,2193,314,178

Christine Parker, Group Executive, Human Resources

2025696,615239,500573,8711,768,9543,278,940589,626

20241,041,206417,000513,8211,459,7093,431,7361,459,677

Megan Rutter, Acting Group Executive, Human Resources

2025134,37440,800--175,174-

2024--------------------- Not a KMP in 2024 ---------------------

Jason Yetton, Chief Executive, Consumer

2025781,121268,500772,2102,434,8494,256,680811,616

20241,277,944443,000782,2852,009,1654,512,3943,432,493

a.In addition, some individuals received remuneration in relation to a buy out award: Anthony Miller received a deferred cash payment of

$181,250 in March 2025 and had 9,676 restricted shares vest in March 2025; Paul Fowler received a deferred cash payment of $258,904 in

September 2025 and had 22,700 restricted shares vest in September 2025; and Ryan Zanin received deferred cash payments of $64,623 in

October 2024 and $64,623 in January 2025.

1.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 for 2024 figures, and up to 1 October 2025 for the 2025 figures. 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. Ryan Zanin’s

2022 LTVR award vesting outcome was 75% and the deferral period ends in February 2026.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
79

3.5. Variable reward awarded for 2025

The table below shows the variable reward awarded

1

to the CEO and Group Executives for 2025, including:

•STVR outcomes for 2025 (including the cash and deferred equity components); and

•equity granted in relation to 2025 LTVR awards. The 2025 LTVR grants are shown at face value in the table below

and will be tested on 1 October 2028.

2025 STVR award2025 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,b

Performance

rights

($)

a

Managing Director & Chief Executive Officer

Anthony Miller1,683,6992,104,62485%68%1,437,000667,6241,571,4521,571,452

Group Executives

Chief Information Officer

Scott Collary968,6001,210,75092%74%891,000319,750904,000904,000

Chief People Officer

Kate Dee

c

n/an/an/an/an/an/an/an/a

Chief Executive, Business & Wealth

Paul Fowler

c

328,832411,04092%74%303,000108,040306,910306,910

Chief Transformation Officer

Peter Herbert

c

606,153757,69192%74%558,000199,691521,288348,493

Acting Group Executive, Customer & Corporate Services

Carolyn Hoy

c

204,247255,30992%74%188,00067,309136,164n/a

Chief Executive, Westpac Institutional Bank

Nell Hutton956,2501,195,31397%78%928,000267,313892,500892,500

Chief Executive, Consumer

Carolyn McCann903,0441,128,80597%78%876,000252,805842,841842,841

Chief Executive Officer, Westpac New Zealand

Catherine McGrath751,279939,09892%74%691,176247,922701,193701,193

Chief Financial Officer

Michael Rowland975,0001,218,75092%74%897,000321,750715,000715,000

Chief Risk Officer

Ryan Zanin1,327,5001,659,375102%82%1,354,000305,375973,500973,500

Former Executives

Managing Director & Chief Executive Officer

Peter King

c,d

390,411488,01485%68%332,000156,014n/an/a

Group Executive, Human Resources

Christine Parker

c

520,957651,19692%74%479,000172,196571,500571,500

Acting Group Executive, Human Resources

Megan Rutter

c

73,77592,21992%74%68,00024,21960,361n/a

Chief Executive, Consumer

Jason Yetton

c

584,229730,28692%74%537,000193,286892,500892,500

Average Group Executive STVR outcome94%75%

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 $32.23 for awards made in January 2025.

b.Includes LTVR awarded as restricted shares for individuals in Acting Group Executive roles (Carolyn Hoy, Peter Herbert and Megan Rutter) at

a face value of $32.60 per share. Carolyn McCann's LTVR in respect of her Acting Group Executive role was delivered in line with the standard

Group Executive LTVR, not as restricted shares.

c.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.

d.Peter King was eligible for 2025 STVR on a pro rata basis. 60% of the outcome is delivered as deferred equity in the form of share rights,

vesting after four, five and six years (from 1 October 2024) to meet CPS 511 deferral requirements. The remaining 40% is delivered as cash.

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.

80WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

2025 LTVR restricted rights pre-grant assessment

We awarded the 2025 LTVR restricted rights, outlined in Section 3.5 above, following the pre-grant assessment which

was completed in October 2024. The Board determined that the award be granted in full. Further details are available in

the 2024 Remuneration Report.

2026 LTVR restricted rights pre-grant assessment

The pre-grant assessment for the 2026 LTVR restricted rights was completed in October 2025. The Board determined

that the 2026 LTVR restricted rights will be granted in full.

The prudential soundness gate was satisfied by reviewing the key capital and liquidity ratios (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 risk-culture rating

which was stable at ‘Systematic’ as well as improving results and positive momentum underlying the risk culture

assessment. Other evidence points informing the CPS 220 Risk Management declaration included 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 2029. 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

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
81

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

Board

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 absolute discretion to withdraw, defer or adjust 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/

Board Remuneration Committee

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/

Management remuneration oversightOther Board Committees

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 Remuneration Committee seeks feedback from

and considers matters raised by the CEO, Chief Risk Officer,

the Board Audit Committee Chair and the Board Risk

Committee Chair (as appropriate) with respect to remuneration

outcomes, adjustments to remuneration in light of relevant

matters and the 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.


Remuneration advisor

The Board or the Board Remuneration Committee may

engage an independent remuneration advisor to directly

provide specialist information on remuneration for key

management personnel.

Use of remuneration advisors: In 2025, the Board engaged EY

to provide market benchmarking information on Group Executive

remuneration and to conduct an independent effectiveness

review of the remuneration framework as required by CPS 511.

EY did not provide any remuneration recommendations as

prescribed under the Corporations Act 2001 (Cth) (Corporations

Act) in 2025.

82WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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 adjustments to reward positive risk behaviours. An

upward adjustment in variable reward may be considered for exceptional risk performance not already reflected in the

delivery of agreed performance objectives.

We have guidelines in place to support the consistent application of proportionate adjustments for significant risk,

compliance or conduct matters. The graphic below provides an overview of our remuneration adjustment process and

how it may potentially impact individual remuneration outcomes.

Remuneration adjustment process

BOARD DISCRETION

Individual variable remuneration outcomes

Reflects Westpac, divisional and individual performance outcomes (including risk and customer outcomes).

May be adjusted downward (including to zero) for significant risk, compliance and conduct matters.

Board discretion

¹ In year adjustments can include adjustments made through the STVR scorecard

modifier and the LTVR pre-grant and pre-vest assessment.

An assessment of severity of impact and individual accountability

informs whether we trigger an adjustment.

We apply judgement to consider whether the size of the

adjustment is proportionate and fair.

We take into consideration 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.

The quantum of the remuneration adjustment increases with the

severity of impact and individual accountability and influences the

adjustment tool(s) used.

Severity of impact based on:

Customer

People

Reputation

Regulation

Financial

Accountability

Action or inaction of the individual

Criteria

We consider remuneration adjustments when there are

significant adverse outcomes for the Group or its customers,

beneficiaries, shareholders, counterparties or people related to:

The criteria can be applied at an individual or collective level.

Risk management

Regulatory obligations

Conduct

Error or misstatement

Unexpected events

Adjustment tools

In year¹MalusClawback

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)

1

2

3

4

5

6

Adjustment and consequence outcomes

Senior leaders

a

that received downward remuneration adjustments2

Senior leaders

a

that received upward remuneration adjustments4

Employees identified as not having met all risk expectations during performance assessments1,225

Employees that received downward remuneration adjustments

b

99

Employees leaving due to consequence outcomes240

Actions to recognise positive risk management and risk behaviours through our recognition platform98,051

Employees that received an additional variable reward for achieving great risk outcomes

b

1,558

a.These employees are the most senior leaders of Westpac, defined as the Chief Executive Officer, Group Executives and General Managers.

b.Data for these measures reflect 2024 outcomes as 2025 outcomes are not yet available.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
83

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 2025 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). 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

risk management considerations and any other matters as determined by the Board.

Further information on the 2025 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.

84WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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 2025 LTVR award, as determined by the

Board in October 2024.

5.3.1. Long term variable reward restricted rights for 2025

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 2025 LTVR restricted rights opportunity for the CEO and Group Executives is 70% of fixed

remuneration (inclusive of superannuation).

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 of

Westpac shares up to the commencement of the performance period (which is 1 October 2024 for the 2025 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 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 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.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
85

5.3.2. Long term variable reward performance rights for 2025

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 after 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 2025 LTVR performance rights opportunity for the CEO and Group Executives is 70% of fixed remuneration

(inclusive of superannuation).

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

of Westpac shares up to the commencement of the performance period (which is 1 October 2024 for the 2025 LTVR grant).

Performance

condition

LTVR performance rights are subject to an assessment of relative TSR against two comparator groups. The two comparator

groups are equally weighted and tested independently against a percentile ranking vesting schedule as outlined below. The

Board retains discretion to amend the comparator groups and determine the overall vesting outcome as appropriate.

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 LTVR performance rights conditions aim to achieve long term growth in shareholder

value and support alignment between executive reward and shareholder interests.

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 banking comparator group of companies comprises ANZ Group Holdings Limited, Bank of Queensland Limited, Bendigo and

Adelaide Bank Limited, Commonwealth Bank of Australia and National Australia Bank Limited.

The general ASX comparator group comprises the 20 largest companies on the ASX by market capitalisation, excluding

resource companies. The 20 companies are determined at the start of the performance period on 1 October 2024. The general

ASX comparator group of companies comprises ANZ Group Holdings Limited, Aristocrat Leisure Limited, Brambles Limited,

Coles Group Limited, Commonwealth Bank of Australia, CSL Limited, Goodman Group, James Hardie Industries PLC, Macquarie

Group Limited, National Australia Bank Limited, QBE Insurance Group Limited, REA Group Ltd, ResMed Inc, Suncorp Group

Limited, Telstra Group Limited, Transurban Group, Wesfarmers Limited, WiseTech Global Limited, Woolworths Group Limited

and Xero Limited. In the event of a merger, acquisition or de-listing of any of the 20 companies, that company will be removed

from the comparator group.

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 for 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.

86WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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

cessation of

employment

Unvested variable reward is forfeited or lapsed 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 or all 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 adjustment

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.

5.5. Acting Group Executive arrangements

Carolyn Hoy, Megan Rutter and Peter Herbert (whilst in the Acting Chief Executive, Business & Wealth role) were

appointed on differing remuneration arrangements due to the acting nature of their roles.

STVR is delivered as 60% cash and 40% as deferred equity in the form of restricted shares vesting in equal portions after

one and two years. Maximum STVR opportunity is 125% of target STVR. STVR awards are determined based on meeting

minimum behaviour and risk and compliance gate openers, and performance is assessed against a scorecard designed

to align with shareholder interests.

LTVR is service based with a pre-grant risk assessment. LTVR is awarded in restricted shares vesting over four

and five years to satisfy CPS 511 deferral requirements. STVR and LTVR are subject to service conditions and

remuneration adjustments.

Carolyn McCann commenced the year as Group Executive, Customer & Corporate Services. During the year, Carolyn was

appointed to the role of Acting Chief Executive, Consumer and was then appointed permanently to the role of Chief

Executive, Consumer. Carolyn remained on Group Executive remuneration arrangements throughout all of these roles.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
87

5.6. 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 2025, 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

a

.

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.

a.The minimum shareholding requirement for the CEO will increase to three times fixed remuneration from 1 October 2025.

5.7. Hedging policy

Participants in Westpac’s equity plans are prohibited from entering, either directly or indirectly, into hedging

arrangements for unvested awards and vested awards subject to a holding lock. 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.

5.8. 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.

TermConditions

Duration of agreementOngoing until notice given by either party.

Notice (by the

executive or the Group)

to terminate employment

Twelve months for Executives that commenced before January 2025. Six months for new Executives that

commenced from January 2025.

a

In the event of redundancy, the greater of the relevant notice period or Westpac's

general notice and severance entitlements applies.

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 restraints

CEO: Twelve months non-compete and non-solicitation restraints.

Group Executives: Six months non-compete and twelve 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 2025

was $11.2 million (2024: $12.5 million).

88WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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 2025

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 Directors' meetings section in the Directors' report.

For 2025, $3.4 million (75%) 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 feesAnnual fee $ (exclusive of superannuation)

Base fees

Chair823,000

Other Non-executive Directors215,000

Committee Chair fees

Board Audit Committee69,000

Board Risk Committee69,000

Board Remuneration Committee69,000

Committee membership fees

Board Audit Committee34,000

Board Risk Committee34,000

Board Remuneration Committee34,000

Other fees

UNITE oversight group34,000

Additional duties Committee Chair fee (per meeting)4,000

Additional duties Committee fee (per meeting)2,000

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 2025, all Non-executive Directors comply with or are on track to meet the requirement.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
89

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$$$$

Non-executive Directors

Steven Gregg, Chair

2025826,16511,78630,440868,391

2024680,7275,89330,017716,637

Tim Burroughs

2025285,337-30,137315,474

2024269,410-28,054297,464

Nerida Caesar

2025312,585-30,250342,835

2024258,208-27,674285,882

David Cohen

c

2025125,458-14,753140,211

2024--------------------- Not a KMP in 2024 ---------------------

Pip Greenwood

c

202535,5581,5404,26741,365

2024--------------------- Not a KMP in 2024 ---------------------

Debra Hazelton

c

2025144,611-16,730161,341

2024--------------------- Not a KMP in 2024 ---------------------

Andy Maguire

2025282,00923,40930,223335,641

202453,631-6,16859,798

Peter Nash

2025354,650-30,166384,816

2024339,478-28,316367,795

Margaret Seale

2025282,865-30,240313,105

2024263,977-26,459290,436

Michael Ullmer AO

2025313,361-30,260343,621

2024300,846-8,214309,060

Former Non-executive Directors

Audette Exel AO

c

202566,022-6,50572,527

2024316,232-28,211344,443

Nora Scheinkestel

c

202536,337--36,337

2024340,346--340,346

Total fees

20253,064,95836,735253,9713,355,664

2024

d

3,050,6857,649194,0293,252,364

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 and relocation costs.

c.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.

d.Total fees for 2024 shown as reported in the 2024 Annual Report. The total fees for 2024 include individuals that are not KMP in 2025 and

therefore their individual remuneration is not included in the above table.

90WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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

Anthony Miller, Managing Director & Chief Executive Officer

20252,293,520718,5005,03917,38642,556107,886593,423538,282636,4114,953,003

20241,279,390478,0003,315166,27737,89819,056684,787238,441717,7283,624,892

Group Executives

Scott Collary, Chief Information Officer

20251,230,253445,5005,894-35,89419,190463,192463,401632,5233,295,847

20241,300,753508,5008,333-34,73921,537563,784241,512740,6743,419,832

Kate Dee, Chief People Officer

i

2025128,485-504175,33410,4701,979176,40414,22014,220521,616

2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------

Paul Fowler, Chief Executive, Business & Wealth

i

2025440,166151,5001,266100,72420,7976,591768,57130,9439,8411,530,399

2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------

Peter Herbert, Chief Transformation Officer

i

2025718,273300,4005,042-29,50120,816390,85053,57930,8321,549,293

2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------

Carolyn Hoy, Acting Group Executive, Customer & Corporate Services

i

2025306,243112,8001,266-36,09348,639123,751--628,792

2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------

Nell Hutton, Chief Executive, Westpac Institutional Bank

20251,271,484464,0004,606-37,03018,9461,168,985457,506175,2133,597,770

20241,230,101502,0005,359-35,04617,3521,132,285238,441105,9323,266,516

Carolyn McCann, Chief Executive, Consumer

20251,334,025438,0005,894-39,02454,728410,402401,849433,1323,117,054

20241,038,679437,5005,359-36,47915,727398,684198,233482,3932,613,054

Catherine McGrath, Chief Executive Officer, Westpac New Zealand

2025877,583345,58810,613-127,886--674,684442,6642,479,018

2024857,768311,1898,386-119,894--523,182388,3672,208,786

Michael Rowland, Chief Financial Officer

20251,260,305448,5008,987-35,89220,840296,066867,559689,8373,627,986

20241,249,398500,5003,315-34,00718,870465,327186,823579,2453,037,485

Ryan Zanin, Chief Risk Officer

20251,795,959677,00088,7925,9642,02728,630857,798488,077608,0974,552,344

20241,663,065674,000151,817116,6822,09725,268730,310249,101541,0634,153,403

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
91

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

$$$$$$$$$$

Former Executives

Peter King, Managing Director & Chief Executive Officer

i,j

2025542,944132,8005,3882,500,0005,3017,998617,4641,395,9391,645,0196,852,853

20242,418,943975,00020,823-48,24922,0241,198,595728,3281,521,4876,933,449

Christine Parker, Group Executive, Human Resources

i,j,k

2025650,691239,5003,531936,07322,5339,767318,9681,296,3571,064,3854,541,805

20241,045,623417,0003,315-32,97616,896401,268152,684524,4122,594,174

Megan Rutter, Acting Group Executive, Human Resources

i

2025130,84040,800286-8,0512,37976,539--258,895

2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------

Jason Yetton, Chief Executive, Consumer

i,j,l

2025741,396268,5005,0601,082,55924,71013,927371,7031,918,9941,559,1345,985,983

20241,200,082443,0003,315-38,00919,050539,012238,441770,5743,251,483

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.

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.

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 Kate Dee and Paul Fowler, the cash buy out is recognised

as an expense over 12 months from their commencement date to reflect a minimum service period. For Anthony Miller, the cash buy out

arrangement was agreed on 25 March 2021 and the remaining 5% of the cash portion of the buy out was paid in 2025. For Kate Dee, the cash

buy out arrangement was agreed on 5 September 2025 and is due to be paid in March 2026. For Paul Fowler, the cash buy out arrangement

was agreed on 30 June 2025 and 100% of the cash portion of the buy out was paid in September 2025. For Ryan Zanin, the cash buy out

arrangement was agreed on 30 August 2022 and the remaining 12% of this award was paid in 2025.

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.Restricted shares are amortised from the start of the performance period when the award was earned through to the end of the relevant

service period. A portion of the restricted shares held by Anthony Miller, Kate Dee and Paul Fowler represents an allocation made to

compensate them for remuneration foregone from their previous employer on resignation to join Westpac. For Paul Fowler, the allocation that

vested during the year is being recognised as an expense over 12 months from Paul's commencement date to reflect a minimum service period.

g.Share rights are amortised over the performance and the relevant service period. They are calculated based on the fair value at the grant date

(being the invitation opt out date) of hurdled and unhurdled share rights granted during the financial year up to 30 September 2025. Fair value

is calculated using an external valuation based on the invitation opt out date. The 2025 value for Catherine McGrath includes 29% attributed to

deferred STVR awards.

h.The table includes remuneration details of individuals that are KMP for 2025, whereas the totals presented in Note 34 to the financial

statements includes former KMP who ceased as KMP in 2024. The percentage of total remuneration which is performance related (i.e. cash

STVR plus relevant share-based payments) was: Anthony Miller 50%, Scott Collary 61%, Kate Dee 5%, Paul Fowler 15%, Peter Herbert 38%,

Carolyn Hoy 24%, Nell Hutton 53%, Carolyn McCann 54%, Catherine McGrath 59%, Michael Rowland 63%, Ryan Zanin 53%, Peter King 55%,

Christine Parker 64%, Megan Rutter 30% and Jason Yetton 69%. The percentage of total remuneration delivered in the form of share rights

was: Anthony Miller 24%, Scott Collary 33%, Kate Dee 5%, Paul Fowler 3%, Peter Herbert 5%, Carolyn Hoy 0%, Nell Hutton 18%, Carolyn

McCann 27%, Catherine McGrath 45%, Michael Rowland 43%, Ryan Zanin 24%, Peter King 44%, Christine Parker 52%, Megan Rutter 0% and

Jason Yetton 58%.

i.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.

j.The share-based payment values reflect the accruals for unvested equity up to the end of each relevant service period. Whilst the full value is

being accrued in 2025 for all unvested equity, the awards may or may not vest subject to the relevant performance conditions.

k.Christine Parker commenced as an Enterprise Executive on 2 June 2025 and provided transition support to the Group until ceasing as an

Executive on 1 July 2025. For the period from 2 June 2025 to 1 July 2025, Christine received remuneration of $147,096. This amount has been

excluded from the table above as Christine was not a KMP during this period.

l.Jason Yetton commenced as an Enterprise Executive on 12 May 2025 and provided transition support to the Group until commencing a period

of leave on 14 June 2025. Jason ceased as an Executive on 1 July 2025. For the period from 12 May 2025 to 1 July 2025, Jason received

remuneration of $304,792. This amount has been excluded from the table above as Jason was not a KMP during this period.

92WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

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 2025.

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

Anthony MillerRestricted shares14,66231,791-478,861--

Restricted rights48,756--1,592,947--

Performance rights48,75860,24660,246679,1921,943,5361,934,499

Group Executives

Scott CollaryRestricted shares15,59822,104-509,431--

Restricted rights28,048--918,852--

Performance rights28,04860,30760,307361,3981,945,5041,936,458

Kate Dee

f

Restricted shares19,351--744,626--

Restricted rights------

Performance rights------

Paul Fowler

f

Restricted shares83,97922,700-2,811,617--

Restricted rights9,522--318,797--

Performance rights9,522--126,690--

Peter Herbert

f

Restricted shares22,726--742,231-298,856

Restricted rights10,812--342,200--

Performance rights10,813--156,680-706,660

Carolyn Hoy

f

Restricted shares4,176--150,503-90,037

Restricted rights------

Performance rights------

Nell HuttonRestricted shares15,39826,474-502,899--

Restricted rights27,691--907,157--

Performance rights27,692--356,811--

Carolyn McCannRestricted shares13,42015,147-438,297--

Restricted rights26,150--857,661--

Performance rights26,15035,96535,965338,0591,133,2571,154,804

Catherine McGrathUnhurdled share rights10,27715,708-313,623--

Restricted rights22,035--721,867--

Performance rights22,035--283,919--

Michael RowlandRestricted shares15,35218,078-501,396--

Restricted rights22,184--726,748--

Performance rights22,18449,70849,708285,8411,603,5801,596,092

Ryan ZaninRestricted shares20,67415,773-675,213--

Restricted rights30,204--989,483--

Performance rights30,205--389,190--

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
93

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

Former Executives

Peter King

f

Restricted shares29,90745,147-955,828--

Restricted rights------

Performance rights-93,56793,567-3,018,4713,004,436

Christine Parker

f

Restricted shares12,79116,077-417,754--

Restricted rights17,731--580,868--

Performance rights17,73245,67345,673228,4771,473,4111,466,528

Megan Rutter

f

Restricted shares------

Restricted rights------

Performance rights------

Jason Yetton

f

Restricted shares13,58824,477-443,784--

Restricted rights27,691--907,157--

Performance rights27,69262,86562,865356,8112,028,0252,018,595

a.Restricted rights and performance rights granted to the CEO are approved by shareholders at the Annual General Meeting each year. We

do not grant options. We award deferred STVR in the form of restricted shares (or unhurdled share rights for KMP in New Zealand). 2024

deferred STVR was awarded on 27 December 2024 (based on the invitation opt out date) for the CEO and Group Executives. The deferral period

commenced on 1 October 2024. 50% of the award will vest on 15 November 2025 and 50% will vest on 15 November 2026 (subject to service

conditions and remuneration adjustments).

b.50% of the performance rights granted in 2021 vested in October 2024 when assessed against the relative TSR performance condition. 100%

of the deferred STVR due to vest in 2024 vested at the end of the deferral period. For Anthony Miller, 9,676 of the 31,791 restricted shares that

vested were in relation to a buy out award representing the remaining 8% of the total number of shares allocated for that award. For Paul

Fowler, 22,700 of the 22,700 restricted shares that vested were in relation to a buy out award representing 27% of the total number of shares

allocated for that award and the remaining portions of the award are due to vest through to May 2030.

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 and unhurdled share 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 shares or rights granted multiplied by the closing price of a Westpac ordinary share on the date

the awards were granted. These values, which represent the full value of the equity-based awards made to the CEO and Group Executives in

2025, 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.

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 service or

performance conditions.

f.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.

94WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

7.4. Overview of unvested equity awards

The table below outlines key details of unvested equity awards as at 30 September 2025 awarded to the CEO and

Group Executives for KMP roles. 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 and unhurdled share rights, fair values are independently calculated by PFS Consulting at

the grant date (which is the invitation opt out date). For the LTVR performance rights, a Monte Carlo simulation pricing

model is used.

Allocation values

The value granted to executives for remuneration purposes differs from the fair value used for accounting purposes.

For STVR grants prior to 2024, the allocation is determined by dividing the dollar value of the STVR award by the five

day VWAP up to the grant date. For STVR grants from 2024 onwards, the allocation is determined by dividing the dollar

value of the STVR award by the five day VWAP up to Westpac's variable reward payment date each year which is

typically in December each year. 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 name

Accounting

grant date

Performance

period start

date

Performance

period end

date

Deferral period

end dateExpiryFair valuePerformance conditions

2024 STVR

a

27 Dec 20241 Oct 202330 Sep 202415 Nov 2025

(tranche one) and

15 Nov 2026

(tranche two)

N/A$32.66Service (noting STVR

Scorecard assessment

was completed)

2023 STVR19 Jan 20241 Oct 202230 Sep 20231 Oct 2025

(tranche two)

N/A$23.20

b

Service (noting STVR

Scorecard assessment

was completed)

2025 LTVR

performance

rights

CEO:

27 Dec 2024

Group

Executives:

6 Dec 2024

1 Oct 202430 Sep 2028CEO: 15 Nov 2030

Group Executives:

15 Nov 2029

CEO:

15 Nov 2032

Group

Executives:

15 Nov 2031

CEO: $12.98

(Banking), $15.16

(General ASX)

Group Executives:

$11.17 (Banking),

$14.60

(General ASX)

Two equal tranches:

Relative TSR -

Banking comparators

Relative TSR - General

ASX comparators

2025 LTVR

performance

rights - part

year KMP or

additional

award

Paul Fowler:

7 Jul 2025

Peter

Herbert: 27

Mar 2025

Carolyn

McCann: 7

Jul 2025 and

5 Sep 2025

1 Oct 202430 Sep 2028Paul Fowler:

13 May 2030

Peter Herbert:

15 Nov 2029

Carolyn McCann:

15 Nov 2029

Paul Fowler:

13 May 2032

Peter Herbert:

15 Nov 2031

Carolyn

McCann:

15 Nov 2031

Paul Fowler:

$11.47

(Banking), $15.14

(General ASX)

Peter Herbert:

$14.02 (Banking),

$14.96

(General ASX)

Carolyn McCann:

$11.47 (Banking),

$15.14 (General

ASX) and $20.93

(Banking), $22.35

(General ASX)

Two equal tranches:

Relative TSR -

Banking comparators

Relative TSR - General

ASX comparators

2025 LTVR

restricted

rights

CEO:

27 Dec 2024

Group

Executives:

6 Dec 2024

1 Oct 202430 Sep 2028CEO: 50% on 15

Nov 2028 (tranche

one) and 50%

on 15 Nov 2029

(tranche two)

Group Executives:

15 Nov 2028

CEO: 15 Nov

2030 (tranche

one) and 15

Nov 2031

(tranche two)

Group

Executives:

15 Nov 2030

CEO: $32.66

Group

Executives: $32.76

Pre-vest assessment of

risk culture (noting a

pre-grant assessment

was completed)

2025 LTVR

restricted

rights - part

year KMP or

additional

award

Paul Fowler:

7 Jul 2025

Peter

Herbert:

27 Mar 2025

Carolyn

McCann:

7 Jul 2025

and 5 Sep

2025

1 Oct 202430 Sep 2028Paul Fowler:

13 May 2029

Peter Herbert:

15 Nov 2028

Carolyn McCann:

15 Nov 2028

Paul Fowler:

13 May 2031

Peter Herbert:

15 Nov 2030

Carolyn

McCann:

15 Nov 2030

Paul

Fowler: $33.48

Peter

Herbert: $31.65

Carolyn McCann:

$33.48 and $38.17

Pre-vest assessment of

risk culture (noting a

pre-grant assessment

was completed)

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
95

Award name

Accounting

grant date

Performance

period start

date

Performance

period end

date

Deferral period

end dateExpiryFair valuePerformance conditions

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

c

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

Acting Group Executive awards

2025 LTVR

restricted

shares

Peter

Herbert:

27 Dec 2024

Carolyn Hoy:

14 Aug 2025

Megan

Rutter:

14 Aug 2025

1 Oct 202430 Sep 2028Peter Herbert: 15

Nov 2028 (tranche

one) and 15 Nov

2029 (tranche two)

Carolyn Hoy:

13 May 2029

(tranche one) and

13 May 2030

(tranche two)

Megan Rutter:

3 Jun 2029

(tranche one)

and 3 Jun 2030

(tranche two)

N/APeter

Herbert: $32.66

Carolyn

Hoy: $36.04

Megan

Rutter: $36.04

Service with a pre-grant

risk assessment

Other awards

2025 Buy out

restricted

shares - Kate

Dee

d

12 Sep 2025N/AN/A1 Mar 2027

(tranche one), 1

Mar 2028 (tranche

two), 6 Aug 2029

(tranche three

and four), 6 Aug

2030 (tranche five

and six)

N/A$38.48Service to 1 Jan 2026

(tranche four and six), 1

Mar 2027 (tranche one,

two, three and five)

2025 Buy out

restricted

shares - Paul

Fowler

d

7 Jul 2025N/AN/A1 Sep 2026

(tranche two),

13 May 2029

(tranche three to

five), 13 May

2030 (tranche six

to eight)

N/A$33.48Service to 1 Sep 2026

(tranche two, three and

six), 1 Sep 2027 (tranche

four and seven), 1

Sep 2028 (tranche five

and eight)

2024 UNITE

share rights -

Peter Herbert

31 Oct 20241 Oct 202430 Sep 202815 Nov 202915 Nov 2031$25.12UNITE program

deliverables and

performance metrics

2023

restricted

shares - Ryan

Zanin

19 Jan 2024N/AN/A24 Jan 2026

(tranche one),

24 Jan 2028

(tranche two) and

24 Jan 2029

(tranche three)

N/A$23.20Service to 22 Jan 2026

a.The 2024 STVR award for Peter King was granted on 12 December 2024 with a fair value of $31.96. STVR for Catherine McGrath was granted as

share rights with a fair value of $31.28 for tranche one and $29.79 for tranche two.

b.For Catherine McGrath, STVR was granted with a fair value of $21.18.

c.We tested the 2022 LTVR performance rights on 1 October 2025. Our TSR for the four year performance period was 77% resulting in a 62.5th

percentile ranking relative to the comparator group. This resulted in 75% of the 2022 LTVR award vesting. 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 after his commencement on 17 May 2022 at a fair value of $9.32 and is due to vest on 4 February 2026.

d.Buy out awards are subject to remuneration adjustments. Restricted shares granted as part of buy out awards are eligible to receive dividends.

96WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

7.5. 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 2025

1

.

Number held at

start of the year

Changes

during the year

Number held at

end of the year

Non-executive Directors

Steven Gregg75,208-75,208

Tim Burroughs67,302-67,302

Nerida Caesar13,583-13,583

David Cohen

a

n/a-1,253

Pip Greenwood

a

n/a--

Debra Hazelton

a,b

n/a1,1501,350

Andy Maguire-6,6156,615

Peter Nash15,360-15,360

Margaret Seale

c

26,158-26,158

Michael Ullmer AO

d

12,570-12,570

Former Non-executive Directors

Audette Exel AO

a

11,952-n/a

Nora Scheinkestel

a

17,225-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, Debra Hazelton and her related parties held interests in 10 Westpac Capital Notes 7 (ASX:WBCPJ), 16

Westpac Capital Notes 9 (ASX:WBCPL) and 2 Westpac Capital Notes 10 (ASX:WBCPM) at year end.

c.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.

d.In addition to holding ordinary shares, Michael Ullmer AO and his related parties held interests in 300 Westpac Capital Notes 9 (ASX:WBCPL)

and 1,000 Westpac Subordinated Notes at year end.

1.Other than as disclosed above, no share interests include non-beneficially held shares.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
97

7.6. 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 2025

1

.

Name

Type of equity-

based instrument

Number

held at

start of

the year

Number

granted

during the

year as

remuneration

Received

on exercise

and/or

exercised

during the

year

Number

forfeited or

lapsed

during the

year

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

Anthony MillerOrdinary shares186,26314,66260,246--261,171-

Restricted rights42,31848,756---91,074-

Performance rights349,47148,758(60,246)(60,246)-277,737-

Group Executives

Scott CollaryOrdinary shares140,54315,59860,307--216,448-

Restricted rights42,86328,048---70,911-

Performance rights358,82028,048(60,307)(60,307)-266,254-

Kate Dee

a

Ordinary sharesn/a19,351---19,351-

Restricted rightsn/a------

Performance rightsn/a------

Paul Fowler

a

Ordinary sharesn/a83,979---83,979-

Restricted rightsn/a9,522---9,522-

Performance rightsn/a9,522---9,522-

Peter Herbert

a

Ordinary sharesn/a22,726-(9,398)(11,000)66,204-

Restricted rightsn/a10,812---10,812-

Performance rightsn/a10,813-(22,222)-13,412-

Carolyn Hoy

a

Ordinary sharesn/a4,176-(2,446)-70,937-

Restricted rightsn/a------

Performance rightsn/a------

Nell HuttonOrdinary shares165,06015,398--(26,474)153,984-

Restricted rights42,31827,691---70,009-

Performance rights42,31927,692---70,011-

Carolyn McCannOrdinary shares111,09113,42035,965--160,476-

Restricted rights35,18226,150---61,332-

Performance rights225,64226,150(35,965)(35,964)-179,863-

Catherine McGrathOrdinary shares-------

Unhurdled share rights31,47110,277---41,74822,931

Restricted rights31,67022,035---53,705-

Performance rights165,15322,035---187,188-

Michael RowlandOrdinary shares55,51615,35249,708-(49,708)70,868-

Restricted rights33,15722,184---55,341-

Performance rights283,63822,184(49,708)(49,707)-206,407-

Ryan ZaninOrdinary shares53,23620,674---73,910-

Restricted rights44,21030,204---74,414-

Performance rights195,14530,205---225,350-

Former Executives

Peter King

a

Ordinary shares262,33329,90793,567--n/an/a

Restricted rights82,977----n/an/a

Performance rights552,274-(93,567)(93,567)-n/an/a

Christine Parker

a

Ordinary shares70,40712,79145,673-(45,637)n/an/a

Restricted rights27,09817,731---n/an/a

Performance rights254,05317,732(45,673)(45,672)-n/an/a

Megan Rutter

a

Ordinary sharesn/a----n/an/a

Restricted rightsn/a----n/an/a

Performance rightsn/a----n/an/a

Jason Yetton

a

Ordinary shares78,44613,58862,865--n/an/a

Restricted rights42,31827,691---n/an/a

Performance rights354,70927,692(62,865)(62,865)-n/an/a

a.The information relates to the period the individual was a KMP. Refer to Section 2 for further details.

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 2025.

98WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

7.7. 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

$

Interest paid and

payable for the year

$

a

Interest not charged

during the year

$

Balance at end of

the year

$

Number in Group at

end of the year

Non-executive Directors3,012,367219,801-5,164,4963

CEO and Group Executives29,051,817783,342-10,650,7828

Total32,064,1841,003,143-15,815,27811

a.Interest paid considers the impact of offset accounts.

The table below details KMP (including their related parties) with aggregate loans above $100,000 during 2025.

Balance at start of

the year

$

Interest paid and

payable for the year

$

a

Interest not charged

during the year

$

Balance at end of

the year

$

Highest indebtedness

during the year

$

Non-executive Directors

Pip Greenwood

b

n/a18,824-1,810,4891,810,489

Peter Nash2,498,978174,905-2,901,0093,651,731

Margaret Seale413,38926,072-452,998464,906

CEO and Group Executives

Anthony Miller1,389,164233-1,255,6591,389,164

Scott Collary2,166,51337,935-1,926,8362,179,191

Kate Dee

b

n/a18,958-2,397,7982,400,949

Paul Fowler

b

n/a1,602-3,330,6213,330,621

Nell Hutton14,432,940456,000--14,439,811

Carolyn McCann3,250,672117,003-1,717,9863,254,146

Former Executives

Peter King

b

1,158,000--n/a1,158,000

Christine Parker

b

5,396,23691,899-n/a5,396,236

Megan Rutter

b

n/a6,160-n/a684,947

Jason Yetton

b

1,258,29253,407-n/a1,477,283

a.Interest paid considers the impact of offset accounts.

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 and the 2025 LTVR restricted rights was $821,065 as at 30 September 2025. Details of the LTVR

restricted rights can be found in

Section 5.3.1.

Other financial instrument transactions

Other financial instrument transactions relating to personal banking activities occur from time to time in the ordinary

course of business with KMP and their relevant related parties. These transactions principally involve personal banking

and deposit transactions, and financial and investment services. These transactions are on normal commercial terms

and conditions no more favourable than those provided to other employees and customers.

K
PMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are

trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme

approved under Professional Standards Legislation.

Lead Auditor’s Independence Declaration under

Section 307C of the Corporations Act 2001

To the Directors of Westpac Banking Corporation

I declare that, to the best of my knowledge and belief, in relation to the audit of Westpac Banking

Corporation for the financial year ended 30 September 2025 there have been:

i.no contraventions of the auditor independence requirements as set out in the Corporations

Act 2001 in relation to the audit; and

ii.no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG Kim Lawry

Partner

Sydney

2 November 2025

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION

99

100WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT

Non-audit services

We engage KPMG 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 for non-audit services provided by KPMG during the 2025

financial year and PricewaterhouseCoopers (PwC) during the 2024 financial year are set out in Note 33 (page 221) to the

financial statements.

KPMG 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 $0.2 million in total to KPMG and $6.4 million to PwC

(2024: $6.6 million to PwC). KPMG 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 KPMG

by those entities.

Westpac has a policy on engaging KPMG for audit and non-audit services, details of which are set out in its 2025

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 2025 by KPMG 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 KPMG, 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 KPMG 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 KPMG; and

•based on quarterly independence declarations made by KPMG to the Board Audit Committee during the year, none

of the services undermine the general principles relating to auditor independence including reviewing or auditing

KPMG’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 2025, which have been prepared

in accordance with the accounting policies described in Note 1 (page 110) 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 4) to and including the section entitled

Information on Westpac (page 102) and the subsection entitled 'Other Westpac business information' in the section

entitled Additional Information (page 237) 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

2 November 2025

Anthony Miller

Managing Director &

Chief Executive Officer

2 November 2025

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
101

INFORMATION ON

WESTPAC

Significant developments

Westpac significant developments – Australia

Changes to Board of Directors and Executive Team

On 1 August 2025, Pip Greenwood commenced as an

Independent Non-executive Director of the Board.

On 12 May 2025, Paul Fowler commenced as the Chief

Executive of Business & Wealth. 

On 5 August 2025, Kate Dee commenced as the

new Chief People Officer, following the retirement of

Christine Parker.

On 12 August 2025, Westpac announced the appointment

of Carolyn McCann as the new Chief Executive, Consumer,

effective immediately. Carolyn McCann had been acting

in that role since 12 May 2025. Carolyn Hoy commenced

as the Acting Group Executive of Customer & Corporate

Services on 12 May 2025.

On 1 September 2025, Dr Andrew McMullan commenced

in the new executive role of Chief Data, Digital and

AI Officer.

On 8 October 2025, Nathan Goonan commenced as

the Chief Financial Officer, following the retirement of

Michael Rowland.

Increase in the CET1 capital operating target

The Board has determined a target post dividend

CET1 capital ratio of above 11.25% in normal operating

conditions. This target includes consideration of APRA's

increase in the minimum CET1 ratio of 0.25% to 10.50%

effective 1 January 2027 and replaces the previous CET1

capital operating range of between 11.00% and 11.50%.

On market buyback

As at 30 September 2025, Westpac had completed

$2.5 billion of the $3.5 billion on market share buyback

previously announced, with 88.7 million Westpac ordinary

shares purchased at an average price of $28.00. The

ordinary shares bought back were subsequently cancelled.

The timing and actual number of shares purchased

under the buyback will depend on market conditions and

other considerations. Westpac reserves the right to vary,

suspend or terminate the buyback at any time.

Regulatory and risk developments

Financial crime

Westpac continues to improve its financial crime risk

management with significant ongoing work focusing

on 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

and remediate our Financial Crime Program, and to

improve regulatory reporting, including in relation to

International Funds Transfer Instructions, Threshold

Transaction Reports, Suspicious Matter Reports, FATCA

and CRS reporting and equivalent reports in jurisdictions

outside Australia. 

With ongoing regulatory focus on financial crime, further

areas of potential non-compliance have been, and may

continue to be identified, and we continue to liaise with

the Australian Transaction Reports and Analysis Centre

(AUSTRAC), the Australian Taxation Office (ATO) and

local regulators in jurisdictions outside Australia, including

to remediate findings and adopt recommendations

from regulators.

In 2024, the Australian Parliament enacted the Anti-

Money Laundering and Counter-Terrorism Financing

Amendment Act 2024 (Cth), introducing major reforms to

the AML/CTF regime. A substantial number of reforms

will take effect from 31 March 2026, including provisions

that apply to our permanent offshore establishments.

In response, we are updating our policies, procedures,

systems and controls. Full implementation will require

a multi-year implementation program, including complex

technology upgrades to customer due diligence and

reporting infrastructure. Timing challenges are an

industry wide issue. AUSTRAC has acknowledged this

and published its regulatory expectations, noting that

AUSTRAC does not expect immediate compliance.

AUSTRAC does expect reporting entities to continue to

implement current money laundering controls and show

sustained effort and progress against implementation

plans. We will continue to engage with AUSTRAC to

support a phased implementation approach. Details about

the consequences of failing to comply with financial crime

obligations are set out in the

2025 Risk Factors.

New climate reporting standards

New mandatory climate-related reporting standards were

approved in September 2024 by the Australian Accounting

Standards Board and legislation requiring compliance has

been passed by the Australian Parliament. These new

requirements will apply to Westpac from its financial year

ending 30 September 2026.

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.

On 15 October 2025, APRA announced its decision to lift

the CEU and remove Westpac’s remaining $500 million

operational risk capital overlay. The removal of the

$500 million capital overlay will mean Westpac’s Common

Equity Tier 1 (CET1) capital ratio will increase by

approximately 17 basis points, reflecting a reduction in

risk weighted assets of $6,250 million. This change applied

with immediate effect. Further details are set out in

Strengthening Risk Management (page 43).

102WESTPAC 2025 ANNUAL REPORT
INFORMATION ON WESTPAC

APRA announcement to phase out AT1 capital as

eligible bank capital

On 8 July 2025 APRA released a consultation paper on

implementing the phase out of AT1 capital instruments.

This included changes to APRA's prudential and reporting

frameworks resulting from the removal of AT1 capital

instruments. Under the revisions, large internationally

active banks such as Westpac will replace 1.5% of AT1

capital with 1.25% of Tier 2 capital and 0.25% of CET1

capital. The total CET1 requirement, including regulatory

buffers, will increase from 10.25% to 10.50%. There is no

overall increase in total capital requirements for banks.

APRA has also proposed changes to the leverage ratio,

which will see the leverage ratio calculation based on

CET1 capital rather than Tier 1 capital. Should the

changes be implemented as proposed, this will result in

a reduction in the reported leverage ratio. The minimum

leverage ratio of 3.5% is proposed to remain unchanged.

APRA intends to finalise changes to the relevant

prudential standards in 2025, with the updated framework

coming into effect from 1 January 2027. In addition,

from this date, existing AT1 capital instruments would

be eligible to be included as Tier 2 capital, until their

first scheduled call date. Existing Westpac AT1 capital

instruments would reach their first scheduled optional

redemption dates by 2031 at the latest.

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 (NZ).

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” (LCIC). Policy decisions released by

the RBNZ on 17 July 2025 propose that LCIC 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$250million (for funds

management entities only). The implementation date is

expected to be 1 December 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.

RBNZ review of capital settings for deposit takers

On 31 March 2025, the RBNZ announced a review of the

key capital settings for deposit takers. On 25 August 2025,

it released a consultation paper. For Group 1 deposit

takers (including WNZL) the key proposals include:

•Removal of AT1 instruments from the capital stack.

•Two options for capital ratio requirements:

–Option 1: A total CET1 capital ratio requirement of

14%, with a total capital ratio requirement of 17%

(including a prudential capital buffer (‘PCB’) ratio

of 8%).

–Option 2: A total CET1 capital ratio requirement of

12%, with a total capital ratio requirement of 15%

(including a PCB ratio of 6%) and an additional Loss

Absorbing Capacity (LAC) requirement of 6%. Tier 2

capital and LAC instruments would be required to

be issued internally (for example to WBC) and LAC

would take a form similar to Tier 2 capital.

•More granular standardised risk weights, including

lower risk weights in some areas.

•Setting the long-run level for the counter-cyclical

capital buffer component of the PCB at 1%.

The RBNZ is expected to make its final decisions in

December 2025 with the implementation timeline to be

announced in the first quarter of the 2026 calendar year.

The outcome of the review remains uncertain.

General regulatory changes affecting our businesses

RBA review of merchant card payment costs

and surcharging

On 15 July 2025, the RBA released a consultation paper

as part of its review of merchant card payment costs

and surcharging. Relevantly, the RBA proposes to remove

surcharges on debit and credit cards, lower the cap on

interchange fees paid by merchant acquirers to card

issuers (including Westpac) and improve transparency

on card payment fees. The RBA intends to complete its

review in March 2026. We are considering the impact of

the proposed changes, including on our products, systems

and financial outcomes.

Legal proceedings

Our entities are parties to legal proceedings from time

to time arising from the conduct of our business. Certain

litigation and class actions are further described as

required in Note 25 to the financial statements (page 198)

in this Annual Report.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
103

FINANCIAL

REPORT

Financial Report

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

104WESTPAC 2025 ANNUAL REPORT
INCOME STATEMENTS

for the years ended 30 September

Income statementsfor the years ended 30 September

Westpac Banking Corporation

ConsolidatedParent Entity

$mNote20252024202320252024

Interest income:

Calculated using the effective interest method353,05452,73942,51548,85148,358

Other31,9881,6081,2372,1961,571

Total interest income55,04254,34743,75251,04749,929

Interest expense3(35,662)(35,594)(25,435)(34,949)(34,492)

Net interest income19,38018,75318,31716,09815,437

Non-interest income

Net fees41,7321,6721,6451,5431,494

Net wealth management4476441562--

Trading4717704717693637

Other479184041,5461,851

Total non-interest income3,0042,8353,3283,7823,982

Net operating income22,38421,58821,64519,88019,419

Operating expenses5(11,916)(10,944)(10,692)(10,455)(9,728)

Impairment (charges)/benefits6(424)(537)(648)(440)(475)

Profit before income tax expense10,04410,10710,3058,9859,216

Income tax expense7(3,111)(3,117)(3,104)(2,489)(2,525)

Profit after income tax expense6,9336,9907,2016,4966,691

Net profit attributable to non-controlling interests (NCI)(17)-(6)--

Net profit attributable to owners of Westpac Banking

Corporation (WBC)6,9166,9907,1956,4966,691

Earnings per share (cents)

Basic8201.9200.9205.3

Diluted8199.4191.7195.2

The above income statements should be read in conjunction with the accompanying notes.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
105

STATEMENTS OF COMPREHENSIVE INCOME

for the years ended 30 September

Statements of comprehensive incomefor the years ended 30 September

Westpac Banking Corporation

ConsolidatedParent Entity

$m20252024202320252024

Profit after income tax expense6,9336,9907,2016,4966,691

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)503(588)(201)423(813)

Cash flow hedging instruments(233)501(635)(154)873

Transferred to income statement:

Debt securities measured at FVOCI(19)5(125)(19)5

Cash flow hedging instruments15277(309)154132

Loss allowance on debt securities measured at FVOCI-11(1)1

Exchange differences on translation of foreign operations (net of

associated hedges)(254)(300)36731(134)

Income tax on items taken to or transferred from equity:

Debt securities measured at FVOCI(141)17998(118)242

Cash flow hedging instruments22(182)283-(301)

Items that will not be reclassified subsequently to profit or loss

Gains/(losses) on equity securities measured at FVOCI (net of tax)241(10)9(3)

Own credit adjustment on financial liabilities designated at fair value (net

of tax)(21)13(21)(21)13

Remeasurement of defined benefit obligation recognised in equity (net

of tax)10(14)(105)9(12)

Net other comprehensive income/(expense) (net of tax)43(307)(657)3133

Total comprehensive income6,9766,6836,5446,8096,694

Attributable to:

Owners of WBC6,9746,6856,5366,8096,694

NCI2(2)8--

Total comprehensive income6,9766,6836,5446,8096,694

The above statements of comprehensive income should be read in conjunction with the accompanying notes.

106WESTPAC 2025 ANNUAL REPORT
BALANCE SHEETS

as at 30 September

Balance sheetsas at 30 September

Westpac Banking Corporation

ConsolidatedParent Entity

$mNote2025202420252024

Assets

Cash and balances with central banks3550,43065,66744,78258,400

Collateral paid4,5906,2694,5626,199

Trading securities and financial assets measured at fair value through income

statement (FVIS)

1655,84149,22853,62647,014

Derivative financial instruments2018,46424,10917,53423,902

Investment securities17117,541103,885109,10095,623

Loans9851,853806,767755,112710,043

Other financial assets1810,7665,45610,1264,951

Due from subsidiaries--48,83052,339

Investment in subsidiaries--8,5679,095

Property and equipment2,2662,2511,8051,804

Tax assets72,0782,1601,8431,896

Intangible assets2410,46510,7468,9189,131

Other assets1,0621,006916837

Total assets1,125,3561,077,5441,065,7211,021,234

Liabilities

Collateral received3,1873,0782,3642,935

Deposits and other borrowings12770,457720,489696,660644,481

Other financial liabilities1941,48838,07738,93533,917

Derivative financial instruments2020,63030,97420,49230,795

Debt issues13171,404169,284142,622143,882

Tax liabilities713756961408

Due to subsidiaries--52,56655,722

Provisions252,6122,5052,3762,271

Other liabilities2,3782,6331,8542,065

Total liabilities excluding loan capital1,012,293967,609957,930916,476

Loan capital1439,97037,88338,89136,770

Total liabilities1,052,2631,005,492996,821953,246

Net assets73,09372,05268,90067,988

Shareholders' equity

Share capital:

Ordinary share capital2637,26337,95837,26337,958

Treasury shares26(845)(758)(902)(816)

Reserves261,8801,7322,1761,757

Retained profits34,46832,77330,36329,089

Total equity attributable to owners of WBC72,76671,70568,90067,988

NCI26327347--

Total shareholders' equity and NCI73,09372,05268,90067,988

The above balance sheets should be read in conjunction with the accompanying notes.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
107

STATEMENTS OF CHANGES IN EQUITY

for the years ended 30 September

Statements of changes in equityfor 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 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

b

(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-5-5(30)(25)

Preference shares issued

c

----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

Profit after income tax expense--6,9166,916176,933

Net other comprehensive income/(expense)-69(11)58(15)43

Total comprehensive income/(expense)-696,9056,97426,976

Transactions in capacity as equity holders:

Dividends on ordinary shares

a

--(5,215)(5,215)-(5,215)

Share buyback

b

(672)--(672)-(672)

Other equity movements:

Share-based payment arrangements-94-94-94

Purchase of shares(23)--(23)-(23)

Net acquisition of treasury shares(87)--(87)-(87)

Acquisition of minority interest----(4)(4)

Other-(15)5(10)(18)(28)

Total contributions and distributions(782)79(5,210)(5,913)(22)(5,935)

Balance as at 30 September 202536,4181,88034,46872,76632773,093

a.Relates to fully franked dividends at 30%:

- 2025: 2025 interim dividend of 76 cents per share ($2,601 million) and 2024 final dividend of 76 cents per share ($2,614 million);

- 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 millions) and 2022 final dividend of 64 cents per share ($2,240 million).

b.Westpac previously announced its intention to undertake a $3.5 billion on market buyback of WBC ordinary shares. During 2025, Westpac

bought back and cancelled 21,058,056 ordinary shares ($672 million) at an average price of $31.93 (2024: 67,665,599 ordinary shares

($1,812 million) at an average price of $26.78).

c.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.

108WESTPAC 2025 ANNUAL REPORT
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 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

Profit after income tax expense--6,4966,496

Net other comprehensive income/(expense)-325(12)313

Total comprehensive income/(expense)-3256,4846,809

Transactions in capacity as equity holders:

Dividends on ordinary shares

a

--(5,215)(5,215)

Share buyback

b

(672)--(672)

Other equity movements:

Share-based payment arrangements-94-94

Purchase of shares(23)--(23)

Net acquisition of treasury shares(86)--(86)

Other--55

Total contributions and distributions(781)94(5,210)(5,897)

Balance as at 30 September 202536,3612,17630,36368,900

a.Relates to fully franked dividends at 30%:

- 2025: 2025 interim dividend of 76 cents per share ($2,601 million) and 2024 final dividend of 76 cents per share ($2,614 million); and

- 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).

b.Westpac previously announced its intention to undertake a $3.5 billion on market buyback of WBC ordinary shares. During 2025, Westpac

bought back and cancelled 21,058,056 ordinary shares ($672 million) at an average price of $31.93 (2024: 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.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
109

CASH FLOW STATEMENTS

for the years ended 30 September

Cash flow statementsfor the years ended 30 September

Westpac Banking Corporation

ConsolidatedParent Entity

$mNote20252024202320252024

Cash flows from operating activities

Interest received53,88852,51541,97050,01548,242

Interest paid(35,638)(34,000)(22,654)(34,723)(33,039)

Dividends received2319871,285

Other non-interest income received2,2414,3143,5672,1734,274

Operating expenses paid(10,096)(9,679)(9,856)(9,004)(8,464)

Income tax paid(3,532)(3,369)(2,439)(3,047)(2,871)

Cash flows from operating activities before changes in operating

assets and liabilities6,8659,78410,5896,4019,427

Net (increase)/decrease in:

Collateral paid1,945(2,097)1,5451,905(2,057)

Trading securities and financial assets measured at FVIS(6,107)(18,994)(4,524)(6,054)(19,452)

Derivative financial instruments5,650(836)4,0821,0131,358

Loans(50,182)(35,083)(27,270)(45,997)(32,528)

Other financial assets(48)(348)128(26)(231)

Other assets(29)(34)822

Net increase/(decrease) in:

Collateral received(5)(318)(2,888)(709)(181)

Deposits and other borrowings51,85335,24324,69250,80335,870

Other financial liabilities(457)(7,084)(17,146)873(5,281)

Other liabilities4-(12)-(9)

Net cash provided by/(used in) operating activities359,489(19,767)(10,796)8,211(13,082)

Cash flows from investing activities

Proceeds from investment securities63,35647,62436,48061,16840,089

Purchase of investment securities(75,810)(72,786)(33,753)(73,463)(65,072)

Net movement in amounts due to/from controlled entities---3,797(1,283)

Proceeds from disposal of controlled entities and other businesses,

net of cash disposed35--293--

Purchase of controlled entities and other businesses35-(30)---

Net (increase)/decrease in investments in controlled entities---478(254)

Purchase of associates(10)(4)(1)(10)(3)

Proceeds from sale of loans portfolio

a

1,418--1,414-

Proceeds from disposal of property and equipment3346721537

Purchase of property and equipment(371)(235)(238)(259)(168)

Purchase of intangible assets(776)(782)(1,141)(674)(673)

Net cash provided by/(used in) investing activities(12,160)(26,167)1,712(7,534)(27,327)

Cash flows from financing activities

Proceeds from debt issues (net of issue costs)68,85080,24570,97459,40468,438

Redemption of debt issues(76,010)(67,100)(62,596)(68,590)(58,931)

Payments for the principal portion of lease liabilities(390)(416)(401)(338)(365)

Issue of loan capital (net of issue costs)5,0426,3263,4535,0426,326

Redemption of loan capital(4,122)(1,957)(1,171)(4,127)(1,951)

Payments for share buyback(672)(1,812)-(672)(1,812)

Issue of perpetual preference shares (net of issue cost)-339---

Purchase of shares relating to share-based payment arrangements(23)(56)(32)(23)(56)

Net purchase of treasury shares (including RSP and EIP

restricted shares)(87)(56)(47)(86)(56)

Payment of dividends(5,215)(5,652)(4,504)(5,215)(5,652)

Dividends paid to NCI(17)(4)(21)--

Purchase of shares from NCI35(4)(25)---

Net cash provided by/(used in) financing activities(12,648)9,8325,655(14,605)5,941

Net increase/(decrease) in cash and balances with central banks(15,319)(36,102)(3,429)(13,928)(34,468)

Effect of exchange rate changes on cash and balances with

central banks82(753)694310(598)

Cash and balances with central banks as at beginning of year65,667102,522105,25758,40093,466

Cash and balances with central banks as at end of year3550,43065,667102,52244,78258,400

a.The sale of the auto finance loan portfolio to Resimac Asset Finance Pty Limited was completed on 1 March 2025. A loss on sale of $8 million is

included in Net gain/(loss) on disposal of assets in Note 4. 

The above cash flow statements should be read in conjunction with the accompanying notes.

110WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 1. Financial statements preparation

Notes to the Financial StatementsNote 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 2025, was authorised for issue by the Board of Directors on

2 November 2025. 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, derecognition, classification and measurement basis 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 Accounting 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.

Westpac has elected to apply ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 and has

presented both Parent Entity and Group financial statements in the financial report.

(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 2025

No new accounting standards have been adopted by the Group for the year ended 30 September 2025. There have been

no amendments to existing accounting standards that have had a material impact to the Group or the Parent Entity.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
111

Note 1. Financial statements preparation (Continued)

(iv) 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.

(v) Foreign currency translation

Functional and presentation 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.

(vi) Comparative revisions

Comparative information has been revised where appropriate to conform to changes in presentation in the current year

and to enhance comparability.

112WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

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 10Provision for expected credit losses (ECL)

Note 22Fair values of financial assets and financial liabilities

Note 25Provisions, contingent liabilities, contingent assets and credit commitments

Geopolitical developments including in relation to international trade and tariff policies, global tensions and continuing

global military conflict, have led to heightened uncertainty as to future economic forecasts and potential impacts on

the Group and its customers.  Responding to this heightened uncertainty, the Group has increased the weighting

of the downside scenario used in the estimate of expected credit losses from 42.5% to 47.5% (refer to Note 10 for

further details). 

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 did not have a material impact on the judgements, assumptions and estimates for the year ended

30 September 2025. This conclusion also reflects that the most significant impacts of climate change are expected to

mostly occur beyond the expected life of our exposures.

Key considerations in reaching this conclusion included assessing Westpac’s exposure to:

•higher transition risk industries as a proportion of overall credit exposures; and

•physical risks that may arise from changing weather patterns and extreme weather events.

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 modelling to assess these potential impacts.

Details of the provision for ECL, including overlays held in relation to climate-related risks, are provided in Note 10.

c. Future developments

(i) Accounting standards

AASB 9 Financial Instruments: Recognition and Measurement (AASB 9) became effective for the Group for the financial

year ended 30 September 2019.  When adopted, as permitted by the standard, the Group elected to continue to

comply with the hedge accounting requirements under AASB 139.  The Group intends to adopt the hedge accounting

requirements of AASB 9 prospectively for the financial year beginning 1 October 2025.  All the Group’s existing hedge

accounting relationships will continue to qualify for hedge accounting.  It is intended to introduce new hedge accounting

relationships under AASB 9 for our foreign currency term funding over cross currency basis risk. This will result in

associated costs of hedging being reflected in a new cost of hedging reserve (COHR) rather than through the income

statement.  The quantum of this impact will be based on the valuation of the derivatives at the time.

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.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
113

Note 1. Financial statements preparation (Continued)

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.

Westpac is continuing to assess the impact of adopting AASB 2024-2.

(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.

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 S1 is a voluntary standard and provides guidance on the application of AASB S2.

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 progress the implementation of AASB S2 which

becomes effective for the Group for the 30 September 2026 year end.

114WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL PERFORMANCE

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.

Internally, Westpac uses an adjusted AAS measure of performance which excludes Notable Items in assessing the

financial performance of its segments.

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

The performance of each operating segment reflects internal charges, transfer pricing adjustments and revenue and

expenses resulting from inter-segment transactions. These are eliminated on consolidation in the Group Businesses

segment. Inter-segment pricing is determined on an arm’s length basis.

Notable Items presentation

In prior years, Segment information was presented with a separate line item for Notable Items impacting Operating

income and Operating expense for each segments. To align with internal presentation in 2025, Segment results are

presented excluding Notable Items, and reconciled at a Group level to the Statutory Profit. Accordingly, prior period

presentations have been reclassified to reflect current 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 significant online capability supported by an extensive branch and ATM network, call centres and

relationship bankers. Our operations comprise the following key segments:

•Consumer provides 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 for customers generally up to $200 million in exposure, Wealth

Management, Private Wealth and Westpac Pacific.

•Institutional delivers a broad range of financial products and services to corporate, institutional and

government customers.

•New Zealand provides banking, and wealth products and services for consumer, business and institutional customers

in New Zealand.

•Group Businesses includes Treasury, Enterprise services and other costs not directly attributable to segments

including Corporate Affairs, Finance and HR services, a portion of enterprise technology costs related to UNITE

in prior periods, certain customer remediation expenses and enterprise provisions. It also includes Group-wide

consolidation entries.

Changes in Segment Composition

In 2025, the following changes to Segment results were applied:

•The merchants services business was transferred from Business & Wealth to Institutional given strategic alignment

with the management of payments infrastructure;

•The contribution from the auto finance portfolio, which was sold in March 2025, was transferred from Business &

Wealth to Group Businesses; and

•The realignment of Consumer, Business & Wealth and Institutional Human Resources and Finance function expenses

to Group Businesses.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
115

Note 2. Segment reporting (Continued)

Results for 2025 reflect the new segment composition. As the impact of these changes on segment results were

immaterial, comparatives were not revised.

The following tables present the segment results for Westpac.

$mConsumer

Business &

WealthInstitutional

New

Zealand (A$)

Group

BusinessesTotal

Notable

Items

Income

Statement

2025

Net interest income7,8635,3462,4132,5681,28319,473(93)19,380

Net fee income538256773170(5)1,732-1,732

Net wealth

management income-434-43(1)476-476

Trading income1067577371370413717

Other income13745(4)1879-79

Net operating income8,4246,1103,8082,8141,30822,464(80)22,384

Operating expenses(4,932)(2,727)(1,647)(1,342)(1,268)(11,916)-(11,916)

Pre-provision profit3,4923,3832,1611,4724010,548(80)10,468

Impairment

(charges)/benefits(217)(245)141(4)(424)-(424)

Profit before income

tax expense3,2753,1382,1621,5133610,124(80)10,044

Income tax

(expense)/benefit(993)(952)(587)(423)(180)(3,135)24(3,111)

Net profit attributable

to NCI----(17)(17)-(17)

Net profit attributable to

owners of WBC (excluding

Notable Items)2,2822,1861,5751,090(161)6,972(56)6,916

Notable Items (post-tax)---(3)(53)(56)

Net profit attributable to

owners of WBC2,2822,1861,5751,087(214)6,916

Balance sheet

Loans525,447115,203117,70493,44356851,853

Deposits and

other borrowings366,299152,312131,37972,80647,661770,457

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

Net operating income8,1606,1363,5052,6451,31721,763(175)21,588

Operating expenses(4,787)(2,626)(1,465)(1,262)(804)(10,944)-(10,944)

Pre-provision profit3,3733,5102,0401,38351310,819(175)10,644

Impairment

(charges)/benefits(248)(142)(120)(25)(2)(537)-(537)

Profit before income

tax expense3,1253,3681,9201,35851110,282(175)10,107

Income tax

(expense)/benefit(941)(1,012)(553)(379)(284)(3,169)52(3,117)

Net profit attributable

to NCI--------

Net profit attributable to

owners of WBC (excluding

Notable Items)2,1842,3561,3679792277,113(123)6,990

Notable Items (post-tax)---(6)(117)(123)

Net profit attributable to

owners of WBC2,1842,3561,3679731106,990

Balance sheet

Loans510,317101,989100,58293,83346806,767

Deposits and

other borrowings334,462144,289119,79574,91247,031720,489

116WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 2. Segment reporting (Continued)

$mConsumer

Business &

WealthInstitutional

New

Zealand (A$)

Group

BusinessesTotal

Notable

Items

Income

Statement

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

Net operating income8,7015,8363,2932,5571,15521,54210321,645

Operating expenses(4,533)(2,459)(1,316)(1,186)(738)(10,232)(460)(10,692)

Pre-provision profit4,1683,3771,9771,37141711,310(357)10,953

Impairment

(charges)/benefits(179)(257)(87)(124)(1)(648)-(648)

Profit before income

tax expense

3,9893,1201,8901,24741610,662(357)10,305

Income tax

(expense)/benefit

(1,196)(922)(543)(352)(275)(3,288)184(3,104)

Net profit attributable

to NCI-(5)--(1)(6)-(6)

Net profit attributable to

owners of WBC (excluding

Notable Items)2,7932,1931,3478951407,368(173)7,195

Notable Items (post-tax)(148)(107)(10)(7)99(173)

Net profit attributable to

owners of WBC2,6452,0861,3378882397,195

Balance sheet

Loans492,71695,54892,56892,488(66)773,254

Deposits and

other borrowings308,342140,536116,05276,54446,694688,168

Notable Items after tax

$m202520242023

Economic hedges(43)(128)(92)

Hedge ineffectiveness(13)566

Hedging items(56)(123)(26)

Provisions for remediation, litigation, fines and penalties--(176)

Asset sales and revaluations--256

The write-down of assets--(87)

Restructuring costs--(140)

Large items--(147)

Total Notable Items after tax(56)(123)(173)

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
117

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:

202520242023

$m%$m%$m%

Revenue

Australia48,21283.148,44284.740,22285.4

New Zealand8,01413.86,80911.95,05310.7

Other overseas

a

1,8203.11,9313.41,8053.9

Total58,046100.057,182100.047,080100.0

Non-current assets

b

Australia11,32289.011,57389.011,78289.7

New Zealand1,2529.81,31910.11,2829.8

Other overseas

a

1571.21050.9670.5

Total12,731100.012,997100.013,131100.0

a.Other overseas included Pacific Islands, Asia, the Americas and Europe.

b.Non-current assets represents property and equipment, and intangible assets.

118WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 3. Net interest income and average balance sheet and interest rates

Note 3. Net interest income and average balance sheet and interest rates

Net interest income

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

$m20252024202320252024

Interest income

Calculated using the effective interest method

Cash and balances with central banks2,5334,1234,2772,2603,651

Collateral paid468647581467646

Investment securities4,5873,4942,0374,2743,254

Loans45,45144,46035,58239,61738,217

Other financial assets1515381113

Due from subsidiaries---2,2222,577

Total interest income calculated using the effective

interest method53,05452,73942,51548,85148,358

Other

Net ineffectiveness on qualifying hedges(19)894(15)16

Trading securities and financial assets measured at FVIS2,0071,6001,1431,9111,474

Due from subsidiaries---30081

Total other1,9881,6081,2372,1961,571

Total interest income55,04254,34743,75251,04749,929

Interest expense

Calculated using the effective interest method

Collateral received(268)(317)(327)(242)(302)

Deposits and other borrowings(21,121)(21,268)(14,993)(18,743)(18,190)

Debt Issues(6,439)(6,094)(4,667)(5,587)(5,422)

Due to subsidiaries---(2,929)(3,324)

Loan capital(2,041)(1,848)(1,448)(1,967)(1,773)

Other financial liabilities(334)(394)(516)(246)(177)

Total interest expense calculated using the effective

interest method(30,203)(29,921)(21,951)(29,714)(29,188)

Other

Deposits and other borrowings(2,125)(2,389)(1,925)(2,046)(2,248)

Trading liabilities

a

(2,610)(2,643)(653)(2,633)(2,785)

Debt issues(227)(194)(494)(88)(82)

Bank levy(393)(357)(332)(390)(357)

Due to subsidiaries---2242

Other interest expense(104)(90)(80)(80)(74)

Total other(5,459)(5,673)(3,484)(5,235)(5,304)

Total interest expense(35,662)(35,594)(25,435)(34,949)(34,492)

Net interest income19,38018,75318,31716,09815,437

a.Includes net impact of Treasury balance sheet management activities.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
119

Note 3. Net interest income and average balance sheet and interest rates

(Continued)

Average balance sheet and interest rates

The daily average balances of Westpac’s interest earning assets and interest bearing liabilities are shown below along

with their interest income or expense.

202520242023

Average

balance

Interest

income

Average

rate

Average

balance

Interest

income

Average

rate

Average

balance

Interest

income

Average

rate

Consolidated$m$m%$m$m%$m$m%

Assets

Interest earning assets

Loans:

Australia660,39539,1515.9633,77237,8656.0607,15430,1645.0

New Zealand93,5095,6806.192,2226,1556.790,1305,0285.6

Other overseas10,4566205.96,6664406.66,5483906.0

Housing

a

Australia445,86025,5275.7439,12124,9825.7424,42719,6404.6

New Zealand61,9753,5645.860,8103,5615.959,3192,7024.6

Other overseas374164.3407174.2468183.8

Personal

Australia9,45096910.310,6841,0399.711,9541,0018.4

New Zealand1,0611019.51,063979.11,0941029.3

Other overseas7114.37114.37114.3

Business

Australia205,08512,6556.2183,96711,8446.4170,7739,5235.6

New Zealand30,4732,0156.630,3492,4978.229,7172,2247.5

Other overseas10,0756036.06,2524226.76,0733716.1

Trading securities and financial

assets measured at FVIS:

Australia38,8781,6154.228,6051,2234.323,4868433.6

New Zealand5,2792174.14,7182515.33,9592015.1

Other overseas4,2291754.13,0271264.22,641993.7

Investment securities:

Australia102,5714,1834.185,2083,2273.866,6311,8222.7

New Zealand7,1742653.76,5702013.16,1641482.4

Other overseas3,5241393.92,147663.12,082673.2

Other interest earning assets:

b

Australia54,3592,0913.879,2263,3404.296,2913,4243.6

New Zealand7,1762713.88,6364655.410,4964964.7

Other overseas15,3066354.119,2589885.124,8671,0704.3

Total interest earning assets and

interest income1,002,85655,0425.5970,05554,3475.6940,44943,7524.7

Non-interest earning assets

Derivative financial instruments24,88516,78623,423

All other assets

a,c

83,33870,46859,356

Total non-interest earning assets108,22387,25482,779

Total assets1,111,0791,057,3091,023,228

a.Certain portions of loans are non-interest earning and are presented in All other assets. The non-interest earning portion represents the

impact of mortgage offset deposits which are taken into consideration when calculating interest charged on loans.

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 $65,482 million (2024: $57,028 million, 2023: $49,702 million).

120WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 3. Net interest income and average balance sheet and interest rates

(Continued)

202520242023

Average

balance

Interest

expense

Average

rate

Average

balance

Interest

expense

Average

rate

Average

balance

Interest

expense

Average

rate

Consolidated$m$m%$m$m%$m$m%

Liabilities

Interest bearing liabilities

Deposits and other borrowings:

Australia513,45119,8653.9489,69319,4134.0460,14913,5442.9

New Zealand65,2332,4543.865,0703,2204.963,7602,4643.9

Other overseas20,7059274.519,3561,0245.320,1329104.5

Certificates of deposit

Australia31,9261,3904.433,5981,5094.531,8221,1283.5

New Zealand1,914784.12,4241415.82,7271365.0

Other overseas13,4876544.812,8677365.713,3386574.9

Transactions

Australia119,9534,0513.4122,2354,1123.4129,7603,0832.4

New Zealand9,1362422.68,8364044.68,6473223.7

Other overseas853131.5823131.686870.8

Savings

Australia209,8127,5133.6189,4057,0073.7164,8004,6202.8

New Zealand18,5403962.118,4656353.419,3765372.8

Other overseas1,126262.3996252.51,035252.4

Term

Australia151,7606,9114.6144,4556,7854.7133,7674,7133.5

New Zealand35,6431,7384.935,3452,0405.833,0101,4694.5

Other overseas5,2392344.54,6702505.44,8912214.5

Repurchase agreements:

Australia14,0326834.922,0406923.134,5113140.9

New Zealand2,529983.94,3182345.44,9222314.7

Other overseas1,099494.5193115.7219115.0

Loan capital:

Australia40,1301,8694.737,2291,6764.531,8951,3134.1

New Zealand3,0211725.72,9831725.82,4891355.4

Other interest bearing liabilities:

a

Australia171,9778,4814.9164,7228,3705.1154,8595,9903.9

New Zealand22,6361,0784.820,1347683.819,9864642.3

Other overseas594(14)(2.4)953141.51,854593.2

Total interest bearing liabilities and

interest expense855,40735,6624.2826,69135,5944.3794,77625,4353.2

Non-interest bearing liabilities

Deposits and other borrowings:

Australia134,244119,408117,538

New Zealand10,75510,89112,213

Other overseas1,2021,3331,292

Derivative financial instruments26,75121,41326,353

All other liabilities10,8356,024(218)

Total non-interest bearing liabilities183,787159,069157,178

Total liabilities1,039,194985,760951,954

Shareholders’ equity71,54471,49371,229

NCI3415645

Total equity71,88571,54971,274

Total liabilities and equity1,111,0791,057,3091,023,228

a.Interest expense includes the net impact of Treasury balance sheet management activities and the bank levy.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
121

Note 3. Net interest income and average balance sheet and interest rates

(Continued)

Calculation of variances

Net interest income may vary from year to year due to changes in the volume of, and interest rates associated with,

interest earning assets and interest bearing liabilities. Changes due to volume and rates are calculated at the balance

sheet line items. Disaggregation into product classification includes the impact of compositional changes (mix) from

prior periods. As such, calculations at a product level will result in a different outcome and will not sum to the balance

sheet line item.

The following table allocates the change in net interest income between changes in volume and interest rate for those

assets and liabilities:

•Volume changes are determined based on the movements in average asset and liability balances; and

•Interest rate changes are determined based on the change in interest rate associated with those assets and

liabilities. Variances that arise due to a combination of volume and interest rate changes are allocated to interest

rate changes.

20252024

ConsolidatedChange due toChange due to

$mVolumeRateTotalVolumeRateTotal

Interest earning assets

Loans:

Australia1,583(297)1,2861,3376,3647,701

New Zealand86(561)(475)1171,0101,127

Other overseas249(69)18074350

Housing

Australia1,174(629)5458534,4895,342

New Zealand50(47)365794859

Other overseas9(10)(1)-(1)(1)

Personal

Australia46(116)(70)43(5)38

New Zealand1342(7)(5)

Other overseas1(1)----

Business

Australia3634488114411,8802,321

New Zealand35(517)(482)50223273

Other overseas239(58)18174451

Trading securities and financial assets measured

at FVIS:

Australia448(56)392185195380

New Zealand30(64)(34)381250

Other overseas50(1)49151227

Investment securities:

Australia6582989565088971,405

New Zealand184664104353

Other overseas4231732(3)(1)

Other interest earning assets:

Australia(1,057)(192)(1,249)(569)485(84)

New Zealand(80)(114)(194)(88)57(31)

Other overseas(201)(152)(353)(245)163(82)

Total change in interest income1,826(1,131)6951,3179,27810,595

122WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 3. Net interest income and average balance sheet and interest rates

(Continued)

20252024

ConsolidatedChange due toChange due to

$mVolumeRateTotalVolumeRateTotal

Interest bearing liabilities

Deposits and other borrowings:

Australia956(504)4529224,9475,869

New Zealand8(774)(766)51705756

Other overseas71(168)(97)(35)149114

Certificates of deposits

Australia54(173)(119)128253381

New Zealand-(63)(63)325

Other overseas51(133)(82)(25)10479

Transactions

Australia192(253)(61)1828471,029

New Zealand2(164)(162)77582

Other overseas1(1)--66

Savings

Australia3351715062782,1092,387

New Zealand1(240)(239)118798

Other overseas1-1(1)1-

Term

Australia375(249)1263341,7382,072

New Zealand5(307)(302)30541571

Other overseas18(34)(16)(9)3829

Repurchase agreements:

Australia(150)141(9)134244378

New Zealand(97)(39)(136)(28)313

Other overseas51(13)38(1)1-

Loan capital:

Australia13360193219144363

New Zealand2(2)-271037

Other interest bearing liabilities:

Australia322(211)1113502,0302,380

New Zealand782323103301304

Other overseas(22)(6)(28)(41)(4)(45)

Total change in interest expense1,352(1,284)681,6018,55810,159

Change in net interest income:

Australia371267638(164)576412

New Zealand63(110)(47)247599

Other overseas40(4)36(144)69(75)

Total change in net interest income474153627(284)720436

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
123

Note 4. Non-interest income

Note 4. Non-interest income

Accounting policy

Non-interest income includes net fee income, net wealth management, trading income and other income.

Net fee income

When another party is involved in providing goods or services to a Westpac customer, Westpac assesses whether the

nature of the arrangement with its customer is as a principal provider or an agent of another party. Where Westpac

is acting as an agent for another party, the income earned by Westpac is the net consideration received (i.e. the gross

amount received from the customer less amounts paid to a third-party provider). As an agent, the net consideration

represents fee income for facilitating the transaction between the customer and the third-party provider with primary

responsibility for fulfilling the contract.

Fee income

Fee income is recognised when the performance obligation is satisfied by transferring the promised good or service to

the customer. Fee income includes facility fees, transaction fees and other non-risk fee income.

Facility fees include certain line fees, annual credit card fees and fees for providing customer bank accounts. They are

recognised over the term of the facility/period of service on a straight-line basis.

Transaction fees are earned for facilitating banking transactions such as FX fees, telegraphic transfers and issuing

bank cheques. Fees for these one-off transactions are recognised once the transaction has been completed.

Transaction fees are also recognised for credit card transactions including interchange fees net of scheme charges.

These are recognised once the transaction has been completed; however, a component of interchange fees received

is deferred as unearned income as Westpac has a future service obligation to customers under Westpac’s credit card

reward programs.

Other non-risk fee income includes advisory and underwriting fees which are recognised when the related service

is completed.

Income which forms an integral part of the effective interest rate of a financial instrument is recognised using the

effective interest method and recorded in interest income (for example, loan origination fees).

Fee expenses

Fee expenses include incremental external costs that vary directly with the provision of goods or services to

customers. An incremental cost is one that would not have been incurred if a specific good or service had not been

provided to a specific customer. Fee expenses which form an integral part of the effective interest rate of a financial

instrument are recognised using the effective interest method and recorded in net interest income. Fee expenses

include the costs associated with credit card loyalty programs which are recognised as an expense when the services

are provided on the redemption of points as well as merchant transaction costs.

Net wealth management income

Wealth management fees earned for the ongoing management of customer funds and investments are recognised

when the performance obligation is satisfied which is over the period of management.

Trading income

•Realised and unrealised gains or losses from changes in the fair value of trading assets, liabilities and derivatives

are recognised in the period in which they arise (except day one profits or losses which are deferred, refer to Note

22); and

•Net income related to Treasury’s interest rate and liquidity management activities is included in net

interest income.

Other income - dividend income

•Dividends on quoted shares are recognised on the ex-dividend date; and

•Dividends on unquoted shares are recognised when the Company’s right to receive payment is established.

124WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 4. Non-interest income (Continued)

ConsolidatedParent Entity

$m20252024202320252024

Net fees

Facility fees795763697746709

Transaction fees1,1261,1181,146944935

Other non-risk fee income195135154138125

Fee income2,1162,0161,9971,8281,769

Credit card loyalty programs(130)(134)(153)(103)(106)

Transaction fee related expenses(254)(210)(199)(182)(169)

Fee expenses(384)(344)(352)(285)(275)

Net fees1,7321,6721,6451,5431,494

Net wealth management476441562--

Trading717704717693637

Other

Dividends received from subsidiaries---9861,284

Transactions with subsidiaries---453564

Dividends received from other entities23111

Net gain/(loss) on disposal of assets16-18

Net gain/(loss) on hedging of overseas operations-(1)-42(4)

Net gain/(loss) on derivatives held for risk

management purposes

a

1271127

Net gain/(loss) on financial instruments measured at

fair value38(24)7831(32)

Net gain/(loss) on disposal of controlled entities and

other businesses

b

--268--

Other2627562023

Total other79184041,5461,851

Total non-interest income3,0042,8353,3283,7823,982

a.Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings.

b.2023 included a $243 million gain on sale of Advance Asset Management Limited.

Deferred income in relation to the credit card loyalty programs for Westpac was $329 million as at 30 September 2025

(2024: $338 million, 2023: $324 million) and $37 million for the Parent Entity (2024: $35 million). This will be recognised as

fee income as the credit card reward points are redeemed.

There were no other material contract assets or contract liabilities for Westpac or the Parent Entity.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
125

Note 5. Operating expenses

Note 5. Operating expenses

ConsolidatedParent Entity

$m20252024202320252024

Staff

Employee remuneration, entitlements and on-costs5,6265,1605,2544,9774,540

Superannuation597551521538491

Share-based payments9597909194

Restructuring costs2679123323475

Total staff6,5855,8996,0985,8405,200

Occupancy

Operating lease rentals12711615310999

Depreciation and impairment of property and equipment420455474348387

Other10512915997120

Total occupancy652700786554606

Technology

Amortisation and impairment of software assets1,018908629887802

Depreciation and impairment of IT equipment1211251328599

Technology services1,052871735942770

Software maintenance and licences869770603736653

Telecommunications76901125569

Total technology3,1362,7642,2112,7052,393

Other

Professional and processing services692798905602696

Postage and stationery145130139122109

Advertising220176169194150

Non-lending losses1471116510288

Amortisation and impairment of other intangible assets and

deferred expenditure234212

Impairment of investments in subsidiaries---10117

Other expenses337332317325367

Total other1,5431,5811,5971,3561,529

Total operating expenses11,91610,94410,69210,4559,728

126WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 6. Impairment charges

Note 6. Impairment charges

Accounting policy

Impairment charges are based on an expected loss model which measures the difference between the current

carrying amount and the present value of expected future cash flows taking into account past experience, current

conditions and multiple probability-weighted macroeconomic scenarios for reasonably supportable future economic

conditions. Further details of the calculation of ECL and the critical accounting assumptions and estimates relating to

impairment charges are included in Note 10.

Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows:

•Loans, debt securities at amortised cost and due from subsidiaries balances: as a reduction of the carrying value

of the financial asset through an offsetting provision account (refer to Note 10);

•Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security (refer to

Note 26); and

•Credit commitments: as a provision (refer to Note 25).

Uncollectable loans

A loan may become uncollectable in full or part if, after following Westpac’s loan recovery procedures, Westpac

remains unable to collect that loan’s contractual repayments. Uncollectable amounts are written off against their

related provision for ECL, after all possible repayments have been received.

Where loans are secured, amounts are generally written off after receiving the proceeds from the security, or in

certain circumstances, where the net realisable value of the security has been determined and this indicates that

there is no reasonable expectation of full recovery, write-off may be earlier. Unsecured consumer loans are generally

written off after 180 days past due.

Westpac may subsequently be able to recover cash flows from loans written off. In the period which these recoveries

are made, they are recognised in the income statement.

The following table details impairment charges.

ConsolidatedParent Entity

$m20252024202320252024

Provisions raised/(released)

Performing(36)(150)27414(142)

Non-performing707877565666801

Recoveries(247)(190)(191)(240)(184)

Impairment charges/(benefits)424537648440475

of which relates to:

Loans and credit commitments427536647466469

Debt securities at amortised cost(3)--(2)1

Debt securities at FVOCI-11(1)1

Due from subsidiaries---(23)4

Impairment charges/(benefits)424537648440475

Further details are included in Note 10.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
127

Note 7. Income tax

Note 7. Income tax

Accounting policy

The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, except

to the extent that it relates to items recognised directly in OCI, in which case it is recognised in the statement of

comprehensive income. As the Bank levy is not a levy on income, it is not included in income tax. It is included in

interest expense in Note 3.

Current tax is the tax payable for the year using enacted or substantively enacted tax rates and laws for each

jurisdiction. Current tax also includes adjustments to tax payable for previous years.

Deferred tax accounts for temporary differences between the carrying amounts of assets and liabilities in the

financial statements and their values for taxation purposes.

Deferred tax is determined using the enacted or substantively enacted tax rates and laws for each jurisdiction which

are expected to apply when the assets will be realised or the liabilities settled.

Deferred tax assets and liabilities have been offset where they relate to the same taxation authority, the same

taxable entity or group, and where there is a legal right and intention to settle on a net basis.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to

utilise the assets.

Deferred tax is not recognised for the following temporary differences:

•The initial recognition of assets or liabilities in a transaction that is not a business combination and that affects

neither the accounting nor taxable profit or loss;

•The initial recognition of goodwill in a business combination; and

•Retained earnings in subsidiaries which the Parent Entity does not intend to distribute for the foreseeable future.

The Parent Entity is the head entity of a tax consolidated group with its wholly owned Australian subsidiaries.

All entities in the tax consolidated group have entered into a tax sharing agreement which, in the opinion of the

Directors, limits the joint and several liabilities in the case of a default by the Parent Entity.

Current and deferred tax are recognised using a ‘group allocation basis’. As head entity, the Parent Entity recognises

all current tax balances and deferred tax assets arising from unused tax losses and relevant tax credits for the tax-

consolidated group. The Parent Entity fully compensates/is compensated by the other members for these balances.

128WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 7. Income tax (Continued)

Income tax expense

The following table reconciles income tax expense to the profit before income tax expense.

ConsolidatedParent Entity

$m20252024202320252024

Profit before income tax10,04410,10710,3058,9859,216

Tax at the Australian company tax rate of 30%3,0133,0323,0922,6962,765

The effect of amounts which are not deductible/(assessable)

in calculating taxable income:

Hybrid capital distributions129139117129139

Dividend adjustments1-3(295)(379)

Other non-assessable items(1)(4)(9)(1)(3)

Other non-deductible items2425491623

Adjustment for overseas tax rates(15)(27)(25)6(4)

Income tax (over)/under provided in prior years-(20)7-(13)

Other items

a

(40)(28)(130)(62)(3)

Total income tax expense3,1113,1173,1042,4892,525

Income tax expense comprises:

Current income tax3,1283,1253,0092,5592,520

Movement in deferred tax(17)1288(70)18

Income tax (over)/under provision in prior years-(20)7-(13)

Total income tax expense3,1113,1173,1042,4892,525

Total Australia2,6142,6322,6372,4492,480

Total Overseas4974854674045

Total income tax expense3,1113,1173,1042,4892,525

a.2023 included $86 million (Parent Entity: nil) related to the sale of Advance Asset Management Limited.

The effective tax rate was 30.97% in 2025 (2024: 30.84%, 2023: 30.12%).

International Tax Reform – Pillar Two Model Rules

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.

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which Westpac operates and

became effective for the Group for the financial year beginning 1 October 2024.

The Group has recognised a current tax expense for Pillar Two top-up tax obligations of $7 million for the year ended

30 September 2025 which is included in the above total income tax expense. The Group has applied the mandatory

temporary exception from recognising and disclosing Pillar Two deferred taxes under AASB 112.

Tax assets

ConsolidatedParent Entity

$m2025202420252024

Current tax assets20131713

Deferred tax assets2,0582,1471,8261,883

Total tax assets2,0782,1601,8431,896

Tax liabilities

ConsolidatedParent Entity

$m2025202420252024

Current tax liabilities13756961408

Total tax liabilities13756961408

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
129

Note 7. Income tax (Continued)

Deferred tax assets

The balance comprises temporary differences attributable to:

ConsolidatedParent Entity

$m2025202420252024

Amounts recognised in the income statements and opening retained profits

Provision for ECL on loans and credit commitments1,4811,5191,3121,314

Provision for long service leave, annual leave and other employee benefits422407405388

Property and equipment190203192192

Other provisions195167172141

Lease liabilities518576456508

All other liabilities188222173205

Total amounts recognised in the income statements and opening

retained profits2,9943,0942,7102,748

Amounts recognised directly in OCI

Investment securities8320683206

Total amounts recognised directly in OCI8320683206

Gross deferred tax assets3,0773,3002,7932,954

Set-off of deferred tax assets and deferred tax liabilities(1,019)(1,153)(967)(1,071)

Net deferred tax assets2,0582,1471,8261,883

Movements

Balance as at beginning of year2,1472,0951,8831,957

Recognised in the income statements(100)(68)(38)(74)

Recognised in OCI(123)119(123)119

Set-off of deferred tax assets and deferred tax liabilities1341104(119)

Balance as at end of year2,0582,1471,8261,883

Deferred tax liabilities

The balance comprises temporary differences attributable to:

ConsolidatedParent Entity

$m2025202420252024

Amounts recognised in the income statements and opening retained profits

Finance lease transactions1811212106

Property and equipment514538464482

All other assets233232236232

Total amounts recognised in the income statements and opening

retained profits765882712820

Amounts recognised directly in OCI

Cash flow hedges211233214214

Defined benefit43384137

Total amounts recognised directly in OCI254271255251

Gross deferred tax liabilities1,0191,1539671,071

Set-off of deferred tax assets and deferred tax liabilities(1,019)(1,153)(967)(1,071)

Net deferred tax liabilities----

Movements

Balance as at beginning of year----

Recognised in the income statements(117)(56)(108)(56)

Recognised in OCI(17)554175

Set-off of deferred tax assets and deferred tax liabilities1341104(119)

Balance as at end of year----

130WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 7. Income tax (Continued)

Unrecognised deferred tax balances

The following potential deferred tax balances have not been recognised. The tax effect of the gross balances disclosed

below would be based on the corporate tax rates applicable in the relevant jurisdictions, which range between 15%

and 40%.

ConsolidatedParent Entity

$m2025202420252024

Deductible temporary differences

Tax losses on revenue account414422414422

Tax losses on capital account424265380150

Taxable temporary differences

Retained earnings of subsidiaries that would be subject to withholding tax

if distributed401402--

Note 8. Earnings per share

Note 8. Earnings per share

Accounting policy

Basic earnings per share (EPS) is calculated by dividing the net profit attributable to owners of WBC by the weighted

average number of ordinary shares on issue during the period. These numbers are adjusted for treasury shares

and the dividends related to treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all

dilutive potential ordinary shares are converted. Refer to Note 14 and Note 31 for further information on the potential

dilutive instruments.

202520242023

BasicDilutedBasicDilutedBasicDiluted

Net profit attributable to owners of WBC ($m)6,9166,9166,9906,9907,1957,195

Adjustment for restricted share dividends

a

(6)-(7)-(5)-

Adjustment for potential dilution:

Distributions to convertible loan

capital holders

b

-442-476-400

Adjusted net profit attributable to owners

of WBC6,9107,3586,9837,4667,1907,595

Weighted average number of ordinary shares

(# m)

Weighted average number of ordinary shares

on issue3,4273,4273,4813,4813,5073,507

Treasury shares (including RSP and EIP

restricted shares)

a

(5)(5)(5)(5)(5)(5)

Adjustment for potential dilution:

Share-based payments-7-6-4

Convertible loan capital

b

-261-413-385

Adjusted weighted average number of

ordinary shares3,4223,6903,4763,8953,5023,891

Earnings per ordinary share (cents)201.9199.4200.9191.7205.3195.2

a.Restricted shares are explained in Note 31. Some shares under the RSP and EIP restricted shares have not vested and are not outstanding

ordinary shares but do receive dividends. These RSP and EIP dividends are deducted to show the profit attributable to ordinary shareholders.

b.The Group has issued convertible loan capital which may convert into ordinary shares in the future (refer to Note 14 for further details). These

convertible loan capital instruments are potentially dilutive instruments, and diluted EPS is therefore calculated as if the instruments had

been converted at the beginning of the year, or at the instruments’ issue date, where issuance occurred partway through the year.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
131

FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial Assets and Financial Liabilities

Accounting policy

Recognition

Financial assets and financial liabilities, other than regular way transactions, are recognised when Westpac becomes

a party to the terms of the contract, which is generally on settlement date (the date payment is made or cash

advanced). Purchases and sales of financial assets in regular way transactions are recognised on trade date (the date

on which Westpac commits to purchase or sell an asset).

Derecognition

Financial assets are de-recognised when the rights to receive cash flows from the asset have expired, or when

Westpac has either transferred its rights to receive cash flows from the asset or has assumed an obligation to pay

the received cash flows in full under a ‘pass through’ arrangement and transferred substantially all the risks and

rewards of ownership.

There may be situations where Westpac has partially transferred the risks and rewards of ownership but has neither

transferred nor retained substantially all the risks and rewards of ownership. In such situations, where Westpac

retains control of the transferred asset, it will continue to be recognised in the balance sheet to the extent of

Westpac’s continuing involvement in the asset.

Financial liabilities are de-recognised when the obligation is discharged, cancelled or expires. Where an existing

financial liability is replaced by another from the same lender on substantially different terms, or the terms of an

existing liability are substantially modified, the exchange or modification is treated as a derecognition of the original

liability and the recognition of a new liability, with the difference in the respective carrying amounts recognised in the

income statement.

The terms are deemed to be substantially different if the discounted present value of the cash flows under the new

terms (discounted using the original effective interest rate) is at least 10% different from the discounted present

value of the remaining cash flows of the original financial liability. Qualitative factors such as a change in the currency

the instrument is denominated in, a change in the interest rate from fixed to floating and conversion features are

also considered.

Classification and measurement basis

Financial assets

Financial assets are grouped into the following classes: cash and balances with central banks, collateral paid, trading

securities and financial assets measured at FVIS, derivative financial instruments, investment securities, loans and

other financial assets.

Financial assets are classified based on a) the business model within which the assets are managed, and b) whether

the contractual cash flows of the instrument represent solely payment of principal and interest (SPPI).

Westpac determines the business model at the level that reflects how groups of financial assets are managed.

When assessing the business model Westpac considers factors including how performance and risks are managed,

evaluated and reported and the frequency and volume of, and reason for, sales in previous periods and expectations

of sales in future periods.

When assessing whether contractual cash flows are SPPI, interest is defined as consideration primarily for the time

value of money and the credit risk of the principal outstanding. The time value of money is defined as the element

of interest that provides consideration only for the passage of time and not consideration for other risks or costs

associated with holding the financial asset. Terms that could change the contractual cash flows so that they may not

meet the SPPI criteria include contingent and leverage features, non-recourse arrangements, and features that could

modify the time value of money.

Debt instruments

If the debt instruments have contractual cash flows which represent SPPI on the principal balance outstanding they

are classified at:

•Amortised cost if they are held within a business model whose objective is achieved through holding the financial

asset to collect these cash flows; or

•FVOCI if they are held within a business model whose objective is achieved both through collecting these cash

flows or selling the financial asset; or

•FVIS if they are held within a business model whose objective is achieved through selling the financial asset.

132WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Debt instruments are classified and measured at FVIS where the contractual cash flows do not represent SPPI on the

principal balance outstanding or where it is designated at FVIS to eliminate or reduce an accounting mismatch.

Equity securities

Equity securities are classified and measured at FVOCI where they:

•Are not held for trading; and

•An irrevocable election is made by Westpac.

Otherwise, they are measured at FVIS.

Financial liabilities

Financial liabilities are grouped into the following classes: collateral received, deposits and other borrowings, other

financial liabilities, derivative financial instruments, debt issues and loan capital.

Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVIS, otherwise

they are measured at FVIS.

Financial assets and financial liabilities measured at FVIS are recognised initially at fair value. All other financial

assets and financial liabilities are recognised initially at fair value plus or minus directly attributable transaction

costs, respectively.

Further details of the accounting policy for each category of financial asset or financial liability mentioned above are

set out in the note for the relevant item.

Westpac’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 22.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
133

Lending and credit risk

Note 9. Loans

Note 9. Loans

Accounting policy

Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees.

Loans are subsequently measured at amortised cost using the effective interest method where they have contractual

cash flows which represent SPPI on the principal balance outstanding and they are held within a business model

whose objective is achieved through holding the loans to collect these cash flows. They are presented net of any

provision for ECL.

Loans are subsequently measured at FVIS where they do not have cash flows which represent SPPI, are held within

a business model whose objective is achieved by selling the financial asset, or are designated at FVIS to eliminate or

reduce an accounting mismatch.

Refer to Note 22 for balances which are measured at fair value and amortised cost.

Loan products that have both mortgage and deposit facilities are presented gross in the balance sheet, segregating

the asset and liability component, because they do not meet the criteria to be offset. Interest earned on these

products is presented on a net basis in the income statement as this reflects how the customer is charged.

The loan portfolio is dis-aggregated by location of booking office and product type, as follows.

ConsolidatedParent Entity

$m2025202420252024

Australia

Housing518,654503,271518,654503,270

Personal9,04310,1749,04310,174

Business221,840195,483219,187193,042

Total Australia749,537708,928746,884706,486

New Zealand

Housing62,67262,484--

Personal1,0431,058--

Business30,55431,055436306

Total New Zealand94,26994,597436306

Total other overseas12,5567,81011,7607,189

Gross loans856,362811,335759,080713,981

Provision for ECL on loans (refer to Note 10)(4,509)(4,568)(3,968)(3,938)

Total loans

a,b

851,853806,767755,112710,043

a.Total loans included Australian securitised residential loans of $5,195 million (2024: $5,185 million) for the Group and $5,988 million (2024:

$6,054 million) for the Parent Entity. The level of securitised loans excludes loans where Westpac is the holder of related debt securities.

b.Total loans included assets pledged for the covered bond programs of $35,106 million (2024: $42,228 million) for the Group and $29,762 million

(2024: $36,825 million) for the Parent Entity.

134WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 9. Loans (Continued)

The following table shows Westpac’s contractual maturity distribution of all loans as at 30 September 2025.

Consolidated

$mUp to 1 year

Over 1 year to

5 years

Over 5 years to

15 yearsOver 15 yearsTotal

Australia

Housing4,66995221,853491,180518,654

Personal6,1452,254644-9,043

Business65,300136,86310,8338,844221,840

Total Australia76,114140,06933,330500,024749,537

New Zealand

Housing1525604,24457,71662,672

Personal8302112-1,043

Business20,05910,275218230,554

Total New Zealand21,04111,0464,46457,71894,269

Total other overseas4,4326,9121,212-12,556

Total loans101,587158,02739,006557,742856,362

The following table shows Westpac’s interest rate segmentation of loans maturing after one year as at

30 September 2025.

Consolidated

$m

Loans at

variable

interest rates

Loans at

fixed

interest ratesTotal

Interest rate segmentation of loans maturing after one year

Australia

Housing499,98114,004513,985

Personal1,6441,2542,898

Business152,9543,586156,540

Total Australia654,57918,844673,423

New Zealand

Housing7,68654,83462,520

Personal213-213

Business8829,61310,495

Total New Zealand8,78164,44773,228

Total other overseas7,7513738,124

Total loans maturing after one year671,11183,664754,775

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
135

Note 10. Provision for expected credit losses

Note 10. Provision for expected credit losses

Accounting policy

Note 6 provides details of impairment charges.

Impairment applies to all financial assets at amortised cost, lease receivables, debt securities measured at FVOCI,

due from subsidiaries and credit commitments.

The ECL is recognised as follows:

•Loans (including lease receivables), debt securities at amortised cost and due from subsidiaries: as a reduction of

the carrying value of the financial asset through an offsetting provision account (refer to

Note 9 and Note 17);

•Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security itself (refer

to Note 17 and Note 26); and

•Credit commitments: as a provision (refer to Note 25).

Measurement

Westpac calculates the provision for ECL based on a three-stage approach. The provision for ECL is a probability-

weighted estimate of the cash shortfalls expected to result from defaults over the relevant time frame. They are

determined by evaluating a range of possible outcomes and taking into account the time value of money, past events,

current conditions and forecasts of future economic conditions.

The models use three main components to determine the ECL (as well as the time value of money) including:

•Probability of default (PD): the probability that a counterparty will default;

•Loss given default (LGD): the loss that is expected to arise in the event of a default; and

•Exposure at default (EAD): the estimated outstanding amount of credit exposure at the time of the default.

Model stages

The three stages are as follows:

Stage 1: 12 months ECL - performing

For financial assets where there has been no significant increase in credit risk since origination, a provision for 12

months ECL is recognised.

Stage 2: Lifetime ECL – performing

For financial assets where there has been a significant increase in credit risk since origination but where the asset

is still performing, a provision for lifetime ECL is recognised. The indicators of a significant increase in credit risk are

described on the following page.

Stage 3: Lifetime ECL – non-performing

Financial assets in Stage 3 are those that are in default. This is aligned to the regulatory definition of default applied

in the calculation of credit risk weighted assets. A default occurs when:

•Westpac considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by

Westpac to actions such as realising security. Indicators include a breach of contract with Westpac such as a

default on interest or principal payments, a borrower experiencing significant financial difficulties or observable

economic conditions that correlate to defaults on an individual basis; or

•The customer is more than 90 days past due on any material credit obligation.

A provision for lifetime ECL is recognised on these financial assets.

Collective and individual assessment

Financial assets that are in Stages 1 and 2 are assessed on a collective basis. This means that they are grouped

in pools of similar assets with similar credit risk characteristics including the type of product and the customer risk

grade. Financial assets in Stage 3 are assessed on an individual basis or calculated collectively for those below a

specified threshold.

Expected life

In considering the lifetime time frame for ECL in Stages 2 and 3, the standard generally requires use of the remaining

contractual life adjusted, where appropriate, for prepayments, extension and other options. For certain revolving

credit facilities which include both a drawn and undrawn component (e.g. credit cards and revolving lines of credit),

136WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 10. Provision for expected credit losses (Continued)

Westpac’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the exposure

to credit losses to the contractual notice period. For these facilities, lifetime is based on historical behaviour.

Movement between stages

Financial assets may move in both directions through the stages of the impairment model. Financial assets previously

in Stage 2 may move back to Stage 1 if it is no longer considered that there has been a significant increase in credit

risk. Similarly, financial assets in Stage 3 may move back to Stage 1 or Stage 2 if they are no longer assessed to

be non-performing.

Critical accounting assumptions and estimates

Key judgements include when a significant increase in credit risk has occurred, the estimation of forward-looking

macroeconomic information and overlays. Other factors which can impact the provision include the borrower’s

financial situation, the realisable value of collateral, Westpac’s position relative to other claimants, the reliability

of customer information and the likely cost and duration of recovering the loan.

Significant increase in credit risk (SICR)

Determining when a financial asset has experienced a SICR since origination is a critical accounting judgement which

is based on the change in the probability of default (PD) since origination. In determining whether a change in PD

represents a significant increase in risk, relative changes in PD and absolute PD thresholds are both considered based

on the portfolio of the exposure.

Westpac does not rebut the presumption that instruments that are 30 days past due have experienced a SICR but

this is used as a backstop rather than the primary indicator. In addition, providing a program-managed customer with

a hardship arrangement or downgrading a transaction-managed exposure to a performing but weak credit risk grade

of E (watchlist) or worse is generally treated as an indication of a SICR. Note 11.2 provides further details on the

Group's credit risk rating system.

Forward-looking macroeconomic information

The measurement of ECL for each stage and the assessment of significant increase in credit risk considers

information about past events and current conditions as well as reasonable and supportable projections of future

events and economic conditions. The estimation of forward-looking information is a critical accounting judgement.

Westpac considers three future macroeconomic scenarios including a base case scenario along with upside and

downside scenarios.

The macroeconomic variables used in these scenarios, based on current economic forecasts, include (but are not

limited to) employment to population rates, real gross domestic product growth rates and residential and commercial

property price indices.

•Base case scenario

This scenario utilises the internal Westpac economics forecast used for strategic decision making and forecasting.

•Upside scenario

This scenario represents a modest improvement on the base case scenario.

•Downside scenario

The downside scenario is a more severe scenario with ECL higher than those under the base case scenario. This

scenario assumes a recession with a combination of negative GDP growth, declines in commercial and residential

property prices and an increase in the unemployment rate, which simultaneously impact ECL across all portfolios

from the reporting date.

The three macroeconomic scenarios are probability weighted and together represent Westpac’s view of the forward

looking distribution of potential loss outcomes. The weighting applied to each of the three macroeconomic scenarios

takes into account historical frequency, current trends, and forward-looking conditions.

The macroeconomic variables and probability weightings of the three macroeconomic scenarios are subject to the

approval of the Group Chief Financial Officer and Group Chief Risk Officer with oversight from the Board of Directors

(and its Committees).

Overlays

Where appropriate, adjustments will be made to modelled outcomes to reflect reasonable and supportable

information not already incorporated in the models.

Judgements can change with time as new information becomes available which could result in changes to the

provision for ECL.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
137

Note 10. Provision for expected credit losses (Continued)

Loans and credit commitments

The following tables disclose the provision for ECL on loans and credit commitments by stage for Westpac and the

Parent Entity.

20252024

Performing

Non-

PerformingPerforming

Non-

Performing

$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total

Consolidated

Provision for ECL on loans

Housing1868046151,6051628796391,680

Personal59179843226120799367

Business5381,0679772,5824051,1639532,521

Total loans ECL provision

(Note 9)

7832,0501,6764,5096282,2491,6914,568

Provision for ECL on

credit commitments

Housing1121-32718-25

Personal1420-341627-43

Business1322413040311030038448

Total credit commitments

ECL provision (Note 25)1572823046913334538516

Total provision for

ECL on loans and

credit commitments9402,3321,7064,9787612,5941,7295,084

Presented as provision for

ECL on:

Individually

assessed provisions--539539--536536

Collectively

assessed provisions9402,3321,1674,4397612,5941,1934,548

Total provision for

ECL on loans and

credit commitments9402,3321,7064,9787612,5941,7295,084

Gross loans711,230135,4759,657856,362639,900161,12110,314811,335

Credit commitments200,39320,306470221,169181,27530,395441212,111

Gross loans and

credit commitments911,623155,78110,1271,077,531821,175191,51610,7551,023,446

Coverage ratio on loans (%)0.111.5117.360.530.101.4016.400.56

Coverage ratio on

loans and credit

commitments (%)0.101.5016.850.460.091.3516.080.50

138WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 10. Provision for expected credit losses (Continued)

20252024

Performing

Non-

PerformingPerforming

Non-

Performing

$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total

Parent Entity

Provision for ECL on loans

Housing1557125401,4071367435751,454

Personal52159772885418492330

Business4729228792,2733489688382,154

Total loans ECL provision

(Note 9)

6791,7931,4963,9685381,8951,5053,938

Provision for ECL on

credit commitments

Housing716-23614-20

Personal1216-281217-29

Business1282232837910528327415

Total credit commitments

ECL provision (Note 25)

1472552843012331427464

Total provision for

ECL on loans and

credit commitments8262,0481,5244,3986612,2091,5324,402

Presented as provision for

ECL on:

Of which:

Individually

assessed provisions--459459--437437

Collectively

assessed provisions8262,0481,0653,9396612,2091,0953,965

Total provision for

ECL on loans and

credit commitments8262,0481,5244,3986612,2091,5324,402

Gross loans628,492121,9478,641759,080564,844139,8289,309713,981

Credit commitments177,41417,852438195,704160,41827,033411187,862

Gross loans and

credit commitments805,906139,7999,079954,784725,262166,8619,720901,843

Coverage ratio on loans (%)0.111.4717.310.520.101.3616.170.55

Coverage ratio on

loans and credit

commitments (%)0.101.4616.790.460.091.3215.760.49

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
139

Note 10. Provision for expected credit losses (Continued)

Movement in provision for ECL on loans and credit commitments

The reconciliation of the provision for ECL tables for loans and credit commitments has been determined by an

aggregation of monthly movements over the year. The key line items in the reconciliation represent the following:

•"Transfers between stages” represents transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of

the provision for ECL;

•“Business activity during the year” represents new accounts originated during the year net of those that were

de-recognised due to final repayments during the year;

•“Net remeasurement of provision for ECL” represents the impact on the provision for ECL due to changes in

credit quality during the year (including transfers between stages), changes in portfolio overlays, changes due to

forward-looking economic scenarios and partial repayments and additional draw-downs on existing facilities over the

year; and

•“Write-offs” represents a reduction in the provision for ECL as a result of derecognition of exposures where there is

no reasonable expectation of full recovery.

ConsolidatedParent Entity

Performing

Non-

PerformingPerforming

Non-

Performing

$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total

Balance as at 30 September 20237062,8081,4164,9306002,4191,2484,267

Transfers to Stage 11,222(1,165)(57)-1,088(1,036)(52)-

Transfers to Stage 2(315)822(507)-(274)724(450)-

Transfers to Stage 3(3)(608)611-(3)(527)530-

Business activity during the year303(328)(293)(318)267(308)(243)(284)

Net remeasurement of provision

for ECL(1,149)1,0701,1231,044(1,016)9371,016937

Write-offs--(620)(620)--(573)(573)

Exchange rate and

other adjustments(3)(5)5648(1)-5655

Balance as at 30 September 20247612,5941,7295,0846612,2091,5324,402

Transfers to Stage 11,386(1,299)(87)-1,214(1,132)(82)-

Transfers to Stage 2(201)807(606)-(174)720(546)-

Transfers to Stage 3(4)(596)600-(4)(530)534-

Business activity during the year306(409)(277)(380)266(385)(229)(348)

Net remeasurement of provision

for ECL(1,304)1,2811,0771,054(1,137)1,2029891,054

Write-offs--(763)(763)--(705)(705)

Exchange rate and

other adjustments(4)(46)33(17)-(36)31(5)

Balance as at 30 September 20259402,3321,7064,9788262,0481,5244,398

140WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 10. Provision for expected credit losses (Continued)

ConsolidatedParent Entity

Performing

Non-

PerformingPerforming

Non-

Performing

$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total

Housing

Balance as at 30 September 20231581,0525131,7231219204461,487

Transfers to Stage 1351(345)(6)-311(307)(4)-

Transfers to Stage 2(41)310(269)-(36)276(240)-

Transfers to Stage 3-(196)196--(183)183-

Business activity during the year59(131)(158)(230)55(123)(143)(211)

Net remeasurement of provision

for ECL(357)209396248(309)174357222

Write-offs--(57)(57)--(46)(46)

Exchange rate and

other adjustments(1)(2)2421--2222

Balance as at 30 September 20241698976391,7051427575751,474

Transfers to Stage 1377(367)(10)-305(295)(10)-

Transfers to Stage 2(46)445(399)-(42)398(356)-

Transfers to Stage 3-(173)173--(152)152-

Business activity during the year81(177)(170)(266)71(160)(141)(230)

Net remeasurement of provision

for ECL(385)197409221(314)180342208

Write-offs--(52)(52)--(44)(44)

Exchange rate and

other adjustments132529--2222

Balance as at 30 September 20251978256151,6371627285401,430

Personal

Balance as at 30 September 202382225984056819190349

Transfers to Stage 1358(356)(2)-325(324)(1)-

Transfers to Stage 2(59)106(47)-(56)98(42)-

Transfers to Stage 3-(136)136--(128)128-

Business activity during the year36(9)-2734(8)-26

Net remeasurement of provision

for ECL(340)405295360(305)372283350

Write-offs--(394)(394)--(378)(378)

Exchange rate and

other adjustments-(1)1312--1212

Balance as at 30 September 202477234994106620192359

Transfers to Stage 1342(340)(2)-310(309)(1)-

Transfers to Stage 2(53)92(39)-(51)85(34)-

Transfers to Stage 3-(127)127-(1)(119)120-

Business activity during the year31(15)-1629(15)-14

Net remeasurement of provision

for ECL(319)368360409(288)337347396

Write-offs--(461)(461)--(447)(447)

Exchange rate and

other adjustments(5)(13)-(18)(1)(5)-(6)

Balance as at 30 September 202573199843566417577316

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
141

Note 10. Provision for expected credit losses (Continued)

ConsolidatedParent Entity

Performing

Non-

PerformingPerforming

Non-

Performing

$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total

Business

Balance as at 30 September 20234661,5318052,8024111,3087122,431

Transfers to Stage 1513(464)(49)-452(405)(47)-

Transfers to Stage 2(215)406(191)-(182)350(168)-

Transfers to Stage 3(3)(276)279-(3)(216)219-

Business activity during the year208(188)(135)(115)178(177)(100)(99)

Net remeasurement of provision

for ECL(452)456432436(402)391376365

Write-offs--(169)(169)--(149)(149)

Exchange rate and

other adjustments(2)(2)1915(1)-2221

Balance as at 30 September 20245151,4639912,9694531,2518652,569

Transfers to Stage 1667(592)(75)-599(528)(71)-

Transfers to Stage 2(102)270(168)-(81)237(156)-

Transfers to Stage 3(4)(296)300-(3)(259)262-

Business activity during the year194(217)(107)(130)166(210)(88)(132)

Net remeasurement of provision

for ECL(600)716308424(535)685300450

Write-offs--(250)(250)--(214)(214)

Exchange rate and

other adjustments-(36)8(28)1(31)9(21)

Balance as at 30 September 20256701,3081,0072,9856001,1459072,652

Total provision for ECL

ConsolidatedParent Entity

$m2025202420252024

Provision for ECL on loans and credit commitments4,9785,0844,3984,402

Provision for ECL on debt securities at amortised cost

a

36-2

Provision for ECL on debt securities at FVOCI

b

6656

Total provision for ECL4,9875,0964,4034,410

a.Provision for ECL on debt securities at amortised cost is presented as part of investments securities.

b.Provision for ECL on debt securities at FVOCI forms part of equity reserves.

Reconciliation of impairment charges

ConsolidatedParent Entity

$m2025202420252024

Loans and credit commitments:

Business activity during the year(380)(318)(348)(284)

Net remeasurement of the provision for ECL1,0541,0441,054937

Impairment charges for debt securities at amortised cost(3)-(2)1

Impairment charges for debt securities at FVOCI-1(1)1

Impairment on due from subsidiaries--(23)4

Recoveries(247)(190)(240)(184)

Impairment charges/(benefits) (Note 6)424537440475

142WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 10. Provision for expected credit losses (Continued)

Total write-offs net of recoveries to average loans

Consolidated

%20252024

Housing0.010.01

Personal2.662.21

Business0.080.05

Total write-offs net of recoveries to average loans0.060.05

Write-offs still under enforcement activity

Of the amount of current year write-offs, $664 million for the Group (2024: $596 million) and $609 million (2024:

$549 million) for the Parent Entity represent balances that the Group was still entitled to recover.

Impact of overlays on the provision for ECL on loans and credit commitments

The following table attributes the provision for ECL on loans and credit commitments between individually assessed and

collectively assessed provisions. Collectively assessed provisions are disaggregated into the modelled ECL provision and

portfolio overlays.

Portfolio overlays are used to capture areas of potential risk and uncertainty in the portfolio, that are not captured in the

underlying modelled ECL.

ConsolidatedParent Entity

$m2025202420252024

Individually assessed provisions539536459437

Modelled provision for ECL on loans and credit commitments4,2014,3693,6913,768

Overlays238179248197

Total provision for ECL on loans and credit commitments4,9785,0844,3984,402

Details of changes related to forward-looking economic inputs and portfolio overlays, based on reasonable and

supportable information up to the date of this report, are provided below.

Modelled provision for ECL on loans and credit commitments

The modelled provision for ECL on loans and credit commitments is a probability weighted estimate based on three

scenarios which together represent the Group’s view of the forward-looking distribution of potential loss outcomes.

Overlays are used to capture potential risk and uncertainty in the portfolio that are not captured in the underlying

modelled ECL. Changes in the modelled provision for ECL and overlays are reflected through the “net remeasurement of

provision for ECL” line item.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
143

Note 10. Provision for expected credit losses (Continued)

The base case scenario uses the following Westpac Economic forecasts:

Key economic assumptions for base

case scenario30 September 202530 September 2024

Annual GDP:

AustraliaForecast growth of 1.9% for

calendar year 2025 and

2.4% for calendar year 2026

Forecast growth of 1.5% for

calendar year 2024 and

2.4% for calendar year 2025

New ZealandForecast growth of 1.7% for

calendar year 2025 and

3.1% for calendar year 2026

Forecast growth of 0.1% for

calendar year 2024 and

2.0% for calendar year 2025

Commercial property index, Australia

Forecast price growth of

0.9% for calendar year 2025 and

3.8% for calendar year 2026

Forecast price contraction of

11.5% for calendar year 2024

and growth of 1.3% for calendar

year 2025

Residential property prices:

AustraliaForecast price growth of

5.6% for calendar year 2025 and

9.0% for calendar year 2026

Forecast price growth of

5.7% for calendar year 2024 and

4.0% for calendar year 2025

New ZealandForecast price growth of

0.6% for calendar year 2025 and

5.4% for calendar year 2026

Forecast price growth of

0.7% for calendar year 2024 and

6.4% for calendar year 2025

Cash rate, Australia

Forecast cash rate of

3.35% at December 2025 and

2.85% at December 2026

Forecast cash rate of

4.35% at December 2024 and

3.35% at December 2025

Unemployment rate:

AustraliaForecast rate of

4.4% at December 2025 and

4.5% at December 2026

Forecast rate of

4.3% at December 2024 and

4.6% at December 2025

New ZealandForecast rate of

5.3% at December 2025 and

4.6% at December 2026

Forecast rate of

5.3% at December 2024 and

5.6% at December 2025

The downside scenario is a more severe scenario with expected credit losses higher than the base case. This scenario

assumes a recession with a combination of negative GDP growth, declines in commercial and residential property prices

and an increase in the unemployment rate, which simultaneously impact expected credit losses across all portfolios

from the reporting date. The assumptions used in this scenario and relativities to the base case will be monitored having

regard to the emerging economic conditions and updated where necessary. The upside scenario represents a modest

improvement to the base case.

144WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 10. Provision for expected credit losses (Continued)

The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the

probability weighted scenarios and what the provision for ECL on loans and credit commitments would be assuming a

100% weighting to the base case scenario and to the downside scenario (with all other assumptions held constant).

ConsolidatedParent Entity

$m2025202420252024

Reported probability-weighted ECL4,9785,0844,3984,402

100% base case ECL3,0313,5592,6733,089

100% downside ECL7,1437,1956,3166,221

If 1% of Stage 1 loans and credit commitments (calculated on a 12 month ECL) were transferred to Stage 2

(calculated on a lifetime ECL), the provision for ECL on loans and credit commitments would increase by $113 million

(2024: $93 million) for Westpac and $97 million (2024: $81 million) for the Parent Entity. If 1% of Stage 2 loans and credit

commitments (calculated on a lifetime ECL) were transferred to Stage 1 (calculated on a 12 month ECL), the provision

for ECL on loans and credit commitments would decrease by $20 million (2024: $21 million) for Westpac and $17 million

(2024: $18 million) for the Parent Entity. These estimates apply the average modelled provision coverage ratio by stage

to the transfer of loans and credit commitments.

The following table discloses the economic weights applied by Westpac and the Parent Entity. In 2025, the following

changes were applied to scenario weights to reflect greater uncertainty from geopolitical developments, including in

relation to international trade and tariff policies, global tensions and continuing global military conflicts:

•5.0% increase to downside; and

•2.5% decrease to both the upside and base scenarios.

Scenario weightings (%)20252024

Upside2.55.0

Base50.052.5

Downside47.542.5

The Group’s definition of default is aligned to the regulatory definition of default applied in the calculation of credit risk

weighted assets.

Portfolio overlays

Portfolio overlays are used to address areas of risk, including significant uncertainties that are not captured in the

underlying modelled ECL. Determination of portfolio overlays requires expert judgement and is thoroughly documented

and subject to comprehensive internal governance and oversight. Overlays are continually reassessed and if the risk is

judged to have changed (increased or decreased), or is subsequently captured in the modelled ECL, the overlay will be

released or remeasured.

Westpac's total portfolio overlays as at 30 September 2025 were $238 million (2024: $179 million) for the Group and

$248 million (2024: $197 million) for the Parent Entity, and comprise:

•Climate-related risk: $71 million (2024: $70 million) for the Group and $71 million (2024: $70 million) for the

Parent Entity for the expected impact of climate-related physical risk and transition risk to both retail and non-

retail portfolios;

•Non-retail portfolios: $159 million (2024: $32 million) for the Group and $146 million (2024: $21 million) for the Parent

Entity. Current period overlays primarily relate to portfolio seasoning in business lending and geographical areas

experiencing higher stress not related to modelled outcomes; and

•Retail portfolios: $8 million (2024: $77 million) for the Group and $31 million (2024: $106 million) for the Parent

Entity. Current period overlays relate to geographical areas experiencing higher stress and other risks not included in

modelled outcomes.

Changes in portfolio overlays are reflected through the “net remeasurement of provision for ECL” line item.

Impact of changes in credit exposures on the provision for ECL on loans and credit commitments

•Stage 1 credit exposures increased by $90.4 billion (2024: net increase of $37.4 billion) for Westpac and $80.6 billion

(2024: net increase of $35.7 billion) for the Parent Entity, driven by new lending across the housing and business loan

portfolios. This volume growth, along with a deterioration in scenario weights and introduction of certain overlays,

drove an increase in stage 1 ECL.

•Stage 2 credit exposures decreased by $35.7 billion (2024: increased by $0.1 billion) for Westpac and $27.1 billion

(2024: increased by $1.6 billion) for the Parent Entity, driven by net runoff across housing and business portfolios

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
145

Note 10. Provision for expected credit losses (Continued)

and net transfers to stage 1 in response to improved model economics, partly offset by a deterioration in scenario

weights and reassessment of overlays. Overall, this drove a net decrease in stage 2 ECL.

•Stage 3 credit exposures decreased by $0.6 billion (2024: increased by $2.0 billion) for Westpac and $0.6 billion (2024:

increased by $1.9 billion) for the Parent Entity. This was driven by a slowdown in new mortgage defaults and an

increase in mortgages returning to performing, offset by certain downgrades in the business portfolio.

Note 11. Credit risk management

Note 11. Credit risk management

IndexNote name

Note

number

Credit risk

The risk of financial loss where a customer

or counterparty fails to meet their financial

obligations to Westpac.

Credit risk management framework11.1

Credit risk ratings system11.2

Credit risk concentrations and maximum exposure to

credit risk

11.3

Credit quality of financial assets11.4

Credit risk mitigation, collateral and other

credit enhancements

11.5

11.1. Credit risk management framework

Please refer to Note 21.1 for details of Westpac’s overall risk management framework.

•Westpac maintains a Credit Risk Management Framework, Credit Risk Management Strategy, Credit Risk Appetite

Statement, and a number of supporting policies that define roles and responsibilities, acceptable practices, limits

and key controls.

•The Credit Risk Management Framework describes Westpac's approach to managing Credit Risk and to deliver fair

customer outcomes. It includes the following components: business strategy, risk identification, risk appetite, stress

testing and scenario analysis, people and infrastructure, controls, monitoring and reporting, and governance.

•The BRiskC, Westpac Group Executive Risk Committee (RISKCO) and Westpac Group Credit Risk Committee

(CREDCO) monitor the risk profile, performance and management of Westpac’s credit portfolio and the development

and review of key credit risk policies.

•The Credit Risk Rating System Policy applies across the full credit risk ratings and risk estimates lifecycle (i.e.

development, implementation, monitoring, validation, use, and independent review), helping us reliably assess the

credit risk to which Westpac may be exposed. A senior management self-assessment is presented for discussion at

BRiskC annually. An independent review is also completed annually.

•Model Risk independently assesses and approves all credit risk models, and periodically reviews these in line with

the Group Model Risk Policy and governance. Models are approved under delegated authority from the Deputy Chief

Risk Officer. Model Risk is overseen by Westpac’s Model Risk Committee.

•In determining the provision for ECL, the forward-looking economic inputs and the probability weightings of the

forward-looking scenarios as well as any adjustments made to the modelled outcomes are subject to the approval of

the Chief Financial Officer and the Chief Risk Officer with oversight from the Board of Directors (and its Committees).

•Policies are in place for the delegation of credit approval authorities and formal limits for the extension of credit.

•Credit policies are established and maintained throughout Westpac covering the end-to-end credit lifecycle including

origination, evaluation, approval, documentation, settlement and ongoing management of credit risks. Specific

policies and limits are in place to manage concentration risks, including to large exposures, industry concentration,

and country risk.

•Climate change-related credit risks are considered in line with our Positions, Action Plans, and Sustainability

Customer Requirements. Climate change risks are managed in accordance with the Sustainability Risk Management

Framework (SRMF); Climate Risk Policy, Environmental, Social and Governance (ESG) Credit Risk Policy; and Board

Risk Appetite Statements (RAS). The Climate Change Credit Risk Committee oversees work to identify and manage

the potential impact on credit exposures from climate change-related transition and physical risks across Westpac

and is a sub-committee of CREDCO.

•Westpac’s ESG Credit Risk Policy details Westpac’s overall approach to managing ESG risks in the credit risk process

for applicable customers and transactions in Business & Wealth and Institutional.

146WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 11. Credit risk management (Continued)

11.2. Credit risk ratings system

The principal objective of the credit risk rating system is to assess the credit risk to which Westpac is exposed. Westpac

has two main approaches to this assessment.

Transaction-managed customers

Transaction managed customers are generally customers with business lending exposures. They are individually

assigned a Customer Risk Grade (CRG), corresponding to their expected PD. Each facility is assigned an LGD. Westpac’s

risk rating system has a tiered scale of risk grades for both non-defaulted customers and defaulted customers. Non-

defaulted CRGs are mapped to Moody’s and S&P Global Ratings (S&P) external senior unsecured ratings.

The table below shows Westpac’s high level CRGs for transaction-managed portfolios mapped to Westpac’s credit

quality disclosure categories and to their corresponding external rating.

Transaction-managed

Financial statement disclosureWestpac CRGMoody’s RatingS&P Rating

StrongAAaa – Aa3AAA – AA–

BA1 – A3A+ – A–

CBaa1 – Baa3BBB+ – BBB–

Good/satisfactoryDBa1 – B1BB+ – B+

Westpac Rating

WeakEWatchlist

FSpecial Mention

GSubstandard/Default

HDoubtful/Default

Program-managed portfolio

The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit

cards) as well as certain small to medium sized enterprise lending. These credit exposures are grouped into pools of

similar risk based on the analysis of characteristics that have historically predicted the likelihood of default, and a PD

is assigned relative to the credit exposure's pool. The exposure is then assigned to strong, satisfactory or weak by

benchmarking that PD against transaction-managed exposures, which are in turn mapped to external ratings per the

above table. In addition, any program-managed exposures that are one or more days past due are classified as weak.

11.3. Credit risk concentrations and maximum exposure to credit risk

Credit risk concentrations

Credit risk is concentrated when a number of counterparties are engaged in similar activities, have similar economic

characteristics and thus may be similarly affected by changes in economic or other conditions.

Westpac monitors its credit portfolio to manage risk concentrations and rebalance the portfolio.

Individual customers or groups of related customers

Westpac has large exposure limits governing the aggregate size of credit exposure normally acceptable to individual

customers and groups of related customers. These limits are tiered by customer risk grade.

Specific industries

Exposures to businesses, governments and other financial institutions are classified into a number of industry clusters

based on related Australian and New Zealand Standard Industrial Classification (ANZSIC) codes and are monitored

against Westpac’s industry risk appetite limits.

Individual countries

Westpac has limits governing risks related to individual countries, such as political situations, government policies

and economic conditions that may adversely affect either a customer’s ability to meet its obligations to Westpac, or

Westpac’s ability to realise its assets in a particular country.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
147

Note 11. Credit risk management (Continued)

Maximum exposure to credit risk

The maximum exposure to credit risk (excluding collateral received) is represented by the carrying amount of on-balance

sheet financial assets (which comprise cash and balances with central banks, collateral paid, trading securities and

financial assets measured at FVIS, derivative financial instruments, investment securities, loans, other financial assets,

and undrawn credit commitments.

The following tables set out the credit risk concentrations to which Westpac and the Parent Entity are exposed for

on-balance sheet financial assets and for undrawn credit commitments.

The balances for trading securities and financial assets measured at FVIS and investment securities exclude equity

securities as the primary financial risk is not credit risk.

The credit concentrations for each significant class of financial asset are:

Trading securities

and financial assets

measured at FVIS

(Note 16)

•58% (2024: 47%) were issued by financial institutions for Westpac;

59% (2024: 48%) for the Parent Entity.

•41% (2024: 50%) were issued by government or semi-government authorities

for Westpac;

40% (2024: 49%) for the Parent Entity.

•87% (2024: 82%) were held in Australia by Westpac;

90% (2024: 86%) by the Parent Entity.

Investment

securities (Note 17)

•14% (2024: 17%) were issued by financial institutions for Westpac;

14% (2024: 17%) for the Parent Entity.

•85% (2024: 82%) were issued by government or semi-government authorities

for Westpac;

86% (2024: 83%) for the Parent Entity.

•85% (2024: 91%) were held in Australia by Westpac;

92% (2024: 99%) by the Parent Entity.

Loans (Note 9)The following tables provides a detailed breakdown of loans by industry and

geographic classification.

Derivative financial

instruments

(Note 20)

•78% (2024: 81%) were issued by financial institutions for Westpac;

77% (2024: 81%) by the Parent Entity.

•73% (2024: 90%) were held in Australia by Westpac;

76% (2024: 91%) by the Parent Entity.

148WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 11. Credit risk management (Continued)

20252024

Consolidated

$m

Loans

Total all

other on

balance

sheet

Undrawn

credit

commit-

mentsTotalLoans

Total all

other on

balance

sheet

Undrawn

credit

commit-

mentsTotal

Australia

Accommodation, cafes

and restaurants11,517291,68113,2279,810261,63711,473

Agriculture, forestry

and fishing16,640473,10219,78913,733402,71316,486

Construction8,642254,90713,5747,900334,62312,556

Finance and insurance31,60899,15017,399148,15729,484112,86013,801156,145

Government,

administration

and defence690108,5161,679110,88581199,8301,558102,199

Manufacturing10,4833318,06518,8799,9974998,36118,857

Mining3,6564303,1577,2432,8654153,0386,318

Property66,63151615,00682,15360,76754613,77175,084

Property services and

business services15,1941368,26923,59914,3211497,92122,391

Services15,2151018,42623,74213,0151088,36921,492

Trade17,3842419,28826,91315,1593669,93325,458

Transport and storage12,8126916,07619,57910,2896816,31317,283

Utilities10,5877548,56119,9028,1759838,37317,531

Retail lending527,18199582,940611,116511,0251,05684,006596,087

Other1,2976141,3563,2671,5775921,7813,950

Total Australia749,537212,576179,9121,142,025708,928218,184176,1981,103,310

New Zealand

Accommodation, cafes

and restaurants305331339313332348

Agriculture, forestry

and fishing7,838475658,4508,352415738,966

Construction50815281,0373851566952

Finance and insurance4,06613,1011,95119,1184,75711,3641,83817,959

Government,

administration

and defence1839,87271210,7672108,8208129,842

Manufacturing1,8461001,4243,3701,785581,4443,287

Mining9111242161512125278

Property7,8354071,3629,6047,6046491,0809,333

Property services and

business services972544971,5239621213571,440

Services1,951429682,9611,961458232,829

Trade2,475301,1553,6602,164321,1543,350

Transport and storage581555211,1576611053621,128

Utilities1,7684162,1774,3611,6215571,3403,518

Retail lending63,73810113,87777,71663,56311714,22177,901

Other1129914635710877123308

Total New Zealand94,26924,32926,038144,63694,59721,99224,850141,439

Other overseas

Accommodation, cafes

and restaurants76-159185-1196

Agriculture, forestry

and fishing2-132-13

Construction35-8211734-73107

Finance and insurance6,0569,0005,66920,7253,6569,4474,96418,067

Government,

administration

and defence5311,034-11,087-4,389-4,389

Manufacturing1,49842,3133,81595831,5002,461

Mining38-96199928-931959

Property6512131784472237511

Property services and

business services962309361,928503357971,335

Services65-55662136-629665

Trade1,32442,5753,90390931,8132,725

Transport and storage741174221,18052715108650

Utilities64421,4952,1412321139372

Retail lending340-22362328-13341

Other7116141273409747184

Total other overseas12,55620,25415,21948,0297,81013,99211,06332,865

Total gross credit risk856,362257,159221,1691,334,690811,335254,168212,1111,277,614

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
149

Note 11. Credit risk management (Continued)

20252024

Parent Entity

$m

Loans

Total all

other on

balance

sheet

Undrawn

credit

commit-

mentsTotalLoans

Total all

other on

balance

sheet

Undrawn

credit

commit-

mentsTotal

Australia

Accommodation, cafes

and restaurants11,482291,68113,1929,777261,63711,440

Agriculture, forestry

and fishing16,551473,10219,70013,659402,71316,412

Construction7,835244,90712,7667,188314,62311,842

Finance and insurance31,561143,63917,399192,59929,430160,94713,801204,178

Government,

administration

and defence689108,5181,679110,88680999,8311,558102,198

Manufacturing10,2893318,06518,6859,8114968,36118,668

Mining3,6094303,1577,1962,8164153,0386,269

Property66,61051815,00682,13460,74354813,77175,062

Property services and

business services14,8791358,26923,28314,0131517,92122,085

Services14,9851018,42623,51212,8021078,36921,278

Trade17,1792419,28826,70814,9623659,93325,260

Transport and storage12,4246916,07619,1919,9786826,31316,973

Utilities10,5567558,56119,8728,1459838,37317,501

Retail lending527,18099582,940611,115511,0231,05684,006596,085

Other1,0555591,3562,9701,3305211,7813,632

Total Australia746,884257,013179,9121,183,809706,486266,199176,1981,148,883

New Zealand

Accommodation, cafes

and restaurants-2-2-2-2

Agriculture, forestry

and fishing-27330-11415

Construction1-38392-7880

Finance and insurance-8,2071098,316-5,9691126,081

Government,

administration

and defence-2,52982,537-2,08722,089

Manufacturing299683208355582172

Mining21-3-16162

Property-82-82-141-141

Property services and

business services25118712211336

Services-37845-39645

Trade3972823766226628223517

Transport and storage156308717632109

Utilities4300141445-32794421

Retail lending--------

Other-516--11

Total New Zealand43611,42167612,5333068,7577089,771

Other overseas

Accommodation, cafes

and restaurants67-148174-1185

Agriculture, forestry

and fishing1-121-12

Construction23-668924-6690

Finance and insurance6,0518,9265,65620,6333,6489,0474,95717,652

Government,

administration

and defence5310,051-10,104-3,288-3,288

Manufacturing1,40942,3093,72289541,4982,397

Mining15-9599742-928930

Property3781117496241116258

Property services and

business services894309321,856480357941,309

Services41-55459517-626643

Trade1,12132,5433,66776831,7872,558

Transport and storage705174191,14149915103617

Utilities63921,4952,1362281139368

Retail lending308-22330282-10292

Other559029174309420144

Total other overseas11,76019,12415,11646,0007,18912,48810,95630,633

Total gross credit risk759,080287,558195,7041,242,342713,981287,444187,8621,189,287

150WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 11. Credit risk management (Continued)

11.4. Credit quality of financial assets

Credit quality disclosures

The following tables show the credit quality of gross credit risk exposures measured at amortised cost or at FVOCI to

which the impairment requirements apply. The credit quality is determined by reference to the credit risk ratings system

(refer to Note 11.2) and expectations of future economic conditions under multiple scenarios.

Consolidated20252024

$mStage 1Stage 2Stage 3Total

a

Stage 1Stage 2Stage 3Total

a

Loans - housing

Strong332,20327,057-359,260311,05424,975-336,029

Good/satisfactory159,99840,537-200,535159,01645,242-204,258

Weak1,93913,9735,95921,8712,51216,3896,89325,794

Total loans - housing494,14081,5675,959581,666472,58286,6066,893566,081

Loans - personal

Strong3,96481-4,0454,104104-4,208

Good/satisfactory4,561744-5,3055,254825-6,079

Weak127465152744191570190951

Total loans - personal8,6521,29015210,0949,5491,49919011,238

Loans - business

Strong108,8439,453-118,29681,69619,387-101,083

Good/satisfactory99,30037,145-136,44575,87347,282-123,155

Weak2956,0203,5469,8612006,3473,2319,778

Total loans - business208,43852,6183,546264,602157,76973,0163,231234,016

Investment securities

Strong116,574--116,574102,721--102,721

Good/satisfactory-----71-71

Weak-494-494-649-649

Total

investment securities

b

116,574494-117,068102,721720-103,441

All other financial assets

Strong64,722--64,72276,264--76,264

Good/satisfactory848--848899--899

Weak216--216229--229

Total all other

financial assets65,786--65,78677,392--77,392

Undrawn

credit commitments

Strong154,4438,981-163,424140,78614,341-155,127

Good/satisfactory45,7789,984-55,76240,27114,186-54,457

Weak1721,3414701,9832181,8684412,527

Total undrawn

credit commitments200,39320,306470221,169181,27530,395441212,111

Total strong780,74945,572-826,321716,62558,807-775,432

Total good/satisfactory310,48588,410-398,895281,313107,606-388,919

Total weak2,74922,29310,12735,1693,35025,82310,75539,928

Total on and off-

balance sheet1,093,983156,27510,1271,260,3851,001,288192,23610,7551,204,279

a.This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at

FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments.

b.Excludes equity instruments. Includes $976 million (2024: $1,172 million) debt securities at amortised cost, of which $482 million (2024:

$452 million) were classified as strong, Nil (2024: $71 million) as good/satisfactory and $494 million (2024: $649 million) as weak.

Details of collateral held in support of these balances are provided in Note 11.5.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
151

Note 11. Credit risk management (Continued)

Parent Entity20252024

$mStage 1Stage 2Stage 3Total

a

Stage 1Stage 2Stage 3Total

a

Loans - housing

Strong325,33326,908-352,241304,16924,829-328,998

Good/satisfactory112,49734,157-146,654117,33933,284-150,623

Weak1,66113,1535,25320,0672,23315,4716,23523,939

Total loans - housing439,49174,2185,253518,962423,74173,5846,235503,560

Loans - personal

Strong3,58870-3,6583,72192-3,813

Good/satisfactory4,135585-4,7204,849647-5,496

Weak114413144671178512180870

Total loans - personal7,8371,0681449,0498,7481,25118010,179

Loans - business

Strong96,8568,462-105,31870,44818,047-88,495

Good/satisfactory84,14033,297-117,43761,78442,132-103,916

Weak1684,9023,2448,3141234,8142,8947,831

Total loans - business181,16446,6613,244231,069132,35564,9932,894200,242

Investment securities

Strong108,880--108,88095,346--95,346

Good/satisfactory-----71-71

Total

investment securities

b

108,880--108,88095,34671-95,417

All other financial assets

Strong105,946--105,946119,265--119,265

Good/satisfactory708--708731--731

Weak58--5871--71

Total all other

financial assets106,712--106,712120,067--120,067

Undrawn

credit commitments

Strong141,5178,385-149,902129,37913,659-143,038

Good/satisfactory35,7318,259-43,99030,82711,667-42,494

Weak1661,2084381,8122121,7074112,330

Total undrawn

credit commitments177,41417,852438195,704160,41827,033411187,862

Total strong782,12043,825-825,945722,32856,627-778,955

Total good/satisfactory237,21176,298-313,509215,53087,801-303,331

Total weak2,16719,6769,07930,9222,81722,5049,72035,041

Total on and off-

balance sheet1,021,498139,7999,0791,170,376940,675166,9329,7201,117,327

a.This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at

FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments.

b.Excludes equity instruments. Includes Nil (2024: $71 million) debt securities at amortised cost which are all classified as good/satisfactory.

Details of collateral held in support of these balances are provided in Note 11.5.

152WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 11. Credit risk management (Continued)

11.5. Credit risk mitigation, collateral and other credit enhancements

Westpac uses a variety of techniques to reduce the credit risk arising from its lending activities. This includes Westpac

establishing that it has direct, irrevocable and unconditional recourse to collateral and other credit enhancements

through obtaining legally enforceable documentation.

Collateral

The table below describes the nature of collateral or security held for each relevant class of financial asset.

Loans – housing

and personal

a

Housing loans are secured by a mortgage over property and additional security may take the form of guarantees and deposits.

Personal lending (including credit cards and overdrafts) is predominantly unsecured. Where security is taken, it is restricted

to eligible motor vehicles, caravans, campers, motor homes and boats. Personal lending also includes margin lending which is

secured primarily by shares or managed funds.

Loans –

business

Business loans may be secured, partially secured or unsecured. Security is typically taken by way of a mortgage over property

and/or a general security agreement over business assets or other assets.

Other security such as guarantees, standby letters of credit or derivative protection may also be taken as collateral,

if appropriate.

Trading

securities,

financial assets

measured at

FVIS and

derivatives

These exposures are carried at fair value which reflects the credit risk.

For trading securities, no collateral is sought directly from the issuer or counterparty; however this may be implicit in the terms

of the instrument (such as an asset-backed security). The terms of debt securities may include collateralisation.

For derivatives, master netting agreements are typically used to enable the effects of derivative assets and liabilities with the

same counterparty to be offset when measuring these exposures. Additionally, collateralisation agreements are also typically

entered into with major institutional counterparties to avoid the potential build-up of excessive mark-to-market positions.

Derivative transactions are increasingly being cleared through central clearers.

a.This includes collateral held in relation to associated credit commitments.

Management or risk mitigation

Westpac mitigates credit risk through controls covering:

Collateral and

valuation

management

The estimated realisable value of collateral held in support of loans is based on a combination of:

•Formal valuations currently held for such collateral; and

•Management’s assessment of the estimated realisable value of all collateral held.

This analysis also takes into consideration any other relevant knowledge available to management at the time. Updated

valuations are obtained when appropriate.

Westpac revalues collateral related to financial markets positions on a daily basis and has formal processes in place

to promptly call for collateral top-ups, if required. These processes include margining for non-centrally cleared customer

derivatives as regulated by Australian Prudential Standard CPS226. The collateralisation arrangements are documented

via the Credit Support Annex of the ISDA dealing agreements and Global Master Repurchase Agreements (GMRA) for

repurchase transactions.

In relation to financial markets positions, Westpac only recognises collateral which is:

•Cash, primarily in Australian dollars (AUD), New Zealand dollars (NZD), US dollars (USD), Canadian dollars (CAD), British

pounds (GBP) or European Union euro (EUR);

•Bonds issued by Australian Commonwealth, State and Territory governments or their Public Sector Enterprises, provided

these attract a zero risk-weighting under Australian Prudential Standard (APS) 112;

•Securities issued by other sovereign governments and supranationals as approved by an authorised credit officer; or

•Protection bought via credit-linked notes (provided the proceeds are invested in cash or other eligible collateral).

Other credit

enhancements

Westpac only recognises guarantees, standby letters of credit, or credit derivative protection from entities meeting minimum

eligibility requirements (provided they are not related to the entity with which Westpac has a credit exposure) including but not

limited to:

•Sovereign;

•Australia and New Zealand public sector;

•ADIs and overseas banks with a minimum risk grade equivalent of A3 / A–; and

•Others with a minimum risk grade equivalent of A3 / A–.

Credit Portfolio Management (CPM) manages Westpac’s corporate, sovereign and bank credit portfolios through monitoring

the exposure and any offsetting hedge positions. CPM purchases credit protection from entities that meet minimum

eligibility requirements.

OffsettingCreditworthy customers domiciled in Australia and New Zealand may enter into formal agreements with Westpac, permitting

Westpac to set-off gross credit and debit balances in their nominated accounts. Cross-border set-offs are not permitted.

Close-out netting is undertaken with counterparties with whom the Group has entered into a legally enforceable master

netting agreement for their off-balance sheet financial market transactions in the event of default.

Further details of offsetting are provided in Note 23.

Central

clearing

Westpac executes derivative transactions through central clearing counterparties. Central clearing counterparties mitigate

risk through stringent membership requirements, the collection of margin against all trades placed, the default fund, and an

explicitly defined order of priority of payments in the event of default.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
153

Note 11. Credit risk management (Continued)

Collateral held against loans

Westpac analyses the coverage of the loan portfolio which is secured by the collateral that it holds. Coverage is

measured as follows:

CoverageSecured loan to collateral value ratio

Fully securedLess than or equal to 100%

Partially securedGreater than 100% but not more than 150%

UnsecuredGreater than 150%, or no security held (e.g. can include credit cards, personal loans, and exposure to highly rated

corporate entities)

Westpac and the Parent Entity's loan portfolio have the following coverage from collateral held:

20252024

%Housing loans

a

Personal

loans

Business

loansTotalHousing loans

a

Personal

loans

Business

loansTotal

Performing loans

Consolidated

Fully secured100.010.267.388.9100.09.768.189.6

Partially secured-4.614.74.6-11.114.24.2

Unsecured-85.218.06.5-79.217.76.2

Total100.0100.0100.0100.0100.0100.0100.0100.0

Parent Entity

Fully secured100.011.367.589.1100.010.768.389.9

Partially secured-5.214.64.5-12.214.14.1

Unsecured-83.517.96.4-77.117.66.0

Total100.0100.0100.0100.0100.0100.0100.0100.0

Non-performing loans

Consolidated

Fully secured88.8-54.674.991.5-56.779.0

Partially secured11.24.627.917.28.523.223.413.4

Unsecured-95.417.57.9-76.819.97.6

Total100.0100.0100.0100.0100.0100.0100.0100.0

Parent Entity

Fully secured89.4-57.976.191.8-59.780.0

Partially secured10.64.926.116.38.224.421.712.7

Unsecured-95.116.07.6-75.618.67.3

Total100.0100.0100.0100.0100.0100.0100.0100.0

a.For the purpose of collateral classification, housing loans are classified as fully secured, unless they are non-performing in which case they

may be classified as partially secured.

Details of the carrying value and associated provision for ECL are disclosed in Note 9 and Note 10, respectively. The

credit quality of loans is disclosed in Note 11.4.

Collateral held against financial assets other than loans

ConsolidatedParent Entity

$m2025202420252024

Cash, primarily for derivatives3,1883,0792,3652,936

Securities under reverse repurchase agreements

a

28,26917,95028,26917,950

Securities under derivatives

a

679112452112

Total other collateral held32,13621,14131,08620,998

a.Securities received as collateral are not recognised in the Group and Parent Entity’s balance sheet.

154WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Deposits and other funding arrangements

Note 12. Deposits and other borrowings

Note 12. Deposits and other borrowings

Accounting policy

Deposits and other borrowings are initially recognised at fair value and subsequently either measured at amortised

cost using the effective interest method or at fair value.

Deposits and other borrowings are designated at fair value if they are managed on a fair value basis, reduce or

eliminate an accounting mismatch or contain an embedded derivative.

Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are

recognised in the income statement. The change in the fair value that is attributable to changes in credit risk is

recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the

income statement.

Refer to Note 22 for balances measured at fair value and amortised cost.

Interest expense incurred is recognised in net interest income using the effective interest method.

Non-interest bearing relates to instruments which do not carry an entitlement to interest.

ConsolidatedParent Entity

$m2025202420252024

Australia

Certificates of deposit33,94033,21533,94033,215

Non-interest bearing, repayable at call140,842128,705140,842128,705

Other interest bearing - transactions120,830110,393120,830110,393

Other interest bearing - savings223,216197,415223,216197,415

Other interest bearing term157,675157,282157,675157,282

Total Australia676,503627,010676,503627,010

New Zealand

Certificates of deposit1,5931,711--

Non-interest bearing, repayable at call10,70010,287--

Other interest bearing - transactions7,8848,815--

Other interest bearing - savings18,50217,854--

Other interest bearing term34,12836,245--

Total New Zealand72,80774,912--

Other overseas

Certificates of deposit11,95311,94811,95311,948

Non-interest bearing, repayable at call1,1471,193546503

Other interest bearing - transactions910736729532

Other interest bearing - savings1,2549871,161892

Other interest bearing term5,8833,7035,7683,596

Total other overseas21,14718,56720,15717,471

Total deposits and other borrowings770,457720,489696,660644,481

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
155

Note 12. Deposits and other borrowings (Continued)

Uninsured time deposits

Uninsured time deposits are the principal amount of deposits that are not covered by a government based deposit

insurance scheme and which have contractual impediments on withdrawal. For Westpac, this encompass certificates of

deposits and term deposits that are in excess of, or ineligible for, the Australian Government’s Financial Claims Scheme

(FCS) limit. The table below shows the time deposits by categories and remaining maturity as at 30 September 2025:

Consolidated

$mUp to 3 months

Over 3 months

to 6 months

Over 6 months

to 1 yearOver 1 yearTotal

Certificates of deposit in excess of insured amounts

Australia15,21518,2104922333,940

New Zealand1,392201--1,593

Other overseas3,7134,6663,574-11,953

Total certificates of deposit in excess of insured amounts20,32023,0774,0662347,486

Term deposits in excess of insured amounts

Australia62,51324,04430,8125,615122,984

New Zealand13,1788,6604,2922,03728,167

Other overseas3,4859061,406845,881

Total term deposits in excess of insured amounts79,17633,61036,5107,736157,032

Interbank term deposits in excess of insured amounts

a

Australia1,9392,3261,79576,067

Other overseas270--27297

Total interbank term deposits in excess of insured amounts2,2092,3261,795346,364

a.Interbank term deposits are included in Note 19.

156WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 13. Debt issues

Note 13. Debt issues

Accounting policy

Debt issues are bonds, notes, commercial paper and debentures that have been issued by entities in Westpac.

Debt issues are initially measured at fair value and subsequently either measured at amortised cost using the

effective interest method or at fair value.

Debt issues are designated at fair value if they reduce or eliminate an accounting mismatch or contain an

embedded derivative.

Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are

recognised in the income statement. The change in the fair value that is attributable to changes in credit risk is

recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the

income statement.

Refer to Note 22 for balances measured at fair value and amortised cost.

Interest expense incurred is recognised within net interest income using the effective interest method.

In the following table, the distinction between short-term (12 months or less) and long-term (greater than 12 months)

debt is based on the original maturity of the underlying security.

ConsolidatedParent Entity

$m2025202420252024

Short-term debt

Own issuances34,66532,32832,25228,905

Total short-term debt34,66532,32832,25228,905

Long-term debt

Covered bonds37,67139,47231,91135,513

Senior93,48991,94578,45979,464

Securitisation5,5795,539--

Total long-term debt136,739136,956110,370114,977

Total debt issues171,404169,284142,622143,882

Movement reconciliation

Balance as at beginning of year169,284156,573143,882134,957

Issuances68,85080,24559,40468,438

Maturities, repayments, buybacks and reductions(76,010)(67,100)(68,590)(58,931)

Total cash movements(7,160)13,145(9,186)9,507

FX translation impact8,442(5,798)7,295(5,167)

Fair value adjustments(125)283(118)275

Fair value hedge accounting adjustments3964,3382653,659

Other567743484651

Total non-cash movements9,280(434)7,926(582)

Balance as at end of year171,404169,284142,622143,882

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
157

Note 13. Debt issues (Continued)

Consolidated

$m20252024

Short-term debt

Own issuances:

US commercial paper25,95822,507

EUR commercial paper4,0141,048

Senior Debt:

AUD1,1991,900

EUR-483

GBP1,8345,313

USD152-

Other1,5081,077

Total short-term debt34,66532,328

Long-term debt (by currency):

AUD38,39841,191

CHF2,8532,554

EUR36,60532,182

GBP5,7055,695

JPY7278

NZD3,1043,483

USD48,58350,258

Other1,4191,515

Total long-term debt136,739136,956

Westpac manages FX exposure from debt issuances as part of its hedging activities. Further details of Westpac’s hedge

accounting are in Note 20.

158WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 14. Loan capital

Note 14. Loan capital

Accounting policy

Loan capital are instruments issued by Westpac which qualify for inclusion as regulatory capital under the standards

issued by the prudential regulator in the relevant jurisdiction. Loan capital is initially measured at fair value

and subsequently measured at amortised cost using the effective interest method. Interest expense incurred is

recognised in net interest income.

ConsolidatedParent Entity

$m2025202420252024

Additional Tier 1 (AT1) loan capital

Westpac capital notes6,6978,3766,6978,376

USD AT1 securities1,8381,7281,8381,728

Total AT1 loan capital8,53510,1048,53510,104

Tier 2 loan capital

Subordinated notes31,43527,77930,35626,666

Total Tier 2 loan capital31,43527,77930,35626,666

Total loan capital39,97037,88338,89136,770

Movement reconciliation

Balance as at beginning of year37,88333,17636,77032,085

Issuances5,0426,3265,0426,326

Maturities, repayments, buybacks and reductions(4,122)(1,957)(4,127)(1,951)

Total cash movements9204,3699154,375

FX translation impact1,219(1,416)1,267(1,401)

Fair value hedge accounting adjustments(68)1,714(74)1,675

Other16401336

Total non-cash movements1,1673381,206310

Balance as at end of year39,97037,88338,89136,770

Additional Tier 1 loan capital

A summary of the key terms and common features of AT1 instruments is provided below.

Consolidated and Parent Entity

$mDistribution or interest rate

Potential scheduled

conversion date

a

Optional

redemption date

b

20252024

Westpac capital notes (WCN)

AUD 1,690 million WCN5(3-month BBSW rate + 3.20% p.a.)

x (1 - Australian corporate tax rate)

22 September 202722 September 2025

c

-1,688

AUD 1,723 million WCN7(3-month BBSW rate + 3.40% p.a.)

x (1 - Australian corporate tax rate)

22 March 202922 March 20271,7191,716

AUD 1,750 million WCN8(3-month BBSW rate + 2.90% p.a.)

x (1 - Australian corporate tax rate)

21 June 203221 September 20291,7421,740

AUD 1,509 million WCN9(3-month BBSW rate + 3.40% p.a.)

x (1 - Australian corporate tax rate)

22 June 203122 September 20281,5011,499

AUD 1,750 million WCN10(3-month BBSW rate + 3.10% p.a.)

x (1 - Australian corporate tax rate)

22 June 203422 September 20311,7351,733

Total WCN6,6978,376

USD AT1 securities

USD 1,250 million USD

AT1 securities

Fixed 5.00% p.a.

d

n/a21 September 20271,8381,728

Total USD AT1 securities1,8381,728

a.Conversion is subject to the satisfaction of the scheduled conversion conditions. If the conversion conditions are not satisfied on the

relevant  scheduled conversion date, conversion will not occur until the next distribution payment date on which the scheduled conversion

conditions  are satisfied, if ever.

b.Certain AT1 instruments may have more than one optional redemption date and for the purposes of the table above the first optional

redemption date is shown. Westpac may elect to redeem the relevant AT1 instrument on the optional redemption date or dates, subject to

APRA’s prior written approval.

c.On 22 September 2025, Westpac redeemed all Westpac Capital Notes 5 (WCN5) on issue.

d.Until but excluding 21 September 2027 (first reset date). If not redeemed, converted or written-off earlier, from, and including, each reset date

to, but excluding, the next succeeding reset date, at a fixed rate p.a. equal to the prevailing 5-year USD mid-market swap rate plus 2.89% p.a.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
159

Note 14. Loan capital (Continued)

Common features of AT1 instruments issued by Westpac Banking Corporation

Payment conditions

Distributions and interest payments on the AT1 instruments are discretionary and will only be paid if the payment

conditions are satisfied, including that the payment will not result in a breach of Westpac’s capital requirements under

APRA’s prudential standards; not result in Westpac becoming, or being likely to become, insolvent; and if APRA does

not object to the payment.

Broadly, if for any reason a distribution or interest payment has not been paid in full on the relevant payment date,

Westpac must not determine or pay any dividends on Westpac ordinary shares or undertake a discretionary buyback or

capital reduction of Westpac ordinary shares, unless the unpaid amount is paid in full within 20 business days of the

relevant payment date or in certain other circumstances.

The AT1 instruments convert into Westpac ordinary shares in the following circumstances:

•Scheduled Conversion

On the scheduled conversion date, provided certain conversion conditions are satisfied, the relevant AT1 instrument

1

will convert and holders will receive a variable number of Westpac ordinary shares calculated using the face value of

the relevant AT1 instrument and the Westpac ordinary share price determined over the 20 business day period prior

to the scheduled conversion date, including a 1% discount.

•Capital Trigger Event or Non-Viability Trigger Event

Westpac will be required to convert some or all AT1 instruments upon the occurrence of:

–A capital trigger event, when Westpac determines, or APRA notifies Westpac in writing that it believes,

Westpac’s Common Equity Tier 1 Capital ratio is equal to or less than 5.125% (on a Level 1 or Level 2 basis

2

); or

–A non-viability trigger event, when APRA notifies Westpac in writing that it believes conversion, write-off or

write-down of capital instruments of the Westpac, or public sector injection of capital (or equivalent support), in

each case is necessary because without it, Westpac would become non-viable

For each AT1 instrument converted, holders will receive a variable number of Westpac ordinary shares calculated

using the face value of the relevant AT1 instrument and the Westpac ordinary share price over the five business day

period prior to the capital trigger event date or non-viability trigger event date and includes a 1% discount, subject

to a maximum conversion number. The maximum conversion number is based on an ordinary share price broadly

equivalent to 20% of the Westpac ordinary share price at the time of issue.


Following the occurrence of a capital trigger event or non-viability trigger event, if conversion does not occur

within five business days, holders' rights in relation to the relevant AT1 instrument will be immediately and

irrevocably terminated.


•Conversion in other circumstances

Westpac is able to elect to convert

1

, or may be required to convert

1

, AT1 instruments early in certain circumstances.

The terms of conversion are broadly similar to scheduled conversion, however, the maximum conversion number will

depend on the conversion event.

•Early Redemption

Westpac is able to elect to redeem the relevant AT1 instrument on the optional redemption dates or for certain

taxation or regulatory reasons, subject to APRA’s prior written approval.

1.

Excludes USD AT1 securities.

2.Level 1 comprises Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as being part of an

‘Extended Licensed Entity’ for the purpose of measuring capital adequacy. Level 2 is the consolidation of Westpac Banking Corporation

and all its subsidiary entities except those entities specifically excluded by APRA regulations. The head of the Level 2 group is Westpac

Banking Corporation.

160WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 14. Loan capital (Continued)

Tier 2 loan capital

A summary of the key terms and common features of Westpac’s Tier 2 instruments (subordinated notes) is

provided below:

$mInterest rate

a

Maturity date

Optional

redemption date

b

20252024

Subordinated notes issued by Westpac Banking Corporation

USD 100 millionFixed23 February 2046n/a107110

JPY 20,000 millionFixed19 May 2026n/a204202

JPY 10,200 millionFixed2 June 2026n/a104103

JPY 10,000 millionFixed9 June 2026n/a102101

USD 1,500 millionFixed23 November 203123 November 20262,2272,095

AUD 185 millionFixed24 January 2048n/a184184

AUD 130 millionFixed2 March 2048n/a130130

USD 1,000 millionFixed24 July 2039n/a1,2051,196

USD 1,250 millionFixed24 July 203424 July 20291,7821,686

USD 1,500 millionFixed4 February 20304 February 2025-2,141

USD 1,500 millionFixed15 November 203515 November 20301,9781,854

USD 1,000 millionFixed16 November 2040n/a1,0131,010

AUD 1,250 millionFloating29 January 203129 January 20261,2491,250

EUR 1,000 millionFixed13 May 203113 May 20261,7531,544

USD 1,000 millionFixed18 November 2041n/a1,0541,059

USD 1,250 millionFixed18 November 203618 November 20311,6601,572

JPY 26,000 millionFixed8 June 20328 June 2027262261

USD 1,000 millionFixed10 August 203310 August 20321,4251,368

SGD 450 millionFixed7 September 20327 September 2027544516

AUD 1,500 millionFloating23 June 203323 June 20281,5001,496

AUD 300 millionFixed/Floating23 June 203323 June 2028299300

AUD 1,100 millionFixed/Floating23 June 203823 June 20331,0931,100

AUD 1,500 millionFixed/Floating15 November 2038n/a1,4951,502

USD 750 millionFixed17 November 2033n/a1,1771,148

AUD 650 millionFloating3 April 20343 April 2029648649

AUD 600 millionFixed/Floating3 April 20343 April 2029600593

AUD 1,000 millionFloating10 July 203410 July 20291,000996

AUD 500 millionFixed/Floating10 July 203410 July 2029500500

USD 1,500 millionFixed20 November 203520 November 20342,318-

AUD 850 millionFloating12 February 203512 February 2030843-

AUD 400 millionFixed/Floating12 February 203512 February 2030400-

AUD 1,500 millionFixed/Floating4 June 20404 June 20351,500-

Total subordinated notes issued by Westpac Banking Corporation30,35626,666

Subordinated notes issued by Westpac New Zealand Limited

c

NZD 600 millionFixed/Floating16 September 203216 September 2027525541

NZD 600 millionFixed/Floating14 February 203414 February 2029554572

Total subordinated notes issued by Westpac New Zealand Limited1,0791,113

Total subordinated notes31,43527,779

a.Certain subordinated notes have a fixed interest rate for the period up to the optional redemption date and a floating interest rate thereafter.

b.Certain Tier 2 instruments may have more than one optional redemption date and for the purposes of the table above the first optional

redemption date is shown. Westpac Banking Corporation may elect to redeem the relevant Tier 2 instrument on the optional redemption date

or dates, subject to APRA’s prior written approval.

c.For subordinated notes issued by Westpac New Zealand Limited, it may elect to redeem all or some of the Tier 2 instruments for their face

value together with accrued interest (if any) on the optional redemption date or any interest payment date thereafter, subject to RBNZ’s prior

written approval. Early redemption of all of the Tier 2 instruments for certain tax or regulatory reasons is permitted on an interest payment

date subject to the RBNZ’s prior written approval.

STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
161

Note 14. Loan capital (Continued)

Common features of subordinated notes

Issued by Westpac Banking Corporation

Interest payments are subject to Westpac being solvent at the time of, and immediately following, the interest payment.

Non-viability trigger event

The definition of non-viability trigger event is described under AT1 loan capital. Upon the occurrence of a non-viability

trigger event, Westpac will be required to convert some or all subordinated notes into a variable number of Westpac

ordinary shares calculated in a manner similar to that described under AT1 loan capital.

Following the occurrence of a non-viability trigger event, if conversion of a Tier 2 instrument does not occur

within five business days, holders’ rights in relation to the relevant Tier 2 instrument will be immediately and

irrevocably terminated.

Issued by Westpac New Zealand Limited

Interest payments are subject to Westpac New Zealand Limited being solvent at the time of, and immediately following,

the interest payment.

Non-viability trigger event

Tier 2 instruments issued by Westpac New Zealand Limited do not have a non-viability trigger event. These instruments

qualify as Tier 2 capital under the RBNZ capital adequacy framework but not under APRA’s capital adequacy framework.

Note 15.

 Securitisation, covered bonds and other transferred assets

Note 15. Securitisation, covered bonds and other transferred assets

Westpac enters into transactions in the normal course of business by which financial assets are transferred to

counterparties or structured entities. Depending on the circumstances, these transfers may result in derecognition of

the assets in their entirety, partial derecognition or no derecognition of the assets subject to the transfer. For Westpac’s

accounting policy on derecognition of financial assets refer to the Financial Assets and Financial Liabilities.

Securitisation

Securitisation is the transferring of assets (or an interest in either the assets or the cash flows arising from the

assets) to a structured entity which then issues the majority of interest bearing debt securities to third party investors

for funding deals and to Westpac for liquidity deals. The Group transfers residential mortgages to these structured

entities, however the Group retains the risks and rewards of the residential mortgages and continues to recognise the

mortgages as financial assets.

Securitisation of its own assets is used by Westpac as a funding and liquidity tool. For securitisation structured

entities which Westpac controls, as defined in Note 30, the structured entities are classified as subsidiaries and

consolidated. When assessing whether Westpac controls a structured entity, it considers its exposure to and ability

to affect variable returns. Westpac may have variable returns from a structured entity through ongoing exposures to

the risks and rewards associated with the assets, the provision of derivatives, liquidity facilities, trust management and

operational services.

Undrawn funding and liquidity facilities of $251 million (2024: $345 million) were provided by Westpac for the

securitisation of its own assets.

Covered bonds

Westpac has two covered bond programs relating to Australian residential mortgages (Australian Program) and New

Zealand residential mortgages (New Zealand Program). Under these programs, selected pools of residential mortgages

are assigned to bankruptcy remote structured entities which provide guarantees on the payments to bondholders.

The Group retains the majority of the risks and rewards of the residential mortgages and continues to recognise

the mortgages as financial assets. Through the guarantees and derivatives with the structured entities, Westpac has

variable returns from these structured entities and consolidates them. 

Repurchase agreements

Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in

the balance sheet in their original category (i.e. Trading securities or Investment securities).

The cash consideration received is recognised as a liability (Repurchase agreements). Refer to Note 19 for

further details.

162WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS

Note 15. Securitisation, covered bond

[TRUNCATED]

=== IR PAGE TRANSCRIPT: AGM Transcript (PDF 468KB) ===

MUFG Corporate Markets
A division of MUFG Pension & Market Services

Company: Westpac Banking Corporation (WBC)

Date: 11 December 2025

Time: 10:00am AEDT


[START OF TRANSCRIPT]

[Video playing]

Timothy Hartin: Well good morning, everyone and welcome to the 2025 Annual General Meeting

of Westpac Banking Corporation. My name is Tim Hartin, and I am Westpac's Company

Secretary.

On behalf of Westpac I'd like to acknowledge the Gadigal people of the Eora Nation. We pay our

respects to their Elders both past and present. We also acknowledge the Traditional Owners of

the lands from which those joining us on the webcast are located today.

Westpac has been helping Australians across our nation for more than 200 years and we're

proud of our long-standing commitment to reconciliation and are working towards our vision of

an Australia where Aboriginal and Torres Strait Islander people enjoy equitable opportunities.

Before I introduce your Chairman, I'll run through a few procedural matters. This year, we're

taking a different approach to the agenda of the meeting. You'll hear first from your Chairman

and CEO. The items of business will then be displayed on the screen, followed by the

presentation of the proxy and direct voting results.

Your directors seeking re-election and election will then address the meeting, followed by Mr

Kyle Robertson, who represents shareholders who are proposing resolutions 5A and 5B. Your

Chairman will then invite shareholders to ask questions on all resolutions together, which is

intended to provide an enhanced meeting experience. We'll take questions from the people

joining us here in the room first, then we'll move to the questions submitted by those who are

watching our live webcast.

If you're here in person, you should have received a coloured card at registration. A red voting

card allows you to speak and to vote. Blue card holders can speak but cannot vote. Yellow cards

are for visitors who can observe today's meeting but cannot speak or vote. If you do wish to ask

a question, please approach a microphone attendant and show them your red or blue card. If

you have a mobility restriction, please raise your hand and a microphone attendant will come to

you. For those watching the webcast today, we ask that you please submit one question at a

time. We may aggregate questions if we receive multiple questions on the same topic. All

resolutions today will be decided by a poll, so please mark your voting card to cast your vote for

each resolution.

MUFG Corporate Markets is the returning officer responsible for overseeing the voting process

for this meeting and can assist you with any questions. Completed voting cards must be placed

in one of the ballot boxes, and you can do this at any time after the Chairman opens the polls.

Voting will close 15 minutes after the meeting has concluded, and the results of the polls will be

advised to the ASX and available on Westpac's website. As set out in the Notice of Meeting,


MUFG Corporate Markets

A division of MUFG Pension & Market Services

online voting is not available at today's meeting. If you do have any issues viewing the webcast

or asking a question online, please call MUFG on 1-800-990-363. I'll now hand over to your

Chairman, Steven Gregg.

Steven Gregg: Thank you, Tim. I've been advised that a quorum is present. I therefore declare

the 2025 Annual General Meeting of Westpac Banking Corporation open. I also declare the polls

open. Please cast your votes at any time. I would like to extend a warm welcome to everybody

joining today. I would now like to introduce my fellow directors. On my left is Margie Seale, Peter

Nash, Michael Ullmer, Andy Maguire, Pip Greenwood, and David Cohen. On my right is - next to

Tim, is Anthony Miller, our Chief Executive, Nerida Caesar, Tim Burroughs, and Debra Hazelton.

Westpac's auditor, Kim Lawry of KPMG, is seated in the front row with our executive team. If you

have any questions in relation to the conduct of the audit, I will ask Kim to respond.

Before we move to matters in the Notice of Meeting, both the CEO and I would like to address

the meeting. This will include responding to the most commonly raised matters by shareholders

prior to the AGM.

Ladies and gentlemen, 2025 has been a seminal year for Westpac. With renewed leadership, we

have set a bold agenda to transform the organisation and to position it for long-term success.

Our focus is to strengthen the foundations and accelerate changes that will achieve greater

operational efficiency and better customer experiences, all of which will help to deliver stronger,

sustainable returns for our shareholders.

The completion of the five-year CORE program, responding to the Enforceable Undertaking, was

a significant milestone for Westpac. It sets a new benchmark for risk management and

governance and accountability across Westpac, a standard we will continue to embed and

strengthen.

APRA removed the remaining $500 million risk capital overlay in October, which has further

strengthened our capital base. Our capital position remains unquestionably strong, supported

by disciplined financial management and a robust balance sheet. Our CET1 capital ratio of

12.5% reinforces our standing amongst the world's strongest banks and is market leading within

the Australian banking system.

On sustainability, we reinforced our position as Australia's largest lender to the renewable

energy sector. This reflects our support for the nation's transition while balancing energy

reliability, security and affordability. Importantly, we are committed to partnering with

institutional customers to help them reduce the emissions intensity across their operations.

Financial performance in 2025 reflected our strategy of balancing growth and return, while

making the necessary investments in people, innovation, and transformation to support

Westpac's future. Net profit, excluding notable items, was marginally down at AU$7 billion.

Return on tangible equity remained well above our cost of capital at 11%, excluding notable

items, despite higher transformation costs.

Pleasingly, we experienced strong deposit growth of 7%, slightly ahead of our loan growth at 6%,

lifting the deposit to loan ratio to 85%, which has strengthened our funding. Margins were

stable, despite competitive pressures, reflecting a disciplined management effort. Total

expenses increased by 9% this year, due to strategic and structural decisions. These include

investment in transformation and bankers, along with higher amortisation and employee costs.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

We expect the restructuring charge to provide productivity benefits in the years ahead. A major

focus going forward will be to reduce our cost base to align with our peers.

Earnings per ordinary share were 201.9 cents, with share buybacks contributing 0.03 cents.

Your Board declared a final dividend of 77 cents per share, which is up 0.02 cents on FY24,

taking the full year ordinary dividends to $1.53 per share, fully franked.

In an uncertain operating environment, the Board determined it was prudent to carry surplus

capital to prioritise your bank's financial strength. This enables us to balance the investment

required for ongoing transformation and business growth while maintaining the flexibility to

return surplus capital to shareholders when appropriate. Total shareholder return for the year

‘25 was 29%, ranking Westpac the first amongst Australian banks across one, two and three-

year periods. This is a significant improvement on prior years.

In his first year as your CEO, Anthony Miller has brought a new energy, focus and momentum to

Westpac's strategy. He has commenced his journey as the CEO incredibly well. He is driving an

important cultural shift to make Westpac more agile and focus on execution and delivering a

better outcome for all our customers. We are pleased to see our people embracing this change

and new direction.

Employee engagement remains in the top quartile globally, which is a testament to their

dedication and commitment. Your Board stays connected with teams across the bank and

continues to champion diversity and inclusion, alongside professional development, to ensure

Westpac attracts and retains top bankers and talent. In this regard, we have attracted some

exceptional leaders to the Company this year and are delighted that a capable leadership team

is guiding the next chapter for Westpac.

This year, we advanced our transformation agenda, which is critical to achieving our growth

ambitions. Through UNITE, we are building a more efficient, future-ready bank by consolidating

technology platforms, streamlining processes, and simplifying our product and system

landscape. These changes will help strengthen our foundations and should reduce both risk

and cost to support sustainable returns and improved service. The Board monitors progress

through a Directors UNITE Oversight Group, providing additional governance and strategic

guidance.

Alongside UNITE, we are making strides in digital innovation with BizEdge, a new business

lending platform, and Westpac One, a new banking platform for institutional banking

customers.

Sustainability is another area which supports our ability to create long-term value for our

shareholders. We've evolved our practices and disclosures, releasing a new sustainability

strategy, Climate Transition Plan , and reconciliation plan this year. We manage all our material

sustainability topics, including nature and human rights.

However, today I will focus on climate, as this was the most prominent theme raised in

shareholders’ questions. We appreciate our shareholders hold diverse views on this matter.

As an organisation, we aim to be a net zero climate resilient bank by reducing our emissions and

supporting customers with their decarbonisation plans. 89% of our Australian and New Zealand

generation lending was to renewables such as wind, solar and hydropower at the end of


MUFG Corporate Markets

A division of MUFG Pension & Market Services

September. As mentioned, Westpac is the largest lender in the country to renewables. Our

exposure to the fossil fuel sector across the entire value chain represents a very small

percentage of our total committed exposure at just 0.6 of 1%.

To put this in context, in year ‘25 we had $39 billion in total sustainable finance lending. This is

almost five times larger than our lending to the fossil fuel value chain. Overall exposure to the

sector is marginally increased this year to a slight increased exposure to downstream activities

such as distribution and retail. Importantly, however, our exposure to upstream oil and gas

extraction has fallen 10% and now represents 0.1% – 0.1 of 1%, I should say, of Westpac's total

exposure.

We also have no corporate lending to thermal coal mining customers.

In response to shareholder feedback this year, we updated lending requirements for customers

in carbon-intensive sectors. This included expanding the scope of sectors required to have

climate transition plans from oil and gas extraction to metallurgical coal mining and coal-fired

power generation. We provided more detail on our customer climate transition plan evaluation

criteria and ratings, which apply to a small number of customers we have operating in these

sectors.

To be eligible for new and renewed corporate lending and bond facilitation from 2026, our

customers must have interim Scope 1 and 2 targets aligned to well below two degrees Paris

Agreement goal. We also consider customers’ Scope 3 emissions in our evaluation, including

their net zero ambitions and reduction plans. Our commitment to reducing emissions across

our value chain is endorsed by the Board and management and is led by our Chief Sustainability

Officer who reports directly to the CEO.

We welcome several new directors this year, strengthening the Board's collective skills, diversity

and experience. Our composition represents a balance between continuity and renewal,

blending the experience of long-serving directors with fresh perspectives from new directors.

Your Board of Directors has a significant level of financial services and banking experience,

which I believe is fundamental in providing good governance and oversight.

The new directors who are seeking election this year are Debra Hazelton, who joined the Board

in March and serves on the Board Remuneration Committee. She has more than 30 years of

global financial services experience. David Cohen, who joined the Board in April and serves on

the Board Risk Committee. He has more than two decades of experience in financial services,

including serving as the deputy CEO of the Commonwealth Bank of Australia. Pip Greenwood,

who joined in August. Pip is an experienced Non-Executive Director with financial services

experience and currently chairs both Westpac New Zealand and The a2 Milk Company.

Board Director Peter Nash is also seeking re-election, and we acknowledge the split in voting on

this item of business. However, the Board unanimously supports Peter's nomination,

recognising his contribution over the past seven years and the expertise he brings to the Board.

Since joining Westpac during the Royal Commission, Peter has played a key role in our

remediation efforts in completing the CORE program, helping to restore confidence amongst

investors and regulators.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

As the Audit Committee Chair and the longest-serving Director, he has also been instrumental

in resetting the executive team and shaping Westpac's strategy. His continuity provides an

important bridge from past challenges to future opportunities.

Additionally, Margie Seale is stepping down as the Chair of the Remuneration Committee,

although remains a Committee member, and I'd like to thank Margie for her commitment and

wise council as Chair of that Committee. I'm delighted that Debra Hazelton will also assume

this role at the conclusion of today's meeting.

Looking ahead, challenges are expected, including ongoing geopolitical and trade tensions, the

rise of private and non-regulated credit and elevated global debt levels. Notwithstanding these

headwinds, prospects for the Australian and New Zealand economies remain positive. Recent

interest rate relief has supported a modest recovery in activity, though we recognise that some

businesses and households continue to face pressures such as labour, energy and insurance

costs.

At Westpac we are well positioned to deliver on our strategy and create lasting economic, social

and environmental value for our customers and the communities we serve. I extend my

gratitude to shareholders, customers, our people and the community for their continued

support as we focus on investing for growth and delivering sustainable shareholder returns.

Now, I'm very pleased to welcome your CEO, Anthony Miller. Thank you.

Anthony Miller: Thank you, Chairman. Good morning and welcome to all our shareholders. It's a

privilege to be here today to share how we're building a stronger, more sustainable Westpac. A

key focus in my first year as CEO has been ensuring we have the right structures and people in

place to lead Westpac towards becoming a more resilient, customer-focused bank. We're

shaping a culture that moves faster, with a relentless focus on execution and customer service.

Delivering for customers is critical to our success. By improving our standard of service, and

then delivering that standard consistently, we build trust and earn customer loyalty. If we do this

well, we will achieve our ambition to be our customers' number one bank and partner through

life and thus grow the business and returns for our shareholders.

In addition to lifting and sustaining service levels to our customers, we are pursuing a growth

and transformation agenda, enabled by a robust balance sheet and a strong capital position.

We want to be the number one bank in the marketplace. As we go after this, we are guided by

five priorities. Getting to number one will take some time. But if we stay focused and deliver on

these priorities, we will get there.

We're committed to relentless execution and are holding ourselves accountable with clear

targets and transparent reporting. We'll keep being honest with each of you about where we

stand, the challenges we face and the progress we're making.

Turning to this year's performance, it has been a solid year at Westpac. We have a very strong

balance sheet and saw great momentum in our target segments. Net profit was $7 billion,

representing a return on tangible equity of 11%, excluding notable items. This reflects the

balance we have struck between delivering returns while investing for the future. Our revenue

grew 4 %, and this was supported by solid lending and deposit growth.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Some of the highlights included 10% growth in our Consumer and Institutional division

deposits, reflecting the quality of our consumer business and customer base, a 15% increase in

business lending, with solid growth in health, professional services and agriculture, and

institutional lending growth of 17%.

Looking at costs, we know managing this effectively is essential. The 9% rise in expenses this

year was driven by higher staff and technology costs, as well as the UNITE program, and the

decision we made to invest in more bankers and additional growth projects. It also included a

restructuring charge to help support productivity.

We are reducing expenses by structurally lowering the costs of running the bank through UNITE.

We are targeting, by FY29, a cost-to-income ratio below the peer average and a return on

tangible equity above the peer average. We acknowledge there is a lot of work ahead of us to

achieve these objectives.

Our service proposition is at the heart of what we do. Our approach is to bring the whole bank to

our 13 million customers, meeting and serving them where and how they want. We strive to earn

their trust and to look after their entire banking needs. We are here to support our customers

through the cycle. We provided 46,000 hardship packages this year to those experiencing

financial challenges. Pleasingly, three quarters of these customers needed only short-term

support for up to three months.

Building trust and supporting our customers also means tackling issues affecting our

customers and Australians more broadly. This includes scams, which are a national challenge

and require all parts of the ecosystem to play their part. Over the past five years, we have spent

more than $500 million to combat scams and fraud, including investing in new detection and

prevention measures to protect our customers.

This includes recent innovations such as SafeCall, SafeBlock and Confirmation of Payee, which

have all contributed to a 21% decline in scam losses this year and helped to save our customers

from losing over $360 million to scammers. What's clear to me is that Westpac and the other

banks can't solve the scam scourge alone. As I mentioned, to help keep Australians safe, we

need more action from other players in the ecosystem, including social media companies like

Meta.

In addition to adding new innovative scam defences, we're also lifting engagement and loyalty

through our award-winning banking app, refreshed brand positioning, and community

partnerships. Service quality in critical customer moments is improving. Our mortgage

processing times have halved, with most home loan application decisions made within five

days. We're also processing business loans faster through our new digital lending platform,

BizEdge, which has already handled $5 billion in applications while continuing to expand our

banker presence.

We've doubled our Women in Business commitment to $1 billion, which has supported more

than 1,800 entrepreneurial women-founded businesses since inception.

For institutional clients, we're investing in the best bankers to be number one in our target

markets. This week, we commenced our pilot for Westpac One, our cloud-based digital

platform that will transform how institutional customers manage their liquidity, payments, and


MUFG Corporate Markets

A division of MUFG Pension & Market Services

FX. We plan to progressively roll out the capabilities within the platform over the next 36

months.

Finally, to our customers here today, who we engage to support this year's AGM, MUFG, Bread

and Butter Project, and Indigo, thank you for being customers of Westpac. We really appreciate

our partnership with you.

We are investing in technology programs, AI, and the workforce of the future. However, this is a

people business, and our priority is to have the best team giving their best every day. We aim to

be the number one place to work and to attract and retain the best bankers and talent.

Despite significant change this year, employee engagement remains in the top quartile globally.

Our latest survey confirms this with more than 70,000 comments captured from our people.

This is feedback that helps us keep improving. Flexible working is a big part of that. We're

committed to helping people work in ways that enables them to perform at their best. We are

focused on outcomes and the right level of team connections to deliver for our customers.

We've enhanced our employee proposition with four wellbeing days and a wide range of leave

options to support every stage of life. Our people are engaged, working to lift our customer

service and challenging us to deliver UNITE and set the bank up for the future.

Risk management underpins resilience and long-term shareholder value. This year we have

continued to embed improvements in governance, culture and accountability. The completion

of the CORE transition and response from APRA is recognition of the progress that we have

made. While we are a simpler and stronger bank than five years ago, the lessons of the past

must stay front of mind, and we must remain resolute in ensuring past mistakes are not

repeated.

Strong risk management is not a destination, it's a discipline. We're focused on making it our

competitive advantage and our differentiator.

The cornerstone of our transformation agenda is UNITE, which addresses legacy issues and

complexity. We've finalised the program scope, we have a dedicated team and have grouped

initiatives into 10 work packages as we make progress towards our FY29 targets. UNITE is

starting to deliver improvements that are making banking simpler and more connected for our

customers.

Eight initiatives are complete, 51 are underway and the majority are on track. Where challenges

arise, we act quickly to get back on course. We'll continue to provide regular updates. Alongside

UNITE, we are implementing AI tools and AI agentic programs right across the business. These

are not standalone tech initiatives, but are strategic enablers led by our businesses. Some

examples of their use include strengthening defences against fraud and scams and supporting

faster approvals for mortgages and business loans.

When used well, it helps us serve customers better, make smarter decisions, deliver

consistently, and unlock productivity. Currently, more than 15,000 of our people are using AI to

support work as we go after our goal of ‘AI for everyone’. The key is making sure we find proven,

tangible use cases and that we use AI tools responsibly.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Looking ahead, AI will be critical to how we personalise experiences and drive efficiency at

scale. But AI technology isn't enough. Like any tool, AI is only as good as the people who use it.

We're also investing in our people, and this includes the appointment of our Chief Data, Digital,

and AI Officer, reporting to me.

As one of Australia's largest companies and employers, we play a vital role in supporting

economic prosperity. A key challenge for the Australian economy is productivity. Without

improvement, we cannot lift living standards or remain competitive globally. It is encouraging to

see productivity at the centre of the national debate. Addressing this challenge requires a

coordinated response and we are contributing to this in a number of ways.

One way in which we do this is through our sustainability strategy. The Chairman addressed our

first focus area, climate change. We are supporting our customers in the transition. The

transition represents a significant investment opportunity for Australia. The prosperity of

regional communities is another critical area where we're supporting our sustainability strategy.

It drives 30% of GDP and is home to one third of our population. To maximise output from the

regions, they need to have access to the banking services they need to thrive.

Our commitment to regional Australia is demonstrated by our expanded presence and

commitments, including the extension of our regional branch closure moratorium through to

2030, a new pilot for community banking hubs in New South Wales towns, Dungog, Manilla and

Bulahdelah, with the view to expanding this nationally next year. A new service centre in Moree,

with two more opening next year in Leongatha in Victoria, and Smithton in Tasmania.

Through engagement with our agri customers and industry stakeholders, we have listened to

feedback on our no-deforestation policy, which was set back in 2023. Customer feedback has

been clear. They need more help in navigating existing regulations and demands rather than

dealing with additional bank requirements. In response, we’ve removed the no deforestation

commitment and will focus on providing practical support to help our customers manage their

risks and contribute to industry-led solutions. We continue to expect all our customers to

comply with vegetation laws and remain committed to our financed emissions targets for this

sector.

Our final sustainability focus area is housing affordability. The root cause of this problem is

supply. What will make a difference is increasing the supply of quality housing at a more

affordable price point. We are committed to playing our part in a coordinated approach to help

more Australians achieve home ownership.

Generally, the Australian economy is in good position, and we are optimistic about the outlook.

The rate relief over the past year has been welcomed by many customers and we're starting to

see this flow through to spending and consumer confidence, though this is finely balanced as

we head into 2026.

Our stable political and regulatory environment continues to be a differentiator, providing

confidence in the nation's resilience and growth potential. However, we must continue to

challenge for effective, reliable and transparent regulation. I think it is appropriate to

acknowledge the commendable stewardship of monetary policy by the Reserve Bank as an

important contributor.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

While risks persist, including lingering inflation and geopolitical uncertainty, there are more

opportunities than threats. For Westpac, I am pleased with our progress. I am energised by the

opportunities we have ahead. I am grateful to our shareholders, customers and employees for

their continued support as we shape Westpac's future.

With the right team, the right plan and disciplined execution, we will continue to build a

stronger, more sustainable company - one that delivers for our customers and creates long-

term value for our shareholders. Thank you.

Steven Gregg: Thank you, Anthony. Well spoken. We'll just wait a few minutes, if we could, folks,

for the media to leave the room. Ladies and gentlemen, we'll now move to the matters in the

Notice of Meeting. The items of business are now shown on the screen. Item 1 concerns the

receipt and consideration of the financial report, the directors’ report and the auditor's report of

Westpac Banking Corporation for the year ended 30 September 2025. This item does not require

a resolution be put to the meeting.

Item 2 concerns the re-election of Peter Nash and the election of David Cohen, Pip Greenwood

and Debra Hazelton as directors. Item 3 concerns the adoption of the remuneration report for

the year ended 30 September 2025. As stated in the notice of meeting, this resolution is

advisory only and is non-binding. However, the Board will take the outcome of the vote and any

discussion on this item into consideration when reviewing the remuneration framework for

directors and senior executives.

Item 4 is to approve the grant of equity to the Managing Director and CEO, Anthony Miller, for the

2026 financial year. Item 5, which includes two resolutions requisitioned by a group of

shareholders. Item 5A requests an amendment to the Constitution, and then item 5B requests

further disclosure on Westpac's customer transition plan approach and the climate

commitments.

Under the Corporations Act, shareholders can propose to move a resolution at a general

meeting. In this instance, a group of shareholders with at least 100 signatories put forward the

resolution in item 5. The Notice of Meeting contains an explanation on why the resolutions are

being put forward, along with the Board's view. Resolution 5A is required to be passed as a

special resolution and item 5B is conditional on item 5A being passed.

The Board recommends that shareholders vote in favour of resolutions 2A, 2B, 2C, 2D, 3 and 4,

and against the requisitioned resolutions 5A and 5B.

The direct votes cast, and the position of proxy votes received on all items of business prior to

this meeting are now displayed on the screen for your information. The direct and proxy votes

received show an against vote for item 5A, which will not be materially impacted by votes

received today, as resolution 5A will not be passed by a special majority, resolution 5B will not

be put to a vote at the meeting.

I would now like to invite the directors who are seeking re-election and election today to address

the meeting. In accordance with Westpac's Constitution, Peter Nash is retiring by rotation at

this meeting and, being eligible, is offering himself for re-election. David Cohen was appointed

on the 1 April 2025, Pip Greenwood on 1 August 2025 and Debra Hazelton on 4 March 2025, and

are all seeking election at this meeting.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

The Board, other than the directors concerned in each case, has considered the performance of

each director standing for re-election and election today. Following this review, the Board

recommends that shareholders vote in favour of Peter Nash, David Cohen, Pip Greenwood and

Debra Hazelton being re-elected or elected to your Board. I have personally enjoyed working

with each of these directors and support their election. Detailed biographies for each of the

directors are set out in the Notice of Meeting.

As I referred to in my opening address, ladies and gentlemen, there have been shareholders

who have expressed concerns with Peter's re-election, primarily because of his prior role at

another organisation. In unanimously supporting Peter's re-election to you, the Board

determined that he has been an exceptional Director for shareholders and has made a

significant contribution to Westpac. I'm very supportive of this.

Peter, I now invite you to address the meeting, please.

Peter Nash: Thank you, Chairman, and good morning shareholders. I'm grateful for the

opportunity to seek re-election, and I do so with a deep sense of responsibility and commitment

to Westpac. For the past seven years, I've been proud to serve on your Board, helping to guide

the Company through significant challenges and necessary change.

Since joining in 2018, during the Hayne Royal Commission, I've directed much of my time

towards remediation and strengthening risk management, which supported the successful

completion of the five-year CORE program this year. This has required a sustained focus on

resetting the Company's - sorry, this has required a sustained focus on resetting the Company's

risk standards, culture, and governance to restore confidence among our customers,

shareholders and regulators.

We've learned a lot from this period, and these lessons remain embedded in how we operate.

As one of the longest serving directors, I’ve sought to bring a steady hand and corporate

memory as we focus on the future.

My areas of expertise are financial and sustainability reporting, strategy, internal controls and

governance, which I apply diligently in my responsibilities as Chair of the Audit Committee and

as a member of the Risk Committee as well as the Board Nominations and Governance

Committee.

This expertise comes from decades of experience in banking and finance, audit and

governance, garnered mainly through my time as a partner and then Chairman of KPMG in

Australia. An executive career at KPMG instilled in me a strong belief that auditor independence

is fundamental. In this regard, I would wish to note for shareholders that I formally recused

myself from the recent auditor selection process that Westpac conducted.

Beyond Westpac, my experiences across ASX-listed companies, which have included

companies that have faced challenging transformation projects, has strengthened my capability

as a Director and I'm now applying these lessons as a member of the Board, including in my role

as a member of the oversight group for UNITE.

I'm proud of the contribution that the Audit Committee has made and what we've achieved in

recent years. We have overseen an improvement in the quality of earnings, disclosure and

reporting. More broadly, Westpac has been through significant change, and this has positioned


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A division of MUFG Pension & Market Services

us for sustainable growth. Leadership has been reset, operations simplified, and risk

management has been strengthened. I'm grateful for the support I've received from my fellow

directors, the executive team, our people, and our shareholders during this time. Should I be re-

elected, I would be honoured to continue to represent shareholders as management delivers

our strategy and the Board maintains strong oversight at a pivotal time for Westpac. Thank you.

Steven Gregg: Peter, well-spoken. David, if I may invite you to speak, please.

David Cohen: Thank you, Chairman, and good morning shareholders. I'm very grateful for the

opportunity to seek your support for my election to the Board.

My decision to join Westpac reflects both my confidence in the Company's direction and my

eagerness to be part of its journey. After a period of necessary introspection, Westpac has an

energised management team, stronger risk foundations, clear strategic direction, and an

organisational mindset focused on transformation and progress. These provide a solid platform

for continuous improvement and sustainable growth.

To support this next chapter, I bring more than 20 years’ experience in Australia and overseas in

financial services, offering informed perspective and sound judgment to help drive performance

and uphold the interests of all shareholders.

During my career, I served as Deputy Chief Executive Officer of the Commonwealth Bank of

Australia. After earlier roles as that bank's Group General Counsel, Group Executive for Human

Resources and Corporate Affairs, and then Chief Risk Officer, including during the Hayne Royal

Commission. Prior to my time at Commonwealth Bank, I was General Counsel of AMP and a

partner at law firm Allens Arthur Robinson.

Since joining the Westpac Board in April, I've served on the Board Risk Committee. Alongside

this, I chair TAL Australia Limited, Australia's leading life insurer, and I serve on the Board of the

Paul Ramsay Foundation and am a member of the Adara Partners panel. If elected today, I look

forward to working closely with my fellow directors and management to support the successful

delivery of Westpac's strategy, building resilience and driving change to create lasting

shareholder value for you. Thank you.

Steven Gregg: Thank you, David. Again, well-spoken. Pip, if I may turn to you please for your

address.

Pip Greenwood: Thank you, Chairman. Good morning shareholders. I'm honoured to stand for

election today, having joined the Westpac Board in August this year. I also have the privilege of

serving as Chair of Westpac New Zealand since 2021. This has deepened my understanding of

banking and financial services and Westpac's opportunities and challenges.

In the past four years, we've made meaningful change in New Zealand from strengthening the

Board and appointing a new CEO to navigating regulatory reform, cultural renewal and

technology transformation. This progress is also reflected in our improved financial

performance.

Serving on both Boards reflects the significant contribution Westpac New Zealand makes to the

Westpac Group, and the importance of New Zealand as one of our core markets. Outside the

banking sector, I am Chair of The a2 Milk Company, and I previously served as a Director of


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Fisher and Paykel Healthcare, Spark New Zealand and Vulcan Steel. These roles have enhanced

my commercial and legal judgement and my focus on building capable high performing boards.

My career began in law, and I have 25 years’ experience in financial services, capital markets,

mergers and acquisitions and governance. As a senior partner of a leading New Zealand law

firm, Russell McVeagh, I advised on many of New Zealand's most significant transactions, and

later served on the firm's board, including terms as Board Chair and interim CEO.

I also have regulatory experience from my tenure on the New Zealand Takeovers Panel where my

primary responsibility was safeguarding shareholders' interests. I believe governance is a team

effort and I will work hard to ensure the Boards I serve on are connected, collaborative and

accountable. My legal background also facilitates open debate, encourages diverse

perspectives and supports rigorous governance standards. Should I be elected today, I will work

alongside my fellow directors to lead with clarity and ambition to drive long-term value for our

customers, and sustainable returns for shareholders. Thank you very much.

Steven Gregg: Thank you, Pip. Well spoken. Debra, if I may ask you please to address the

meeting. Thank you.

Debra Hazelton: Thank you, Chairman, and good morning, everyone. It's been a privilege to join

the Westpac Board as a Non-Executive Director, and today I seek your support for my election to

the Board.

Since joining Westpac in March, it's become clear that the organisation has entered an exciting

new phase of transformation and growth. Leveraging a strong financial foundation and robust

risk culture, your Board and management are driving change for better customer outcomes and

improved long-term performance.

I'm very pleased to have the opportunity to support Westpac's strategic direction by bringing

more than 30 years of global financial services experience and proven governance expertise

across both public and private companies - company boards.

My executive career included CEO roles in Japan and Australia, alongside senior roles in

corporate and project finance, capital markets, treasury and organisational culture. In my

current capacity as Chair of Export Finance Australia, I work closely with Australian and

international governments to provide strategic finance to help secure the economic resilience

and security of Australia.

This experience has deepened my understanding of risk management, regulatory engagement,

and strategic capital allocation. These are all capabilities which are relevant to a bank operating

in a complex, highly regulated and globally connected environment. I also serve on the Australia

Japan Business Co-operation Committee and hold Non-Executive Director positions at Persol

Holdings Company Limited and Australia Post.

During my tenure as Chair of AMP Limited and AMP Bank, I led governance improvement during

a period of complex transformation.

As the Chairman mentioned earlier, subject to my election today, the Board intends to appoint

me Chair of the Remuneration Committee at the conclusion of today's AGM. My focus will

remain on keeping remuneration aligned with performance outcomes and strategic priorities,


MUFG Corporate Markets

A division of MUFG Pension & Market Services

supported by strong governance and accountability. I will also work closely with my fellow

directors to apply disciplined oversight that safeguards Westpac's stability through this period

of transformation, while driving sustained and sustainable growth, and long-term value for our

shareholders. Thank you for your consideration and support.

Steven Gregg: Thank you, Debra, well-spoken. I must say thank you to all the directors who

spoke, all high-quality people, and I am delighted, as is the rest of the Board, that these

directors are on your Company's Board of Directors.

Ladies and gentlemen, I would now like to invite Mr Kyle Robertson from Market Forces to speak

to the meeting on resolution in item 5. I would just like to note that Kyle has been kind enough to

come into Westpac and talk with our people, particularly Fiona Wild, and I must say they've

been very constructive discussions, so thank you, Kyle. But if I can hand it over to you, please,

before we go to questions to the general audience.

Kyle Robertson: (Market Forces) Thank you, Chair and the Board, and greetings to shareholders

present in this room and online. I'm speaking on the resolution at item 5B, customer transition

plan approach and climate commitments.

Westpac proudly claims to be the first Australian bank to have committed to managing its

business in line with the goals of the Paris Agreement. For years, the science on what is required

to achieve the Paris Goals has been clear. The world needs to rapidly reduce fossil fuel

production, the single largest source of greenhouse gas emissions. For a financial institution

like Westpac, the implication of this has also been clear for some time.

It is essential to stop funding companies increasing their fossil fuel production. Three and a half

years ago, Westpac announced that from 2025, it would no longer provide finance to upstream

oil and gas companies without credible transition plans aligned with the goals of the Paris

Agreement. Current CEO Anthony Miller said at the time, that if a company lacked a plan to

transition its business, adjust its model, or exit what it was doing to ensure that we get to net

zero, it would not be provided with any type of financial support.

It was a critically important policy for Westpac to deliver on its climate commitments, and

perhaps, more importantly, a clear signal to the fossil fuel industry that business as usual would

result in a loss of financial support from one of the world's major commercial banks.

Yet here we are at the end of 2025, and rather than delivering on this critically important

commitment, Westpac has instead opted to put itself in a position to continue funding

companies expanding fossil fuels indefinitely.

How did this happen? Well, just months before this longstanding policy was due to come into

effect, Westpac took the opportunity to weaken its transition plan requirements in a clear effort

to accommodate clients which have absolutely no intention of transitioning away from coal, oil,

and gas. Upstream fossil fuel clients are now no longer required to have plans to reduce Scope

3 emissions in line with the goals of Paris, despite it accounting for up to 90% of their emissions

profile.

The vast majority of these emissions come from the coal, oil, and gas these companies sell to

their customers. In essence, Westpac has changed its policy to make it possible to continue

financing companies expanding coal, oil, and gas in a climate crisis.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

We are now 10 years on from Paris. Emissions from fossil fuels have continued to reach all-time

highs consistently over the last decade, with a new record due to be set in 2025. This has been

allowed to occur in no small part, due to the enormous amounts of debt provided to the fossil

fuel industry by the world's major commercial banks over the last decade. By continuing to

finance fossil fuel expansion, banks like Westpac are enabling a handful of companies to trigger

catastrophic and irreversible climate collapse.

Westpac would know what its clients are doing and continues to support them anyway. Earlier

this year, Westpac took part in a $12.9 billion loan to BP, around the same time the Company

announced that it was abandoning its renewables diversification strategy and pursuing up to 20

oil and gas expansion projects by 2030.

In June, Westpac loaned over $85 million to Woodside, a Company which just two months

earlier sanctioned one of its biggest ever LNG projects, the Louisiana LNG development, in the

United States. This decade alone, Woodside will be spending almost US$30 billion on new oil

and gas projects. Apparently, this hasn't been enough to make Westpac reconsider its support.

Finally, in November, just a month after its requirement for transition plans came into effect,

Westpac acted as a co-manager on a $1.5 billion bond for Santos, a Company pursuing up to

three oil and gas expansion projects, and just announced plans to begin drilling in one of

Australia's biggest gas fracking developments, the Beetaloo sub-basin.

Last month, the UN warned that the world is heading for warming of up to 2.8 degrees, based on

planned levels of fossil fuel production. It's worth dwelling on what such catastrophically high

levels of warming will look like. We will see more extreme climate events like bushfires, floods,

droughts, and longer-term chronic issues like coastal erosion and sea level rise.

Australians would be all too familiar with the events like Black Summer bushfires and the 2022

flooding events on the eastern seaboard, which will become more common and more severe if

the world warms to the levels it's projected to.

It's not clear why our bank continues to jump through hoops for a minuscule portion of

customers that represent less than 1% of our lending portfolio, yet whose expansion plan so

blatantly puts into jeopardy the stability and security of the other 99% of our clients. This

weighting of support for irresponsible and reckless fossil fuel clients is not in shareholders' best

interests.

If Westpac is committed to the goals of the Paris Agreement, as it says it is, it should be

withdrawing financial support to clients that fail to present a credible transition plan just like it

said it would over three years ago. We strongly urge all shareholders to vote in favour of this

resolution, not only for a better planet, but for a better future for our bank. Thank you.

Steven Gregg: Okay. Thank you, Mr Robertson. Point's taken. I'll now take questions on all items

of business. We request that shareholders' questions that are asked today are relevant and to

the items of business at hand or the management of Westpac. Questions on customers or

personal matters will not be addressed during this meeting.

Where you have a banking question, one of our customer representatives will contact you

separately. Senior management and Evelyn Halls, Westpac's customer advocate, are also

available to meet shareholders outside in the foyer after the AGM.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

If you wish to ask a question, please respect that we want to allow as many shareholders as

possible the opportunity to participate today. I'll accept up to two consecutive questions or

comments from each shareholder before moving to a question from the next shareholder.

All questions, ladies and gentlemen, should be directed to me in the first instance. I may refer

the question to another person for response, if appropriate. If you'd like to ask a question in the

room, please move to one of the microphones or request a roving microphone, if you are joining

via the webcast. Please submit your questions now. Can I take the first question, please?

Number one, yes.

Moderator: Mr Chairman, I would like to introduce Mr Michael Sanderson.

Steven Gregg: Thank you.

Michael Sanderson: (Shareholder) G'day Board.

Steven Gregg: Mr Sanderson.

Michael Sanderson: (Shareholder) Mr Sanderson. Kia ora to those funny talking people. I notice

Winston is still running the company over there. Can you put the mic up please? Is that better? I

suppose one thing that Westpac can take from today is you're not ANZ. They're having their

Westpac moment this year.

To put you on warning, I've got four questions for general business and one for each of the other

items. I'll stick to the protocols. SaferPay, SafeCall, SafeBlock and in-app scam reporting are

described in the Annual Report as digital innovations that, and I quote, help to further reduce

reported customer losses by 21% and prevented $360 million in potential losses. Yet nowhere

does Westpac disclose the base number for those figures they relate to.

If 21% reduction is worth $360 million, my back-of-the-envelope calculation suggests scam

exposure of around $1.7 billion, with customers losing roughly $1.35 billion. Are those ballpark

figures wrong? Will you disclose the total amount that customers actually lost in digital scams?

How much was lost to digital scams versus non-digital scams? Would it be true to say the scam

is not digital, rather digital banking is the scam?

Steven Gregg: Mr Sanderson, as Anthony mentioned in his report, this is a very important part of

our business. We've spent over $500 million on scam prevention through various things, and we

see ourselves as the market leader in this. As to the exact numbers, we don't disclose those for

privacy reasons. But Anthony, have you any observations on that, please?

Anthony Miller: Well, I'd acknowledge that in this digital age, the format in which people are

prosecuting scams against customers of the bank are via that digital channel. What that

highlights is that actually we have a role to play in helping protect our customers. But more

importantly, an entire ecosystem needs to work collectively to deal with it, and so therefore, the

telcos, who obviously facilitate the communication via digital channels. Likewise, the social

media platforms, which are really important contributors to where scams are coming from, all

have a role to play in helping us mitigate and minimise scams.

You've called it out. Digital has facilitated a lot of scams. The industry is working very hard, but

it's an ecosystem defence if we're going to succeed here.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Michael Sanderson: (Shareholder) All right, I'll take that. My second question. Westpac told the

recent HEC committee that many customers still have to present concession cards or attend a

branch. Westpac closed more than 400 branches since 2015, including at least 100 regional

branches.

Westpac only recently paused further regional closures while promoting digital transformation

and committing to regional prosperity and digital inclusion in your 2025 reports. How many

concession and other vulnerable customers now cannot reasonably provide physical evidence

because their local branch has been closed or is hours away? What are the concrete non-in-

person verification methods beyond the vague claim that we can identify payments is Westpac

using to prove eligibility without travelling or posting documents?

Steven Gregg: Mr Sanderson, the whole branch discussion is an interesting one. We are in fact

opening branches at the moment as well as closing ones that are not economic. As of today, we

have 620 branches, we have 3,000 outposts with our bank post relationship, and we have 6,500

ATMs where people can access Westpac services. We've put a moratorium on regional branch

closures until 2030, and we're seeing the benefit of having some of those reopened in certain

country towns. But I'm going to hand it to Anthony to talk about exactly how it's working with

people with concession cards.

Anthony Miller: I just want to acknowledge it's a very good question and it is the challenge that's

in front of us. 96% of what people are doing with the bank is digital, is online. Everyone is pretty

much moving in that direction and so, therefore, the challenge for us is, how do I provide the

service that customers need where and how they need to be served, whether that be in person,

on phone or digitally? And so, that's the work we're doing.

In terms of processes by which we check a concessional card, I'll have to take that one on

notice in terms of just where our work program is on that. But the idea and the work we're doing

in terms of regional Australia is trying to make sure, through combination of the branches we

have, the partnership we have with Bank@Post, the ideas that we're now introducing, which is

to have bankers visit towns and be available in that town to help customers in these particular

situations, is all part of the work we're doing to say, how do we find a better solution for the

customers of Westpac so that they get served where and how they want to be served? That's

work that's underway.

We're experimenting, as I said, with bankers in towns. We're reopening service centres in Moree

and other towns. To the extent that those propositions work, we will continue to expand and go

after that throughout Australia.

Michael Sanderson: (Shareholder) Ok, I'll leave it at that. I've got other questions on that matter

but let someone else have a go.

Steven Gregg: Great. Thank you. We have a question over here, please. Thank you.

Moderator: Mr Chairman, I would like to introduce Ms Natasha Lee.

Steven Gregg: Thank you.

Natasha Lee: (Shareholder) Thank you, Mr Chairman and Board.

Steven Gregg: Thanks, you're welcome.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Natasha Lee: (Shareholder) Good to see you again, Steven. I've got a couple of questions which

I'll give now, and I'll come back to others later. As far as your UNITE, one best way philosophy

technology-driven program, I just want a bit of clarification. I understand that you, along with all

the other banks, are looking to simplify services and you're getting rid of or updating legacy

systems.

The concern is that with AI-driven technologies, there probably tends to be a move to

pigeonhole customers and not all customers are necessarily going to fit into that. I don't know

whether you have voice recognition technology. But obviously people from non-English

speaking backgrounds or other things like speech impediments have trouble with those

technologies.

I know you did say that you do have that sort of human element where the people behind it are

still going to be there. But that part of it, I think we just need clarification and assurance that all

the customers' needs are going to be catered for. On a similar point, you've got your different

brands, Westpac, St.George, BankSA, and Bank of Melbourne. Are we going to lose the

differences between those banks and pushing everything together under UNITE? Or how are we

going to distinguish and use for marketing the individual characteristics of those other brands?

Steven Gregg: Natasha, I'll have a go at this, and again I'll ask Anthony to pipe in. UNITE is a very

major project for this organisation. It's going to take another three, three and a half years to

complete, and it is essentially a simplification program where we are taking out too much -

we've got a lot of good systems in Westpac, but we've got too many systems, so we're going to

simplify it down to a more manageable number.

It is going to reduce the risk in the system and improve the quality of the service we can provide.

Amongst all of that, we've got to look into the AI revolution as well to see how that fits into a

more simplified and better-quality proposition for our clients and our bank. All of this is in

discussion at the moment within the bank, so it's live and current, as we say. Yes, we'll look into

voice recognition. That's where AI is particularly good - voice recognition to serve a broad range

of communities, those who are non-English speaking as well as obviously those that are, so we

take that point on notice.

Anthony Miller: Look, it's an excellent question. There's a lot in that question. I would just say

the whole focus on UNITE is, as the Chairman's identified, which is to consolidate the way we

do things into one way on one digital or one technology stack. But the whole purpose of it is,

therefore, to ensure that we can serve our customers better and more efficiently and more

consistently.

Then tools like AI are tools that we intend to use for the very challenge you've just set out, which

is that there may be someone with language issues or inability to connect with the Company.

How does the AI tool help us deliver on that? You've thrown the challenge out, which is what

we're working on, and which is why it's going to take us three years to consolidate everything

onto one system, is to make sure that we do it in a way where all the customers we have are

served where and how they want to be served, whether that be digitally, whether that be in

person, or whether that be virtually. That's the work, and that's why it's 36 more months from

here before we get there.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: With regard to the branch discussion – oh, the other brand discussion, I should

say, Natasha, we have some wonderful brands within Westpac, and we've just got to look at that

brand equity, what it means to our clients and how it fits into the greater tech system before we

make any decisions. But we'll look at that over the next two to three years.

Natasha Lee: (Shareholder) Okay. Thank you. The other question concerns trading with China.

As you appreciate that China is the major customer of Australia. From what I understand is that

the Chinese government, or Chinese companies, are pushing for payments in Chinese renminbi

rather than other currencies like US dollars. What steps or preparations are being made at

Westpac to allow overseas transactions to be settled in Chinese Yuan or renminbi?

Steven Gregg: Do you want to have a go at that?

Anthony Miller: Really good question. Maybe one of the more important topics that we as an

executive team are working on, which is the way payments are made, whether it be domestically

and now in particular how they're made internationally is rapidly evolving. All of a sudden,

alternative currencies, where classically the international exchange rate is really effective

through the US dollar, there's increasingly situations where customers may need to pay or

receive in Chinese renminbi or in other currencies.

The challenge or the work we're undertaking is how do we make sure that we support our

customers such that they can receive and pay in the currency that they want. You heard me

speak about Westpac One, which we're just piloting now. Its capability is such that it allows us

to provide that solution to our customers as we deliver that over the next 36 months.

Natasha Lee: (Shareholder) Okay, thank you.

Moderator: Mr Chairman, I'd like to introduce Mr Brendan Hyde.

Steven Gregg: Thank you very much. Welcome, Mr Hyde.

Brendan Hyde: (Shareholder) Thank you. I'm hoping this is not too trivial. I'm a customer of both

St.George and Westpac, of course. I'd like to comment that really personal attention that you do

get when you go to one of the banks there. You've banked at other banks and it's just

impersonal. I always feel they're very helpful and personal. I wanted to make that comment. It's

a real commendation. I'm of another generation. I think they call us dinosaurs. I like to have

everything in a manila folder that's a hard copy, and I wanted to commend - I hope that cheques

still keep going for as long as you can. They are very useful when you've got to transfer over

$100,000 for real estate or buying shares. I know they’re going to end soon, but it's very useful to

be able to have cheques just for that.

Look, I'd like to comment on a little glitch that's been going on for two years with a major

account of mine with the term deposit, just trying to get a hard copy of it. Unfortunately, it was

opened up by the email, the e-system. The bank has continually tried to help me. I've had

continual applications into the very helpful staff. They all say, don't worry, we've all fixed it.

We've turned it off. You'll get a hard copy. But you never do. It's been going on for two years. Even

this morning, I got an email saying, we're not going to send you a hard copy on your renewal

term deposit. I just wanted to bring your attention there is some little computer glitch that needs

to be fixed.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Thank you, Mr Hyde. Two good questions, and I'm verging on being a dinosaur

myself, so I do associate with that. Not quite there yet. With regard to cheques, I'm sorry to say

it's probably a dying breed, unfortunately. Like you, I have chequebooks. But I think we'll find

over the next few years it'll be legislated out of existence in this country. I think you ought to use

it while you can, because probably in the next five or so years it might not be there. With regard

to your glitch on your statements, I'm sorry about that. Let's see if we can fix that. I might ask

Evelyn to see if she can chat with you after this event so you can get some action there. Thank

you for that.

Anthony Miller: Thanks, customer of both St.George and Westpac. That's gold dust, so thank

you.

Moderator: Mr Chairman, I'd like to introduce Robert Caterson.

Steven Gregg: Thank you. Welcome.

Robert Caterson: (Shareholder) Thank you for listening to me. My question is that at the present

time, Westpac sponsors two major sports in this country at the present time, one being the NRL

and one being cricket. The question I have with the NRL sponsorship, do you actually look at,

say, the state of origin jersey where our logo is presented next door to a gambling organisation

and an alcohol organisation?

Do we have in place the same amount of financial sponsorship to domestic violence charities

or assistance groups, gambling awareness groups and these sort of groups? Because I believe

that the NRL is quite well served, not just by Westpac, but a lot of other gambling organisations

that influence the game in a negative manner.

We've seen a lot of activity - you know, media, and I'm not sort of quoting - that's not in the

public domain now - things like money laundering, game fixing, you know, players that

misbehave all the time. I don't think our logo, our very respected logo, should be next door or

presented next door to a lot of these gambling organisations.

Our governments have failed because they've been influenced by these gambling organisations,

and the hotel industry to a large extent, and we need a lot of corporate support to look after our

community.

Now, it's useless giving hardship support to families that have been affected by gambling. Same

with alcohol. We see a lot of domestic violence happen because, you know, people have over

gambled. Same with alcohol, and we need to desperately do something to change this culture.

My second question is with respect to the dividend performance of this Company. Now, I've

been here - this would be my fourth meeting, asking the same question. What happened to the

2020, and I know there's a couple of directors here, of our interim dividend? Westpac, along with

ANZ in the same year, deferred that dividend. Now, my understanding of deferment means there

is a dividend there and you're going to pay it.

In the same year, ANZ paid that dividend in October at 30 odd cents. Now, I'm yet to receive any

notification of where that dividend was cancelled. When you look at this bank's performance in

terms of its other peers such as the NAB and ANZ, they've raised their dividends and we've had -


MUFG Corporate Markets

A division of MUFG Pension & Market Services

with respect to Anthony Miller, my mind is quite open to his performance, but the previous two

CEOs have not performed and brought the dividend standard up to what Gail Kelly did.

You know, Westpac's dividends were above 90 cents a share. The other banks have brought their

dividends up to pre-COVID levels. This bank hasn't. I noticed on the big screen there that we had

a 1% increase in the dividend. Well, that is not good enough. Can I have answers to my

questions, please?

Steven Gregg: Sure, Mr Caterson. Let me have a go at the NRL to start with. I'm a supporter of

the NRL in a number of my capacities, and it's, I think, a wonderful organisation. But like all

organisations, it has to do with these sort of issues. None of us like to see hardship that

emanates from anything, be it gambling or alcohol. They are acutely aware of that, and they are

onto it. But it's a legal form of, I guess, recreation activity in this country and we aren't going to, I

guess, go against that.

We are aware of it, though. But I think as an organisation that it's worth supporting and is close

to our customer base in the states that we operate in predominantly, it's an extremely good

avenue for us to sponsor. I'm very aware of your comments and I respect those, and none of us

want to see a hardship like that. But I think the NRL is up to speed on dealing with it.

With regard to the dividends, if I could just make a couple of comments, I'll look into that for you

if I may. This year we're paying $0.77 a share, $1.53 for the full year. That's a 75% payout. It is

close to the top end of our range. I think right at the moment, my number one priority and the

Board's number one priority is the safety of this organisation, and that's why the dividends are

where they are. They're full, but they're not as high as you may like them. But our aim at the

moment is to keep this organisation safe and secure, with the level of capital we have,

particularly in the context of a big expenditure program coming on Board for the next two or

three years. When we get through that, the aim is to have a much more efficient organisation

which can then lean back more heavily into paying higher dividends. So, I hear you.

With regard to the ‘20 dividend that was apparently deferred. Let me look into that as to what we

actually said then and what it means. But I do thank you for your conversation and your

questions. Thank you.

Robert Caterson: (Shareholder) It won't help. Previously - I don't know whether you're still doing

it - but share buybacks don't really help either.

Steven Gregg: No, I understand that, and I understand the value of franking credits.

Robert Caterson: (Shareholder) It doesn't help me because I don't want to sell my shares. I just

want the shares to perform a lot better, thank you.

Steven Gregg: Good. Okay, thank you.

Moderator: Mr Chairman, I'd like to introduce Ms Carol Limmer.

Steven Gregg: Thank you, Ms Limmer. Thank you.

Carol Limmer: (Australian Shareholders’ Association, Representative) Carol Limmer from the

Australian Shareholders’ Association, and I hold 786 proxies, which is about 4.5 million open

votes, which is quite a high Westpac shareholder. First off, I've got a couple of compliments on a


MUFG Corporate Markets

A division of MUFG Pension & Market Services

positive note. The Annual Report and Notice of Meeting explanatory notes considered very

comprehensive, thank you. Also, I mentioned that I attended the recent sustainability market

update, and there was plenty of opportunity for people present to ask questions, and the

answers given to attendees by various executives were good, so thank you for that.

Steven Gregg: Thank you.

Carol Limmer: (Australian Shareholders’ Association, Representative) But on a negative note,

the changed arrangements with the hybrid meeting where non-attending shareholders cannot

vote at the AGM makes it more difficult for retail shareholders to participate fully in their

Company's AGM. They lose the ability to listen to the meeting, decide an issue, and then vote.

They've got to vote beforehand. Could you speak about the reasoning behind the decision, and,

specifically, what is the benefit to the Company that justifies the detriment to shareholders?

Steven Gregg: Thanks for that question, Carol. Yes, we have changed it this year, and the reason

is one of both cost and efficiency. But also, in our experience over the last few years, there's

been minimal online voting, almost none, and no telephone questions in the recent years. It was

a facility we provided, but no one was taking it up on it, so we just felt it would be best for

efficiency's sake just to change the style of the meeting, no more than that. Thank you for your

kind words too. Management are very good at these presentations. Thank you.

Moderator: Mr Chairman, I'd like to introduce Mr Lewis Gomes.

Steven Gregg: Thank you.

Lewis Gomes: (Shareholder) Thank you, Mr Chairman, and good morning, directors and

shareholders. I appreciate, and I think we all appreciate, that Westpac's finally dealing with its

technology upgrade. This has been a long-standing issue. We've been waiting years for action.

We're pleased that it's finally happening through the UNITE program. I think it was the CEO

mentioned in his speech this morning eight initiatives completed and 51 across the four

businesses, and a promise to keep us informed as to progress.

I'd like to know what the expected cost of this program is overall and how long it will take to

implement. Now, I think you answered that question in relation to Natasha's question. You said

three and a half years. When I looked at the Annual Report, page 17, it advises the total

investment to spend, and I'm assuming it was for FY25, was $1.9 billion, of which 34% was on

UNITE. Hence, UNITE expenditure, roughly $650 million for FY25, if I've interpreted it correctly.

I'm not sure whether we multiply $650 million by three and a half times for three and a half

years, or quite what the number is. But can you give us an indication as to what the total cost

will be? I think with your regular reporting, which we're keen to understand just how that will

take place, I think it's really important that we, as shareholders, have confidence that this

program is working, that it will deliver. Because as you would know, we've seen other banks

promising to significantly upgrade their systems, and it just hasn't worked. It's been too

complicated. Mr Chairman, either through you or the CEO, if you can give us some assurance

about the overall spend and your confidence in actually delivering on your promises? Thank you.

Steven Gregg: Sure. That's a very good question. Thank you for that. Now, you can't quite

extrapolate the first year for the three and a half years, and I'll get Anthony to talk to the exact

numbers in a minute, but it's more like $3.5 billion over the three and a half to four years period.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

UNITE is a terribly important project for us, and, like most people, I'm acutely aware that a lot of

these projects often run over time and over budget, so we're working very hard to ensure that

that doesn't happen. We have Accenture advising the team on the project. We have McKinsey

providing assurance on the delivery of the project, and we have a Board subgroup, which is

comprised of Andy Maguire, Nerida Caesar and Peter Nash, who sit on your Board, overseeing

that as the Board representative. We take it very seriously. Anthony will speak in a minute to just

how we're progressing with that and the rigour that we are undertaking it.

Anthony Miller: Yes, no, great question. This is the challenge and opportunity that sits in front of

myself and the leadership team. Yes, it has to be done. We're very clear about the outcomes

that we need to deliver as a result of UNITE. I just want to sort of emphasise that what UNITE's

about is we have some very good technology in Westpac, but we have a duplicative set of

technology and systems and processes.

What we're doing is identifying the one best way of doing mortgages, deposits, other processes

for our customers, and making sure we do that one way on the one target technology stack that

we have inside the Company, and then, as a result of that, that means we can shut down and

remove duplicated systems, products, processes. That will help us reduce the costs to run and

further reduce the cost in how we change and manage the Company going forward. We've got

those outcomes very clear in front of us.

With the plan that we have in front of us, we think we will expend - approximately 40% of our

annual investment budget will be allocated to getting UNITE done. With our current work plan

and some really good progress, we think that we'll be delivering the outcomes and completing

the program in FY29. My goal would be that it's in the first quarter of calendar year 2029 that you

will see us advising that the project is broadly completed, all those duplicate systems are shut

down, and we start to enjoy the benefits of a simpler, faster and easier Company to run with

costs and outcomes for customers.

Lewis Gomes: (Shareholder) Thank you.

Moderator: Mr Chairman, I would like to introduce Mr Paul Fanning.

Steven Gregg: Thank you. Welcome, Paul.

Paul Fanning: (Shareholder) Thank you. Thank you, Anthony, and welcome to the Board. Thank

you, also, Steven, or both of you, for your addresses today. I really have a bit more than two

questions. I might jam a third one in. Whoever writes the financial highlights from the market

release, paragraph 3, it's ambiguous. Now, I would like to think that probably someone in

investor relations is actually writing this, but it's clouded with ambiguity. Now, clearly this is not

good.

The first page of your financial highlights for your FY25 release is not really very good at all.

That's this page there if you want to see it. You probably don't have that document with you.

There's basically confusion against really what the level increases of deposits and loans are

across the different banking divisions. I would like to think that when these reports get written,

someone actually verifies them and naturally really thinks, well, is this logical? Does it really

make sense? I've been to many AGMs in the past and I raise issues which are right to the core of

the business.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Can someone please look into that and perhaps do a little bit more vetting when you put these -

this is probably more a small investor release and to try and get it fixed for the future. I'm happy

to discuss in detail, Anthony, with you or with Steven after the meeting because we really need

to cut the chase.

Anthony Miller: Well, thanks for the question and appreciate you've taken the time to read the

materials published in detail, so thank you. I'm lucky that we've hired the best CFO in the

industry who now works at Westpac. He's here today, Nathan Goonan. What I will do is invite

you, after this morning's session, to sit down with Nathan because any feedback in relation to

how we've disclosed to our shareholders what we're doing and how we're going about it, if you're

not happy with it, we're pretty keen to hear that feedback.

Paul Fanning: (Shareholder) Well, can I have a talk to both of you later also, perhaps the three of

you?

Anthony Miller: Yes.

Paul Fanning: (Shareholder) I think we really need to get the messaging out much clearer.

Anthony Miller: That's very fair, of course, Paul.

Paul Fanning: (Shareholder) Okay, two other things. One is page 52 of the Annual Report on

corporate governance. I'm known to go to different AGMs, be they banks or elsewhere, and the

Board Skills Matrix, I would like to see it actually defined by the particular director. Now, what I

do depict is that under the guise of technology, digital and data, the skill matrix seems to be a

bit light on. From what I see, financial and strategy is good, which it should be, but we're moving

in a technology paradise, and we have so many scams, and the bank is working hard on their

technology.

But really, if the Board directors don't really have a clear understanding of technology data and

digital concepts, which is what this table is suggesting, I would like to say, well, who do we

have? Perhaps, like other companies who are emerging, , we need to define them by name of

director.

Steven Gregg: Yes. Well, my view on that a little bit is we can probably give a bit more detail as to

the number of directors and how it transpires into their, I guess, their expertise, but I don't think

it's helpful to name directors in that sphere.

Paul Fanning: (Shareholder) Why?

Steven Gregg: Because I don’t think it serves any purpose for you to look down and point at

individual directors. I think you need to know that there’s the quality on the table for each of

those skills, but naming directors, I don’t think serves a purpose, is my view, but I hear you.

Thank you.

Paul Fanning: (Shareholder) I'll throw a third question. In regard to Board election, Pip

Greenwood - and Pip might like to respond to this directly through the Chair - Pip, I noticed that

you're currently a Chair of Westpac New Zealand and you're about to be appointed to the

Westpac parent Board. Is this normal corporate governance to have a director of a subsidiary

company also as a director on the parent company?


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: I'll take that one, Paul. Yes, it is. Over the last 20 years, I mean, Westpac has

previously had the Chairman of the Westpac New Zealand business on our Board, main Board. I

think you'll find two or three of the Australian big four have the Chair of their New Zealand

operation on their main Board. It's very common practice.

Paul Fanning: (Shareholder) Okay, thank you, that's my question for the moment.

Steven Gregg: Thanks for your questions there, I look forward to you having a chat with Nathan

afterwards. Thank you.

Moderator: Mr Chairman, I have another question from Mr Kyle Robertson.

Steven Gregg: Thank you.

Kyle Robertson: (Market Forces) Good morning again.

Steven Gregg: Good morning.

Kyle Robertson: (Market Forces) My question is for Anthony Miller. In 2022, Anthony, as Head of

Westpac's Institutional Bank, you introduced a new policy which stated that Westpac would

only finance upstream oil and gas companies with credible transition plans in place by 2025. A

credible transition plan was defined as one aligned with the 1.5-degree goal of the Paris

Agreement, included the client's Scope 1, 2, and 3 emissions, and was based on the best

available science.

Quotes attributed to you at the time stated that oil and gas are at the epicentre of what we need

to solve to reduce our use of fossil fuels. Another quote regarding the policy said that Westpac

was publicly putting down a stake in support of global efforts to get to net zero with this policy.

The article is still up on Westpac's website today. Another quote attributed to you stated that, if

you don't have a plan that stacks up that's credible and scientifically backed to transition your

business, to adjust your model, or exit what you're doing to ensure we get to net zero, then you

will not be supported, whether that be debt or equity or banking.

But here we are in 2025. You are now the CEO of the bank and within months of assuming this

role, and just a few months before this policy requirement was due to come into effect, it was

dramatically watered down. What Westpac has in place now is not even close to the science-

based and Paris aligned commitments that the bank introduced back in 2022. My question is,

given that you made these public statements and enthusiastically introduced this policy three

years ago, why was it watered down before it even came into effect?

Steven Gregg: Kyle, why don't I take that first and I'll ask Anthony to comment in a minute if we

could. I think you'll find that the level of disclosure we have, the way we're looking at our client

base at the moment is a material improvement on how it was then. We are more open about

what we're doing. As you're aware, we are the largest financier to renewables in this country, by

far. We have zero lending to thermal coal. Sustainable financing is up 37% just on this year

alone.

We as a bank have reduced our Scope 1, 2 emissions by 89% in the last four years. I think you'll

find that when you go through and look at our plan for how we define whether our companies

and our clients should be supported or not is very rigorous. There are four tenets for it. There's

targets, strategy, capital outlay, and governance. We require all the companies in this country


MUFG Corporate Markets

A division of MUFG Pension & Market Services

that we bank to fulfill that. They have to have a plan that leads to a well under Paris aligned two

degrees by 2050. You know that. We've gone through this in some detail.

One of the things we won't do as a Company is abandon our clients, though. As you're also

aware, less than 0.1 of 1% of our total exposure is to upstream oil and gas companies. As a

Company, I'm very comfortable where we're at and how we're approaching it, and the rigor that

we have in looking at our companies. We also ask all our companies - our clients to look at their

Scope 3 as well, and to have a credible plan there. They need to have something where it is

disclosed how they're looking at it, their ambition, and their plan to get there.

We can't do much more than that. What we are simply not going to do is debank clients that we

believe are fulfilling those requirements. In the current paradigm where gas particularly is an

energy source that not only government, but an email as of yesterday has discussed that this

country and the world needs to transition, to debank clients that fit in those categories you're

talking about, I don't think makes a huge amount of sense.

I'm terribly sympathetic to what you're saying, but I think the practical nature of how we're

looking at it, I think, is how we ought to look at it. Just before you answer, Anthony, any

observations from you?

Anthony Miller: Oh, look, thanks, Chair. I think you've addressed most of the points I'd

emphasised. But since we announced that target we'd set ourselves in 2022, our exposure to oil

and gas extraction is down 55%. It's less than 0.1% of the entire exposure the Company has.

We're working really hard at it. But I think everyone needs to understand the transition is hard.

The transition is going to be more complicated than simply putting a target on a page and then

feeling really good about yourself.

The simple fact is, is that we've got to work with the community and we've got to work with the

country. As energy demand has gone up, unfortunately, the amount of renewable capacity in the

system has not kept up with the increase in energy demand. Therefore, as a result, more gas is

needed. As Australia's oldest bank, our job is to support the country and we're supporting the

country in terms of the transition. As we continue with that effort, things will continue to evolve

and change, but it's all about doing the right thing by the community, right thing by our

customers and the right thing by the country.

Kyle Robertson: (Market Forces) Can I just go back to a point that you said, Steven, in particular,

which I think is actually pretty interesting admission. You said that we won't debank our clients,

but that's what you said you would do three years ago. It sounds like there isn't a threshold that

a company could breach for Westpac to say...

Steven Gregg: No, Kyle, what I said was we won't debank our clients if they meet the criteria that

we are asking them to meet.

Kyle Robertson: (Market Forces) Which is a less rigorous criteria than was set in 2022.

Steven Gregg: Well, I think you'll find that it's actually more rigorous in terms of what we require

them to undertake. We've stated that and listed that out.

Kyle Robertson: (Market Forces) I'm curious as to how it's more rigorous when the current

requirement is for Scope 1 and 2, which is 10% of their emissions profile. You've now omitted


MUFG Corporate Markets

A division of MUFG Pension & Market Services

the previous requirement for Scope 3, which was 90%. How can you possibly sit here today and

say that it was more rigorous than what it was in 2022? 2022 was a very, very clear definition of

what a credible transition plan was, and it was very clear that it had to be aligned with the goals

of the Paris Agreement.

Anthony Miller: I would just interject on one point, which is we do require these customers to

have a Scope 3 plan. We require them to set out clearly for us what they intend to do on Scope

3, they need to disclose it to us, they need to have an ambition, and we appraise and assess that

in determining whether they are genuine in what they need to do and how they can contribute to

the transition everyone needs to undertake. So, we do include Scope 3.

Kyle Robertson: (Market Forces) Okay. Do you accept that if a company is expanding fossil fuels,

it doesn't have a credible transition plan?

Anthony Miller: What is unfortunately the fact, and I know it's difficult in terms of - because

people want otherwise. But energy demand has continued to increase. The capacity to solve

that energy demand with more renewable power generation, it just simply hasn't grown as fast.

Now, just for the record, 89% of what we lend is to renewables. We're very committed and are

the largest provider of renewable financing in the country. But the fact is, is the demand of

energy has grown. It's grown faster than what renewable energy has been able to do to solve for

that. As a result, in the context of the transition, the best alternative is gas, and that is why the

gas equation is still a very important one for Australia. I know back in 2022 the goals were a

structural reduction in gas demand over time. Guess what? It's a structural increase in demand

for gas over time because energy demand has increased and the amount of renewables is not

meeting that demand. We just need to keep working hard at it.

Kyle Robertson: (Market Forces) Final point I'll make is, when you talk about the transition, it

sounds like you're very much referencing an Australian context when a lot of your clients, the

vast majority of gas projects they want to develop are for export, where they will be exported to

economies in Asia, where the goal is to lock in base load gas power aligned with catastrophic

levels of warming. It is not, for the most part, related to the energy transition in Australia.

Steven Gregg: I think you'll find gas is a transitional power throughout the world, Kyle, it's not just

Australia. Countries that it's exported to will use it as well for that purpose. If you go to

Singapore, for example, a question was asked of one of the very big sovereign funds there, what

is your view on the gas? They looked at us like we're idiots. We said, well, why are you asking that

question? Without gas, Singapore does not exist. You'll find that gas is a transitionary energy

source in a lot of the parts of the world, not just Australia.

Kyle Robertson: (Market Forces) Thank you.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I would like to introduce Morgan Pickett.

Steven Gregg: Thank you. Welcome, Mr Pickett.

Morgan Pickett: (Market Forces) Thank you. Thank you, Chair. I'll keep this short and sweet

because I think you've spoken a lot to these points with Kyle, but I just wanted to clarify. If

Westpac does approve a customer's climate transition plan and issues finance to that customer


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A division of MUFG Pension & Market Services

from October 1, does this mean that the bank has determined that customer to be aligned with

the goals of the Paris Agreement?

Steven Gregg: Yes, broadly it does.

Morgan Pickett: (Market Forces) Broadly? Or yes it does? Yes or no, really?

Steven Gregg: Well, the Paris Agreement, as you know, is not just one thing. It's a whole range of

targets. But what we are saying is they have to align with the Paris Agreement to be well under

two degrees of reduction. Yes, that is what they have to have a plan to achieve.

Morgan Pickett: (Market Forces) That includes their Scope 3 emissions?

Steven Gregg: Scope 3 emissions are a different thing altogether, as you know, even by the Paris

Agreement.

Morgan Pickett: (Market Forces): Well, that's right. Let me quote the UN Secretary-General,

Antonio Guterres, who said last year, net zero plans that exclude Scope 3 emissions, those from

burning fossil fuels, are incomplete. Now is the time to fast-track, not backtrack. The time for

ambition and transparency, not greenwashing. I don't think he wrote this specifically for

Westpac, but it's almost as if he did. Scope 3 emissions do typically represent 90% of an oil and

gas company's or producer's total emissions.

Steven Gregg: Well, as we've said, we've asked - all these clients we are lending to have to, on

the Scope 3 basis, have a plan of action that is satisfactory to us. I think it's naïve to think that

they're going to be able to change in a short period of time or are going to get out of their

business altogether, and that we're going to influence that. But they've got to, for us, have

disclosures, they've got to have an ambition to reduce it, and they've got a plan that we can look

at. We do take it very seriously in a practical sense.

Morgan Pickett: (Market Forces) Funny that you mention ambition, given that Anthony Miller just

said that it's one thing to have an ambition written on paper. That's not the reality. Ambition is

such an empty word. I can have an ambition to stop smoking by 2050, but smoke enormous

amounts of cigarettes before that time, and you're going to continue to support that. But I guess,

do you have any climate scientists advising you on the change in this policy?

Anthony Miller: Chairman, we've actually been lucky to hire the number one sustainability

officer in the country, Fiona Wild. She's got a PhD in climate change, Morgan. If you want to

discuss climate change, speak to my Chief Sustainability Officer. She's got a PhD in the subject.

Steven Gregg: She’s sitting right here at the front.

Anthony Miller: She's exceptional, and she'll bring the science to the discussion.

Morgan Pickett: (Market Forces) You have no other scientists advising you on your policy ahead

of the [unclear]?

Steven Gregg: We have the best in the country, Morgan, and you're most welcome to speak to

her. Thank you.

Morgan Pickett: (Market Forces) Thank you for your time.

Steven Gregg: Thank you for your words. Okay.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Moderator: Mr Chairman, I would like to introduce Ms Megan Ivory.

Steven Gregg: Thank you, Ms Ivory. Welcome.

Megan Ivory: (Shareholder) Hello and thank you. I'm here and I'm a bit nervous, so I apologise in

advance. I'm here because my grandfather was the CEO of St.George when he retired, so I'm a

St.George customer and a Westpac shareholder, thanks to his work.

I don't really have a question because I don't know how to phrase this in a way that would be

meaningful. But everything that's been said about climate change, I can't sleep worrying about

this planet. I appreciate the work that has been done by Westpac on renewables. I don't

appreciate being groaned at and sighed at by a bunch of people who don't have as long to live

with the legacy of the decisions we make now.

You are doing great work in renewables, but if you cannot defund companies that are putting

carbon into the atmosphere, then you cannot be saying that you are living up to your Paris

commitments. I lose sleep constantly over these issues because I have lost friends in bushfires,

I have watched houses be lost to floods, and just because you don't care doesn't change the

reality of the world that we live in. I am devastated, and I don't want a response because I don't

want to be patronised, and I don't want some kind of obfuscation. I want it noted that you, right

now, have a chance to change the world for the better, and I would love to see that happen.

Steven Gregg: Ladies and gentlemen, thank you for your comments and we'll take those on

board. Thank you. Glad you've got a long history with the Company too. I appreciate that.

Moderator: Mr Chairman, I would like to introduce Mr Robert Kennelly.

Steven Gregg: Thank you.

Robert Kennelly: (Shareholder) Thank you very much, Mr Chairman. Thank you for the meeting.

One wonders whether we might have done climate change to death, but I would like you to have

the last word, Mr Chairman. Why has the Board decided not to support 5A? If you've answered

that question with the previous questions, I accept that. But is there any part of 5A which you

haven't covered yet, which you found, as a Board, is unsatisfactory, despite many of your

shareholders putting it forward. I have one other question, Mr Chair.

Steven Gregg: Let me answer that one first. We are very clear that the constitution of Westpac

enables us to manage the Company in the way it should be managed. We do not need to change

the constitution to address all the issues that have been raised today or that we have to deal

with every day of the year. You will note that last year, when this resolution was put up, it had a

34% or 35% vote for it. This year it is at 14%.

I think you will find that the reason for that is a lot of the shareholders in your Company, both

institutional and retail, recognise two things. One is that we are managing the Company well,

given the constitution that we operate under. Secondly, the changes we have made to our

climate transition plans, and in fact address a lot of the issues that have been raised. We're very

proud of what Fiona has enabled us to do in terms of making it much more granular, specific

and I think practical in how we deal with it. I'm very comfortable with not supporting it and I think

you'll find most of your shareholders are supporting that view.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Robert Kennelly: (Shareholder) Thank you, Mr Chairman. My last question is - I don't know how

relevant it is, I ask you to explain how relevant it is - a notice of formal demand. Do you have

one, a copy available to you, Mr Chairman? I’m happy to give you this one.

Steven Gregg: I can’t say I have one right here now.

Robert Kennelly: (Shareholder) Well, I will bring it up. My question, Mr Chairman, is to what

extent is this document relevant to shareholders?

Steven Gregg: Perhaps I can read it, if you don't mind, in the spirit of getting the meeting to move

along, to talk to you after it, because I haven't read it yet. How about we deal with it afterwards?

Thank you.

Robert Kennelly: (Shareholder) Thank you, Mr Chairman.

Moderator: Mr Chairman, I'd like to introduce Reem Babo Mata.

Steven Gregg: Thank you. Welcome, sir.

Reem Babo Mata: (Shareholder) Good morning, everyone here. I'll be very brief. I'm not going to

read reports from the pages and pages of the things which are very insignificant to the bank. But

my question is, I heard from a number of people that the hard-working Westpac employees are

not given any pay rises this year by most of the people, whereas we have got CPI of at least 3%

to 4% official, but unofficially the price rises are much higher, harsher. Will this not demotivate

the hard-working employees and will this not drive out the talented employees to our

competitors? In this way, are we not at a disadvantage as a bank?

Steven Gregg: Thank you for that. I must say, I was struggling to hear. My hearing is not

particularly good. Did you get that?

Anthony Miller: Yes. First of all, thanks for the question. You're right. This is a people business

that we're in, and so having employees who feel supported, feel well managed, who feel

encouraged to be their best and do their best every day is really important if we're going to be

the Company we want to be. I would flag that there is, as part of the enterprise bargaining

agreement that we have in place with our workforce, a pay rise issue. There's a pay rise next year

and there's a pay rise thereafter as a result of that agreement, so there is pay rises in the

Company.

It's really important that actually from where I sit and where our leadership team sits that we

continue to improve the performance of the Company so we can do two things. We can reward

our employees for that performance, and we can also reward our shareholders with increased

dividends. I know that was a question thrown earlier. But I do acknowledge that employees are

the key, and we are looking to make sure we do good for them.

Moderator: Chairman, I would like to introduce Mr Jonathan Moylan.

Steven Gregg: Thank you. Welcome, sir.

Jonathan Whelan: (Shareholder) Thank you, Chair, and thank you, CEO, for your presentations

earlier today. Mr Miller, you mentioned in your opening address that Westpac was removing its

requirement for no deforestation, and we understand from positive engagements with your


MUFG Corporate Markets

A division of MUFG Pension & Market Services

team that the bank is now moving to a risk management approach. Could you explain what risks

deforestation poses to Westpac's customers and to the bank?

Anthony Miller: Thanks for the question. The removal of the no deforestation approach was

because our customers and the entire ecosystem in which they operate made very clear to us

that this was of no value. This was not adding value. It wasn't helping them in any way. When we

speak to our customers, and they're all exceptional in how they go about it, managing their land

really well and making sure their property, their farming property, is sustainable and is

constantly being improved is foundational to how they run their properties.

Importantly, for a lot of the industry, the target markets in which they want to sell their produce

does require really high-quality land management practices. Equally, there's a whole host of

legislation and regulation in the country already which prescribe what you can and cannot to do

with your land. When we went through all of that and spent two years talking to everyone who's

involved in that, it was clear that the deforestation approach that we suggested didn't add value,

and so, therefore, we listened to the customers, and we pulled it back.

But as we think about how we finance and support people, we do need to be confident that

they're thinking about this risk, that they understand that it's vital that you manage your land

appropriately. More importantly, your end customer who wants to buy your produce just needs

to be confident you're managing the land appropriately. We feel that through the risk lens, this is

how it's being addressed.

Jonathan Moylan: (Shareholder) Thank you, that was helpful. Just to understand the risk

management process a little bit further, to use an example, imagine - we've had recently some

very positive changes that have come through under federal environmental law clarifying when

and where deforestation can occur. I would absolutely agree with you that the vast majority of

producers in Australia are already deforestation-free for their own reasons, for their own

interests. The scale of the problem that's caused by really a minority of the book would

introduce a risk management process.

If there was, for example, an instance where someone was going to clear endangered Brigalow

woodland and lead to potential downstream flooding risk that could potentially impact on the

value of residential mortgage-backed securities, where there are unmitigated climate risks, for

example, and potentially even triggers at a federal level that could lead to compliance risks and

so on, if after the process of engaging with that customer through your risk management

process, you determined that the customer's going to continue clearing that ecosystem

regardless, what would be the bank's calculus on what to do next as part of that risk

management process?

Anthony Miller: So, there's a lot in what you've just set out, but when we look at a customer and

we decide, will we lend money to this customer, we do want to understand, are they complying

with the law? Are they developing and growing a produce that is saleable into the marketplace?

So, it comes back to something very fundamental. Is this good risk that we should deploy the

shareholders' capital into? This is the question that sits in front of us.

So, if we go through a process and it's clear that they are clearing land in a way that's

inconsistent with the law, that suggests that their property isn't developing produce that can be

sold to markets that they want to access, then that means they're probably not the risk that we


MUFG Corporate Markets

A division of MUFG Pension & Market Services

would like to partner with. Now, it's a question of reviewing with them, going through with them

what they're doing, but something as fundamental as you need to comply with the law would

obviously indicate to you that we would have to think seriously about them from a risk

perspective.

Jonathan Moylan: (Shareholder) Thank you.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I would like to introduce Mr Ben Gallen.

Steven Gregg: Thank you. Welcome, Mr Gallen.

Ben Gallen: (Finance Sector Union, Representative) Thank you, Chair. Yes, my name is Ben

Gallen. I am here today representing our Finance Sector Union members across the Westpac

Group. At a recent House of Representatives Economics Committee, you responded, Mr Miller,

to questions about the impact of artificial intelligence. You said that AI may replace some roles,

but the workforce will evolve, as we have seen with the digitalisation program. You said that how

Westpac equips, invests and trains its people will be a profound element in how we adapt to this

change.

I also acknowledge the comments you made this morning regarding the important role of

Westpac bankers in the future work of the organisation. Loyal and experienced Westpac

employees continuously tell us that they themselves want to be part of Westpac's response to a

changing industry. However, recent digitalisation changes in retail banking and implementation

of the UNITE program have seen hundreds of experienced employees made redundant rather

than retrained and upskilled.

How do you reconcile this with these public sentiments to invest in your existing workforce, and

what assurance can you give that future change of any type will not default to job cuts over

upskilling?

Anthony Miller: Thanks for the question, and thanks for working at Westpac. I appreciate that

the Company's prosperity is anchored around having the best people. So, I just want to

acknowledge that. It's too easy to try and distil this down to a simple point. No AI will take jobs.

As you would expect, as industry and markets evolve, the kind of jobs that we need evolve. So

therefore, there will be jobs that will no longer be required in the Company but, more

importantly, there will be new jobs created in the Company.

Just to give the facts, put the facts in the room, we have approximately 35,000 people at

Westpac. 5,200 people came into the Company last year and 5,600 people left the Company as

a result of different skills and different roles that we need. So, AI both complements that

change, challenges us on that change, but I think also will be a really positive additive to the

Company because it should be, when we use it properly - when we train everyone to use it

properly - it should make their jobs easier. It should make their jobs more satisfying. It should

mean that they're not worried about mundane tasks, they're able to do more enjoyable,

invigorating tasks.

So, I think it's a positive for the Company, and to the extent that roles you called out are no

longer necessary, contemporaneous with the announcement of those roles changing, we also


MUFG Corporate Markets

A division of MUFG Pension & Market Services

flagged that 200 new roles have been created, and we've had a number of those people

repositioned and retrained. That's the big challenge for us as a Company and for the country is,

how do we constantly invest in people and train them and upskill them so that the next

opportunities, in the Company or outside the Company, they're ready for? So, I accept your

challenge that that's what we've got to solve at Westpac.

Ben Gallen: (Finance Sector Union, Representative) Thank you for that. Yes, to follow up with

that, I think that's the point that we would want to continue to discuss with Westpac, and that is

to move away from any sense of replacing roles to actually investing in those current people.

Anthony Miller: That's a real focus for us, which is to invest in our people and obviously get the

outcomes we should get from investing in our people, getting those new skills, new roles

developed, role-ready - roles in place.

Ben Gallen: (Finance Sector Union, Representative) Thank you.

Moderator: Mr Chairman, I'd like to introduce Ms Isobel Fish.

Steven Gregg: Thank you. Welcome, Isobel.

Isobel Fish: (Shareholder) Thank you. Thank you, Anthony, Board and fellow shareholders for

once again having the opportunity to attend our great Company's AGM and, as a proud Westpac

employee and union member of 13 years, share the experience of the workers who generate our

profits. Anthony, when you took over leadership, union meetings and chats were buzzing with

colleagues sharing wonderful stories of their experiences with you. I'd like to note that we liked

and appreciated Pete, and we were excited to have you as our leader.

Over the last 12 months under your leadership, we've been told to take action now as we strive

to become number one. We started the year off strong with a pretty unfortunate number one,

finally beating CBA and becoming number one of the big four with the largest gender pay gap.

WGEA data released in February of this year shows the finance industry continues to trend

downwards with an industry-wide gap now 22%.

CBA, AMZ and NAB have all reduced their gender pay gap, while we have increased ours to

29.3%. We have increased ours by not taking action now, and no indication of that changing. We

want to be an employer of choice but I'm left wondering, is this a strategy just for the boys? How

do we as women of Westpac, who have a 29.3% gender pay gap, look at Westpac as an

employer of choice? In an email received by all employees on 3 September, Anthony, you told us

you were committed to building a great place to work. You're committed to backing us with real

opportunities to grow, succeed and own our future in the three key areas of career growth,

finances, and wellbeing.

So, we might have the best rate of the majors across all Westpac products, and a market-

leading LMI waiver, but how do women who work for this organisation afford to buy a house

when they make $0.70 to the male $1.00? What we want is real opportunities to succeed in our

careers and our lives, to have the same promotional opportunities that are afforded to the men

who work here.

So, we might not be able to change the cultural norms where women are still more likely to be in

part-time roles as they take on the bulk of the caring duties, but we can make it easier for them


MUFG Corporate Markets

A division of MUFG Pension & Market Services

to succeed at work. So, men make up 76% of the top-quartile of earners at Westpac, even

though women make up 55% of our workforce. So, I ask, will you commit to setting a target for

the number of part-time jobs available at the highest level at Westpac?

Anthony Miller: Thanks. Anyway, I know you work in the SMEs section, so thank you. Small

business is key for us, so keep going, please.

Isobel Fish: (Shareholder) You're welcome.

Anthony Miller: Look, it's really important that we are a place where people want to come and

work, and that they can be their best and they feel supported, and so I accept your frustration

and challenge. I would just flag a couple of things. 29.3% is now 28.1%, so we have made

progress, but that's not really worth celebrating in the sense that - at least we're moving, okay?

We understand we need to go after it. The second thing is, 50% of the leadership team is

women. Three of the four revenue divisions in the bank are led by fabulous women, and so we're

actually changing the Company top to bottom.

So, you're right, we need more women in senior roles, which would then just simply solve that

mathematical equation that you've pointed to, which is that pay gap. Equally, what I need to do

is also work out how we can create more roles for women in areas where it's heavily male, and

that skews that calculation you've described, which is technology. Then the final, I think, I do

acknowledge, is creating an environment where - the simple fact is that, because of the nature

of the responsibility, most women are the caregivers at home. The part-time roles that we have

at the bank make a lot of sense for them, adds a lot of value to their life. So, I don't want to just

change that so that I can change the score and we can all feel good that I've got a lower gap than

what you see.

So, I hear your challenge. I accept the challenge. We're underway, we're doing what we think

makes sense and it will tie into, progressively, change, but the very fact that the ET is configured

as it is, the fact that the executive leadership group is 49% women, highlights to you that I'm very

serious about how we go after this.

Isobel Fish: (Shareholder) Thank you. Thank you also for doing your research on me. That makes

me feel good. In 13 years with this Company, I know one thing's true. If it's important, it's

measured. We set targets and attract around the things that we value, the things that we think

are important, and the things that we think are going to make this organisation grow and

succeed. We're measured against these targets. We're held accountable to achieve these

targets. Without targets, without reporting, we just don't exist.

So, if this Company sees reducing the gender pay gap as important, we'll have targets in place.

When I addressed the Board at last year's AGM, Anthony, Pete did throw you under the bus and

said that you were working on targets for the coming year. These targets should form talking

points of our leadership meeting, and they should be held accountable for achieving them. So,

what target did you set for the February 2026 WGEA data release?

Anthony Miller: So, we'll have to talk to you about that outside the room.

Isobel Fish: (Shareholder) When would we be doing that?


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Anthony Miller: Because we've set targets - it's a five-year plan. It's not possible to simply,

quickly, and boldly change that outcome, and so we have got a progressive plan of how do we,

over the next five years, deliver a significant reduction in that pay gap as identified by the WGEA

calculation? First things first, what I can do immediately, and what we have been able to do

immediately, is make sure the construct of our executive team is reflective of that, which is 50%

women.

That's what we're doing as we go about our senior leadership group, and we're building that

team and building that team out. We're making sure that it has that 49% women. So, we have

got clear goals, and we have got a clear incremental plan that we are going after to deliver a

much lower gender pay gap calculation using the WGEA formula within five years.

Isobel Fish: (Shareholder) Thank you. So, just to clarify, last year when I asked Pete what our

WGEA gap would be by 2030, he said we can't look five years out, but you're saying we are now

looking five years out?

Anthony Miller: No, so what Pete said, we can't wait five years out. We have a plan for where we

get to in five years, and I need to deliver, and we have an ambition of how we deliver that each

year progressively to get to where we need to get to in five years' time.

Isobel Fish: (Shareholder) Okay. If you want to get your people to contact my people, we can

have a chat about it after. Thank you.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I would like to introduce Amanda Richman.

Steven Gregg: Thank you.

Amanda Richman: (Shareholder) Amanda Richman, Australian Ethical. Australian Ethical holds

around 5.5 million Westpac shares as of the end of November, in addition to holding Westpac

bonds. In the paper this morning, Westpac was quoted as saying gas has an important but

decreasing role as we transition. If Westpac accepts that to be the case, will Westpac assess

whether its fossil fuel clients' projects are consistent with that decreasing role, because right

now, it seems that your lending criteria doesn't necessarily distinguish between a company

developing gas for needed energy security and affordability and one developing gas based on

demand forecasts that are well in excess of what transition scenarios require? So, it seems that

when it comes to determining who gets financed and on what terms, you'd be treating them

identically.

If you're genuinely committed to managing the incredibly difficult challenge of balancing

between decarbonising and energy affordability, would Westpac consider introducing a

determinative lending criterion that assesses alignment of clients' fossil fuel production plans

with the bank's commitment to an orderly and sensible transition pathway?

Anthony Miller: So, we have a target that we've set ourselves a number of years ago in terms of

where we will be in oil and gas by 2030. We're on track with that. We've had a 55% reduction in

our exposure to oil and gas extraction over the last three years. So, we are methodically working

through our plan to deliver that target we've set ourselves, but what I think we need to continue

to grapple with - and I'm glad you used the words difficult transition - is making sure that the


MUFG Corporate Markets

A division of MUFG Pension & Market Services

transition is fair and equitable, and it isn't the case that people unfairly pay higher prices for

energy when there is a rational, reasonable way to ensure we still get to where we need to get to,

but it does include the use of gas over the next five, 10, 15 years to deliver that.

Amanda Richman: (Shareholder) I feel, just to reiterate, or explain, the financed emission cap,

well and good, but that doesn't answer the question of who you're financing within that cap. So,

I'm asking, would Westpac consider a determinative lending criterion that distinguishes

between an oil and gas company that is producing gas that provides that energy security versus

an oil and gas company that is engaging in projects that are only feasible if you're assuming a

level of demand well in excess of that transition pathway?

Steven Gregg: If you don't mind, let's take this on notice. As it stands at the moment, we don't

lend to new greenfield gas projects, but we are lending to companies that have existing projects

and are expanding. As to the definition of where that gas is going and how it's being used, we

don't look at that so specifically. Why don't we take it on board and come back to you on that if

we could.

Amanda Richman: (Shareholder) Thank you, Chair.

Steven Gregg: Pleasure.

Amanda Richman: (Shareholder) May I just ask a question on deforestation as well? Anthony, in

your address you said that, while Westpac has abandoned its deforestation commitment - you

might not have used those words - the bank is still committed to its sector targets. Does

Westpac account for land use change emissions when assessing emissions exposure to this

sector?

Anthony Miller: That's a really good question. I'm going to have to take a moment to check with

my Chief Sustainability Officer on that, because the answer is I believe we do, but you're asking

about a highly specialised, highly scientifically orientated calculation that we're working with.

So, I'd rather take that on notice and have you speak to my Chief Sustainability Officer on that.

Amanda Richman: (Shareholder) May I just ask an easier question on deforestation, then? What

due diligence processes and capabilities do you have in place to identify land clearing events so

that you can then assess whether a client is engaging in illegal deforestation or - forgive me for

being a bit cheeky - are you just hoping they'll tell you?

Anthony Miller: So, we enter into a range of due diligence and engagement with our customers

to understand what they're doing. It's not a hope matter. We have developed a geospatial tool

which allows us to examine clearing that has or hasn't occurred on property. We work with our

customers because it's no good us just policing with something like that. We've got to work in

partnership with them. Importantly, good customers understand their obligations. So, the

regulations, the law that requires deforestation is very clear, and so good customers solve for

that as well.

Amanda Richman: (Shareholder) Thank you very much for your time.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I would like to introduce Lachlan Wells.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Thank you.

Lachlan Wells: (Shareholder) Hello, everybody.

Steven Gregg: Welcome, Lachlan.

Lachlan Wells: (Shareholder) Thank you, Mr Gregg. Before my question, I just want to address a

comment that was made earlier by Mr Anthony Miller about gas being a transition fuel. This is

exactly the argument that I would make if I was investing in a gas business, but I would strongly

encourage you, Mr Miller, to take note of the advice of the International Energy Agency. You can

read the World Energy Outlook, and you can ask ChatGPT to summarise it for you.

They are forecasting a significant glut of LNG supply in the coming years, and the indication is

that if Australia doesn't export gas to our partners in Asia, then they are able to source that gas

from the United States and from Qatar, who can deliver gas at significantly cheaper prices than

Australia. So, it just doesn't seem like this argument really holds up, given the advice from this

objective third party. So, I would really encourage you to take that into consideration, rather than

just taking the advice - what the gas companies are saying.

So, my question is to Mr Steven Gregg, the Chairman. Regarding Scope 3 emissions, previously

in your climate plan you said that these would be - these must go down in a - these must be

Paris-aligned. There must be a Paris-aligned transition plan for Scope 3 emissions. In the latest

plan, clients just have to have a plan to reduce Scope 3 in general. Another change from last

year to this year is that previously customer transition plans had to be aligned to the 1.5-degree

goal of the Paris Agreement, and now it's the 2-degree goal of the Paris Agreement.

Earlier you said that you believe it's a material improvement on last year. I'm just wondering,

how is it a material improvement in these two respects?

Steven Gregg: Towards Scope 1 and 2, if we could please, just to start with, I think the words

we're using is well below the 2 percent, and this is something that's been currently put out

globally. We are really just trying to match with what is being required globally. You probably

ought to be aware that the vast majority of those clients that are into heavily carbon-based

industries we require and look for 1.5, but just as a general overview we're saying well below 2

percent.

With regard to Scope 3, it's much more complicated, as you know, in terms of how they can

control it versus how they control Scope 1 and 2. What we're simply asking on Scope 3 - and we

take this into account in terms of how we rate them, in terms of how we bank them - that we ask

them to make disclosures on it, have an ambition that is sensible on how they're going to reduce

it, and a plan that can demonstrate that. That's what we're asking of our clients at the moment.

If they haven't got that, then we'll work with them to get that. That's how we're approaching it.

Lachlan Wells: (Shareholder) So I'm just wondering why you asked for that requirement in the

first place, then.

Steven Gregg: Sorry, I didn't understand that.

Lachlan Wells: (Shareholder) I mean, I'm just wondering why previously you required Scope 3

emissions to be Paris-aligned.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Well, I may have misspoken in terms of Paris-aligned. Certainly, Scopes 1 and 2 is

Paris-aligned. Scope 3 is more of a reduction plan we're looking at.

Lachlan Wells: (Shareholder) Okay. I mean, it does seem to me that it is a watered-down plan

from what it was last year. I don't see evidence that it's a more rigorous requirement that you're

asking your customers.

Steven Gregg: Well, we think it is, and we think working with the clients to ensure that they are

moving along that way is the way to go, rather than just debanking people or saying, you're not

meeting with anything, therefore we're not going to finance you.

Lachlan Wells: (Shareholder) Okay, I'll ask one short, brief question on this to wrap up. If you are

confident about this, then why not join the Science Based Targets Initiative?

Steven Gregg: So, join the science-based...

Lachlan Wells: (Shareholder) Science Based Targets Initiative, so you can actually demonstrate

this to climate-focused investors like myself.

Steven Gregg: Oh, I think we're as open as any bank is in this country about how we disclose

things and the criteria. Clearly, we're not going to disclose information about individual

companies. That's a privacy issue and a confidentiality issue. In terms of how we review it, I

think that's pretty open.

Lachlan Wells: (Shareholder) Oh no, I'm just asking why Westpac itself isn't a signatory to the

SBTI.

Steven Gregg: Oh, I see.

Lachlan Wells: (Shareholder) Because other banks are, and it would be a great tool that you

could use to demonstrate to investors that you are willing to...

Steven Gregg: Why don't we take that on board if we could? It's a good point. Why don't we take

that on board? I'll speak to Anthony and Fiona about it to see what our view might be and come

back to you on that if we could.

Lachlan Wells: (Shareholder) Okay.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I'd like to introduce Carol Limmer.

Steven Gregg: Thank you. Thank you, Carol.

Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. Mr Chairman,

I've got two topics on which I would like to ask questions. The first one is the Panorama

platform. We note Westpac's intention to now retain the Panorama platform and to invest

further capital to upgrade its capabilities. Given the dated legacy of Panorama and the rapid

growth of new platforms developed by non-bank companies such as HUB24 and Net Wealth,

can Westpac catch up with the new entrants, and will the cost and effort required be worth the

investment? I've got a couple of other questions, but perhaps that one first.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Sure. Thank you. I think we can. We've just undertaken a large migration from one

system to the other system, which is more current. The guys are doing a wonderful job at

improving the performance of it. It is a very large business, and I think it's a business that's very

core to what Westpac does. So, yes, we would hope it does catch up with the other players in

the market.

Carol Limmer: (Australian Shareholders’ Association, Representative) Right. What is the

estimated cost of upgrading Panorama, and over what timeframe?

Steven Gregg: I'm sorry, I'll defer to Anthony on that one.

Anthony Miller: In terms of what Panorama does today, it's a very capable platform and it has a

very large market share and is delivering a really effective service for all the advisors that use

that platform. What we need to do in relation to that platform is invest in adding some new

capabilities, and we have a plan over the next two or three years to do that. In terms of costing,

one of the things we are doing first is to make sure that all of the other platforms that we have

within our portfolio are consolidated onto the Panorama platform, which we will have

completed over the course of the next six months.

Then we have an investment program over the next two years thereafter to uplift Panorama to

offer those extra capabilities that ensure we can really compete aggressively with those two

entities you named.

Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. On page 115

of the Annual Report, it gives net wealth management income of $476 million, up 10% on FY24.

There's no indication of margin or profit for wealth management. Another one. What measures

does Westpac take to ensure it avoids accepting flawed products such as we have recently

seen with First Guardian and Shield?

Anthony Miller: So, certainly the work that the team does in BT that operates the Panorama

platform is around making sure that investment propositions meet a certain standard in terms

of their performance, and that they deliver what they say they're meant to deliver. So, the

process is one where we want to see those investment products that we do, if you will, facilitate

on the platform - they need to have some form of track record. We need to make sure that a

number of the agencies that assess and appraise whether that investment product is

performing have provided their assessment.

So, there is quite a bit of due diligence undertaken and discipline set around what products will

be allowable on the platform. So, I think we have got that pretty right, albeit the lessons of the

last 12 months tell you that you can't work hard enough, and there's always more to do, and we

continue to challenge ourselves about what we can do to make sure that we protect users of

Panorama from products that we've seen haven't been working over the last 12 months.

Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. The other

topic I've got a question in relation to is Q3 segment performance. Note on page 21 of the

Annual Report that each of consumer, institutional and New Zealand increased net profit over

FY25 by 7% to 15%. However, business and wealth net profit decreased by 7% due to increased

operating expenses and impairment charges and lower NIM. Given Westpac's aspiration to grow

business and wealth at greater than system rates, what is the outlook for future profits from this

business sector?


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: I'll have a go at this one very quickly, and I'll pass it to Anthony who's a bit closer

to it than me. It's going very well, Carol. Business and wealth is one of the great prospects for

Westpac, and under new leadership it's showing great signs of growth. Part of the reason that

NIM declined marginally was that our business writing was higher than our deposit-taking,

which means that there's a bit of a margin contraction, but it's a good sign in a way that people

are buying our product and growing very strongly.

A lot of the cost of UNITE is going into business and wealth, so the cost base is going up a little

bit, but it's for the future. I'm very positive that that segment of our business is a growth area and

under great leadership now, and so I've got a lot of confidence that we'll get there on that.

Anthony Miller: Yes, I think the Chairman's nailed it. What has happened in these last 12 months

is, we simply did a lot more investment in business and wealth to set that division up for the next

24, 36 months. So, costs were up because we were investing in the business, because it is a

great business that deserves that investment and will deliver the right uplift in return for

shareholders over the next two or three years.

Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you.

Steven Gregg: Thank you.

Moderator: Mr Chairman, I would like to introduce Ms Natasha Lee for a second question.

Steven Gregg: Thank you. Natasha.

Natasha Lee: (Shareholder) Right, thank you. It has previously partially been picked up by a

previous speaker, but whilst your nominations are all well-qualified people, I note that on the

skills matrix, as previously said, only two directors were highly skilled in technology, digital and

data, but also only two were experienced in environment and social matters. Whilst you have

fairly good female representation, I'm not sure that you're really capturing the sort of skills and

diversity which are needed for the Board, and in particular other forms of diversity where you're

not really reflective of the Australian community and possibly life experiences on that.

Whilst you will defend your selection for nominees, I think this is probably more of a comment,

but do you have anything you want to add on that?

Steven Gregg: Sure. Let me answer if I may. I'm very proud of this Board, Natasha, in that it's, I

believe, got the most banking experience on the board of any of the big Australian banks, and

just about everybody on this Board has had very significant financial services experience, and

as a bank, that's vital. I think in terms of some of the criteria, be it sustainability, environmental

or IT, there's actually a lot of experience on the Board.

I think the guys were being a bit tough on themselves when they mark themselves down

because they weren't necessarily from a tech background, but most Board members at

Westpac have been through multiple tech reinstations, re-organisations, so they've got a lot to

lean into on UNITE, for example. In terms of a broader view on the Australian society, I'm always

open to thinking about that and talking to you about that, because you make a good point on

that one, yes.

Natasha Lee: (Shareholder) Okay, no, thanks. I just wanted to emphasise that and make sure

that the Board is mindful in the nomination process.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Absolutely.

Natasha Lee: (Shareholder) As far as remuneration, whilst the CEO was awarded some 83% on

short-term variables, I do feel that that is a little bit generous, given that a number of targets

were missed. I think that it's sort of - you might say it's only missed slightly, but to my thinking

the overall result - and I have read the report and I understand the process, but I don't agree with

the logic that the rating was a bit higher than what I think is justified by the result. If I could ask a

question about - whilst it's great that you've increased - well, you've doubled the commitment to

supporting women in business, and this has gone to $1 billion. What particular criteria are you

looking at?

Are we looking at micro-lending, as you're probably aware that in general women are better at

managing businesses and on the financial side of things, if I may say so myself? Is this the full

range of businesses that women are involved in, or is it particular segments or niche markets?

Steven Gregg: There's two answers to your question. I'll deal with the first one first, which is the

remuneration levels, and then I'll get Anthony to have a go at the second one. It's a very rigorous

process at Westpac in terms of how the scorecards are put together, the criteria, and how

people get measured. I think, for the first time in many years, Westpac's been fairly honest and a

little bit tough on itself in terms of how they were remunerated for the performance they

generated.

Most people were given a bit of a wake-up call, and things were marked down a little bit here

and there to demonstrate that we are really demanding performance from our top team, which

will filter through the bank. So, Anthony, for example, was marked down because costs were

higher than we thought, I think perhaps a little bit unfairly given the fine work he's done, but

nevertheless we had to be honest with ourselves and how we looked at that. So, any scorecard,

I think, is a fairly blunt instrument, in that it's a very binary sort of outcome depending on

targets.

The Board has to show judgment on how we look at that, which we do, around the edges of what

we've agreed with the market that we'll do. So, as time goes on, these things evolve, but I think

to date I'm very happy with where that score has landed for the top team. With regard to the

second part of your question, Anthony, you might have a go at that one.

Anthony Miller: Certainly. We have been delighted with the outcomes in terms of that financing

of those entrepreneurial women. They are both start-ups and scale-up businesses, and the

performance has been exceptional. As you rightly say, women tend to be exceptional managers

and very disciplined, and so we do like the returns that have been generated there. We are very

pleased with it, and we're going to do more, and we'll continue to expand that offering as fast as

we can, because it's certainly a high-quality business and they're high-quality customers. We're

looking forward to growing with them.

Natasha Lee: (Shareholder) Okay, thank you very much.

Steven Gregg: Thank you, Natasha.

Moderator: Mr Chairman, I would like you to introduce Mr Stephen Mayne.

Steven Gregg: Thank you. Welcome, Stephen. Haven't seen you for a while.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Stephen Mayne: (Shareholder) Good afternoon, Chair. I've only been here for the last hour. I was

at the Myer meeting. Apart from mentioning the 14% vote on 5B, have you disclosed the proxies

on any other items today thus far at the meeting or anywhere else?

Steven Gregg: It was on 5A, and we put up a slide that had all the voting on all resolutions up

front. To be honest, we took a lead from your requests that we do that.

Stephen Mayne: (Shareholder) Right, okay. Have there been any online questions? I've been

here for an hour and there's been...

Steven Gregg: There will be a few online questions. We're getting through the room first, and

then there'll be a few online questions, yes.

Stephen Mayne: (Shareholder) Now, Anthony mentioned that we've hired the best CFO in the

country, and we've got the best sustainability officer in the country. I would just like to make the

comment that you are certainly not running the best AGM from a process point of view. You may

need to hire someone with a PhD on AGM process and transparency.

You should have disclosed the proxies to the ASX, not just flashed them up once, to have more

timely disclosure. You shouldn't have banned online voting today at the meeting. You shouldn't

have abandoned the agenda. You don't do that at Board meetings. You don't walk into a Board

meeting and say, there's nine items on the agenda here. Has anyone got a question on anything?

That's what you've done today.

So, it's co-mingled a whole bunch of important issues. There should be general business and

the accounts at the start. There should be a section on the directors. There should be a section

on remuneration, and then there should be the climate debate, but you've deliberately chosen

not to do that, and you've caused angst in the room because climate questions have been co-

mingled with others. You've reduced focus on rem and directors.

So, I'd ask you next year just to follow the agenda, reintroduce online voting because

participation rates have crashed to below 2% since the move away from paper. You should also

be disclosing the headcount data. Myer did that this morning with the proxies. Eleven hundred

shareholders voted. You can see the fors and againsts. So, are you going to disclose the

headcount data voluntarily like many other companies do - ASX, Qantas, you name it. Many of

them do it. I've also requested that, but you haven't done that before.

Then I guess my main complaint is actually the fact that you're running a premature AGM. So,

nominations closed, I think, on 23 October for the Board, but you didn't release the results until

11 November or something. So, how is it good practice to close off Board nominations before

the existing directors have even revealed how they've performed for the year? So, I've asked you,

this is the equivalent of a 30 June company having their AGM on 11 September. We are so

premature, that's the equivalent.

Now, most companies are so disorganised that on Friday, 28 September - the last possible day,

because companies have five months to have an AGM - there were more than 200 listed

companies that waited until the last possible day, because there's a whole lot of things to

organise and you've got to get the process right, the sequencing right about revealing your

performance and then calling for nomination.


MUFG Corporate Markets

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So, you've got until the end of February to have your AGM, so I'm specifically asking you to delay

next year's AGM. Ideally, have it in Melbourne during the Australian Open, but just tick that box

of not closing off nominations before you've revealed how you've performed. Will you commit to

follow the agenda next year? Probably two very specific questions. Will you put up your own

climate transition plan resolution next year? There's a lot of interest in the debate, so don't just

sit back and wait for shareholders to put it on the agenda. You put it on the agenda, as many

companies do, and then treat it with respect by allowing a discreet debate when we get to that

item and follow the agenda like you do in Board meetings.

I guess the last couple of points is, has David Cohen, one of our newest directors, sold all of his

Commonwealth Bank shares? What was it that that caused the material protest vote, I think

against Peter Nash? So, which of the proxy advisors recommend against, and what were the

issues that caused that particular protest vote or any other protest votes? I wasn't here when

you flashed it up. You haven't disclosed the proxies to the ASX. At its heart, the AGM is an

election results announcement event where you reveal the results, because 99% of the votes

are cast 48 hours before the meeting, and then we get together and have a discussion on what it

means.

What was the problem with Mr Nash? Why was there 14% against the climate? You haven't

made that particularly helpful, and so I think next year, you've got a long way to go to be best in

Australia, like you're best in Australia on the sustainability recruitment and your CFO. So, which

of those best-practice reforms will you embrace? I look forward to your answers on those

specific questions, particularly about the climate transition vote next year put up by you, Mr

Cohen's CBA shareholding, and the reasons behind the protest vote against Mr Nash.

Steven Gregg: Okay, thank you for all of that. Let me just start by saying it's a shame you weren't

here for the beginning of the meeting, Mr Mayne, because you would have got a better handle on

exactly what we're doing and why, where and how. I think this is actually the right way of doing

this event, and I'll explain why. Online voting is almost minuscule now. It doesn't serve a

purpose. So, we did want to streamline the event this year, enable people who wanted to come

and wanted to vote and participate to do so. People can ring in, they can ask questions, they can

vote in many different ways.

Secondly, it is not our climate plan we're putting up. It is actually Market Forces' climate plan

they're putting up, and we have engaged with them during the year. We quite enjoy the

discussion. It's at times robust, but a very constructive way of going forward with things. With

regard to the voting, we're actually taking a leaf from your book, and we actually put all the proxy

votes and all the votes up front so people can see them. You weren't here. If you were here, you

would have seen them. We had a great discussion about that.

As to the unhappiness in the room because the discussion was mingled, that is simply not true.

You weren't here. It was a discussion I think that was very broad-based and very fair. So, we will

continue doing this if I think it makes sense. Everybody can ask a question in this room. Nobody

is going to be stopped. Everybody is going to be given a full answer. Everybody can have a

discussion afterwards. We think it is extremely well run.

With regard to the various voting, if you were here, you would have seen that we got 99% on just

about everything. With regard to Peter - who I must say is a valued colleague and performs

extremely well on this Board - there was a view, because of what happened at another


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A division of MUFG Pension & Market Services

organisation, that there would be a protest vote. I can't look at other organisations as I look at

this Board and how we give support to directors who are actually performing incredibly well. If

you wanted to ask a question at that time, you could have. You still can. So, we're not closing off

any of the discussions on that.

With regard to the timing of the AGM, I think having an AGM halfway through the year nearly, in

February, is not appropriate. We'll have it, as we always have, at this time of the year, where we

can get people to come along before Christmas. They can have a good discussion, nothing's

being hidden, questions can be asked and they will be answered. Now, I'm just going to try and

remember what else you had to say there.

With regard to David's CBA shares, I honestly don't know whether he's sold any or not. David,

have you sold your CBA shares, or - you probably still hold them.

David Cohen: I'm happy to talk to that. Stephen, no, I have not sold all of them. Under the long-

term incentive plans at CBA, I'm still getting some shares. I sell them as I get them.

Steven Gregg: That's fine.

Moderator: Mr Chairman, I'd like to introduce Mr Paul Fanning.

Steven Gregg: Paul, thank you again.

Paul Fanning: (Shareholder) Steven, back to financial metrics of the Company, three points I

want to raise now. Franking income pool, NIM and cost-to-income ratio. I'll deal with franking

income first. Franking income pool is running down. It seemed to be well-hidden in the annual

report, and I think the CFO would probably know exactly where it is, but I couldn't find it.

One of the sell-side analysts has reported that maybe Westpac does not have sufficient franking

credits to provide full franking on future dividends in the next six months or 12 months. We need

to know what that pool is, i.e. ANZ only partially frank dividends. Now, we have a New Zealand

division of Westpac that's doing reasonably well, so I can understand there'd be non-franked

income coming in from New Zealand.

Net interest margin. I wonder where you really want to get net interest margin down to. Anthony,

you did speak about this before, but I think really you probably want to come up with a better

number. Can you see a 2.0% pass for net interest margin? Admittedly, it would be across all

business units. Three, your cost-to-income ratio, 53.04% on FY24, a pretty abysmal increase, I

would have thought. Again, you've been hammered with this from the analysts, and I'm

hammering it again now for the benefit of retail shareholders in this room. We need to know, can

you get cost-to-income ratio down to, say, 47%, i.e. Commonwealth Bank, for example.

We had a very loyal staff member saying that we want to be the top bank, get up where CBA is.

One of your own staff members, just before. So, they are my three questions, very much on

financial metrics, but if you can please give responses. Thank you.

Steven Gregg: Let me try the franking credits one first if I may. Westpac actually, believe not, has

around $3 billion of franking credit available in the pool, give or take, and it's by far the largest

balance of all the Australian banks. When we look at dividend policy, it will always, as far as I

can see, have a franking credit element to it. We won't be partially franking our dividends. The


MUFG Corporate Markets

A division of MUFG Pension & Market Services

issue is more, how do we get those franked dividends back to you, or franking credits back to

you, as a shareholder, because they are worth more in your hand than in the bank's hand.

With regard to NIM, NIM has held up pretty well this year, and it's a function of a whole range of

things that go into margin, but it's generally held up about where we thought it would. It's a

whole range of issues, including the interest rate cycle, the cost-to-income ratio, as you rightly

point out, and a whole range of issues. Deposit growth versus lending growth, they all contribute

to NIM. So, at this stage, it is pretty decent. Our idea is to hold it there or improve on it, but it's a

function of how well the Company does.

With regard to expense, I'm going to let Anthony tackle that, because there's no question that

our expense ratio is not as good as it should be, and a large amount of the focus of the Company

in the next three to five years is going to be on getting that down.

Anthony Miller: Yes, so we very much - as I said out in my opening remarks, it's about investing

to set the Company up for the future. So, our costs were up. They were up 9%, and you're right to

say, gee, that's an increase that's unsustainable and unacceptable. That's the right challenge.

Those costs are up because we're investing in UNITE and we're expensing UNITE at

approximately 75%. Secondly, we're adding bankers, because we need to have more people in

the role of meeting customers, doing more for customers, delivering services and, obviously,

generating income and outcomes with customers.

We also had a stack of extra costs we decided to bring forward, which is the restructuring

charge that we took, and again we expensed that. So, that was all about just being honest with

the fact that we needed to make some changes to ensure that we have a run cost that should

improve over time. The final thing I would say is that the purpose of UNITE is to set us up such

that we can lower the structural run cost of the Company so we can have a cost-to-income

ratio, and our aspiration is better than the average of our peers. That is why we are going after it.

Paul Fanning: (Shareholder) Thank you. Just a supplementary point on your response to cost-

income. Where would you really like to see the cost-to-income ratio? Would you like to see it at

45% or 46%?

Anthony Miller: Where would I like to see it? We have got an aspiration to get it below the

average of our peers.

Paul Fanning: (Shareholder) Well, yes, that is a bit arbitrary, isn't it?

Anthony Miller: No, it requires a substantial amount of work, a substantial amount of

investment, and it's going to be a challenge to get there. That's what we've set ourselves to go

after, and it's the goals we're delivering now by approximately 2029.

Paul Fanning: (Shareholder) I can guarantee you, these sort of questions, probably from me, will

be here next year too.

Anthony Miller: No, that's entirely appropriate.

Paul Fanning: (Shareholder) Thank you very much.

Steven Gregg: Can I take the next question, maybe online, if we have no more questions in the

room?


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Moderator: Mr Chairman, we have an online question from John Sabljak.

Steven Gregg: Thank you.

Moderator: Is there a reason why Westpac has elected to disenfranchise those attending online

when compared to those attending in person by not providing online voting when this facility is

available?

Steven Gregg: Thank you for the question. I think we have actually covered that one two or three

times already. It is not about disenfranchising shareholders at all. It is just that we felt that there

was so little interest in it in times gone by that it did not have a real value this time, but we can

have a look at that if need be. Any other questions there?

Moderator: Mr Chairman, we have another question from John Sabljak. You have indicated that

McKinsey's and Accenture are involved in oversight and advice on the UNITE program in

February 2021. McKinsey settled with 47 US states, five territories and the District of Columbia,

paying US $573 million to resolve investigations into its role in the opioid crisis. In December

2024, the US Department of Justice announced a five-year deferred prosecution agreement

under which McKinsey agreed to pay the US $650 million to resolve criminal charges over its

role in the turbocharging OxyContin sales.

Steven Gregg: I guess that's a statement rather than a question. The role that McKinsey plays is

one of assurance on this UNITE program, nothing to do with what happens in the States, nothing

to do with the opioid crisis. They are a very fine firm, and we use the best people we can for that

process.

Moderator: Mr Chairman, we have an online question from T Yeo. WBC EPS and ROE for the

current and last year are noted as follows. Current EPS, $2.04. Current ROE, 9.5%. Question.

Can you share with us what the estimated EPS and ROE would be when the enhancement

projects are completed in 2029?

Steven Gregg: I'll give that to Anthony to answer in a second, but we can't predict what that will

be. That's not in our position, to make forward statements on that sort of thing. Hopefully, it will

be a great success, but Anthony?

Anthony Miller: The goal is that we improve the return on tangible equity, so ROTE. We've got a

very clear goal where we want to be by the end of 2029. We also have a very clear goal around

what we want to achieve from a cost-to-income ratio, which I have outlined is ahead of the peer

group average. The outcome from that is that I would like to see earnings per share improve.

ROE is a slightly different construct which we do not need to go into, but I think the right metric

is we are going to improve return on tangible equity, and the outcome of getting the cost-to-

income where we want to get it to is that we should be able to improve earnings per share.

Moderator: Mr Chairman, we have an online question from Lynette McCurdy. It is reported that

Westpac is to provide a $1.54 million bond for Santos. Is this correct? If so, why is this

happening when you claim to support climate action and the Paris Agreement? Fossil fuel

expansion is increasing Australia's worsening bushfires, floods and heatwaves. Just last

weekend, the fires in New South Wales and Tasmania have burnt many homes and a firefighter

has died. It's time to stop funding fossil fuel companies like other banks are doing.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Steven Gregg: Thank you for the question. I think we have actually covered the answer to this,

two or three times now, so I won't provide a lot of detail except to say that it's a company that we

have financed before. It is all part of their program for expanding their gas supply, and that is all

part of what is within the remit of the arrangement we have with them.

Moderator: Mr Chairman, we have an online question from Craig Caulfield. How is AI uncovering

fraud in loan applications, and do staff get rewarded for finding and filtering out loans with

incorrect inputs that would otherwise be approved? ANZ confirmed at an earlier AGM that some

2,000 loan applications were identified with incorrect data. How does Westpac compare to

ANZ?

Anthony Miller: Thank you for the question, and it's a good one. The way we are working on and

what we're seeing in terms of success from AI is around its ability to help us move through

enormous amounts of data and identify patterns, or exceptions to patterns we would otherwise

like to see, which then indicates further inquiry is needed. Then the human steps in and does

the extra work needed to determine if something mischievous, such as a fraud or otherwise, is

ongoing. I do not have the exact number of what we are identifying, but we certainly recognise AI

is helping our people do a better job, a faster job and a more consistent job at identifying fraud

and scams. That's something that we're very focused on.

Moderator: Mr Chairman, we have another question online from Craig Caulfield. Seven years on

from the Banking Royal Commission, a key recommendation from Commissioner Hayne has

not been enacted. A national scheme for farm debt mediation would be a win-win for both

banks and farmers, simplifying muddy and complex laws differing between states. Will the

Chair and the CEO lobby to undertake to genuinely introduce a national farm debt mediation

scheme via the ABA? Do you agree our farmers need to be respected, and form a growth

opportunity for Westpac to pick up some turf from NAB and CBA?

Anthony Miller: I certainly agree with you that the agricultural sector, the farming community, is

a tremendous opportunity, and we are looking to grow. I think our growth in the loan book in the

agricultural sector last year was in the order of 22%, so we are very focused on what we can do

there. In terms of that legacy outcome from the Hayne Royal Commission, I will take that on

notice. What we're very focused on is making sure that we partner really well with the farming

customers that we have and working with them to make sure that their financing structure is

such that it's sustainable through the cycle and through particular challenges like drought and

other that gets in the way.

So, I think we've got that right, and I think what you're seeing in the marketplace in terms of how

active and competitive it is in the agricultural sector, that actually it is right and we are getting

the balance right as an industry. I will take on notice that question around farm debt mediation

and where we are as an industry post the Royal Commission.

Steven Gregg: I think it is important to note that you rightly say it should be done via the ABA, so

why don't we touch base through that forum? Thank you.

Moderator: Mr Chairman, we have another online question from Craig Caulfield. Deep banking

experience is too dilute in many bank boards today. I applaud the selection committee on Mr

Cohen's appointment, given no other potential Director has the deep experience he brings to


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Westpac from his years at CBA. ANZ's loss is Westpac's gain. I'm interested to know whether

ANZ approached you, Mr Cohen, to take on the CEO role when Shayne Elliott left.

Steven Gregg: I think there are a few presumptions in that question, and I'm not quite sure it's

appropriate that we answer them here. So, how about we just park that, if you don't mind, and if

you feel strongly about it, I'll be very happy to have that conversation offline. Thank you.

Moderator: Mr Chairman, we have an online question from Rita Mazalevskis. The Annual Report,

page 44, re material risk categories. Number 9, financial crime risk. For the '24-'25 financial

year, what was the risk appetite measure and percentage and final risk rating for the volume of

high to very-high financial crime risk ratings across Westpac's business? For number 10, cyber

risk, the risk appetite measure for risk for Westpac's or its third parties' data or technology

where inappropriately accessed, manipulated or damaged. What measure for the '24-'25

financial year was there for control effectiveness and supplier security?

Anthony Miller: Both excellent questions, both very detailed questions. I'll literally have to come

back to you on that. We do have detailed metrication of control systems and what we look for in

financial crime and cyber, but they're very specific questions and I'll have to come back to you

with the specifics on that.

Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. For

transparency and customer assurance for Westpac's end-to-end process for handling customer

reports of financial statement fraud, please clarify who within Westpac assesses and escalates

the matter, who the reviewing authority is, what investigative actions are undertaken, and what

Westpac's standard approach to communicating the findings back to the customer is.

Anthony Miller: Well, that's a lot in that question, and I think I reflect on perhaps some

experience or history you have in relation to that. Again, I'll come back and set that all out for

you. So, I believe we have your contact details, and I'll come back to you with the answers to

those very specific questions.

Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. Page 3 of the

risk factors report states, our operations depend on the secure processing storage and

transmission of information on our systems and those of external suppliers, and our assets may

face security breaches such as unauthorised access and employee misconduct and external

and internal threats, which can also impact customers. What is Westpac's process if it fails to

measure its regulatory and legal obligations with these actions or...

Anthony Miller: Again, I note that you're coming at this with some specificity reflecting perhaps

previous connection with the Company. We're very focused on actually data, storage of data,

the use of data, and then when we move data around in the Company, across systems, how we

do that in a way that's safe. The obligations we have to people in terms of protecting that data

and ensuring privacy is maintained is one that is a very, very serious obligation, and we do take it

such that we have the right resources and the right systems around it.

Again, if it's the case that we haven't met the standard we've set ourselves, then there are often

obligations on us to report that to both the regulator and to the customer, and that's what we do.

So, in relation to any and all breaches, we have a framework around what we need to do in

response to that breach.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. Chair, could

you please confirm what investigatory powers Westpac has to investigate internal and external

fraud?

Anthony Miller: Again, a question which goes to an area where we do have the resources, and

we importantly have the skill and team in place to undertake those investigations as needed.

We do it in a way where we must follow a framework which protects, internally, people, protects

data, and then also, most importantly, protects our customers and their data as we hold it

inside the Company. So, we do have those investigatory powers, but we have to follow those by

making sure we maintain a discipline around the data that our customers have with us and

respecting that.

Steven Gregg: Okay. If I may make a suggestion, if we go to questions in the room for a while,

and give online - come back in a few minutes. Any other questions in the room that people

would like to ask?

Moderator: Mr Chairman, I have another question from Mr Michael Sanderson.

Steven Gregg: Thank you.

Michael Sanderson: (Shareholder) Thank you, Board, for the way you're sitting around waiting for

questions, rather than manage us out. I've just got an observation about dinosaurs. If predicted,

the climate goes the way it is, I suggest we as a species are all dinosaurs, irrespective of age. To

my question, Westpac announced a moratorium on regional branch closures until 2030 and is

now piloting a new community banking service where mobile bankers periodically occupy

council buildings in towns like Dungog, Bulahdelah - I'm going to get my head around that one -

and Manilla, rather than opening full branches.

Westpac's closure of Coober Pedy, Tom Price, and Carnamah left these towns with no bank,

exposing their customers round trips of 1,080, 560 and 240 kilometres respectively. Your new

proposed fake branches and regional service centres are in locations that already have bank

branches. Why hasn't Westpac established fake branches in Coober Pedy, Tom Price,

Carnamah, Wogan Hills, Mannum, Yankalilla, Tailem Bend and Kapunda, where Westpac has

left those towns completely bank-less?

Will you admit that these fake branches are more about political optics rather than restoring real

banking service? Just a related observation. You readily debank Coober Pedy, but you're

resistant about debanking a fossil fuel company.

Anthony Miller: They're not fake branches. The way the banking industry is evolving is - the way

customers want to interact with us is constantly evolving, being now at a point where 96% of

what they do is online. Therefore, we've just got to keep working out, what's that balance

between online, in-person-to-person and virtual? So, those areas where we're reopening are

designed to make sure we get that balance right. We got it wrong in the context of closing Moree,

and thus we've reopened.

We're now continuing to do the work to look at where we are across regional Australia to

address concerns where people feel they don't have access as a customer of Westpac to a

Westpac service, whether that's online, in a branch or version of physical connection, or online.

So, we're just working through that. To the extent that we identify as we do that work, that there's


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more we can do and that there's places we can go back to and it makes sense to go back, then

we will do it.

Of course, we're also undertaking work such as putting mobile bankers into towns to help

address that need for some customers, rightly, who need human-to-human, person-to-person

connection and service. We're working to try and solve that. So, it's about ongoing work to try

and get that balance right.

Michael Sanderson: (Shareholder) Why didn't you put the fake branches in towns where you've

debanked? Why have you put them in towns that already have banking facilities?

Anthony Miller: I've laid out for you what we're doing, which is methodically working through

where we can provide the service that our customers want, and if it's the case that a town where

we've exited, it makes sense for us to have a point of presence that serves the community there

in a way that makes sense, we'll do it.

Michael Sanderson: (Shareholder) Okay, I don't accept the explanation, but we'll leave it at that.

I'm going to skip to my question on CEO equity grant, seeing we've got your attention. The CEO -

sorry, Chair. This item asks us to approve $3.5 million equity grant to the CEO. At the recent

House Economics Committee, Mr Miller said Westpac was willing to take on more exposure to

gas. He described critical minerals and gas as a major part of transitioning. Peer-reviewed

research I have provided to Westpac shows that gas has a 25% to 275% higher life-cycle

emissions than coal.

Why should shareholders trust the CEO to grasp climate change science and risk? Is he just

echoing the political narrative on gas? Will he withhold, or will you - I'm talking about Westpac

here - withhold this equity grant until Mr Miller corrects the parliamentary record on gas and the

rules about financing gas expansion? Will Westpac acknowledge on the record that recent peer-

reviewed research finds exported LNG to have between 25% and 275% higher life-cycle

emissions than coal? Will Westpac correct the record to state that we do not need more gas, we

need fewer exports?

Steven Gregg: A whole range of questions in that one. If I can just answer it maybe this way, our

view on gas as a transition fuel is echoed by the current government and by the AEMO, which is

an independent authority, as to a very valid and the most efficient form of a transitionary energy

fuel. On that basis, and with that background, and with all the advice we're getting from our

various people like Fiona and the like, it is something that we will continue to fund in reasonable

levels.

How Anthony's long-term equity plan is a function of that is not really that current. He gets paid

for running a great company, and his long-term plan is a function of how the Company performs

over a longer period of time. They aren't linked. So, a whole range of questions there, but that's

how we look at it.

Michael Sanderson: (Shareholder) You're not prepared to correct the parliamentary record?

Steven Gregg: I wasn't there. I didn't hear that.

Michael Sanderson: (Shareholder) I was there.


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Anthony Mller: First of all, I will ask you to speak to my Chief Sustainability Officer, because I

think what you've posited is not necessarily what I've been briefed on by a range of science and

other experts. Secondly, I'm relying upon AEMO. I'm relying on the Australian Government. I'm

also relying upon a whole host of other work that gas is the most efficient of the fossil fuels in

terms of carbon emissions relative to coal, relative to oil. So, therefore, I think I'd like to

understand the science you're drawing on to make that representation. I'll wait for advice from

Fiona as to whether I then need to correct anything I may have said.

Michael Sanderson: (Shareholder) I'll be back next year to quiz you on it. I have six more, but

we'll let other people go.

Steven Gregg: Why don't we let other people have a chat now? Thank you.

Moderator: Mr Chairman, I have another question from Mr Stephen Mayne.

Steven Gregg: Great, thank you.

Stephen Mayne: (Shareholder) So, Chair, would you be able to put the proxy slide back up, if

that's possible? Someone commented to me before and said it was flashed up for 20 seconds

and they didn't see the figures either.

Steven Gregg: Yes, I think we can. Let's try and do it.

Stephen Mayne: (Shareholder) All right. Anyway, a couple of other things. Look, I was at the Myer

AGM this morning. Early disclosure of the proxies. Visitors could come in. Bags weren't

confiscated. I was sitting six doors down from the billionaire, Solomon Lew. It was a good,

friendly AGM. I came here. I had to hand in my bag. I had to get security checked. I mean, there

are no bank robbers here. You don't need to double up with both taking bags and then doing

security, and you've banned visitors. I don't understand why you've banned visitors. So, you

seem to be a little bit paranoid or defensive on security.

So, just a couple of responses to what you said earlier. So, it wasn't 99% on all resolutions. It

was - there was a 14% protest vote against the Board's recommendation on 5B, as you can see.

Steven Gregg: As I said to you - just to correct you, please, before you go on - I said it's 97% to

99% on everything, except for that one resolution, which was put up by Market Forces.

Stephen Mayne: (Shareholder) But there's 40% against Peter Nash.

Steven Gregg: And Peter Nash, that's right.

Stephen Mayne: (Shareholder) So don't just say, I understand there was an issue with another

organisation. Could Peter please explain the situation to the shareholders? Could you also tell

us which of the proxy advisers recommend against? Because that's one of the biggest ever votes

against an independent director of an Australian bank. I don't think it should be glossed over

with dismissive sort of 99% accept. That's an enormous protest vote. We need some details.

Steven Gregg: Were you here when Peter gave his talk? I can't remember. Were you here in the

room when Peter - no. Well, sir, I hear what you're saying. I have a lot of respect for your

observations, but I think it might be helpful, if you don't mind me saying, that you come to all the

meeting so you can see how all the meeting transpires, including speeches by Peter and myself


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in the various talks we gave about - say, in Peter's instance. By the way, I'm very happy that Peter

talks to you now about it, if you like.

Stephen Mayne: (Shareholder) There's a lot of I'll talk to you after the meeting going on today.

That's a common fob-off tactic. When you just dismissively said, something to do with another

organisation, that's code for CVs don't matter for directors. CVs do matter for directors. Under

our compulsory super system, every working Australian is forced to be exposed to the

performance of our professional director class. If something happens at one company and it

causes people to vote against at another company, it should be explained.

I don't know which company it is. Is it Jones Lang? Is it Mirvac? I think the company should be

named and Peter should speak, because you've been quite dominating in handling all of the

questions. Peter should speak as to what the issue is. Did he speak to the proxy advisors? Did

he try and persuade institutions? Has he disclosed anything? What's the issue here? Just finally,

where's next year's AGM? Do you know that? Is it already organised?

Steven Gregg: We do tend to try and rotate it, but for cost reasons and to try and show

shareholders that we are looking into the cost of running AGMs, we held it in Sydney this year. It

was going to be in Adelaide this year, but we're here. We'll see how it goes for next year.

Stephen Mayne: (Shareholder) So, you haven't organised next year's yet?

Steven Gregg: No, we haven't.

Stephen Mayne: (Shareholder) Right, so you could do what ASX did. So, I raised with ASX that

they were having a premature AGM, and they delayed it from September to October to satisfy

that criteria about not prematurely closing off nominations. So, if you haven't booked a venue,

I'd ask you to do that. Just finally, in relation to the question of the disenfranchisement of the

online voting, you said it's not taken up very much. I think the best way - we need some data.

You're very data driven. So, if you just tell us how many of our shareholders voted for and

against, then we can see how well you've done in getting out the vote.

At Qantas, it's less than 1%. We wouldn't cop that in federal elections. We're at 93%. So, how

hard have you tried to get shareholders to vote? I would say not very, given that you've banned

online voting today. So, give yourself a target of 3% turnout next year. I guess the final question,

which I've asked at a few AGMs is, could Anthony provide a brief summary of how busy and what

he does straight after the two half-year results. Broker lunches, institutions, fund managers,

analysts, often it's a week-long festival of talking to the big end of town.

How does that compare with the amount of time and effort you put into your retail

shareholders? Because frankly, banning online voting, banning visitors, not disclosing how

many of us vote for and against so our sentiment can be made public, not disclosing the votes

before the AGM - although that's not particularly related - I think there's a fair contrast between

the time and effort into the big end of town and how you're looking after retail. There's a few

specific things that you can do.

If you did an AGM in Melbourne during the Australian Open, I guarantee you'd probably get twice

as many shareholders there. Who wants a pre-Christmas AGM? We're all exhausted after the

main AGM season. We just want to have a rest, and then all you banks rush them out before


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Christmas because you know people are too busy to come. That's one of the things you like

about it.

So, show us the numbers on how many are here, how many voted, and then take seriously the

governance suggestion. I would like to hear from Anthony and from Mr Nash on those two

specific points. Thank you.

Steven Gregg: Anthony, why don't you just give a very brief - I mean, very brief, about how the

time is spent up.

Anthony Miller: You'll forgive me, this is my first year in the role. So, the way we went about this

year was quite a few meetings after each set of results, shared the workload in the first half with

Michael when he was CFO, and shared the workload with Nathan in the full-year results. So, we

see a whole suite of investors and brokers through one-on-ones and group events. We do try to

make sure also that we are actively involved in public events such as Chamber of Commerce

gatherings, so we are very much putting ourselves into a market environment where people can

ask questions, people can ask what our results are, and we can talk about what we are doing

and what we are not doing.

To the extent that you feel, retail investors, there is more we can do in the context of post-result

activity, Nathan and I are always looking at what more we can do and how can we better

communicate with our owners. Ultimately, we know we work for you as owners, and so

therefore we'll work on what we can do better.

Steven Gregg: Thanks. That's good. With regard to the online voting system, what we'll do is

come back to you with actually how many people voted last year and used that facility to vote,

because I think it's a fair question. As you know, everybody's welcome here, and as you're aware

- because I'm sure you've been to a lot of big bank AGMs - often they are a bit robust in terms of

how they are handled, so that's why there is security there, not to keep people like you out. So,

you understand that. We don't need to go into that.

With regard to Peter's vote and how he is, I'm happy he speaks now to the audience, if you like.

All I would say is that I've - and yes, I'll be honest with you, I have spoken with a lot of the

shareholders and a lot of the proxies about it, and I'm not really in a position, and I don't think

it's fair on Peter either, to talk about what happened at that other organisation, because that's

their business, not our business. The fact that they voted - proxies, some shareholders decided

to vote against Peter, is their prerogative. It's entirely their view.

Why they do it, when actually they should be looking at how he performs on the Westpac Board

and his tenure and contribution, I think I find confusing. Pete, would you mind just giving us a

couple of minutes just on - it was ASX, just to be clear. I know you went to that board, that AGM.

Peter Nash: I'm happy to make a few comments. Earlier on in the meeting I did talk to the

contribution that I have made over the years to Westpac, and the strong position Westpac finds

itself in today as being the most important aspect of my performance in relation to Westpac. It's

clear, and I would acknowledge that there has been concern from some investors around my

time on the board of ASX, which has faced its challenges. It would not be appropriate for me to

engage in a discussion at this meeting about those challenges and how they've been addressed.


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What I would say is that a number of shareholders reached out to have a discussion with me

about various aspects of my non-executive roles and how they combine to enhance my

experience at Westpac. They were discussions I had with any investor that reached out, and

they were valuable discussions and have contributed in part to where the voters ended up

today.

Steven Gregg: Thanks, Peter. Good. I'd be very happy to have a discussion with you afterwards,

Stephen, on all those issues you raised, because I think they had some good points there. As I

said, without sounding like a broken record, I'd love you to come to the entire meeting next time

if that's possible. Okay, sir.

Moderator: Mr Chairman, I have another question from Mr Michael Sanderson.

Michael Sanderson: (Shareholder) With your indulgence, I have a question for each of the

directors that are being elected or re-elected. I'd like to get them all off my chest in one go if I

could.

Steven Gregg: That's fine. That's absolutely fine.

Michael Sanderson: (Shareholder) Chair, Westpac's own governance rules say directors must

be independent and free of any business or other relationship that could materially interfere

with, or could reasonably be perceived to interfere with, their independent judgment. Mr Nash is

a former national chairman of KPMG and now chairs Westpac's Audit Committee. KPMG is now

Westpac's external auditor for the 2025 financial year. Proxy advisors ISS and CGI Glass Lewis

both have recommended voting against his re-election.

How can Mr Nash credibly maintain that he is independent in these circumstances? Will

Westpac commit that he either not be re-elected or, at a minimum, step down from the Audit

Committee and from any oversight of KPMG audit? Does Mr Nash represent transformation or

more of the same?

Steven Gregg: Why don't I take that, if you don't mind? I've got a fully detailed answer for you.

Peter is without question independent and absolutely expresses his independence and

demonstrates at every Board meeting. He was at KPMG eight or nine years - he left KPMG eight

years ago. At what stage do you say to somebody they are independent? I would suggest to you

he's well and truly outside KPMG and well and truly independent.

With regard to the appointment of KPMG as the auditor this year, it was after Pricewaterhouse

were, I guess retired from their role after 55 years as the auditor. We just felt it was prudent to

change auditor. In that regard, we put a subcommittee of the Board together to run a process to

determine which auditor should take over. Peter was not part of that process. He was not on

that committee. He was recused from any involvement at all, not because he wasn't

independent, but because I think the optics would suggest that people could take a view on

that.

Michael Ullmer, who's a very fine Director and very experienced executive, was the chair of that

committee, which I sat on as well. KPMG gave a very fine presentation, and they deserved it

purely on merits, for no other reason. Peter is a very fine Director, and I have absolutely no

hesitation in suggesting he stays on the Board and performs his duty. Furthermore, the tenure of

Westpac's Board is very young. It's only two and a half to three years because of various


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changes and turnover. Peter's been on the Board for now six or seven years, and that buys a lot

of corporate knowledge and corporate history. I think as a firm of this scale and size goes

through its transformation, it needs to have people of that ilk on its Board.

So, Peter's a fine individual. He's incredibly well qualified. There aren't many people in this

market that are qualified to be a chairman of a bank audit committee, and he is one of them. So,

I'm very proud he's on the Board, and you as shareholders should be very, very grateful that he's

serving on the Board.

Michael Sanderson: (Shareholder) Can you explain why ISS and CGI Glass Lewis voted against

him?

Steven Gregg: I can absolutely explain why they're saying it, I just happen to disagree with what

they're saying, I've had a discussion with ISS particularly on this. It was a very unusual

conversation where they tended to agree with me. Why they voted is their business.

Michael Sanderson: (Shareholder) Okay. Thank you. Next one, Chair. Westpac is still rebuilding

trust after a $23 million anti-money laundering breaches and a record AUSTRAC penalty. You

ask us to elect David Cohen to Westpac Board Risk Committee. Mr Cohen was CBA's Chief Risk

Officer when AUSTRAC hit that bank with its own record anti-money laundering penalty. Mr

Cohen also admitted serious risk failings to the Royal Commission.

How can you possibly claim he strengthens Westpac's risk governance? Will you withdraw the

Board's recommendation for his election, or at least rule out his appointment to the Risk

Committee? To finish, does Mr Cohen represent a transformation or more of the same?

Steven Gregg: Well, firstly, I'm absolutely not going to withdraw the recommendation of him to

be on the Board. He's, again, a very experienced individual and a great contributor. I think as life

is, you want people who've seen it all, good, bad and ugly. You don't want directors who have

not seen anything. Having someone of David's quality and background on this Board is

invaluable. Speaking with the regulators that oversee us - and there's about three or four of them

- they are all, to a T, delighted that David is on our Board.

So, there's absolutely no way that I'm going to suggest anything other than he stays on the

Board, but stays on the Risk Committee as well, and the learnings that he may have gleaned

from his past lives and from the time at Westpac can only stand us in good stead.

Michael Sanderson: (Shareholder) Chair, Westpac claims zero tolerance for bullying,

discrimination and sexual harassment, and says leaders must create a safe and inclusive

workplace, yet you ask us to elect Pip Greenwood, who was senior leader, chair and interim

CEO of Russell McVeagh when its toxic, alcohol-fuelled culture and serious sexual harassment

failures were exposed.

How can you possibly reconcile Ms Greenwood's leadership record with the values you say

govern Westpac? Will you withdraw the Board's recommendation for her election, or at least

rule her out of any role overseeing people, risk culture or risk conduct? Does Ms Greenwood

represent transformation or more of the same?

Steven Gregg: Ms Greenwood, in my experience, is an exemplary Director - also has exemplary

experience in the New Zealand market, which is important to this Board. As to her oversight of


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her previous work, I'm not aware of that. I'd be very happy to look at that, but I just don't think it's

relevant to how Westpac operates. We have a zero-rated - Pip is a fine Director, and again, she

shows nothing but purely ethical motives in every respect. So, I find it unusual that you raise

this. So, we will be absolutely backing Pip to be on this Board.

Michael Sanderson: (Shareholder) Chair, Westpac is still rebuilding trust after a $23 million anti-

money laundering breaches and a record AUSTRAC penalty. You now ask us to elect Debra

Hazelton to the Board and to your remuneration committee. At AMP she was on the Board that

promoted Boe Pahari despite prior sexual harassment complaint and payout. As AMP chair, she

presided over turmoil, a protest vote against pay, and major value destruction.

How can you claim this track record will strengthen Westpac governance and culture? Will you

withdraw the recommendation for her election or at least rule her out joining the remuneration

committee? Just to clarify, is Ms Hazelton still on the board of Australia Post? Yes. I just want to

add to that, does she see any conflict where there's a proposal that Australia Post host a public

bank, and is she in contact with Anika Wells or Katy Gallagher, the shareholders?

Steven Gregg: Let me answer the second question first. Whenever there's any discussion at the

Westpac Board that in any way refers to or includes Australia Post, she recuses herself and

leaves the room, so there's no conflict there. With regard to your first point, I think it's very

interesting, having known that organisation quite well over the years, and a number of the

directors on that board, and seeing the turmoil that AMP went through, I think one of Debra's

great strengths is that she was brought in to sort it out.

She was brought in on the board and promoted to the chair of AMP and did an exemplary job at

bringing a very ethical view on the people there and on the practices there. I think when I looked

at Debra's background there and her ability to massage a difficult series of conflicted issues

there and difficult issues to get an outcome that was sensible for shareholders and sensible for

the firm, it showed real skill and real leadership.

To have somebody on our Board with that background, who understands turmoil and how to

deal with it calmly and thoughtfully, is extremely valuable, so Debra, like all the other directors

on this Board, has a huge amount to offer. She is absolutely a valued member.

Michael Sanderson: (Shareholder) Okay. Well, I've got two more, but just in parting, wouldn't

Stephen Mayne make a good independent director?

Steven Gregg: Well, he's got to turn up to the meetings first, right?

Moderator: Mr Chairman, I would like to introduce Mr Freeman Tseng.

Steven Gregg: Thank you.

Freeman Tseng: (Shareholder) Good afternoon, Chair. My wife and I are customers and

shareholders of Westpac for many years. I just have a question that might be important for the

retirees like us, that we would like to share our experience with you and hope that the bank can

look at it and improve their performance. The question is, when we apply for credit card with the

bank, we do it online nowadays, and when we put in the application, reject.

I just want to share with you that when we apply for the credit card, the question about retiree,

tick, although we have the equity enough to live the rest of our life and we do a good credit


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rating, but whenever we tick retired, no pay slip, we've been rejected straight away. Now, is this a

policy for the bank, not welcome retiree applying for credit card? Yes or no?

Anthony Miller: First of all, thank you for being a customer and a shareholder of the bank. I

apologise for what you've just outlined, and I would invite you to connect with our Head of

Consumer Bank, who is Carolyn McCann, just sitting down there. You've really called out

something that we acknowledge we need to get better at, which is the prescription of one type

of policy to solve for what various customers need often does not work that well. So often, when

people apply for a credit card, it is very focused on income and salary, et cetera, but if someone

is retired, then clearly it is a different construct.

We have not, if you will, got that balance right, so I apologise for that. We do definitely want your

business. We definitely want you to stay a customer and shareholder of the bank, and I'd invite

you to meet Carolyn after this meeting, because we'd like to do better by you.

Freeman Tseng: (Shareholder) Because our experience is, normally in the family we have

primary cardholder and secondary cardholders. Even my friend has experience. His partner

passed away. She's the primary cardholder. Whenever that happened, his credit card has been

discarded, and he no longer can apply for credit card because he's retired. As a result, a lot of

things become very difficult for life for him, although he has many investments, house and

super. All are good, good credit rating.

But I think if the bank can look at this kind of - particularly online nowadays, whenever you tick

the box, you're in that category, and that category could become discriminative against certain

kinds of people, although they are still able to pay the credit card, easy, monthly, but that

becomes a hindrance for retirees.

Anthony Miller: No, it's very fair. As I said, a customer matter. Please see Carolyn, and we'll

definitely look to address that.

Freeman Tseng: (Shareholder) Thank you.

Steven Gregg: Appreciate the feedback there. Okay, in the room please, and then we'll go to the

last couple online. Thank you.

Moderator: Mr Chairman, I'd like to introduce Dr John Hill.

Steven Gregg: Thank you, Dr Hill.

John Hill: (Shareholder) Mr Chairman, you may be aware that our family holds a very substantial

number of Westpac shares, possibly more than the whole Board put together. I have been

concerned about the discussion about climate change, which is a scientific furphy. The reason I

say that, if you listen to any physicist or any scientist, it makes no sense. I can only make several

small points as to what has happened to the Earth's climate over the last thousands of millions

of years.

Now, the first point is, the Earth has been cooling for 4,000 or 5,000 years at least, since the last

- second point is, since the last ice age which commenced about 10,000 years ago and reached

a depth of about 3,000 years ago, and raised to a peak about 1,000 years ago when the

temperature of the Earth appeared to be significantly higher - and I'll repeat that, significantly

higher - than it is today. After that time, we went into a mini ice age and the temperature of the


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earth fell until about 1300 or 1400, so much so that the Thames had frozen up and people could

ski on the Thames - ice skate on the Thames. The Earth has been rising in temperature ever

since.

Now, the next observation is, quite clearly human activity has virtually nothing to do with the

amount of carbon dioxide in the atmosphere. The last point I make is a fairly sophisticated

physics point, and that is, the Earth gets heat from the Sun by radiation during the daytime and

loses heat during the night. The amount of heat absorbed is to the fourth power of the

differential in absolute temperatures between the Earth and the Sun, and at night it loses

temperature at the fourth power of the absolute temperature - the difference of the fourth power

of the Earth and the absolute temperature, which is absolute zero at night.

To make a long story short, as the temperature rises, the amount of heat lost by the Earth at

night increases dramatically, and that's why the climate moves so slowly and so silently that we

should not be concerning ourselves completely with the climate change scarers.

Steven Gregg: Thank you for your thoughts, sir. Appreciate that. Thank you. One more question

in the room. Thank you.

Moderator: Mr Chairman, we have a couple more questions from Mr Michael Sanderson.

Michael Sanderson: (Shareholder) Two more, all over.

Steven Gregg: Okay, Mr Sanderson.

Michael Sanderson: (Shareholder) This one relates to the remuneration report. Chair, after

Westpac paying $1.3 billion in penalties for anti-money laundering breaches, Westpac admitted

to 11 years of wage underpayments to almost 47,000 staff and is still remediating past

misconduct. How can you ask us to endorse rising bonuses and long-term incentives for the

new Chief Executive and his team in this remuneration report? Why should shareholders

approve it before executive pay clearly reflects accountability for these failures?

Steven Gregg: Shall I have a go at that one first? You've got one more after that, haven't you?

Michael Sanderson: (Shareholder) I've got one more.

Steven Gregg: Yes, we have had an underpayment issue, which dates back six years to -

actually, six or seven years, from 2018-2019, and we've been working through that remediation

since then. I think it's very inappropriate and unfair to penalise management today, who have

been appointed today, for that. It is their job to fix that and sort that out, and to deal with the

authorities to make sure we have a good outcome there. I am looking at performance today, and

the management team are all current, and we will judge them on how they are acting and how

they perform.

Michael Sanderson: (Shareholder) Okay, thank you. This is a bit long, it's a techo question, and

I'm not a very good reader. Here we go. The Australian Government guarantees ordinary people's

bank deposits through deposit insurance, meaning it promises to protect depositors' money if

the bank gets into trouble. It also sets and enforces capital rules to ensure the bank holds

enough high-quality assets to safely cover their deposits and other liabilities. So, under this

framework, the government guarantees deposits for the public, removing the need for them to

ask for collateral, certifies the bank as safe and sound under its own capital rules.


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However, at the same time, the RBA - which is part of the public sector - requires Westpac to

pose government securities as collateral when it lends to Westpac. Does the Board regard this

structure as effectively saying, we trust Westpac enough to guarantee the public's deposits, but

we don't trust Westpac enough for our own central bank to lend to Westpac without extra

collateral? Doesn't this collateral requirement then become redundant and potentially harmful,

especially in a crisis when banks need rapid access to central bank funding but may lack the

required collateral?

Could the Board explain whether it regards this requirement as necessary and consistent with

existing deposit guarantee and capital adequacy framework, and whether Westpac has raised

any concerns with the RBA or the government that it may make the system less stable in times

of stress?

Steven Gregg: A detailed and technical question. I think the first couple of observations, then

I'm going to hand it to Anthony to take us through it. This is all part of quite a sophisticated

ecosystem between the government and the banks - and the Reserve Bank particularly, and,

say, big four banks mainly - to protect the economic system and the capital system of this

country. It works in terms of borrowing, in terms of flows of cash and adequacy. It's also part of

our four pillars process. Where the banks are given certain protections, they've got to deliver

certain things.

So, to answer your question, yes, it does work, and no, it is not a comment on the adequacy of

the banks. As we stated very early on, Westpac has the highest level of Tier 1 capital in this

country, some of the highest in the world, and that's how I like to see it. It's safe and secure for

the shareholders, and we have a very close relationship with the Reserve Bank, and it works

well. Anthony, have you got a few thoughts?

Anthony Miller: The liquidity rules are set by APRA, so not the Reserve Bank. The liquidity rules

are set such that, based on the number of deposits we have, there are certain liquidity

requirements that we must have at all times. We also then have arrangements with the central

bank, the Reserve Bank of Australia, to ensure that in certain circumstances, if incremental

liquidity is needed, we can go to the Reserve Bank, hand over collateral in exchange for cash, for

liquidity.

So, the Reserve Bank mechanism is one which is universally used by all central banks around

the world, which is a liquidity lender of last resort to the banking system. The standards at which

we set up our liquidity profile, the amount of liquids we have, the range of sources of liquids that

we have, is prescribed by APRA, and so that's the framework we run to. We are fortunate, and

respect and appreciate very much the deposit guarantee scheme in this country and also

acknowledge that that is a scheme that is used in many other jurisdictions around the world, so

there's no unusualness to what we have in place here in Australia.

Michael Sanderson: (Shareholder) Do you think there's a case to simplify the rules around

banking generally?

Anthony Miller: I would never dispute the idea that something can be made simpler, but I do

think that the system we have in place, particularly as it relates to the liquidity rules as

prescribed by APRA here in Australia, and the way we interact and work with the lender of last

resort, the Reserve Bank, are elegant and have been proved to be very, very effective.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Michael Sanderson: (Shareholder) They still favour the four major banks to their advantage, and

to the disadvantage of the smaller banks. Would you agree?

Anthony Miller: No, I don't agree with that, but that's a version of events.

Michael Sanderson: (Shareholder) Okay, thank you very much.

Steven Gregg: Thank you.

Michael Sanderson: (Shareholder) Thanks for your time.

Steven Gregg: Pleasure. Thank you for all your questions there. Folks, we have just a few more

questions online, if we can please read those out.

Moderator: Mr Chairman, we have a question from Craig Caulfield for the auditor. I understand

the auditor plays a role in assessing whistleblower submissions. How many whistleblower

cases did the auditor investigate this year? How do this year's numbers compare with recent

years?

Steven Gregg: I will ask Kim to answer that, but they don't assess whistleblower activity. Kim.

Kim Lawry: Thank you, Chairman, and it's not in relation to the execution of the audit either. So,

due to whistleblower protection, we cannot disclose anything in relation to whistleblower

complaints. Also, we also weren't the incumbent auditor last year, so also don't have any

comparative statistics to share.

Steven Gregg: Thank you, Kim.

Kim Lawry: Thank you.

Steven Gregg: Thank you.

Moderator: Mr Chairman, we have an online question from Kym Holman. If shareholders are

able to vote at the meeting in person, why doesn't Westpac currently support online direct

voting during the meeting? This would enable online shareholders an opportunity to hear the

discussions and presentations at the AGM before voting, therefore supporting shareholders that

live outside Sydney and a more informed decision process.

Steven Gregg: This has been raised a number of times, and we will look into this for next year.

We have only not gone through with it this year because of the cost and the lack of take-up, but

we will take it on board. Thank you.

Moderator: Mr Chairman, we have an online question from John Sabljak. Accenture was

involved with the recent technology upgrade at the Bureau of Meteorology. The original contract

was for $31 million. Amendments pushed the contract value to around $78 million for

Accenture's part. Are these the best two organisations to be involved in your UNITE program?

Steven Gregg: Well, firstly, I really can't comment on what's gone on at the Bureau of

Meteorology. It doesn't sound like it was well handled, but that's nothing to do with us, and I'm

not really capable of commenting on that. All I can see is that they're playing a very fine role in

our UNITE program, and that's all we can really comment on there.


MUFG Corporate Markets

A division of MUFG Pension & Market Services

Moderator: Mr Chairman, I have an online question from Sutitiuh. To the CEO and CFO, with

regards to the standardisation of platforms within Westpac, can you advise whether this will

mean that Westpac will standardise deposit pricing? At the moment it appears the bank has no

coherent deposit pricing policy, with the Westpac WA Commercial Bank offering a 12-month

term deposit rate of 4.85%, while the institutional bank is offering a 12-month rate of 4.64%.

How does the bank expect to control NIM when customers can play off each section of the bank

for the best deposit deal?

Anthony Miller: We have a coordinated approach to pricing deposits. What I would also

acknowledge, however, is that there will be instances where different businesses or different

sectors will be more attractive and so, therefore, there will be more competition, and you may

have to pay more than you would otherwise pay in another sector for that particular deposit. We

have and are very focused on a very coordinated, very aligned price around deposits, but we

need to recognise that we're in a competitive market where there's a lot of banks targeting

different sectors, different segments of the market, and so thus you will see instances where

pricing is a little bit different in that environment.

Steven Gregg: Thank you. Thanks, Anthony. A good answer to that one. Folks, that's the end of

the online questions. If there are any other questions in the room - or are we - we're done there.

Okay. Ladies and gentlemen, that completes the business of the meeting. The polls will close in

15 minutes on all resolutions. The results will be available later today and can be obtained by

visiting the ASX announcements platform on the Westpac website. For your convenience,

please remain seated until directed to vacate your seats. The MUFG staff will collect completed

voting cards, which should be placed in one of the ballot boxes.

I now declare the meeting closed, subject to the finalisation of the polls. Last comment. Firstly,

thank you for coming along today. It is a big commitment of your time. It is important to us that

you are heard. It has been a wonderful year for this Bank, and you should be very proud of the

achievements. I wish to see you next year. Have a great Christmas and break. Thank you.

[END OF TRANSCRIPT]

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