WNZL Disclosure Statement - 30 Sep 2025

ASX RELEASE
Westpac Banking Corporation
Level 18, 275 Kent Street
Sydney, NSW, 2000
3 N
ovember 2025
Westpac New Zealand Limited Disclosure Statement
W
estpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Limited Disclosure Statement for the year ended 30 September 2025.
For further information:
H
ayden 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.

This page has been intentionally left blank

Glossary of terms
4
Annual report
5
Directors’ statement
6
Financial statements
Income statement7Note 16 Deposits and other borrowings39
Statement of comprehensive income7Note 17 Other financial liabilities
39
Balance sheet8Note 18 Debt issues40
Statement of changes in equity9Note 19 Provisions41
Statement of cash flows10Note 20 Loan capital42
Note 1 Financial statements preparation 11Note 21 Shareholders' equity44
Note 2 Net interest income15Note 22 Related entities46
Note 3 Non-interest income 16Note 23 Derivative financial instruments49
Note 4 Operating expenses17Note 24 Fair values of financial assets and financial liabilities55
Note 5 Auditor’s remuneration17Note 25 Offsetting financial assets and financial liabilities58
Note 6 Impairment charges/(benefits)18
Note 26 Credit related commitments, contingent assets and
contingent liabilities
60
Note 7 Income tax expense19
Note 8 Imputation credit account19Note 27 Segment reporting61
Note 9 Trading securities and financial assets measured at
FVIS
20
Note 28 Securitisation, covered bonds and other
transferred assets
62
Note 10 Investment securities20Note 29 Structured entities63
Note 11 Loans21Note 30 Capital management 64
Note 12 Provision for expected credit losses22
Note 31 Risk management, funding and liquidity risk and
market risk
66
Note 13 Credit risk management30
Note 14 Deferred tax assets37Note 32 Notes to the statement of cash flows76
Note 15 Intangible assets38
Registered bank disclosures
i. General information 77vi. Credit exposures to connected persons98
ii. Additional financial disclosures82
vii. Insurance business, securitisation, funds management,
other fiduciary activities, and marketing and distribution of
insurance products
98iii. Asset quality84
iv. Capital adequacy and regulatory liquidity ratios88
v. Concentration of credit exposures to individual
counterparties
97
viii. Risk management policies99
Conditions of registration
105
Independent auditor’s report
110
Independent assurance report
115
Contents
Westpac New Zealand Limited3

Certain information contained in this Disclosure Statement is required by the Order.
In this Disclosure Statement, reference is made to:
-Westpac New Zealand Limited (otherwise referred to as the ‘Bank’)
-Westpac New Zealand Limited and its controlled entities (otherwise referred to as the ‘Banking Group’). Controlled entities of the Bank as
at 30 September 2025 are set out in Note 22;
-Westpac Banking Corporation (otherwise referred to as the ‘Ultimate Parent Bank’);
-Ultimate Parent Bank and its controlled entities (otherwise referred to as the ‘Ultimate Parent Bank Group’); and
-New Zealand Branch of the Ultimate Parent Bank (otherwise referred to as the ‘NZ Branch’).
Words and phrases not defined in this Disclosure Statement, but defined by the Order, have the meaning given by the Order when used in this
Disclosure Statement.
The Disclosure Statement also uses the following terms as defined below.
ADI
Authorised deposit-taking institution
GDP
Gross domestic product
ALCO
Asset and Liability Committee
GST
Goods and services tax
ALM
Asset and liability risk management
IAP
Individually assessed provisions
AMA
Advanced Measurement Approach
ICAAP
Internal capital adequacy assessment process
ANZSIC
Australian and New Zealand Standard Industrial
Classification
IRB
Internal ratings-based
IRRBB
Interest rate risk in the banking book
APRA
Australian Prudential Regulation Authority
LGD
Loss given default
APS 222
APRA’s Prudential Standard APS 222 Associations
with Related Entities
LVR
Loan-to-value ratio
Moody's
Moody's Investors Service
ASX
Australian Securities Exchange
NaR
Net interest income-at-risk
AT1
Additional Tier 1 capital
NII
Net interest income
BKBM
Bank bill benchmark rate
NZ IAS
New Zealand equivalents to International
Accounting Standards
Board
Board of Directors of the Bank
BPR
Banking Prudential Requirements
NZ IFRS
New Zealand equivalents to International Financial
Reporting Standards
BRCC
Board Risk and Compliance Committee
BS13
Reserve Bank document 'Liquidity Policy'
NZX
NZX Limited
CAP
Collectively assessed provisions
OCI
Other comprehensive income
CB
Covered bonds
Order
Registered Bank Disclosure Statements (New
Zealand Incorporated Registered Banks) Order
2014 (as amended)
CCCFA
Credit Contracts and Consumer Finance Act 2003
CCF
Credit Conversion Factor
PD
Probability of default
CGU
Cash generating unit
PIE
Portfolio investment entities
CREDCO
Credit Risk Committee
PPS
Perpetual preference shares
CRG
Customer risk grade
Reserve
Bank
Reserve Bank of New Zealand
EAD
Exposure at default
ECL
Expected credit losses
RISKCO
Executive Risk Committee
ELE
Extended licensed entity
RMBS
Residential mortgage-backed securities
ESG
Environmental, social and governance
RWAs
Risk weighted assets or risk weighted exposures
Financial
statements
Consolidated financial statements
S&P
S&P Global Ratings
SME
Small and medium-sized enterprises
Fitch
Fitch Ratings
SPPI
Solely payments of principal and interest
FVIS
Fair value through income statement
SPV
Special purpose vehicle
FVOCI
Fair value through other comprehensive income
VaR
Value-at-Risk
FX
Foreign exchange
XRB
External Reporting Board
Glossary of terms
4Westpac New Zealand Limited

Pursuant to section 211(3) of the Companies Act 1993, the holder of 100% of the voting shares (within the meaning of section 198) in Westpac New
Zealand Limited has agreed that the Annual Report of Westpac New Zealand Limited need not comply with the requirements of paragraphs (a),
and (e) to (j) of subsection (1) and subsection (2) of section 211.
Accordingly, there is no information to be included in the Annual Report other than the financial statements for the year ended 30 September
2025 and the independent auditor’s report on those financial statements.
For and on behalf of the Board of Directors:
Philippa Greenwood
Chair
2 November 2025
Catherine McGrath
Chief Executive
2 November 2025
Annual report
Westpac New Zealand Limited5

Each Director of the Bank believes, after due enquiry, that, as at the date on which this Disclosure Statement is signed, the Disclosure Statement:
(a)contains all the information that is required by the Order; and
(b)is not false or misleading.
Each Director of the Bank believes, after due enquiry, that over the year ended 30 September 2025:
(a)the Bank has complied in all material respects with each condition of registration that applied during that period;
(b)credit exposures to connected persons were not contrary to the interests of the Banking Group; and
(c)the Bank had systems in place to monitor and control adequately the Banking Group’s material risks, including credit risk, concentration of
credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operational risk and other business risks, and that those systems were
being properly applied.
This Disclosure Statement has been signed by all the Directors:
Philippa GreenwoodCatherine McGrath
Debra BirchDavid Green
Robert HamiltonDavid Havercroft
Ian Samuel KnowlesChristine Parker
Dated this 2nd day of November 2025
Directors’ statement
6Westpac New Zealand Limited

THE BANKING GROUP
$ millions
Note
2025
2024
Interest income:
Calculated using the effective interest method2
6,803
7,384
Other2
106
141
Total interest income
2
6,909
7,525
Interest expense2
(4,035)
(4,686)
Net interest income 2,874
2,839
Non-interest income
Net fees and commissions3
243
247
Other3
2
9
Total non-interest income 245
256
Net operating income 3,119
3,095
Operating expenses4
(1,493)
(1,365)
Impairment (charges)/benefits6
44
(27)
Profit before income tax expense 1,670
1,703
Income tax expense7
(467)
(477)
Profit after income tax expense 1,203
1,226
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the year ended 30 September 2025
THE BANKING GROUP
$ millions2025
2024
Profit after income tax expense 1,203
1,226
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Investment securities
85
239
Cash flow hedging instruments
(71)
(376)
Transferred to income statement:
Cash flow hedging instruments
(18)
(75)
Income tax on items taken to or transferred from equity:
Investment securities
(24)
(67)
Cash flow hedging instruments
24
127
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation recognised in equity (net of tax)
1
(1)
Net other comprehensive income/(expense) (net of tax)
(3)
(153)
Total comprehensive income
1,200
1,073
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
Income statement for the year ended 30 September 2025
Westpac New Zealand Limited7

THE BANKING GROUP
$ millions
Note
2025
2024
Assets
Cash and balances with central banks32
6,091
7,456
Collateral paid
32
76
Trading securities and financial assets measured at FVIS9
2,353
2,372
Derivative financial instruments 23
1,057
225
Investment securities10
8,206
7,535
Loans11,12
106,328
102,150
Other financial assets
389
461
Due from related entities22
2,086
1,189
Property and equipment
472
449
Deferred tax assets14
181
187
Intangible assets15
901
939
Other assets
176
157
Total assets 128,272
123,196
Liabilities
Collateral received
936
156
Deposits and other borrowings16
82,832
81,539
Other financial liabilities17
2,513
4,257
Derivative financial instruments 23
153
199
Due to related entities22
1,766
2,070
Debt issues18
26,406
21,619
Current tax liabilities
98
188
Provisions19
195
217
Other liabilities
320
364
Loan capital20
1,726
1,710
Total liabilities 116,945
112,319
Net assets 11,327
10,877
Shareholders' equity
Ordinary share capital21
7,300
7,300
Perpetual preference shares21
1,369
1,369
Reserves
(66)
(62)
Retained profits
2,724
2,270
Total shareholders' equity 11,327
10,877
The above balance sheet should be read in conjunction with the accompanying notes.
Signed on behalf of the Board of Directors.

Philippa Greenwood David Green
Chair of Board Chair of Board Audit Committee
2 November 2025 2 November 2025
Balance sheet as at 30 September 2025
8Westpac New Zealand Limited

THE BANKING GROUP
Reserves
$ millionsNote
Ordinary
Share
Capital PPS
Investment
Securities
Reserve
Cash Flow
Hedge
Reserve
Retained
Profits
Total
Shareholders'
Equity
As at 30 September 2023
7,300 - (287) 377 1,754 9,144
Year ended 30 September 2024
Profit after income tax expense - - - - 1,226 1,226
Net gains/(losses) from changes in fair value - - 239 (376) - (137)
Income tax effect - - (67) 106 - 39
Transferred to income statement - - - (75) - (75)
Income tax effect - - - 21 - 21
Remeasurement of defined benefit obligations - - - - (1) (1)
Income tax effect - - - - - -
Total comprehensive income/(expense)
- - 172 (324) 1,225 1,073
Transactions with equity holders:
PPS issued (net of issue costs)21 - 1,369 - - - 1,369
Dividends paid on ordinary shares21 - - - - (657) (657)
Dividends paid on PPS21 - - - - (52) (52)
Supplementary dividends paid on PPS21 - - - - (9) (9)
Tax credit on supplementary dividends - - - - 9 9
As at 30 September 2024
7,300 1,369 (115) 53 2,270 10,877
As at 30 September 2024 7,300 1,369 (115) 53 2,270 10,877
Year ended 30 September 2025
Profit after income tax expense
- - - - 1,203 1,203
Net gains/(losses) from changes in fair value
- - 85 (71) - 14
Income tax effect
- - (24) 19 - (5)
Transferred to income statement
- - - (18) - (18)
Income tax effect
- - - 5 - 5
Remeasurement of defined benefit obligations
- - - - 2 2
Income tax effect
- - - - (1) (1)
Total comprehensive income/(expense) - - 61 (65) 1,204 1,200
Transactions with equity holders:
Dividends paid on ordinary shares21
- - - - (673) (673)
Dividends paid on PPS21
- - - - (77) (77)
Supplementary dividends paid on PPS21
- - - - (10) (10)
Tax credit on supplementary dividends
- - - - 10 10
As at 30 September 2025 7,300 1,369 (54) (12) 2,724 11,327
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity for the year ended 30 September 2025
Westpac New Zealand Limited9

THE BANKING GROUP
$ millions
Note
2025
2024
Cash flows from operating activities
Interest received
6,944
7,538
Interest paid
(4,417)
(4,749)
Non-interest income received
222
270
Operating expenses paid
(1,228)
(1,216)
Income tax paid
(520)
(510)
Cash flows from operating activities before changes in operating assets and liabilities
1,001
1,333
Net (increase)/decrease in:
Collateral paid
44
(43)
Trading securities and financial assets measured at FVIS
21
314
Loans
(4,168)
(2,582)
Other financial assets
68
(123)
Due from related entities
16
736
Other assets
(4)
(4)
Net increase/(decrease) in:
Collateral received
780
(147)
Deposits and other borrowings
1,234
(649)
Other financial liabilities
(1,450)
(1,961)
Due to related entities
(161)
(634)
Other liabilities
(14)
2
Net movement in external and related entity derivative financial instruments
495
654
Net cash provided by/(used in) operating activities
32
(2,138)
(3,104)
Cash flows from investing activities
Proceeds from investment securities
921
1,529
Purchase of investment securities
(1,375)
(1,930)
Purchase of intangible assets
(102)
(118)
Purchase of property and equipment
(111)
(74)
Net cash provided by/(used in) investing activities (667)
(593)
Cash flows from financing activities
Proceeds from debt issues18
8,359
10,060
Repayments of debt issues18
(6,185)
(7,453)
Payments for the principal portion of lease liabilities
(55)
(51)
Issue of PPS (net of issue costs)21
-
369
Dividends paid on ordinary shares21
(673)
(657)
Dividends paid on PPS21
(87)
(61)
Net movement in due to related entities
(29)
(30)
Net cash provided by/(used in) financing activities 1,330
2,177
Net increase/(decrease) in cash and cash equivalents (1,475)
(1,520)
Cash and cash equivalents at the beginning of the year
8,243
9,772
Effect of exchange rate changes on cash and cash equivalents
63
(9)
Cash and cash equivalents at the end of the year
32
6,831
8,243
The above statement of cash flows should be read in conjunction with the accompanying notes.
Details of the reconciliation of net cash provided by/(used in) operating activities to Profit after income tax expense are provided in Note 32.
Statement of cash flows for the year ended 30 September 2025
10Westpac New Zealand Limited

Note 1 Financial statements preparation
The Bank was incorporated as Westpac New Zealand Limited under the Companies Act 1993 (Company Number 1763882) on 14 February 2006.
The head office of the Bank is situated at Westpac on Takutai Square, 16 Takutai Square, Auckland 1010, New Zealand and the address for service
of process on the Bank is General Counsel, Legal, Westpac on Takutai Square, 53 Galway Street, Auckland 1010, New Zealand.
The Bank is a locally incorporated subsidiary of the Ultimate Parent Bank providing consumer and business banking to New Zealand customers.
The Ultimate Parent Bank has shares listed on the ASX and NZX, and is classified as a foreign exempt issuer under the NZX Listing Rules.
The financial statements are for the Banking Group.
These financial statements were authorised for issue by the Board of Directors of the Bank on 2 November 2025. The Board has the power to
amend and reissue the financial statements.
The material accounting policies are set out below and in the relevant notes to the financial statements. These policies have been consistently
applied to all the years presented, unless otherwise stated.
a. Basis of preparation
(i) Basis of accounting
These financial statements are general purpose financial statements prepared in accordance with:
●the requirements of the Financial Markets Conduct Act 2013; and
●the requirements of the Order.
These financial statements comply with New Zealand Generally Accepted Accounting Practice, applicable NZ IFRS and other authoritative
pronouncements of the XRB, as appropriate for for-profit entities. These financial statements also comply with International Financial Reporting
Standards Accounting Standards, as issued by the International Accounting Standards Board.
All amounts in these financial statements have been rounded to the nearest million dollars unless otherwise stated.
(ii) Historical cost convention
These financial statements have 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 FVIS or FVOCI.
(iii) Comparative revisions
Comparative information has been revised where appropriate to conform to changes in presentation in the current year and to enhance
comparability. Where there has been a material restatement of comparative information the nature of, and the reason for, the restatement is
disclosed in the relevant section.
(iv) Standards adopted during the year ended 30 September 2025
No new accounting standards have been adopted by the Banking 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 Banking Group.
(v) Business combinations
Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair
value at the date of acquisition of the assets given, equity instruments issued or liabilities incurred or assumed. Acquisition-related costs are
expensed as incurred (except for those costs arising on the issue of equity instruments which are recognised directly in equity).
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the
acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any non-controlling interest and the fair value of any
previous Banking Group’s equity interest in the acquiree, over the fair value of the identifiable net assets acquired.
(vi) Foreign currency translation
Functional and presentation currency
The financial statements are presented in New Zealand dollars which is the Banking Group’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. 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.
Notes to the financial statements
Westpac New Zealand Limited11

Note 1 Financial statements preparation (continued)
(vii) Reserves
Investment securities reserve
This comprises the changes in the fair value of debt securities measured at FVOCI (except for interest income, impairment charges and FX gains
and losses which are recognised in the income statement), net of any related hedge accounting adjustments and tax. These changes are
transferred to non-interest income in the income statement when the asset is disposed of.
Cash flow hedge reserve
This comprises the fair value gains and losses associated with the effective portion of designated cash flow hedging instruments, net of tax.
b. Principles of consolidation
The Banking Group subsidiaries are entities which the Bank controls and consolidates as it is exposed to, or has rights to, variable returns from its
involvement with the entities, and can affect those returns through its power over the entities.
All transactions between entities within the Banking Group are eliminated. Subsidiaries are fully consolidated from the date on which control
commences and are de-consolidated from the date that control ceases.
c. Financial assets and financial liabilities
(i) Recognition
Financial assets and financial liabilities, other than regular way transactions, are recognised when the Banking Group becomes a party to the terms
of the contract, which is generally on the settlement date (the date payment is made or cash advanced). Purchases and sales of financial assets in
regular way transactions are recognised on the trade date (the date on which the Banking Group commits to purchase or sell an asset).
(ii) Derecognition
Financial assets are derecognised when the rights to receive cash flows from the asset have expired, or when the Banking Group 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 the Banking Group 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, the asset continues to be recognised on the balance sheet to the
extent of the Banking Group’s continuing involvement in the asset.
Financial liabilities are derecognised 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.
(iii) 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, other financial assets and due from related entities.
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 SPPI.
The Banking Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing the
business model the Banking Group 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 and selling the financial
asset; or
●FVIS if they are held within a business model whose objective is achieved through selling the financial asset.
Notes to the financial statements
12Westpac New Zealand Limited

Note 1 Financial statements preparation (continued)
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.
Debt instruments at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method. They are presented net of any provision for ECL determined using the ECL model. Refer to Notes 6 and 12 for further details.
Debt instruments at FVOCI are measured at fair value with unrealised gains and losses recognised in OCI except for interest income, impairment
charges and FX gains and losses, which are recognised in the income statement. Impairment on debt instruments at FVOCI is determined using
the ECL model and is recognised in the income statement with a corresponding amount in OCI. There is no reduction of the carrying value of the
debt security which remains at fair value.
The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is derecognised.
Debt instruments at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement.
Financial liabilities
Financial liabilities are grouped into the following classes: collateral received, deposits and other borrowings, other financial liabilities, derivative
financial instruments, due to related entities, 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.
The Banking Group’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 24.
d. Critical accounting assumptions and estimates
Applying the Banking Group’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 12Provision for expected credit losses
●Note 24Fair values of financial assets and financial liabilities
During the six months ended 31 March 2025, geopolitical developments, including in relation to international trade and tariff policies, global
tensions and continuing global military conflict, led to heightened uncertainty as to future economic forecasts and potential impact on the
Banking Group and its customers. Responding to this heightened uncertainty, the Banking Group increased the weighting of the downside
scenario used in the estimate of ECL from 42.5% to 45% in March 2025 (refer to Note 12 for further details). As at 30 September 2025, estimates of
ECL remain subject to this higher than usual level of uncertainty.
Impact of climate-related risks
The Banking Group has considered the potential risk of climate change on its financial statements. Refer to Note 31 for further details.
e. Future developments in accounting standards
NZ IFRS 9 Financial Instruments (NZ IFRS 9) became effective for the Banking Group for the financial year ended 30 September 2019. When
adopted, as permitted by the standard, the Banking Group elected to continue to comply with the hedge accounting requirements under NZ IAS
39 Financial Instruments: Recognition and Measurement (NZ IAS 39). The Banking Group intends to adopt the hedge accounting requirements of
NZ IFRS 9 prospectively for the financial year beginning 1 October 2025, for designated hedge relationships other than fair value hedges of the
interest rate exposure of a portfolio of financial assets or financial liabilities (fair value macro hedges) which will continue to be accounted for
under NZ IAS 39, as dynamic portfolio risk management is out of scope of NZ IFRS 9. All the Banking Group's existing hedge accounting
relationships will continue to qualify for hedge accounting. Under NZ IFRS 9, costs of hedging associated with cross currency basis risk will be
reflected in a new cost of hedging reserve (COHR). The quantum of this impact will be based on the valuation of derivatives at the time.
NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ IFRS 18) was issued in May 2024 and will be effective for the 30 September
2028 year end unless early adopted. NZ IFRS 18 will replace NZ IAS 1 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.
The Banking Group is continuing to assess the impact of adopting NZ IFRS 18.
Notes to the financial statements
Westpac New Zealand Limited13

Note 1 Financial statements preparation (continued)
Amendments to the Classification and Measurement of Financial Instruments was issued in June 2024 and amends NZ IFRS 7 Financial
Instruments: Disclosures and NZ IFRS 9 Financial Instruments. It 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 FVOCI 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 ESG and similar features.
The Banking Group is continuing to assess the impact of adopting the amendments.
Other new standards and amendments to existing standards that are not yet effective are not expected to have a material impact on the Banking
Group.
Notes to the financial statements
14Westpac New Zealand Limited

Note 2 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 Depositor Compensation Scheme 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 Banking Group's ECL model and on
the carrying amount net of the provision for ECL for financial assets in stage 3.
THE BANKING GROUP
$ millions
Note
2025
2024
Interest income
Calculated using the effective interest method
Cash and balances with central banks
298
509
Collateral paid
1
2
Investment securities
291
218
Loans
6,207
6,647
Due from related entities
22
6
8
Total interest income calculated using the effective interest method6,803
7,384
Other
Trading securities and financial assets measured at FVIS
106
137
Due from related entities22
-
4
Total other106
141
Total interest income6,909
7,525
Interest expense
Calculated using the effective interest method
Collateral received
28
17
Deposits and other borrowings
2,612
3,339
Due to related entities22
26
41
Debt issues
589
420
Loan capital
121
150
Other financial liabilities
118
241
Total interest expense calculated using the effective interest method3,494
4,208
Other
Deposits and other borrowings
86
153
Due to related entities22
10
28
Debt issues
153
122
Other interest expense
1
292
175
Total other541
478
Total interest expense4,035
4,686
Net interest income2,874
2,839
1
Includes the net impact of Treasury's interest rate and liquidity management activities.
Notes to the financial statements
Westpac New Zealand Limited15

Note 3 Non-interest income
Accounting policy
Non-interest income includes net fees and commissions income and other income.
Net fees and commissions income
When another party is involved in providing goods or services to a Banking Group customer, the Banking Group assesses whether the nature of
the arrangement with its customer is as a principal provider or an agent of another party. Where the Banking Group is acting as an agent for
another party, the income earned by the Banking Group 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 fees and commissions income for facilitating the
transaction between the customer and the third party provider with primary responsibility for fulfilling the contract.
Fees and commissions income
Fees and commissions income is recognised when the performance obligation is satisfied by transferring the promised good or service to the
customer. Fees and commissions income includes facility fees, transaction fees and commissions and other non-risk fee income. Commissions
income includes commissions received for the distribution of general and life insurance products.
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 and commissions are earned for facilitating banking transactions such as FX and telegraphic transfers. Fees and commissions
for these one-off transactions are recognised once the transaction has been completed. Transaction fees and commissions 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 the Banking Group has a future service obligation to
customers under the Banking Group’s credit card reward programmes.
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).
Fees and commissions expenses
Fees and commissions 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. Fees and
commissions 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. Fees and commissions expenses include the costs associated with credit card loyalty
programmes which are recognised as an expense when the services are provided on the redemption of points.
THE BANKING GROUP
$ millions2025
2024
Net fees and commissions
Facility fees
46
51
Transaction fees and commissions
1
253
251
Other non-risk fee income
2
23
21
Fees and commissions income322
323
Credit card loyalty programmes
(30)
(31)
Transaction fees and commissions related expenses
(49)
(45)
Fees and commissions expenses(79)
(76)
Net fees and commissions243
247
Other
Net ineffectiveness on qualifying hedges
(4)
(6)
Other
3
6
15
Total other2
9
Total non-interest income245
256
1
Includes transaction fees and commissions due from related entities. Refer to Note 22.
2
Includes management fees due from related entities. Refer to Note 22.
3
Includes operational cost recharges due from related entities. Refer to Note 22.
Deferred income in relation to the credit card loyalty programmes for the Banking Group was $21 million as at 30 September 2025 (30 September
2024: $24 million). This will be recognised as fees and commissions income as the credit card reward points are redeemed.
There were no other material contract assets or contract liabilities for the Banking Group.
Notes to the financial statements
16Westpac New Zealand Limited

Note 4 Operating expenses
THE BANKING GROUP
$ millions
Note
2025
2024
Staff expenses
771
724
Lease expenses
18
15
Depreciation
115
99
Technology services and telecommunications
274
244
Purchased services
48
43
Software amortisation
140
113
Related entities - management fees22
9
9
Other
1
118
118
Total operating expenses1,493
1,365
1
'Other' includes expenses such as advertising, property related costs, postage and freight and non-lending losses.
Note 5 Auditor’s remuneration1
The disclosure of fees paid to the Banking Group’s external auditor has been revised to reflect the amendments to FRS-44 New Zealand Additional
Disclosures. Comparatives have been revised accordingly.
KPMG was appointed as the Banking Group's external auditor, beginning 1 October 2024. As a result, auditor's remuneration for the financial year
ended 30 September 2025 relates to fees for services provided by KPMG (KPMG New Zealand unless otherwise stated), whereas comparatives
reflect fees paid to PwC (PwC New Zealand unless otherwise stated). Amounts paid to PwC for services in the financial year ended 30 September
2025 are not included in the table below.
THE BANKING GROUP
2025
2024
$'000sKPMG
PwC
Audit or review of financial statements
1
2,485
3,244
Audit or review related services
Agreed-upon procedures engagements
2,3
175
772
Total remuneration for audit or review related services175
772
Other assurance services and other agreed-upon procedures engagements
Assurance engagements
4
170
-
Total remuneration for other assurance services and other agreed-upon procedures
engagements
170
-
Other services
4
-
75
Total auditor's remuneration2,830
4,091
1
Fees for the annual audit of the financial statements, the review procedures performed on the interim financial statements, Sarbanes-Oxley reporting undertaken in
the role of the auditor and limited assurance over compliance with the information required on capital adequacy, regulatory liquidity requirements and credit and
market risk exposures.
2
Agreed upon procedures for the issue of comfort letters and work on the Banking Group's debt issuance programmes (30 September 2024: $511,843 paid to PwC
and $260,311 paid to PwC Australia).
3
For the year ended 30 September 2025, $418,897 was paid to PwC and $224,456 paid to PwC Australia for agreed upon procedures for the issue of comfort letters
and work on the Banking Group's debt issuance programmes. As PwC are not the Banking Group's external auditor for the year ended 30 September 2025, this is not
included in the table above.
4
Fees for the year ended 30 September 2025 relate to work performed on providing limited assurance over greenhouse gas disclosures paid to KPMG and fees for
the year ended 30 September 2024 relate to an assessment of whether preconditions for assurance exist in preparation for assurance over greenhouse gas
disclosures paid to PwC.
It is the Banking Group’s policy to engage the external auditor on assignments additional to their statutory audit duties only if their independence
is not impaired or seen to be impaired, and where their expertise and experience with the Banking Group is important.
Fees for the audit of the PIE Funds' (as defined in Note 22) financial statements for the year ended 30 September 2025 of $55,000 (30 September
2024: $36,383) were paid to PwC due to the timing of the external auditor transition, as the PIE Funds' balance date is 31 March. As PwC are not the
Banking Group's external auditor for the year ended 30 September 2025, this is not included in the table above.
Notes to the financial statements
Westpac New Zealand Limited17

Note 6 Impairment charges/(benefits)
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 12.
Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows:
●Loans at amortised cost: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Note
12);
●Investment securities: in reserves in OCI with no reduction of the carrying value of the debt security (refer to the statement of changes in
equity); and
●Credit commitments: as a provision (refer to Note 19).
Uncollectable loans
A loan may become uncollectable in full or part if, after following the Banking Group’s loan recovery procedures, the Banking Group 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.
The Banking Group 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 BANKING GROUP
$ millions2025
2024
Provisions raised/(released):
Performing
(68)
(20)
Non-performing
16
36
Bad debts written off/(recovered) directly to the income statement
8
11
Impairment charges/(benefits)(44)
27
of which relates to:
Loans and credit commitments
(44)
27
Impairment charges/(benefits)(44)
27
Impairment charges/(benefits) on all other financial assets are not material to the Banking Group.
Notes to the financial statements
18Westpac New Zealand Limited

Note 7 Income tax expense
Accounting policy
The income 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.
Current tax is the tax payable for the year using enacted or substantively enacted tax rates and laws. Current tax also includes adjustments to
tax payable for previous years.
Judgement is required in determining the current tax liability. There may be transactions with uncertain tax outcomes and provisions are
determined based on the expected outcomes.
Goods and services tax
Revenue, expenses and assets are recognised net of GST except to the extent that GST is not recoverable from the New Zealand Inland Revenue.
In these circumstances, GST is recognised as part of the expense or the cost of the asset.
THE BANKING GROUP
$ millions2025
2024
Income tax expense
Current tax:
Current year
438
458
Prior year adjustments
-
2
Deferred tax (refer to Note 14):
Current year
29
18
Prior year adjustments
-
(1)
Total income tax expense 467
477
Profit before income tax expense 1,670
1,703
Tax calculated at tax rate of 28%
468
477
Income not subject to tax
-
-
Expenses not deductible for tax purposes
(1)
(1)
Prior year adjustments
-
1
Total income tax expense 467
477
The effective tax rate for the year ended 30 September 2025 was 28.0% (30 September 2024: 28.0%).
International Tax Reform - Pillar Two Model Rules (Pillar Two)
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 tax rate of 15% on profits in all jurisdictions.
The Banking Group is part of an MNE group under the Ultimate Parent Bank that falls within the Organisation for Economic Co-operation and
Development Pillar Two Model Rules. Pillar Two legislation has been enacted in New Zealand and will take effect from the Banking Group's financial
year beginning 1 October 2025. Based on an assessment of the most recent tax filings and financial statements for its constituent entities, the
Banking Group does not expect a material exposure, if any, to Pillar Two income taxes.
Note 8 Imputation credit account
THE BANKING GROUP
$ millions2025
2024
Imputation credits available for use in subsequent reporting periods
469
301
Notes to the financial statements
Westpac New Zealand Limited19

Note 9 Trading securities and financial assets measured at FVIS
Accounting policy
Trading securities and other financial assets measured at FVIS
Trading securities comprise actively traded debt (government and other) and those instruments acquired for sale in the near term. The
instruments are measured at fair value.
Other financial assets measured at FVIS include non-trading debt securities (government and other) managed on a fair value basis.
Reverse repurchase agreements
Securities purchased under these agreements are not recognised on the balance sheet, as the Banking Group has not obtained the risks and
rewards of ownership. The cash consideration paid is recognised as a reverse repurchase agreement, which forms part of a portfolio that is
measured at fair value.
Fair value gains and losses on these financial assets are recognised in the income statement. Interest earned from debt securities is recognised
in interest income (refer to Note 2).
THE BANKING GROUP
$ millions2025
2024
Other financial assets measured at FVIS
Government and semi-government securities
1,629
1,425
Other debt securities
724
947
Total other financial assets measured at FVIS2,353
2,372
Total trading securities and financial assets measured at FVIS2,353
2,372
Note 10 Investment securities
Accounting policy
Investment securities include debt securities (government and other) that are measured at FVOCI. These instruments are classified based on the
criteria disclosed under the heading “Financial assets and financial liabilities” in Note 1.
Debt securities measured at FVOCI
Includes debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and they are held within a
business model whose objective is achieved both through collecting these cash flows or selling the financial asset.
These securities are measured at fair value with unrealised gains and losses recognised in OCI except for interest income, impairment charges
and FX gains and losses and fair value hedge adjustments which are recognised in the income statement.
Impairment is measured using the same ECL model applied to financial assets measured at amortised cost. Impairment is recognised in the
income statement with a corresponding amount in OCI with no reduction of the carrying value of the debt security which remains at fair value.
Refer to Note 12 for further details.
The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed.
THE BANKING GROUP
$ millions2025
2024
Government and semi-government securities
5,480
5,011
Other debt securities
2,726
2,524
Total investment securities8,206
7,535
Notes to the financial statements
20Westpac New Zealand Limited

Note 11 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.
Loan products that have both mortgage and deposit facilities are presented gross on 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 following table shows loans disaggregated by types of credit exposure:
THE BANKING GROUP
$ millions2025
2024
Residential mortgages
71,318
68,028
Other retail
2,578
2,563
Corporate
32,646
31,764
Other
230
293
Total gross loans106,772
102,648
Provision for ECL on loans (refer to Note 12)
(444)
(498)
Total net loans106,328
102,150
Notes to the financial statements
Westpac New Zealand Limited21

Note 12 Provision for expected credit losses
Accounting policy
Note 6 provides details of impairment charges/(benefits).
Impairment applies to all financial assets at amortised cost, debt securities measured at FVOCI and credit commitments.
The ECL is recognised as follows:
●Loans: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Note 11);
●Investment securities: in reserves in OCI with no reduction of the carrying value of the debt security itself (refer to the statement of
changes in equity); and
●Credit commitments: as a provision (refer to Note 19).
Measurement
The Banking Group 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 timeframe. 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:
●PD: the probability that a counterparty will default;
●LGD: the loss that is expected to arise in the event of a default; and
●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. A default occurs when:
●The Banking Group considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by the Banking
Group to action such as realising security. Indicators include a breach of contract with the Banking Group 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 CRG. Financial assets in Stage 3 are assessed on an individual basis and
calculated collectively for those below a specified threshold.
Expected life
In considering the lifetime timeframe 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), the Banking Group’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.
Notes to the financial statements
22Westpac New Zealand Limited

Note 12 Provision for expected credit losses (continued)
Accounting policy (continued)
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, the
Banking Group’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
Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical accounting judgement which
is based on the change in the 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.
The Banking Group does not rebut the presumption that instruments that are 30 days past due have experienced a significant increase in credit
risk, but this is used as a backstop rather than the primary indicator.
Forward-looking macroeconomic information
The measurement of ECL for each stage and the assessment of significant increase in credit risk consider 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. The Banking Group 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) unemployment
rates, real GDP growth rates, base interest rates and residential property price indices.
●Base case scenario
This scenario utilises the internal Westpac Economic forecasts 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 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 the Banking Group’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 Banking
Group’s Chief Financial Officer and Chief Risk Officer with oversight from the Board of Directors (and its Committees).
Portfolio overlays
Where appropriate, adjustments will be made to modelled outcomes to reflect reasonable and supportable information not already
incorporated in the models. These adjustments (overlays) may be an increase or decrease in the provision for ECL.
Judgements can change with time as new information becomes available which could result in changes to the provision for ECL.
Notes to the financial statements
Westpac New Zealand Limited23

Note 12 Provision for expected credit losses (continued)
Loans and credit commitments
The following tables reconcile the provisions for ECL on loans and credit commitments by stage for the Banking Group.
THE BANKING GROUP
2025
2024
Performing Non-performing
PerformingNon-performing
Stage 1 Stage 2 Stage 3 Stage 3
Stage 1Stage 2Stage 3Stage 3
$ millions
CAP CAP CAP IAP Total
CAPCAPCAPIAPTotal
Provision for ECL on loans
Residential mortgages
35 98 57 31 221
29 148 49 21 247
Other retail
10 28 9 2 49
9 31 11 4 55
Corporate
27 91 24 32 174
26 112 22 36 196
Total provision for ECL on
loans (refer to Note 11)
72 217 90 65 444
64 291 82 61 498
Provision for ECL on credit
commitments
1
Residential mortgages
4 6 - - 10
4 11 - - 15
Other retail
3 6 1 - 10
3 6 - - 9
Corporate
6 19 1 1 27
5 17 - 11 33
Total provision for ECL on
credit commitments (refer to
Note 19)
13 31 2 1 47
12 34 - 11 57
Total provision for ECL on
loans and credit
commitments
85 248 92 66 491
76 325 82 72 555
Gross loans
91,922 13,788 850 212 106,772
79,638 22,021 799 190 102,648
Credit commitments
2
27,155 2,925 37 4 30,121
23,794 3,683 21 20 27,518
Gross loans and credit
commitments
119,077 16,713 887 216 136,893
103,432 25,704 820 210 130,166
Coverage ratio on loans (%)
0.08 1.57 10.59 30.66 0.42
0.08 1.32 10.26 32.11 0.49
Coverage ratio on loans and
credit commitments (%)
0.07 1.48 10.37 30.56 0.36
0.07 1.26 10.00 34.29 0.42
1
Includes provision for ECL on related entity credit commitments of $7 million (30 September 2024: $4 million) classified as Due to Related Entities in the Balance
Sheet.
2
Comparatives have been revised to remove credit exposures offered and accepted but still revocable.
Movements in components of loss allowance
The reconciliation of the provision for ECL for loans and credit commitments has been determined by an aggregation of monthly movements over
the 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.
●“New facilities originated” represents new accounts originated during the year.
●“Facilities derecognised” represents loans derecognised due to final repayments during the year.
●“Other charges/(credits) to the income statement” 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 in key economic assumptions and partial repayments
and additional drawdowns on existing facilities over the year.
●"Amounts written off" represents a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable
expectation of full recovery.
Notes to the financial statements
24Westpac New Zealand Limited

Note 12 Provision for expected credit losses (continued)
THE BANKING GROUP
2025
Performing Non-performing
Total
Stage 1 Stage 2 Stage 3 Stage 3
$ millions
CAP CAP CAP IAP
Provision for ECL on loans and credit commitments as at
30 September 2024
76 325 82 72 555
Transfers to Stage 1
149 (143) (6) - -
Transfers to Stage 2
(14) 73 (56) (3) -
Transfers to Stage 3 CAP
- (59) 69 (10) -
Transfers to Stage 3 IAP
- (1) (21) 22 -
Reversals of previously recognised impairment charges
- - - (37) (37)
New facilities originated
28 - - - 28
Facilities derecognised
(11) (40) (49) - (100)
Changes in CAP due to amounts written off
- - (23) - (23)
Other charges/(credits) to the income statement
(143) 93 96 34 80
Total charges/(credits) to the income statement for ECL 9 (77) 10 6 (52)
Amounts written off from IAP
- - - (12) (12)
Total provision for ECL on loans and credit commitments
as at 30 September 2025
85 248 92 66 491
THE BANKING GROUP
2024
Performing Non-performing
Total
Stage 1 Stage 2 Stage 3 Stage 3
$ millions
CAP CAP CAP IAP
Provision for ECL on loans and credit commitments as at
30 September 2023
91 330 107 23 551
Transfers to Stage 1 108 (103) (5) - -
Transfers to Stage 2 (19) 76 (57) - -
Transfers to Stage 3 CAP - (65) 69 (4) -
Transfers to Stage 3 IAP - (12) (26) 38 -
Reversals of previously recognised impairment charges - - - (25) (25)
New facilities originated 23 - - - 23
Facilities derecognised (12) (59) (52) - (123)
Changes in CAP due to amounts written off - - (25) - (25)
Other charges/(credits) to the income statement (115) 158 71 52 166
Total charges/(credits) to the income statement for ECL
(15) (5) (25) 61 16
Amounts written off from IAP - - - (12) (12)
Total provision for ECL on loans and credit commitments
as at 30 September 2024
76 325 82 72 555
Notes to the financial statements
Westpac New Zealand Limited25

Note 12 Provision for expected credit losses (continued)
Movements in components of loss allowance – by types of credit exposure
The provision for ECL on loans and credit commitments can be further disaggregated into the following types of credit exposure:
THE BANKING GROUP
Performing Non-performing
Total
Stage 1 Stage 2 Stage 3 Stage 3
$ millions
CAP CAP CAP IAP
Residential mortgages
Balance as at 30 September 2024 33 159 49 21 262
Transfers to Stage 1
81 (81) - - -
Transfers to Stage 2
(4) 51 (44) (3) -
Transfers to Stage 3 CAP
- (21) 23 (2) -
Transfers to Stage 3 IAP
- (1) (16) 17 -
Reversals of previously recognised impairment charges
- - - (14) (14)
New facilities originated
13 - - - 13
Facilities derecognised
(4) (19) (31) - (54)
Changes in CAP due to amounts written off
- - - - -
Other charges/(credits) to the income statement
(80) 16 76 16 28
Total charges/(credits) to the income statement for ECL 6 (55) 8 14 (27)
Amounts written off from IAP
- - - (4) (4)
Balance as at 30 September 2025 39 104 57 31 231
Other retail
Balance as at 30 September 2024 12 37 11 4 64
Transfers to Stage 1
48 (46) (2) - -
Transfers to Stage 2
(5) 11 (6) - -
Transfers to Stage 3 CAP
- (11) 11 - -
Transfers to Stage 3 IAP
- - - - -
Reversals of previously recognised impairment charges
- - - - -
New facilities originated
7 - - - 7
Facilities derecognised
(3) (7) (2) - (12)
Changes in CAP due to amounts written off
- - (22) - (22)
Other charges/(credits) to the income statement
(46) 50 20 - 24
Total charges/(credits) to the income statement for ECL 1 (3) (1) - (3)
Amounts written off from IAP
- - - (2) (2)
Balance as at 30 September 2025 13 34 10 2 59
Corporate
Balance as at 30 September 2024 31 129 22 47 229
Transfers to Stage 1
20 (16) (4) - -
Transfers to Stage 2
(5) 11 (6) - -
Transfers to Stage 3 CAP
- (27) 35 (8) -
Transfers to Stage 3 IAP
- - (5) 5 -
Reversals of previously recognised impairment charges
- - - (23) (23)
New facilities originated
8 - - - 8
Facilities derecognised
(4) (14) (16) - (34)
Changes in CAP due to amounts written off
- - (1) - (1)
Other charges/(credits) to the income statement
(17) 27 - 18 28
Total charges/(credits) to the income statement for ECL 2 (19) 3 (8) (22)
Amounts written off from IAP
- - - (6) (6)
Balance as at 30 September 2025 33 110 25 33 201
The above movements in components of loss allowance table does not include ‘Loans - Other’ credit exposures on the basis that the provision for
ECL is nil.
Notes to the financial statements
26Westpac New Zealand Limited

Note 12 Provision for expected credit losses (continued)

THE BANKING GROUP
Performing Non-performing
Total
Stage 1 Stage 2 Stage 3 Stage 3
$ millions
CAP CAP CAP IAP
Residential mortgages
Balance as at 30 September 2023
42 147 61 10 260
Transfers to Stage 1 45 (43) (2) - -
Transfers to Stage 2 (6) 37 (31) - -
Transfers to Stage 3 CAP - (14) 16 (2) -
Transfers to Stage 3 IAP - - (19) 19 -
Reversals of previously recognised impairment charges - - - (11) (11)
New facilities originated 7 - - - 7
Facilities derecognised (1) (11) (20) - (32)
Changes in CAP due to amounts written off - - - - -
Other charges/(credits) to the income statement (54) 43 44 11 44
Total charges/(credits) to the income statement for ECL
(9) 12 (12) 17 8
Amounts written off from IAP - - - (6) (6)
Balance as at 30 September 2024
33 159 49 21 262
Other retail
Balance as at 30 September 2023
15 42 12 1 70
Transfers to Stage 1 47 (45) (2) - -
Transfers to Stage 2 (6) 12 (6) - -
Transfers to Stage 3 CAP - (13) 13 - -
Transfers to Stage 3 IAP - - (1) 1 -
Reversals of previously recognised impairment charges - - - (1) (1)
New facilities originated 5 - - - 5
Facilities derecognised (2) (7) (2) - (11)
Changes in CAP due to amounts written off - - (23) - (23)
Other charges/(credits) to the income statement (47) 48 20 5 26
Total charges/(credits) to the income statement for ECL
(3) (5) (1) 5 (4)
Amounts written off from IAP - - - (2) (2)
Balance as at 30 September 2024
12 37 11 4 64
Corporate
Balance as at 30 September 2023
34 141 34 12 221
Transfers to Stage 1 16 (15) (1) - -
Transfers to Stage 2 (7) 27 (20) - -
Transfers to Stage 3 CAP - (38) 40 (2) -
Transfers to Stage 3 IAP - (12) (6) 18 -
Reversals of previously recognised impairment charges - - - (13) (13)
New facilities originated 11 - - - 11
Facilities derecognised (9) (41) (30) - (80)
Changes in CAP due to amounts written off - - (2) - (2)
Other charges/(credits) to the income statement (14) 67 7 36 96
Total charges/(credits) to the income statement for ECL
(3) (12) (12) 39 12
Amounts written off from IAP - - - (4) (4)
Balance as at 30 September 2024
31 129 22 47 229
The above movements in components of loss allowance table does not include ‘Loans - Other’ credit exposures on the basis that the provision for
ECL is nil.
Notes to the financial statements
Westpac New Zealand Limited27

Note 12 Provision for expected credit losses (continued)
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 risks and uncertainties that are not captured in the underlying modelled ECL.
THE BANKING GROUP
$ millions2025
2024
Individually assessed provisions for ECL on loans and credit commitments
66
72
Modelled provision for ECL on loans and credit commitments (a)
452
516
Overlays (b)
(27)
(33)
Total provision for ECL on loans and credit commitments 491
555
Details of changes related to forward-looking economic inputs and portfolio overlays, based on reasonable and supportable information up to the
date of this disclosure statement, are provided below.
(a) 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 Banking Group’s view of the forward-looking distribution of potential loss outcomes. The changes in provisions as a result of
changes in modelled ECL are reflected through the “Other charges/(credits) to the income statement” line in the “Movements in components of
loss allowance” table. Overlays are used to capture potential risks and uncertainties that are not captured in the underlying modelled ECL.
The base case scenario uses the latest Westpac Economics forecast. Certain data points from this forecast are shown below:
Key economic assumptions for base case
scenario 30 September 2025
30 September 2024
Annual GDP
Forecast growth ofForecast growth of
1.7% for calendar year 2025 and
0.1% for calendar year 2024 and
3.1% for calendar year 2026.
2.0% for calendar year 2025.
Residential property pricesForecast annual price appreciation of
Forecast annual price appreciation of
+0.6% for calendar year 2025 and
+0.7% for calendar year 2024 and
+5.4% for calendar year 2026.
+6.4% for calendar year 2025.
Cash rate
Forecast cash rate ofForecast cash rate of
2.25% at December 2025 and4.75% at December 2024 and
2.50% at December 2026.3.75% at December 2025.
Unemployment rate
Forecast rate ofForecast rate of
5.3% at December 2025 and5.3% at December 2024 and
4.6% at December 2026.5.6% at December 2025.
The downside scenario is an economic downturn scenario with ECL higher than the base case. This scenario assumes a recession with a
combination of negative GDP growth, declines in residential property prices and an increase in the unemployment rate, which simultaneously
impact ECL 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 economic
improvement to the base case.
The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios
and what the provision for ECL on loans and credit commitments would be assuming a 100% weighting is applied to the base case scenario and to
the downside scenario (with all other assumptions held constant).
THE BANKING GROUP
$ millions2025
2024
Reported probability-weighted ECL
491
555
100% base case ECL
286
341
100% downside ECL
744
850
If 1% of the Stage 1 gross exposure from 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 $17 million (30 September 2024: $14 million). 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 $2 million (30 September 2024: $3 million) for the Banking Group. These estimates apply
the average modelled provision coverage ratio by stage to the transfer of loans and credit commitments.
Notes to the financial statements
28Westpac New Zealand Limited

Note 12 Provision for expected credit losses (continued)
The following table discloses the macroeconomic scenario weightings applied by the Banking Group as at 30 September 2025 and 30 September
2024. In March 2025, the downside scenario weighting was increased by 2.5% and the base case scenario weighting decreased by the same value,
reflecting greater uncertainty in international trading relations and geopolitical instability.
THE BANKING GROUP
Scenario weightings (%)2025
2024
Upside
5.0
5.0
Base
50.0
52.5
Downside
45.0
42.5
(b) Portfolio overlays
Portfolio overlays are used to address areas of risk, including significant uncertainties that are not captured in the underlying modelled ECL. These
risks may result in under or overestimation of the modelled provision for ECL. Determination of portfolio overlays requires expert judgement and is
thoroughly documented and subject to comprehensive internal governance and oversight. Portfolio 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 portfolio overlays will be released
or remeasured.
The Banking Group’s total portfolio overlays as at 30 September 2025 were $(27) million (30 September 2024: $(33) million), held on the provision
for ECL for residential mortgages to adjust for observed conservatism in the modelled outcome identified through model monitoring.
Impact of changes in gross carrying amount on the provision for ECL
●Stage 1 gross carrying amount had a net increase of $12.3 billion (30 September 2024: increased by $3.5 billion), primarily driven by new
lending and underlying portfolio movement from residential mortgages and corporate lending, partially offset by repayments. The Stage 1
ECL increase is in line with Stage 2 exposures movement to Stage 1, primarily driven by underlying portfolio movements and a more positive
economic outlook, partially offset by higher downside scenario weightings.
●Stage 2 gross carrying amount decreased by $8.2 billion (30 September 2024: decreased by $0.9 billion), primarily driven by the movement
of exposures to Stage 1, repayments and underlying portfolio movement from residential mortgages and corporate lending. The Stage 2 ECL
decrease is mainly as a result of the movement of exposures to Stage 1, primarily driven by underlying portfolio movements and an
improved economic outlook, partially offset by the increase in downside scenario weightings from residential mortgages and corporate
lending.
●Stage 3 gross carrying amount increased by $0.1 billion (30 September 2024: increased by $0.2 billion), driven by increases in 90 days past
due exposures from the residential mortgages lending, partially offset by repayments and releases due to write-offs from other retail
lending. The Stage 3 ECL increase is in line with the increase in Stage 3 exposures.
Refer to Note iii. Asset quality of the Registered bank disclosures for further details.
Write-offs still under enforcement activity
The amount of current year write-offs which remain subject to enforcement activity was $25 million (30 September 2024: $30 million).
Notes to the financial statements
Westpac New Zealand Limited29

Note 13 Credit risk management
IndexNote nameNote number
Credit risk
Credit risk management framework13.1
The risk of financial loss where a customer or counterparty
fails to meet their financial obligations to the Banking Group.
Credit risk ratings system13.2
Credit risk concentrations and maximum exposure to credit
risk
13.3
Credit quality of financial assets13.4
Credit risk mitigation, collateral and other credit
enhancements
13.5
13.1 Credit risk management framework
Please refer to Note 31.1 for details of the Banking Group’s overall Risk Management Framework.
●The Banking Group maintains a Credit Risk Management Framework, a Credit Risk Management Strategy, and a Credit Risk Appetite
Statement, and a number of supporting policies that define roles and responsibilities, acceptable practices, limits and key controls.
●The Banking Group’s Credit Risk Management Framework describes the principles, methodologies, systems, roles and responsibilities,
reports and key controls for managing credit risk.
●The BRCC, RISKCO and CREDCO monitor the risk profile, performance and management of the Banking Group’s credit portfolio on at least a
quarterly basis, and the development and review of key credit risk policies on at least an annual basis; other management reviews occur
monthly or more frequently.
●The Banking Group’s Credit Risk Rating System Policy describes the credit risk rating system philosophy, design, key features and uses of
rating outcomes.
●All models materially impacting the risk rating process are periodically reviewed in accordance with the Banking Group’s model risk policies.
●An annual review is performed of the Credit Risk Rating System for approval by the Banking Group’s Chief Risk Officer and noting by the
BRCC. The Credit Risk Rating System Policy is annually approved by the BRCC.
●Specific credit risk estimates (including PD, LGD and EAD) are reviewed by CREDCO and are overseen, reviewed annually and approved by
the Banking Group’s Chief Risk Officer.
●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 Banking Group’s Chief Financial Officer and
the Chief Risk Officer with oversight from the Board (and its Committees).
●Policies for delegating credit approval authorities and formal limits for the extension of credit are established throughout the Banking Group.
●Credit policies are established and maintained throughout the Banking Group. They include policies governing the origination, evaluation,
approval, documentation, settlement and ongoing management of credit risks.
●Sector policies guide credit extension where industry-specific guidelines are considered necessary (e.g. acceptable financial ratios o r
permitted collateral).
●The Ultimate Parent Bank’s Related Entity Risk Management Policy and supporting policies govern credit exposures to related entities to
minimise the spread of credit risk between the Ultimate Parent Bank Group entities to comply with the Ultimate Parent Bank’s prudential
requirements prescribed by APRA.
●Climate change-related credit risks are considered in line with the Ultimate Parent Bank’s Climate Change Position Statement and Action
Plan. Climate change risks are managed in line with the Banking Group’s Risk Management Framework which is supported by the Banking
Group’s Sustainability Risk Management Framework, the Bank's Climate Risk Policy, the Banking Group’s ESG Credit Risk Policy and the
Bank’s Board Risk Appetite Statements. Where appropriate, these are applied at the portfolio, customer, and transaction level.
●CREDCO oversees work to identify and manage the potential impact on credit exposures from climate change-related transition and
physical risks across the Banking Group.
●The Banking Group’s ESG Credit Risk Policy details the overall approach to managing ESG risks in the credit risk process for applicable
transactions.
Notes to the financial statements
30Westpac New Zealand Limited

Note 13 Credit risk management (continued)
13.2 Credit risk ratings system
The principal objective of the credit risk rating system is to reliably assess the credit risk to which the Banking Group is exposed. The Banking
Group 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 CRG, corresponding to
their expected PD. Each facility is assigned an LGD. The Banking Group’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 external senior ranking unsecured ratings.
The following table shows the Banking Group’s high level CRGs for transaction-managed portfolios mapped to the Banking Group’s credit quality
disclosure categories and to their corresponding external rating.
Transaction-managed
Financial Statement DisclosureBanking Group’s CRGMoody's RatingS&P Rating
StrongAAaa – Aa3AAA – AA-
BA1 – A3A+ – A-
CBaa1 – Baa3BBB+ – BBB-
Good/satisfactoryDBa1 – B1BB+ – B+
Banking Group 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) and certain SME
lending. These credit exposures are grouped into pools of similar risk based on 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, good/satisfactory or weak
by benchmarking that PD against the Banking Group's CRGs, which are in turn mapped to external ratings as per the above table. In addition, any
program-managed exposures that are past due are classified as weak.
13.3 Credit risk concentrations and maximum exposure to credit risk
Credit risk is concentrated when a number of counterparties are engaged in similar activities, or have similar economic characteristics, and thus
may be similarly affected by changes in economic or other conditions.
The Banking Group monitors its credit portfolio to allow it to manage risk concentrations and rebalance the portfolio.
Individual customers or groups of related customers
The Banking Group 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 CRG.
Specific industries
Exposures to businesses, governments and other financial institutions are classified into a number of industry clusters based on related ANZSIC
codes and are monitored against the Banking Group’s industry risk appetite limits.
Individual countries
The Banking Group 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 the Banking Group, or the Banking Group’s ability to
realise its assets in a particular country.
Notes to the financial statements
Westpac New Zealand Limited31

Note 13 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
and undrawn credit commitments as set out in the following table.
THE BANKING GROUP
$ millions2025
2024
Financial assets
Cash and balances with central banks
6,091
7,456
Collateral paid
32
76
Trading securities and financial assets measured at FVIS
2,353
2,372
Derivative financial instruments
1,057
225
Investment securities
8,206
7,535
Gross loans
1
106,772
102,648
Other financial assets
389
461
Due from related entities
2,086
1,189
Total financial assets 126,986
121,962
Undrawn credit commitments
Letters of credit and guarantees
1,796
1,631
Commitments to extend credit
28,325
25,887
Total undrawn credit commitments
2,3
30,121
27,518
Total maximum credit risk exposure 157,107
149,480
Concentration of credit exposures
THE BANKING GROUP
On-balance sheetOff-balance sheet
$ millions2025
2024
2025
2024
Analysis of credit exposures by geographical areas
New Zealand
122,125
117,730
29,567
27,002
Overseas
4,861
4,232
554
516
Total credit exposures
1,2
126,986
121,962
30,121
27,518
Analysis of credit exposures by industry sector
Accommodation, cafes and restaurants
374
367
70
71
Agriculture
8,629
8,856
554
509
Construction
586
424
617
595
Finance and insurance
8,018
7,517
2,210
1,996
Forestry and fishing, agriculture support services
331
313
101
125
Government, administration and defence
14,171
14,718
768
851
Manufacturing
2,054
1,880
1,562
1,597
Mining
102
165
144
138
Property
9,333
9,007
1,553
1,179
Property services and business services
1,163
1,114
633
449
Services
1,989
1,922
992
799
Trade
2,232
1,992
2,047
1,841
Transport and storage
630
726
583
368
Utilities
2,456
2,322
2,500
1,522
Retail lending
72,672
69,246
15,787
15,478
Subtotal 124,740
120,569
30,121
27,518
Due from related entities
2,086
1,189
-
-
Other financial assets
160
204
-
-
Total credit exposures
1,2
126,986
121,962
30,121
27,518
ANZSIC has been used as the basis for disclosing industry sectors.
1
Comparative information has been revised to align with current year presentation to present loans gross of provisions for ECL.
2
Comparative information has been revised to remove credit exposures offered and accepted but still revocable.
3
In addition to the commitments disclosed above, there is $1,478 million (30 September 2024: $1,014 million) of exposure to credit risk primarily relating to credit
exposures offered and accepted but still revocable, which represent part of the Banking Group's maximum exposure to credit risk.
Notes to the financial statements
32Westpac New Zealand Limited

Note 13 Credit risk management (continued)
13.4 Credit quality of financial assets
The following table shows the credit quality of gross credit risk exposures measured at amortised cost or at FVOCI to which the impairment
requirements of NZ IFRS 9 apply. The credit quality is determined by reference to the credit risk ratings system (refer to Note 13.2) and
expectations of future economic conditions under multiple scenarios:
THE BANKING GROUP
2025
2024
$ millionsStage 1Stage 2Stage 3 Total
1
Stage 1Stage 2Stage 3Total
1
Loans - Residential mortgages
Strong
7,788 156 - 7,944
7,519 150 - 7,669
Good/satisfactory
54,375 6,998 - 61,373
45,435 12,953 - 58,388
Weak
313 891 797 2,001
301 961 709 1,971
Total Loans - Residential mortgages 62,476 8,045 797 71,318
53,255 14,064 709 68,028
Loans - Other retail
Strong
953 47 - 1,000
910 62 - 972
Good/satisfactory
995 425 - 1,420
907 508 - 1,415
Weak
17 87 54 158
22 97 57 176
Total Loans - Other retail 1,965 559 54 2,578
1,839 667 57 2,563
Loans - Corporate
Strong
12,651 993 - 13,644
11,436 1,262 - 12,698
Good/satisfactory
14,631 3,159 - 17,790
12,885 4,609 - 17,494
Weak
- 1,001 211 1,212
- 1,349 223 1,572
Total Loans - Corporate 27,282 5,153 211 32,646
24,321 7,220 223 31,764
Loans - Other
Strong
199 27 - 226
223 70 - 293
Good/satisfactory
- 4 - 4
- - - -
Weak
- - - -
- - - -
Total Loans - Other 199 31 - 230
223 70 - 293
Investment securities
Strong
8,206 - - 8,206
7,535 - - 7,535
Good/satisfactory
- - - -
- - - -
Weak
- - - -
- - - -
Total Investment securities 8,206 - - 8,206
7,535 - - 7,535
All other financial assets
Strong
7,077 2 - 7,079
8,602 4 - 8,606
Good/satisfactory
137 21 - 158
148 45 - 193
Weak
1 4 2 7
1 6 2 9
Total all other financial assets 7,215 27 2 7,244
8,751 55 2 8,808
Undrawn credit commitments
2
Strong
15,044 719 - 15,763
12,852 722 - 13,574
Good/satisfactory
12,106 2,031 - 14,137
10,938 2,763 - 13,701
Weak
5 175 41 221
4 198 41 243
Total undrawn credit commitments 27,155 2,925 41 30,121
23,794 3,683 41 27,518
Total strong 51,918 1,944 - 53,862
49,077 2,270 - 51,347
Total good/satisfactory 82,244 12,638 - 94,882
70,313 20,878 - 91,191
Total weak 336 2,158 1,105 3,599
328 2,611 1,032 3,971
Total on- and off-balance sheet 134,498 16,740 1,105 152,343
119,718 25,759 1,032 146,509
1
This credit quality disclosure differs to that of credit concentration (refer to Note 13.3) as it relates only to financial assets measured at amortised costs or at FVOCI
and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments.
2
Comparatives have been revised to remove credit exposures offered and accepted but still revocable.
Details of collateral held in support of these balances are provided in Note 13.5.
Notes to the financial statements
Westpac New Zealand Limited33

Note 13 Credit risk management (continued)
13.5 Credit risk mitigation, collateral and other credit enhancements
The Banking Group uses a variety of techniques to reduce the credit risk arising from its lending activities.
This includes the Banking Group having processes in place to ensure that it has direct, irrevocable and unconditional recourse to collateral and
other credit enhancements through obtaining legally enforceable documentation.
The Banking Group includes the effect of credit risk mitigation through eligible guarantees within the calculation applied to LGD. Due to system
limitations, the value of the guarantee is not always separately recorded, and therefore, neither this value nor a close alternative is available for
disclosure under Clause 7 of Schedule 11 to the Order.
Collateral
The table below describes the nature of collateral or security held for each relevant class of financial asset:
Loans – residential mortgages
1
Housing loans are secured by a mortgage over property and additional security may take the
form of guarantees and deposits.
Loans – other retail
1
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.
SME 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.
Loans – corporate
1
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 or standby letters of credit may also be taken as collateral,
if appropriate.
Trading securities and financial assets
measured at FVIS, due from related entities
and derivative financial instruments
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.
Master netting agreements are typically used to enable the effects of derivative assets and
derivative 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.
1
This includes collateral held in relation to associated credit commitments.
Notes to the financial statements
34Westpac New Zealand Limited

Note 13 Credit risk management (continued)
Management of risk mitigation
The Banking Group mitigates credit risk through controls covering:
Collateral and valuation
management
The Ultimate Parent Bank manages collateral under collateralisation agreements centrally for all
branches of the Ultimate Parent Bank and the Bank.
The Banking Group 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 where required under APRA Prudential
Standard CPS226. The collateralisation arrangements are documented via the Credit Support Annex of
the International Swaps and Derivatives Association dealing agreements and Global Master
Repurchase Agreements for repurchase transactions.
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.
Other credit enhancements
The Banking Group 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 the Banking Group has a credit exposure) including but not limited to:
●Sovereign;
●Australia and New Zealand public sector;
●Authorised deposit-taking institutions and overseas banks with a minimum risk grade equivalent
of A3 / A-; and
●Other entities with a minimum risk grade equivalent of A3 / A-.
Credit Portfolio Management manages the Banking Group’s corporate, sovereign and bank credit
portfolios through monitoring the exposure and any offsetting hedge positions.
Offsetting
Creditworthy customers domiciled in New Zealand may enter into formal agreements with the Banking
Group, permitting the Banking Group 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 Banking 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 25.
Central clearing
The Banking Group increasingly 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.
Collateral held against loans
The Banking Group 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%
Unsecured
Greater than 150%, or no security held (e.g. can include credit cards, personal loans, and exposure to highly rated
corporate entities)
Notes to the financial statements
Westpac New Zealand Limited35

Note 13 Credit risk management (continued)
The Banking Group's loan portfolio has the following coverage from collateral held:
THE BANKING GROUP
2025
2024
%
Residential
Mortgages
1
Other
RetailCorporateOtherTotal
Residential
Mortgages
1
Other RetailCorporateOtherTotal
Performing Loans
Fully secured
100 43 72 75 90
100 45 73 49 90
Partially secured
- 3 9 - 3
- 3 8 - 3
Unsecured
- 54 19 25 7
- 52 19 51 7
Total 100 100 100 100 100
100 100 100 100 100
Non-performing Loans
Fully secured
85 57 15 - 70
89 56 36 - 74
Partially secured
15 16 44 - 21
11 8 35 - 17
Unsecured
- 27 41 - 9
- 36 29 - 9
Total 100 100 100 - 100
100 100 100 - 100
1
For the purposes of collateral classifications, residential mortgages are classified as fully secured, unless they are non-performing in which case they may be
classified as partially secured. Refer to Note iv. Additional mortgage information of the Registered bank disclosures for LVR analysis of residential mortgages.
Details of the carrying value and associated provision for ECL are disclosed in Note 11, Note iii. Asset quality of the Registered bank disclosures and
Note 12 respectively. The credit quality of loans is disclosed in Note 13.4.
Collateral held against financial assets other than loans
THE BANKING GROUP
$ millions2025
2024
Cash, primarily for derivatives
936
156
Total other collateral held 936
156
Notes to the financial statements
36Westpac New Zealand Limited

Note 14 Deferred tax assets
Accounting policy
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 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; and
●the initial recognition of goodwill in a business combination.
THE BANKING GROUP
$ millions2025
2024
Deferred tax assets/(liabilities) comprise the following temporary differences:
Provision for ECL on loans
124
139
Provision for ECL on credit commitments
13
16
Cash flow hedges
4
(20)
Provision for employee entitlements
19
20
Compliance, regulation and remediation provisions
4
8
Software, property and equipment
(62)
(57)
Lease liabilities
66
72
Other temporary differences
13
9
Net deferred tax assets 181
187
The deferred tax (charge)/credit in income tax expense comprises the following temporary
differences:
Provision for ECL on loans
(15)
(1)
Provision for ECL on credit commitments
(3)
2
Provision for employee entitlements
-
-
Compliance, regulation and remediation provisions
(4)
(4)
Software, property and equipment
(5)
(24)
Lease liabilities
(6)
8
Other temporary differences
4
2
Total deferred tax (charge)/credit in income tax expense (29)
(17)
The deferred tax (charge)/credit in OCI comprises the following temporary differences:
Cash flow hedges
24
127
Provision for employee entitlements
(1)
-
Total deferred tax (charge)/credit in OCI 23
127
Notes to the financial statements
Westpac New Zealand Limited37

Note 15 Intangible assets
Accounting policy
Indefinite life intangible assets
Goodwill
Goodwill acquired in a business combination is initially measured at cost, being the excess of the consideration paid, over the net fair value of
the identifiable assets, liabilities and contingent liabilities acquired.
Subsequently, goodwill is not amortised but rather tested for impairment. Impairment is tested at least annually or whenever there is an
indication of impairment. An impairment charge is recognised when a CGU’s carrying value exceeds its recoverable amount. Recoverable
amount means the higher of the CGU’s fair value less costs to sell and its value-in-use.
The Banking Group’s CGUs represent the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash
inflows from other assets or group of assets. They reflect the level at which the Banking Group monitors and manages its operations.
Finite life intangible assets
Finite life intangibles such as computer software which are recognised initially at cost and subsequently at amortised cost less any impairment.
Impairment
When assessing impairment of intangible assets, judgement is needed to determine the appropriate cash flows and discount rates to be applied
to the calculations. The assumptions applied to the value-in-use calculations are outlined below.
IntangibleUseful lifeAmortisation method
GoodwillIndefiniteNot applicable
Computer software3 to 5 yearsStraight-line method
THE BANKING GROUP
$ millions2025
2024
Goodwill
477
477
Computer software
424
462
Total intangible assets 901
939
Goodwill has been allocated to the Consumer Banking and Wealth CGU, which is a single CGU.
Impairment testing and results
Impairment testing is performed at least once a year, or whenever there is an indication of impairment, by comparing the recoverable amount of
each CGU with the carrying amount. The primary test for the recoverable amount is determined based on value-in-use which refers to the present
value of expected cash flows under its current use.
Impairment testing in the current year confirmed that the Banking Group continues to have considerable headroom when determining whether
goodwill is recoverable, and no impairment should be recognised.
Assumptions used in recoverable amount calculations
The assumptions made for goodwill impairment testing for the Consumer Banking and Wealth CGU are provided in the following table and are
based on past experience and management’s expectations for the future. In the current year and given the present economic environment, the
Banking Group has reassessed these assumptions and revised them where necessary in order to provide a reasonable estimate of the value-in-use
of the CGU.
Discount rateCash flows
Equity rate / adjusted pre-tax equity rateForecast period / terminal growth rate
2025
2024
2025
2024
Consumer Banking and Wealth
11.7% / 15.5%
11.7% / 15.4%
3 years / 2%
3 years / 2%
The Banking Group discounts the projected cash flows by the adjusted pre-tax equity rate.
The cashflows used are based on management approved forecasts. These forecasts utilise information about current and future economic
conditions, observable historical information and management expectations of future business performance. The terminal value growth rate
represents the growth rate applied to extrapolate cash flows beyond the forecast period and reflects the midpoint of the Reserve Bank’s inflation
target over the medium term.
There are no reasonably possible changes in assumptions for Consumer Banking and Wealth CGU that would result in an indication of impairment
or have a material impact on the Banking Group’s reported results.
Notes to the financial statements
38Westpac New Zealand Limited

Note 16 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.
Interest expense incurred for deposits and other borrowings at amortised cost 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.
THE BANKING GROUP
$ millions2025
2024
Certificates of deposit
1,812
1,863
Non-interest bearing, repayable at call
12,174
11,196
Other interest bearing:
At call
30,019
29,028
Term
38,827
39,452
Total deposits and other borrowings 82,832
81,539
Note 17 Other financial liabilities
Accounting policy
Other financial liabilities include liabilities measured at amortised cost as well as liabilities which are measured at FVIS. Financial liabilities
measured at FVIS include liabilities designated at FVIS (i.e. certain repurchase agreements).
Repurchase agreements
Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised on the balance sheet in their
original category (i.e. trading securities and financial assets measured at FVIS or investment securities).
The cash consideration received is recognised as a liability (repurchase agreements). Repurchase agreements are designated at fair value where
this eliminates or significantly reduces an accounting mismatch or they are part of a group of instruments that are managed on a fair value basis.
Otherwise they are measured on an amortised cost basis.
Where a repurchase agreement is designated at fair value, any changes in fair value (except those due to change in credit risk) are recognised in
the income statement as they arise. The change in fair value that is attributable to 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.
THE BANKING GROUP
$ millions2025
2024
Repurchase agreements
1
1,684
3,023
Accrued interest payable
618
911
Trade creditors and other accrued expenses
194
195
Other
17
128
Total other financial liabilities 2,513
4,257
1
Repurchase agreements include those under the Funding for Lending Programme and Term Lending Facility. Refer to Note 31.2.2 for further details.
Notes to the financial statements
Westpac New Zealand Limited39

Note 18 Debt issues
Accounting policy
Debt issues are bonds, notes and commercial paper that have been issued by the Banking Group.
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.
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.
THE BANKING GROUP
$ millions2025
2024
Short-term debt:
Commercial paper
2,746
3,726
Total short-term debt 2,746
3,726
Long-term debt:
Non-domestic medium-term notes
13,577
9,795
Covered bonds
6,553
4,310
Domestic medium-term notes
3,530
3,788
Total long-term debt 23,660
17,893
Total debt issues 26,406
21,619
Movement reconciliation:
Balance at beginning of the year 21,619
18,597
Issuances
8,359
10,060
Maturities, repayments, buy-backs and reductions
(6,185)
(7,453)
Total cash movements 2,174
2,607
FX translation impact
2,493
(456)
Fair value adjustments
(7)
9
Fair value hedge accounting adjustments
138
726
Other
1
(11)
136
Total non-cash movements 2,613
415
Balance at end of the year 26,406
21,619
1
Includes items such as unwind of discount on issuance and amortisation of issue costs
Notes to the financial statements
40Westpac New Zealand Limited

Note 19 Provisions
Accounting policy
Provisions are recognised for present obligations arising from past events where a payment (or other economic transfer) is likely to be necessary
to settle the obligation and can be reliably estimated.
Employee benefits – annual leave and other employee benefits
The provision for annual leave and other employee benefits (including long service leave, wages and salaries, inclusive of non-monetary benefits,
and any associated on-costs (e.g. payroll tax)) is calculated based on expected payments.
Provision for ECL on credit commitments
The Banking Group is committed to provide facilities and guarantees as explained in Note 26. If it is probable that a facility will be drawn and the
resulting asset will be less than the drawn amount then a provision for impairment is recognised. The provision for impairment is calculated
using the same methodology as the provision for ECL (refer to Note 12).
Compliance, regulation and remediation provisions
The compliance, regulation and remediation provisions relate to matters pertaining to the provision of services to our customers identified both
as a result of regulatory action and internal reviews. An assessment of the likely cost to the Banking Group of these matters (including applicable
customer refunds) is made on a case-by-case basis and specific provisions are made where appropriate.
THE BANKING GROUP
$ millions
Annual leave
and other
employee
benefits
Provision for ECL
on credit
commitments
1
Compliance,
regulation and
remediation
provisions
Lease
restoration
obligations
Redundancy
provision Total
Balance as at 30 September 2024
97 53 40 23 4 217
Additions
100 - 7
4
35 146
Utilisation
(100) - (7) (3) (19) (129)
Reversal of unutilised provisions
(5) (13)
(21) - - (39)
Balance as at 30 September 2025 92 40 19 24 20 195
1
The movement in the provision for ECL on credit commitments is presented on a net basis as either an addition for an increase or reversal of unutilised provision for
a decrease. Refer to Note 12 for further details.
Compliance, regulation and remediation provisions
The compliance, regulation and remediation provisions relate to matters pertaining to the provision of services to our customers identified as a
result of regulatory action and internal reviews, including the Banking Group’s review of processes for some products relating to the requirements
of the CCCFA.
All potential claims and other liabilities are assessed on a case-by-case basis. A provision has been recognised where the Banking Group has
conducted an assessment which determines the likelihood of loss as probable and where its potential loss can be reliably estimated.
A number of different estimates and judgements have been applied in measuring the provision at 30 September 2025, including the number of
impacted customers, the refund per customer and the additional costs to run the remediation programme. It is possible that the actual outcome
for these matters may differ from the assumptions used in estimating the provision. Remediation processes may change over time as further facts
emerge and such changes could result in a change to the final exposure.
Where a provision has not been recognised, a contingent liability may exist. Refer to Note 26 for further details on contingent liabilities.
Notes to the financial statements
Westpac New Zealand Limited41

Note 20 Loan capital
Accounting policy
Loan capital is comprised of debt instruments which qualify for inclusion as regulatory capital under the Reserve Bank BPR. 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.
THE BANKING GROUP
$ millions2025
2024
Additional Tier 1 loan capital - Convertible subordinated perpetual notes
499
498
Tier 2 loan capital - Subordinated notes
1,227
1,212
Total loan capital 1,726
1,710
THE BANKING GROUP
$ millions2025
2024
Movement reconciliation
Balance at beginning of the year 1,710
2,666
Issuances
-
-
Maturities, repayments, buy-backs and reductions
-
-
Total cash movements -
-
Fair value hedge accounting adjustments
6
42
Redemption of AT1 notes
-
(1,000)
Other (amortisation of bond issue costs, etc)
10
2
Total non-cash movements 16
(956)
Balance at end of the year
1
1,726
1,710
1
This balance excludes $1 million of Tier 2 loan capital held by related entities as at 30 September 2025 (30 September 2024: $6 million), which is included within Due
to Related Entities.
Additional Tier 1 loan capital (AT1 notes)
A summary of the key terms and features of the AT1 notes is provided below:
$Issue dateCounterpartyInterest rateOptional redemption date
NZ$500 million notes22 September 2017NZ Branch
NZ 90 day bank bill
rate + 3.9594% p.a.
21 September 2027 and every fifth
anniversary thereafter
Ranking and rights in liquidation
The AT1 notes were issued by the Bank and, in a liquidation of the Bank, rank equally amongst themselves and the Bank's AT1 PPS, are
subordinated to the claims of depositors and senior or less subordinated creditors of the Bank, and rank ahead of the Bank’s ordinary shares.
Transitional phase-out schedule
In accordance with BPR110 Capital definitions, the Bank’s AT1 notes are subject to a transitional phase-out from 1 January 2022 until 1 July 2028,
with the maximum eligible amount declining by 12.5% each year, and completely phased out from 1 July 2028. The base amount was fixed at the
total nominal amount of the Bank’s AT1 notes outstanding as at 30 September 2021, being $1,500 million. The total value able to be recognised as
AT1 is set out in BPR110 Capital definitions, with the lower of the outstanding amount or 50% of the base amount able to be recognised between 1
January 2025 and 31 December 2025 (30 September 2024: 62.5% between 1 January 2024 and 31 December 2024) in line with the phase-out
schedule. On 21 December 2023, the Bank exercised its option, for regulatory reasons, to redeem $1,000 million of the AT1 notes for their face
value, as approved by the Reserve Bank. As at 30 September 2025, the remaining outstanding amount of $500 million is fully recognised as AT1 in
accordance with the transitional phase-out schedule.
Interest payable
Quarterly interest payments on the AT1 notes are payable at the absolute discretion of the Bank and will only be paid if the payment conditions are
satisfied, including that the interest payment will not result in the Bank becoming insolvent immediately following the interest payment; not result
in a breach of the Reserve Bank's BPR; and the payment date not falling on the date of a capital trigger event or non-viability trigger event. Interest
payments are non-cumulative. If interest is not paid in full, the Bank may not determine or pay any dividends on its ordinary shares or undertake a
discretionary buy back or capital reduction of the Bank’s ordinary shares (except in limited circumstances).
Notes to the financial statements
42Westpac New Zealand Limited

Note 20 Loan capital (continued)
Redemption
The Bank may elect to redeem all or some of the AT1 notes for their face value on 21 September 2027 and every fifth anniversary thereafter, subject
to the Reserve Bank’s prior written approval. Early redemption of all or some of the AT1 notes for certain tax or regulatory reasons is permitted
subject to the Reserve Bank’s prior written approval.
Conversion
If a capital trigger event or non-viability trigger event occurs, the Bank must convert some or all of the AT1 notes into a variable number of ordinary
shares issued by the Bank (calculated with reference to the net assets of the Bank and the total number of ordinary shares on issue at the
conversion date) that is sufficient, in the case of a capital trigger event, to return the Bank’s Common Equity Tier 1 capital ratio to above 5.125% as
determined by the Bank in consultation with the Reserve Bank; or, in the case of a non-viability trigger event, to satisfy the direction of the Reserve
Bank or the decision of the statutory manager of the Bank. A capital trigger event occurs when the Bank determines, or the Reserve Bank notifies in
writing that it believes, the Bank’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%. A non-viability trigger event occurs when the
Reserve Bank or the statutory manager (appointed pursuant to section 117 of the Banking (Prudential Supervision) Act 1989) directs the Bank to
convert or write off all or some of its AT1 notes.
If conversion of the AT1 notes does not occur within five business days of a capital trigger event or a non-viability trigger event, holders’ rights in
relation to the AT1 notes will be immediately and irrevocably terminated.
The Bank is able to elect to convert all the AT1 notes for certain tax or regulatory reasons (or in certain other circumstances).
Tier 2 loan capital
A summary of the key terms and features of the subordinated notes is provided below:
$Issue dateCounterpartyInterest rate
Maturity
date
Optional redemption date
NZ$600
million
notes
16 September
2022
ExternalFixed at 6.19% p.a until 16 September 2027.
Resets on 16 September 2027 to a floating rate:
NZ 3 month bank bill rate + 2.10% p.a.
16 September
2032
16 September 2027 and every
quarterly interest payment date
thereafter
NZ$600
million
notes
14 August
2023
ExternalFixed at 6.73% p.a until 14 February 2029.
Resets on 14 February 2029 to a floating rate: NZ
3 month bank bill rate + 2.00% p.a.
14 February
2034
14 February 2029 and every
quarterly interest payment date
thereafter
Ranking and rights in liquidation
The subordinated notes were issued by the Bank and, in a liquidation of the Bank, the 2022 and 2023 subordinated notes rank equally with each
other and amongst themselves, are subordinated to the claims of depositors and senior or less subordinated creditors of the Bank, and rank
ahead of the AT1 notes, AT1 PPS and the Bank's ordinary shares.
Common features of subordinated notes
Interest payable
Quarterly interest payments on the subordinated notes are subject to the Bank being solvent at the time of, and immediately following, the
interest payment.
Early redemption
The Bank may elect to redeem all or some of the 2022 or 2023 subordinated notes for their face value together with accrued interest (if any) on an
optional redemption date for the series specified above, subject to the Reserve Bank’s prior written approval. Early redemption of all of the 2022
or 2023 subordinated notes for certain tax or regulatory reasons is permitted on an interest payment date subject to the Reserve Bank’s prior
written approval.
Notes to the financial statements
Westpac New Zealand Limited43

Note 21 Shareholders' equity
Accounting policy
Ordinary shares
Ordinary shares are recognised at the amount paid up per ordinary share, net of directly attributable issue costs.
PPS
PPS are recognised at the amount paid up per share, net of directly attributable issue costs.
Discretionary dividends made on PPS are recognised in equity when paid.
Ordinary share capital
Ordinary shares fully paid
THE BANKING GROUP
2025
2024
2025
2024
Issued Shares
Issued Shares
$ millions
$ millions
Ordinary share capital
7,300,001,000
7,300,001,000
7,300
7,300
In accordance with BPR110 Capital definitions, ordinary share capital is classified as Common Equity Tier 1 capital.
The ordinary shares have no par value. Subject to the constitution of the Bank, each ordinary share of the Bank carries the right to one vote on a
poll at meetings of shareholders, the right to an equal share in dividends authorised by the Board and the right to an equal share in the distribution
of the surplus assets of the Bank in the event of liquidation.
On 19 February 2 0 2 5 and 27 August 2 0 2 5, the Bank declared and paid cash dividends of $328 million and $345 million respectively to its immediate
parent company, Westpac New Zealand Group Limited, with imputation credits of $128 million and $134 million attached respectively (30
September 2024: $314 million on 23 February 2 0 2 4 and $343 million on 23 August 2 0 2 4 with $122 million and $133 million imputation credits
attached respectively).
AT1 Perpetual preference shares (AT1 PPS)
PPS fully paid
THE BANKING GROUP
2025
2024
2025
2024
Issued Shares
Issued Shares
$ millions
$ millions
Internal PPS
1,000,000
1,000,000
1,000
1,000
Quoted PPS
1
375,000,000
375,000,000
369
369
Total PPS issued 376,000,000
376,000,000
1,369
1,369
1
Net of $6 million issue costs.
On 21 December 2023, the Bank issued two classes of AT1 PPS to the NZ Branch, totalling $1,000 million ('Internal PPS').
On 13 September 2024, the Bank issued $375 million of AT1 PPS, which are quoted on the NZX Debt Market ('Quoted PPS').
The AT1 PPS qualify as AT1 under the Reserve Bank’s capital adequacy framework. The AT1 PPS are classified as equity instruments as there is no
contractual obligation for the Banking Group to either deliver cash or another financial instrument or to exchange financial instruments on a
potentially unfavourable basis.
A summary of the key terms and features of each class of AT1 PPS is provided below:
Notes to the financial statements
44Westpac New Zealand Limited

Note 21 Shareholders' equity (continued)
$Issue dateCounterpartyAT1 PPS distribution rateOptional redemption date
Internal PPS
NZ$500
million
21 December
2023
NZ BranchNZ 3 month bank bill rate + 3.9723% p.a.
21 December 2028 and each quarterly scheduled
distribution payment date after that date
NZ$500
million
21 December
2023
NZ BranchNZ 3 month bank bill rate + 4.0219% p.a.
21 December 2029 and each quarterly scheduled
distribution payment date after that date
Quoted PPS
NZ$375
million
13 September
2024
External
Fixed at 7.10% p.a. until 13 September 2029
(when it resets to a floating rate equal to the
NZ 3 month bank bill rate + 3.50% p.a.)
13 September 2029 and each quarterly scheduled
distribution payment date after that date
Ranking and rights in liquidation
The AT1 PPS were issued by the Bank and, in a liquidation of the Bank, rank equally amongst themselves and the Bank’s AT1 notes, are
subordinated to the claims of depositors and other creditors of the Bank (including holders of Tier 2 loan capital), and rank ahead of the Bank’s
ordinary shares. The AT1 PPS do not carry any voting rights.
AT1 PPS distributions payable
Quarterly AT1 PPS distributions are payable at the absolute discretion of the Bank. In addition, AT1 PPS distributions will only be paid if the Bank is
solvent on the payment date and remains solvent immediately after such payment is made and the payment will not result in a breach of the
Bank’s conditions of registration as at the time of the payment.
AT1 PPS distributions are non-cumulative. In respect of a class of AT1 PPS, if an AT1 PPS distribution is not paid in full, the Bank may not determine
or pay any dividends on its ordinary shares or undertake a discretionary buy-back or capital reduction of the Bank’s ordinary shares until a
subsequent AT1 PPS distribution is paid in full on that class (except in limited circumstances).
The Bank paid quarterly AT1 PPS distributions on the Internal PPS and the Quoted PPS as set out in the table below:
THE BANKING GROUP
$ millions
2025
Cash payment
Imputation creditDistributionSupplementary dividend
Internal PPS Distribution Date
23 December 2 0 2 4
16 3 3
21 March 2 0 2 5
15 3 3
23 June 2 0 2 5
14 2 3
22 September 2 0 2 5
13 2 3
Quoted PPS Distribution Date
1
13 December 2 0 2 4
5 - 2
13 March 2 0 2 5
5 - 2
13 June 2 0 2 5
5 - 2
15 September 2 0 2 5
5 - 2
$ millions
2024
Cash payment
Imputation creditDistributionSupplementary dividend
Internal PPS Distribution Date
21 March 2024
1734
21 June 2024
1834
23 September 2024
1834
1
For the comparative period, no distributions were made for Quoted PPS between 1 October 2023 to 30 September 2024.
Redemption
The Bank may elect to redeem all or some of each class of the Internal PPS, or all of the Quoted PPS, on a related optional redemption date or at
any time for certain tax or regulatory reasons. Redemption is subject to certain conditions, including the Reserve Bank’s prior written approval and
the Bank remaining solvent immediately after the redemption. Holders have no right to require redemption.
Conversion
The AT1 PPS have no conversion or exchange options and no non-viability triggers.
Notes to the financial statements
Westpac New Zealand Limited45

Note 22 Related entities
Related entities
The Banking Group’s related parties are those it controls or can exert significant influence over. Examples include subsidiaries, associates, joint
ventures and superannuation plans as well as key management personnel and their related parties.
Banking Group
The Bank is a controlled entity of Westpac New Zealand Group Limited. The ultimate parent bank of the Bank is Westpac Banking Corporation.
The Banking Group consists of the Bank and all its controlled entities. As at 30 September 2025, the Bank had the following controlled entities:
Name of entityPrincipal activityNotes
Westpac NZ Operations Limited (‘WNZOL’)Holding company
Number 120 LimitedFinance company, currently non-active
Red Bird Ventures Limited
1
Corporate venture capital company, currently non-
active
The Home Mortgage Company LimitedResidential mortgage company, currently non-active
Westpac New Zealand Staff Superannuation Scheme Trustee LimitedTrustee company
Westpac (NZ) Investments Limited (‘WNZIL’)Property company
Westpac Securities NZ Limited (‘WSNZL’)Funding company
Westpac Securitisation Management NZ Limited (‘WSMNZL’)Securitisation management company
Westpac NZ Covered Bond Holdings Limited (‘WNZCBHL’)Holding company9.5% owned
2
Westpac NZ Covered Bond Limited (‘WNZCBL’)Guarantor9.5% owned
2
Westpac NZ Securitisation Holdings Limited (‘WNZSHL’)Holding company9.5% owned
3
Westpac NZ Securitisation Limited (‘WNZSL’)Funding company9.5% owned
3
Westpac Cash PIE FundPortfolio investment entityNot owned
4
Westpac Notice Saver PIE FundPortfolio investment entityNot owned
4
Westpac Term PIE FundPortfolio investment entityNot owned
4
1
Red Bird Ventures Limited holds 33.69% diluted (35.61% undiluted) (30 September 2024: 34.54% diluted (36.56% undiluted)) equity in Akahu Technologies
Limited, an associate, which is not a controlled entity.
2
The Banking Group, through its subsidiary, WNZOL, has a qualifying interest of 9.5% in WNZCBHL and its wholly-owned subsidiary company, WNZCBL. The Bank is
considered to control both WNZCBHL and WNZCBL based on contractual arrangements in place, and as such both WNZCBHL and WNZCBL are consolidated within
the financial statements of the Banking Group.
3
The Banking Group, through its subsidiary WNZOL, has a qualifying interest of 9.5% in WNZSHL and its wholly-owned subsidiary company, WNZSL. The Bank is
considered to control both WNZSHL and WNZSL based on contractual arrangements in place, and as such WNZSHL and WNZSL are consolidated within the financial
statements of the Banking Group.
4
Westpac Term PIE Fund, Westpac Cash PIE Fund and Westpac Notice Saver PIE Fund (collectively referred to as the ‘PIE Funds’) were established as unit trusts.
The PIE Funds are PIEs, where BT Funds Management (NZ) Limited (‘BTNZ’) (an indirectly wholly-owned subsidiary of the Ultimate Parent Bank) is the manager and
issuer. The manager has appointed the Bank to perform all customer management and account administration for the PIE Funds. The Bank is the PIE Funds’ registrar
and administration manager. The Bank does not hold any units in the PIE Funds, however is considered to control them, and as such the PIE Funds are consolidated
in the financial statements of the Banking Group.
Other than as disclosed above, there have been no changes in the ownership percentages since 30 September 2024.
All entities in the Banking Group are 100% owned unless otherwise stated. All the entities within the Banking Group have a balance date of 30
September and are incorporated in New Zealand except the PIE Funds which have a balance date of 31 March.
Notes to the financial statements
46Westpac New Zealand Limited

Note 22 Related entities (continued)
Nature of transactions
The Banking Group has transactions with members of the Ultimate Parent Bank Group on commercial terms, including the provision of
management, distribution and administrative services.
Loan finance and current account banking facilities are provided by the Ultimate Parent Bank to members of the Banking Group on normal
commercial terms. The interest earned on these loans and the interest paid on deposits are at market rates.
The NZ Branch provides financial market services, foreign currency, trade and interest rate risk products to the Banking Group and its customers,
which includes derivative transactions (refer to Note 23).
Effective 1 October 2014, the Bank and the NZ Branch entered into an agreement whereby the Bank will reimburse the NZ Branch for any credit
losses incurred by it due to certain customers of the Bank defaulting on certain financial market and international products. The Banking Group
receives commission from the sale of these products to customers for providing this guarantee.
This is treated as a financial guarantee for accounting purposes. Financial guarantee contracts are recognised as financial liabilities (recorded
within provisions) when a payment under a contract has become probable. The liability is initially measured at fair value and subsequently at the
higher of the amount of the loss allowance determined in accordance with NZ IFRS 9 and the amount initially recognised less, when appropriate,
the cumulative amount of income recognised.
The value of the exposures guaranteed at 30 September 2025 is $1,109 million (30 September 2024: $843 million), for which a liability has been
recognised of $7 million (30 September 2024: $4 million).
Refer to Note 20 and Note 21 for details of the loan capital and PPS transactions undertaken by the Banking Group with related entities.
Transactions with related entities
THE BANKING GROUP
$ millions
Note
2025
2024
Ultimate Parent Bank
Interest income
1
2
5
10
Interest expense:
Loan capital
40
69
Other
2
2
31
61
Non-interest income:
Commissions received
48
47
Management fees received
10
9
Operating expenses - management fees4
9
9
Other
3
3
8
Dividends paid on PPS21
58
52
Immediate Parent Company
Dividends paid on ordinary shares21
673
657
Other controlled entities of the Ultimate Parent Bank
Interest income
1
2
1
2
Interest expense2
5
8
Non-interest income:
Distribution fees received on managed fund products
10
9
Management fees received
4
3
Operational cost recharges
1
8
1
Includes interest income on reverse repurchase agreements.
2
Includes interest expense on other funding provided by and repurchase agreements with the NZ Branch.
3
Includes capitalised issue costs on financial liability or equity instruments and costs capitalised as software.
Notes to the financial statements
Westpac New Zealand Limited47

Note 22 Related entities (continued)
Due from and to related entities
THE BANKING GROUP
$ millions2025
2024
Due from related entities
Ultimate Parent Bank
2,082
1,185
Other controlled entities of the Ultimate Parent Bank
4
4
Total due from related entities
1
2,086
1,189
Due to related entities
Ultimate Parent Bank
1,609
1,917
Other controlled entities of the Ultimate Parent Bank
157
153
Total due to related entities
2
1,766
2,070
1
Includes derivative financial instruments of $1,354 million (30 September 2024: $374 million) (refer to Note 23) which are measured at fair value.
2
Includes repurchase agreements of $217 million (30 September 2024: $273 million) and derivative financial instruments of $550 million (30 September 2024: $786
million) (refer to Note 23) which are measured at fair value.
Key management personnel compensation
Key management personnel are those persons who have authority and responsibility for planning, directing and controlling the activities of the
Banking Group. This includes all Executive/Non-Executive Directors and members of the executive team.
THE BANKING GROUP
$'000s2025
2024
Salaries and other short-term benefits
10,324
9,325
Post-employment benefits
716
677
Termination benefits
-
344
Share-based payments
1
3,280
2,340
Total key management personnel compensation 14,320
12,686
Loans to key management personnel
11,986
6,075
Deposits from key management personnel
1,301
3,183
Interest income on loans to key management personnel
521
263
Interest expense on deposits from key management personnel
31
23
1
Share-based payments are amortised over the performance and deferral period (between two to five years). This includes restricted shares, hurdled share rights
and unhurdled share rights granted during the relevant periods up to 30 September 2025, which are calculated based on their fair value at the grant date (which is
the invitation opt out date). The fair value for hurdled and unhurdled share rights is determined using an external valuation.
The Directors have received remuneration from the Banking Group and these amounts are included in the table above.
Loans and deposits with key management personnel
All loans and deposits are made in the ordinary course of business of the Banking Group. Loans are on terms that range between variable, fixed
rate up to five years and interest only loans, all of which are in accordance with the Banking Group’s lending policies.
As at 30 September 2025, no amounts have been written off and no individual provision has been recognised in respect of loans given to key
management personnel and their related parties (30 September 2024: nil). These loans have been included within the loan portfolio when
determining collectively assessed provisions.
Other key management personnel transactions
All other transactions with key management personnel, their related entities and other related parties are conducted in the ordinary course of
business. These transactions principally involve the provision of financial, investment and insurance services.
Notes to the financial statements
48Westpac New Zealand Limited

Note 23 Derivative financial instruments
Accounting policy
Derivative financial instruments are instruments whose values are derived from the value of an underlying asset, reference rate or index and
include forwards, futures, swaps and options. Derivatives with related parties are included in due from/due to related entities.
The Banking Group uses derivative financial instruments for our ALM activities.
Trading derivatives
Derivatives which are used in our ALM activities but are not designated into a hedge accounting relationship are considered economic hedges.
These derivatives are measured at FVIS and are disclosed as trading derivatives in this note.
Hedging derivatives
Hedging derivatives are those which are used in our ALM activities and have also been designated into one of two hedge accounting
relationships: fair value hedge; or cash flow hedge. These derivatives are measured at fair value. These hedge designations and the associated
accounting treatment are detailed below.
For more details regarding the Banking Group’s ALM activities, refer to Note 31.
Fair value hedges
Fair value hedges are used to hedge the exposure to changes in the fair value of an asset or liability.
Changes in the fair value of derivatives and the hedged asset or liability in fair value hedges are recognised in non-interest income. The carrying
value of the hedged asset or liability is adjusted for the changes in fair value related to the hedged risk.
If a hedge is discontinued, any fair value adjustments to the carrying value of the asset or liability are amortised to net interest income over the
period to maturity. If the asset or liability is sold, any unamortised adjustment is immediately recognised in net interest income.
Cash flow hedges
Cash flow hedges are used to hedge the exposure to variability of cash flows attributable to an asset, liability or future forecast transaction.
For effective hedges, changes in the fair value of derivatives are recognised in the cash flow hedge reserve through OCI and subsequently
recognised in net interest income when the cash flows attributable to the asset or liability that was hedged impact the income statement.
For hedges with some ineffectiveness, the changes in the fair value of the derivatives relating to the ineffective portion are immediately
recognised in non-interest income.
If a hedge is discontinued, any cumulative gain or loss remains in OCI. It is amortised to net interest income over the period which the asset or
liability that was hedged also impacts the income statement.
If a hedge of a forecast transaction is no longer expected to occur, any cumulative gain or loss in OCI is immediately recognised in net interest
income.
Notes to the financial statements
Westpac New Zealand Limited49

Note 23 Derivative financial instruments (continued)
The carrying values of derivative instruments are set out in the tables below:
THE BANKING GROUP
2025
TradingHedging
Total derivatives carrying
value
$ millionsAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Interest rate contracts
Swap agreements
3 (18) 382 (662) 385 (680)
Total interest rate contracts 3 (18) 382 (662) 385 (680)
FX contracts
Cross currency swap agreements (principal and
interest)
47 (23) 1,979 - 2,026 (23)
Total FX contracts 47 (23) 1,979 - 2,026 (23)
Total of gross derivatives 50 (41) 2,361 (662) 2,411 (703)
Total of net derivatives 50 (41) 2,361 (662) 2,411 (703)
Consisting of:
Derivatives held with external counterparties
3 (7) 1,054 (146) 1,057 (153)
Derivatives held with related parties
47 (34) 1,307 (516) 1,354 (550)
THE BANKING GROUP
2024
TradingHedging
Total derivatives carrying
value
$ millionsAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Interest rate contracts
Swap agreements 7 (17) 451 (556) 458 (573)
Total interest rate contracts
7 (17) 451 (556) 458 (573)
FX contracts
Cross currency swap agreements (principal and
interest)
- (149) 141 (263) 141 (412)
Total FX contracts
- (149) 141 (263) 141 (412)
Total of gross derivatives
7 (166) 592 (819) 599 (985)
Total of net derivatives
7 (166) 592 (819) 599 (985)
Consisting of:
Derivatives held with external counterparties 2 (9) 223 (190) 225 (199)
Derivatives held with related parties 5 (157) 369 (629) 374 (786)
Notes to the financial statements
50Westpac New Zealand Limited

Note 23 Derivative financial instruments (continued)
Hedge accounting
The Banking Group designates derivatives into hedge accounting relationships in order to manage the volatility in earnings and capital that would
otherwise arise from interest rate and FX risks that may result from differences in the accounting treatment of derivatives and underlying
exposures. These hedge accounting relationships and the risks they are used to hedge are described below.
The Banking Group enters into one-to-one hedge relationships to manage specific exposures where the terms of the hedged item significantly
match the terms of the hedging instrument. The Banking Group also uses dynamic hedge accounting where the hedged items are part of a
portfolio of assets and/or liabilities that frequently change. In this hedging strategy, the exposure being hedged and the hedging instruments may
change frequently rather than there being a one-to-one hedge accounting relationship for a specific exposure.
Fair value hedges
Interest rate risk
The Banking Group hedges its interest rate risk to reduce exposure to changes in fair value due to interest rate fluctuations over the hedging
period. Interest rate risk arising from fixed rate debt issuances and fixed rate bonds classified as investment securities at FVOCI is hedged with
single currency fixed to floating interest rate derivatives. The Banking Group also hedges its benchmark interest rate risk from fixed rate foreign
currency denominated debt issuances using cross currency swaps. In applying fair value hedge accounting the Banking Group primarily uses one-
to-one hedge accounting to manage specific exposures.
The Banking Group also uses a dynamic hedge accounting strategy for fair value portfolio hedge accounting of some fixed rate mortgages to
reduce exposure to changes in fair value due to interest rate fluctuations over the hedging period. These fixed rate mortgages are allocated to
time buckets based on their expected repricing dates and the fixed-to-floating interest rate derivatives are designated according to the capacity in
the relevant time buckets.
The Banking Group hedges the benchmark interest rate which generally represents the most significant component of the changes in fair value.
The benchmark interest rate is a component of interest rate risk that is observable in the relevant financial markets, for example, Secured
Overnight Financing Rate (‘SOFR’) for USD interest rates and BKBM for NZD interest rates. Ineffectiveness may arise from timing or discounting
differences on repricing between the hedged item and the derivative. For portfolio hedge accounting, ineffectiveness also arises from prepayment
risk (i.e. the difference between actual and expected prepayment of loans). In order to manage the ineffectiveness from early repayments and
accommodate new originations the portfolio hedges are de-designated and redesignated periodically.
Cash flow hedges
Interest rate risk
The Banking Group’s exposure to the volatility of interest cash flows from customer deposits and loans is hedged with interest rate derivatives
using a dynamic hedge accounting strategy called macro cash flow hedges. Customer deposits and loans are allocated to time buckets based on
their expected repricing dates. The interest rate derivatives are designated according to the gross asset or gross liability positions for the relevant
time buckets. The Banking Group hedges the benchmark interest rate which generally represents the most significant component of the changes
in fair value. The benchmark interest rate is a component of interest rate risk that is observable in the relevant financial markets, for example,
SOFR for USD interest rates and BKBM for NZD interest rates. Ineffectiveness may arise from timing or discounting differences on repricing
between the hedged item and the interest rate derivative. Ineffectiveness also arises if the notional values of the interest rate derivatives exceed
the aggregate notional exposure for the relevant time buckets. The hedge accounting relationship is reviewed on a monthly basis and the hedging
relationships are de-designated and redesignated if necessary.
FX risk
The Banking Group’s exposure to foreign currency principal and credit margin cash flows from fixed rate foreign currency debt issuances is
hedged through the use of cross currency derivatives in a one-to-one hedging relationship to manage the changes between the foreign currency
and NZD. In addition, for floating rate foreign currency debt issuances, the Banking Group hedges from foreign floating to NZD floating interest
rates. Ineffectiveness may arise from timing or discounting differences on repricing between the hedged item and the cross currency derivative.
Economic hedges
As part of the Banking Group’s ALM activities, economic hedges may be entered into to hedge long-term funding transactions for risk
management purposes. These hedges do not qualify for hedge accounting and are therefore not included in the hedging instrument disclosures
below.
Notes to the financial statements
Westpac New Zealand Limited51

Note 23 Derivative financial instruments (continued)
Hedging instruments
The following tables show the carrying value of hedging instruments and a maturity analysis of the notional amounts of the hedging instruments in
one-to-one hedge relationships categorised by the types of hedge relationships and the hedged risk.
THE BANKING GROUP
2025
Notional amountsCarrying value
$ millionsHedging instrumentHedged risk
Within 1
year
Over 1 year
to 5 years
Over 5
yearsTotalAssetsLiabilities
One-to-one hedge relationships
Fair value hedgesInterest rate swapInterest rate risk
100 4,511 2,322 6,933 186 (146)
Cross currency swapInterest rate risk
3,036 16,968 405 20,409 (141) -
Cash flow hedgesCross currency swapFX risk
3,036 16,968 405 20,409 2,120 -
Total one-to-one hedge relationships 6,172 38,447 3,132 47,751 2,165 (146)
Macro hedge relationships
Portfolio fair value hedgesInterest rate swapInterest rate risk
N/AN/AN/A 24,765 - (296)
Macro cash flow hedgesInterest rate swapInterest rate risk
N/AN/AN/A 25,533 196 (220)
Total macro hedge relationshipsN/AN/AN/A 50,298 196 (516)
Total of gross hedging derivativesN/AN/AN/A 98,049 2,361 (662)
Impact of netting arrangements
N/AN/AN/AN/A - -
Total of net hedging derivativesN/AN/AN/AN/A 2,361 (662)
THE BANKING GROUP
2024
Notional amountsCarrying value
$ millionsHedging instrumentHedged risk
Within 1
year
Over 1 year
to 5 years
Over 5
yearsTotalAssetsLiabilities
One-to-one hedge relationships
Fair value hedgesInterest rate swapInterest rate risk 478 5,260 225 5,963 169 (75)
Cross currency swapInterest rate risk 785 10,985 2,628 14,398 75 (245)
Cash flow hedgesCross currency swapFX risk 785 10,985 2,628 14,398 66 (18)
Total one-to-one hedge relationships
2,048 27,230 5,481 34,759 310 (338)
Macro hedge relationships
Portfolio fair value hedgesInterest rate swapInterest rate riskN/AN/AN/A 21,200 1 (312)
Macro cash flow hedgesInterest rate swapInterest rate riskN/AN/AN/A 19,240 281 (169)
Total macro hedge relationships
N/AN/AN/A 40,440 282 (481)
Total of gross hedging derivatives
N/AN/AN/A 75,199 592 (819)
Impact of netting arrangementsN/AN/AN/AN/A - -
Total of net hedging derivatives
N/AN/AN/AN/A 592 (819)
Notes to the financial statements
52Westpac New Zealand Limited

Note 23 Derivative financial instruments (continued)
The following table shows the weighted average exchange rate related to significant hedging instruments in one-to-one hedge relationships:
THE BANKING GROUP
Weighted average hedged rate
Hedging instrumentHedged riskCurrency pair2025
2024
Cash flow hedges
Cross currency swapFX riskEUR:NZD
0.5846
0.5963
HKD:NZD
5.1114
5.1114
USD:NZD
0.6071
0.6252
Impact of hedge accounting on the balance sheet and reserves
The following tables show the carrying amount of hedged items in a fair value hedge relationship and the component of the carrying amount
related to accumulated fair value hedge accounting (‘FVHA') adjustments.
THE BANKING GROUP
2025
2024
$ millions
Carrying amount of
hedged item
Accumulated FVHA
adjustment included in
carrying amount
Carrying amount of
hedged item
Accumulated FVHA
adjustment included in
carrying amount
Interest rate risk
Investment securities
1
5,246 240
4,146
140
Loans
24,915 150
21,324
124
Debt issues and loan capital
(21,877) 94
(15,820)
238
1
The carrying amount of investment securities at FVOCI does not include a fair value hedge adjustment as the hedged asset is measured at fair value. The fair value
hedge accounting adjustment results in a transfer from OCI to the income statement.
There were no accumulated FVHA adjustments (30 September 2024: nil) included in the above carrying amounts relating to hedged items that
have ceased to be adjusted for hedging gains and losses.
The pre-tax impact of cash flow hedges on reserves is detailed below:
THE BANKING GROUP
2025
2024
$ millions
Interest rate
riskFX riskTotal
Interest rate
riskFX riskTotal
Cash flow hedge reserve
Balance at beginning of the year
144 (71) 73
584 (60) 524
Net gains/(losses) from changes in fair value
(41) (30) (71)
(163) (213) (376)
Transferred to net interest income
(72) 54 (18)
(277) 202 (75)
Balance at end of year
31 (47) (16)
144 (71) 73
There were no balances remaining in the cash flow hedge reserve (30 September 2024: nil) relating to hedge relationships for which hedge
accounting is no longer applied.
Notes to the financial statements
Westpac New Zealand Limited53

Note 23 Derivative financial instruments (continued)
Hedge effectiveness
Hedge effectiveness is tested prospectively at inception and during the lifetime of hedge relationships. For one-to-one hedge relationships this
testing uses a qualitative assessment of matched terms where the critical terms of the derivatives used as the hedging instrument match the
terms of the hedged item. In addition, a quantitative effectiveness test is performed for all hedges which could include regression analysis, dollar
offset and/or sensitivity analysis.
Retrospective testing is also performed to determine whether the hedge relationship remains highly effective so that hedge accounting can
continue to be applied and also to determine any ineffectiveness. These tests are performed using regression analysis and the dollar offset
method.
The following tables provide information regarding the determination of hedge effectiveness:
THE BANKING GROUP
2025
$ millionsHedging instrumentHedged risk
Change in fair value of
hedging instrument
used for calculating
ineffectiveness
Change in value of
the hedged item
used for calculating
ineffectiveness
Hedge
ineffectiveness
recognised in
non-interest
income
Fair value hedges
Interest rate swapInterest rate risk
(93) 94 1
Cross currency swapInterest rate risk
112 (112) -
Cash flow hedges
Interest rate swapInterest rate risk
(118) 113 (5)
Cross currency swapFX risk
24 (24) -
Total (75) 71 (4)
THE BANKING GROUP
2024
$ millionsHedging instrumentHedged risk
Change in fair value of
hedging instrument used
for calculating
ineffectiveness
Change in value of the
hedged item used for
calculating
ineffectiveness
Hedge
ineffectiveness
recognised in non-
interest income
Fair value hedges
Interest rate swapInterest rate risk (491) 501 10
Cross currency swapInterest rate risk 724 (729) (5)
Cash flow hedges
Interest rate swapInterest rate risk (451) 440 (11)
Cross currency swapFX risk (11) 11 -
Total
(229) 223 (6)
Notes to the financial statements
54Westpac New Zealand Limited

Note 24 Fair values of financial assets and financial liabilities
Accounting policy
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
On initial recognition, the transaction price generally represents the fair value of the financial instrument unless there is observable information
from an active market to the contrary. Where unobservable information is used, the difference between the transaction price and the fair value
(day one profit or loss) is recognised in the income statement over the life of the instrument or when the inputs become observable.
Critical accounting assumptions and estimates
The majority of valuation models used by the Banking Group employ only observable market data as inputs. However, for certain financial
instruments, data may be employed which is not readily observable in current markets.
The availability of observable inputs is influenced by factors such as:
●product type;
●depth of market activity;
●maturity of market models; and
●complexity of the transaction.
Where unobservable market data is used, more judgement is required to determine fair value. The significance of these judgements depends on
the significance of the unobservable input to the overall valuation. Unobservable inputs are generally derived from other relevant market data
and adjusted against:
●standard industry practice;
●economic models; and
●observed transaction prices.
In order to determine a reliable fair value for a financial instrument, management may apply adjustments to the techniques previously
described.
These adjustments reflect the Banking Group’s assessment of factors that market participants would consider in setting the fair value.
These adjustments incorporate bid/offer spreads, credit valuation adjustments and funding valuation adjustments.
Fair Valuation Control Framework
The Banking Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the
transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory
standards. The framework includes specific controls relating to:
●the revaluation of financial instruments;
●independent price verification;
●fair value adjustments; and
●financial reporting.
A key element of the framework is the Revaluation Committee, comprising senior valuation specialists from within the Ultimate Parent Bank Group.
The Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been
applied.
The method of determining fair value differs depending on the information available.
Fair value hierarchy
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value
measurement.
The Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The Banking Group applies market accepted valuation techniques in determining the fair valuation of over-the-counter derivatives. This includes
credit valuation adjustments and funding valuation adjustments, which incorporate credit risk and funding costs and benefits that arise in relation
to uncollateralised derivative positions, respectively.
The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant
product category are outlined as follows:
Notes to the financial statements
Westpac New Zealand Limited55

Note 24 Fair values of financial assets and financial liabilities (continued)
Financial instruments measured at fair value
Level 1 instruments
The fair value of financial instruments traded in active markets is based on recent unadjusted quoted prices. These prices are based on actual
arm’s length basis transactions.
The valuations of Level 1 instruments require little or no management judgement.
InstrumentBalance sheet categoryIncludesValuation
Debt instruments
Trading securities and financial
assets measured at FVIS
New Zealand
Government bonds
These instruments are traded in liquid, active markets where
prices are readily observable. No modelling or assumptions
are used in the valuation.
Investment securities
Level 2 instruments
The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable
market prices. Valuation techniques include:
●the use of market standard discounting methodologies;
●option pricing models; and
●other valuation techniques widely used and accepted by market participants.
InstrumentBalance sheet categoryIncludesValuation
Interest rate
products
Derivative financial
instruments
Due from related entities
Due to related entities
Interest rate swaps, forwards
and options – derivative
financial instruments
Industry standard valuation models are used to calculate
the expected future value of payments by product, which
is discounted back to a present value. The model’s
interest rate inputs are benchmark interest rates and
active broker quoted interest rates in the swap, bond and
futures markets. Interest rate volatilities are sourced from
brokers and consensus data providers. If consensus
prices are not available, these are classified as Level 3
instruments.
FX products
Derivative financial
instruments
Due from related entities
Due to related entities
FX swaps – derivative
financial instruments
Derived from market observable inputs or consensus
pricing providers using industry standard models. If
consensus prices are not available, these are classified as
Level 3 instruments.
Non-asset backed
debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Due from related entities
Due to related entities
Other financial liabilities
Local authority and NZ
public securities, other bank
issued certificates of deposit,
commercial paper, other
government securities, off-
shore securities and
corporate bonds
Repurchase agreements and
reverse repurchase
agreements over non-asset
backed debt securities
Valued using observable market prices which are sourced
from independent pricing services, broker quotes or
inter-dealer prices. If prices are not available from these
sources, these are classified as Level 3 instruments.
Deposits and other
borrowings at fair
value
Deposits and other borrowingsCertificates of deposit
Discounted cash flow using market rates offered for
deposits of similar remaining maturities.
Debt issues at fair
value
Debt issuesCommercial paper
Discounted cash flows, using a discount rate which
reflects the terms of the instrument and the timing of
cash flows adjusted for market observable changes in the
Banking Group’s implied creditworthiness.
Level 3 instruments
Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable
market data due to illiquidity or complexity of the product.
As at 30 September 2025, the Banking Group has no financial instruments valued under this category (30 September 2024: nil).
Notes to the financial statements
56Westpac New Zealand Limited

Note 24 Fair values of financial assets and financial liabilities (continued)
The following table summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
THE BANKING GROUP
2025
2024
$ millionsLevel 1Level 2Level 3Total
Level 1Level 2Level 3Total
Financial assets measured at fair value on a recurring
basis
Trading securities and financial assets measured at FVIS
267 2,086 - 2,353
469 1,903 - 2,372
Derivative financial instruments
- 1,057 - 1,057
- 225 - 225
Investment securities
3,930 4,276 - 8,206
3,211 4,324 - 7,535
Due from related entities
- 1,354 - 1,354
- 374 - 374
Total financial assets measured at fair value 4,197 8,773 - 12,970
3,680 6,826 - 10,506
Financial liabilities measured at fair value on a
recurring basis
Deposits and other borrowings at fair value
1
- 1,812 - 1,812
- 1,863 - 1,863
Other financial liabilities
1
- 550 - 550
- - - -
Derivative financial instruments
- 153 - 153
- 199 - 199
Due to related entities
- 767 - 767
- 1,059 - 1,059
Debt issues at fair value
1
- 2,746 - 2,746
- 3,726 - 3,726
Total financial liabilities measured at fair value - 6,028 - 6,028
- 6,847 - 6,847
1
There are no differences between the fair values disclosed and the contractual outstanding amount payable at maturity for these financial liabilities measured at fair
value on a recurring basis.
Analysis of movements between fair value hierarchy levels
For the year ended 30 September 2025, the Banking Group has refined its approach and applied a more granular assessment with additional
metrics sourced from its independent pricing services to complete the fair value level classification of New Zealand Government treasury bills. As
a result, $642 million of these trading securities and financial assets measured at FVIS have been transferred from Level 1 to Level 2. Transfers in
and transfers out are reported using the end of period fair values. There were no other material transfers between levels of the fair value hierarchy
during the year (30 September 2024: no material transfers between levels).
Financial instruments not measured at fair value
For financial instruments not measured at fair value on a recurring basis, fair value has been derived as follows:
InstrumentValuation
Loans
Where available, the fair value of loans is based on observable market transactions; otherwise fair value is
estimated using discounted cash flow models. For variable rate loans, the discount rate used is the current effective
interest rate. The discount rate applied for fixed rate loans reflects the market rate for the maturity of the loan and
the creditworthiness of the borrower.
Deposits and other
borrowings
Fair values of deposit liabilities payable on demand (interest free, interest bearing and savings deposits)
approximate their carrying value. Fair values for term deposits are estimated using discounted cash flows, applying
market rates offered for deposits of similar remaining maturities.
Due to related entities
The carrying value of due to related entities approximates the fair value. These items are either short-term in nature
or re-price frequently, and are of a high credit rating.
Debt issues and loan
capital
The fair values of these instruments are calculated based on quoted market prices, where available. Where quoted
market prices are not available, fair values are calculated using a discounted cashflow model. The discount rates
applied reflect the terms of the instruments and the timing of the estimated cash flows and are adjusted for any
changes in the Banking Group’s credit spreads.
All other financial
assets and financial
liabilities
For all other financial assets and financial liabilities, the carrying value approximates the fair value. These items are
either short-term in nature or re-price frequently, and are of a high credit rating.
Notes to the financial statements
Westpac New Zealand Limited57

Note 24 Fair values of financial assets and financial liabilities (continued)
The following table summarises the estimated fair value and fair value hierarchy of the Banking Group’s financial instruments not measured at fair
value:
THE BANKING GROUP
2025
$ millions
Carrying
Amount
Fair Value
Level 1Level 2Level 3Total
Financial assets not measured at fair value
Cash and balances with central banks
6,091 6,091 - - 6,091
Collateral paid
32 32 - - 32
Loans
106,328 - - 106,619 106,619
Other financial assets
389 - 20 369 389
Due from related entities
732 - 727 5
732
Total financial assets not measured at fair value 113,572 6,123 747 106,993 113,863
Financial liabilities not measured at fair value
Collateral received
936 936 - - 936
Deposits and other borrowings
81,020 - 80,137 964 81,101
Other financial liabilities
1,963 - 1,963 - 1,963
Due to related entities
999 - 999 -
999
Debt issues
1
23,660 - 23,825 - 23,825
Loan capital
1
1,726 - 1,261 538
1,799
Total financial liabilities not measured at fair value 110,304 936 108,185 1,502 110,623
THE BANKING GROUP
2024
$ millions
Carrying
Amount
Fair Value
Level 1Level 2Level 3Total
Financial assets not measured at fair value
Cash and balances with central banks 7,456 7,456 - - 7,456
Collateral paid 76 76 - - 76
Loans 102,150 - - 102,158 102,158
Other financial assets
461 - - 461 461
Due from related entities
815 - 805 10 815
Total financial assets not measured at fair value
110,958 7,532 805 102,629 110,966
Financial liabilities not measured at fair value
Collateral received 156 156 - - 156
Deposits and other borrowings 79,676 - 78,291 1,488 79,779
Other financial liabilities 4,257 - 4,257 - 4,257
Due to related entities 1,011 - 1,011 - 1,011
Debt issues
1
17,893 - 17,988 - 17,988
Loan capital
1
1,710 - 1,252 506
1,758
Total financial liabilities not measured at fair value
104,703 156 102,799 1,994 104,949
1
The estimated fair value of debt issues and level 3 loan capital includes the impact of changes in the Banking Group's credit spreads since origination.
Note 25 Offsetting financial assets and financial liabilities
Accounting policy
Financial assets and financial liabilities are presented net on the balance sheet when the Banking Group has a legally enforceable right to offset
them in all circumstances and there is an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability
simultaneously. The gross assets and liabilities behind the net amounts reported on the balance sheet are disclosed in the following table.
Notes to the financial statements
58Westpac New Zealand Limited

Note 25 Offsetting financial assets and financial liabilities (continued)
Some of the Banking Group’s offsetting arrangements are not enforceable in all circumstances. The amounts in the tables below may not tie back
to the balance sheet if there are balances which are not subject to offsetting or enforceable netting arrangements. The amounts presented in this
note do not represent the credit risk exposure of the Banking Group. Refer to Note 13 for information on credit risk management. The offsetting
and collateral arrangements and other credit risk mitigation strategies used by the Banking Group are further explained in the ‘Management of risk
mitigation’ section under Note 13.5.
THE BANKING GROUP
2025
Amounts Subject to Enforceable Netting Arrangements
Amounts Offset on the Balance
Sheet
Amounts Not Offset on the Balance
Sheet
$ millions
Note
Gross
Amounts
Amounts
Offset
Net Amounts
Reported on
the Balance
Sheet
Other
Recognised
Financial
Instruments
Cash
Collateral
Financial
Instrument
Collateral
Net
Amount
Assets
Derivative financial instruments
1,057 - 1,057 - (762) - 295
Due from related entities - derivative financial
instruments22
1,354 - 1,354 (550) - - 804
Total assets 2,411 - 2,411 (550) (762) - 1,099
Liabilities
Repurchase agreements17
1,684 - 1,684 - - (1,684) -
Derivative financial instruments
153 - 153 - (16) (137) -
Due to related entities - repurchase agreements22
217 - 217 - - (217) -
Due to related entities - derivative financial
instruments22
550 - 550 (550) - - -
Total liabilities 2,604 - 2,604 (550) (16) (2,038) -
THE BANKING GROUP
2024
Amounts Subject to Enforceable Netting Arrangements
Amounts Offset on the Balance SheetAmounts Not Offset on the Balance Sheet
$ millions
Note
Gross
Amounts
Amounts
Offset
Net Amounts
Reported on
the Balance
Sheet
Other
Recognised
Financial
Instruments
Cash
Collateral
Financial
Instrument
Collateral
Net
Amount
Assets
Derivative financial instruments 225 - 225 - (84) - 141
Due from related entities - derivative financial
instruments22 374 - 374 (374) - - -
Total assets
599 - 599 (374) (84) - 141
Liabilities
Repurchase agreements17 3,023 - 3,023 - - (3,023) -
Derivative financial instruments 199 - 199 - (64) (135) -
Due to related entities - repurchase agreements22 273 - 273 - - (273) -
Due to related entities - derivative financial
instruments22 786 - 786 (374) - - 412
Total liabilities
4,281 - 4,281 (374) (64) (3,431) 412
Other recognised financial instruments
These financial assets and financial liabilities are subject to master netting agreements which are not enforceable in all circumstances, so they are
recognised gross on the balance sheet. The offsetting rights of the master netting arrangements can only be enforced if a predetermined event
occurs in the future, such as a counterparty defaulting.
Cash collateral and financial instrument collateral
These amounts are received or pledged under master netting arrangements against the gross amounts of assets and liabilities. Financial
instrument collateral typically comprises securities which can be readily liquidated in the event of counterparty default. The offsetting rights of the
master netting arrangement can only be enforced if a predetermined event occurs in the future, such as a counterparty defaulting.
Notes to the financial statements
Westpac New Zealand Limited59

Note 26 Credit related commitments, contingent assets and contingent liabilities
Accounting policy
Undrawn credit commitments
The Banking Group enters into various arrangements with customers which are only recognised on the balance sheet when called upon.
These arrangements include commitments to extend credit, bill endorsements, financial guarantees, standby letters of credit and underwriting
facilities.
Contingent assets
Contingent assets are possible assets whose existence will be confirmed only by uncertain future events. Contingent assets are not recognised
on the balance sheet but are disclosed if an inflow of economic benefits is probable.
Contingent liabilities
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events, and present obligations where
the transfer of economic resources is not probable or cannot be reliably measured. Contingent liabilities are not recognised on the balance
sheet but are disclosed unless the outflow of economic resources is remote.
Undrawn credit commitments
Undrawn credit commitments expose the Banking Group to liquidity risk when called upon and also to credit risk if the customer fails to repay the
amounts owed at the due date. The maximum exposure to credit loss is the contractual or notional amount of the instruments disclosed below.
Some of the arrangements can be cancelled by the Banking Group at any time. The actual liquidity and credit risk exposure varies in line with
drawings and may be less than the amounts disclosed. The Banking Group uses the same credit policies when entering into these arrangements as
it does for on-balance sheet instruments. Refer to Note 13 and Note 31 for further details on credit risk management and liquidity risk.
THE BANKING GROUP
$ millions2025
2024
Letters of credit and guarantees
1,2
1,796
1,631
Commitments to extend credit
3
28,325
25,887
Total undrawn credit commitments
4,5
30,121
27,518
1
Standby letters of credit and guarantees are undertakings to pay, against presentation of documents, an obligation in the event of a default by a customer.
Guarantees are unconditional undertakings given to support the obligations of a customer to third parties. The Banking Group may hold cash as collateral for certain
guarantees issued.
2
Letters of credit and guarantees includes the value of exposures guaranteed by the Bank to NZ Branch, as disclosed in Note 22 Related entities.
3
Commitments to extend credit include all obligations on the part of the Banking Group to provide credit facilities. As facilities may expire without being drawn
upon, the notional amounts do not necessarily reflect future cash requirements.
4
In addition to the commitments disclosed above, there is $1,478 million (30 September 2024: $1,014 million) of exposure to credit risk primarily relating to credit
exposures offered and accepted but still revocable, which represent part of the Banking Group's maximum exposure to credit risk.
5
Comparatives have been revised to remove credit exposures offered and accepted but still revocable.
Contingent assets
The Banking Group enters into various arrangements with customers that constitute contingent assets. If a specified contingent event occurs,
these commitments will be called upon and recognised on the balance sheet as loans.
Contingent liabilities
The Banking Group has contingent risks and liabilities arising from the conduct of its business, including: actual and potential disputes, claims,
legal proceedings, investigations, inquiries and reviews (formal and informal) carried out by regulatory authorities (including into the Banking
Group's processes for some products relating to the requirements of the CCCFA); and internal investigations and reviews.
The scope of reviews (internal and external), investigations and inquiries, including those relating to the requirements of the CCCFA, can be wide-
ranging and can result in litigation (including class action proceedings and enforcement proceedings), fines and penalties, customer remediation
and/or other sanctions and reputational damage.
All potential claims and other liabilities are assessed on a case-by-case basis. A provision will be recognised where the Banking Group has
conducted an assessment which determines the likelihood of loss as probable and where its potential loss can be reliably estimated. A contingent
liability exists in respect of actual or potential claims where the likely loss is not assessed as probable, where the law is uncertain or, in rare
circumstances, where the outflow of resources cannot be reliably estimated.
Guarantees
As disclosed in Note 22, the Bank has an agreement with the NZ Branch whereby the Bank will reimburse the NZ Branch for any credit losses
incurred by it due to certain customers of the Bank defaulting on certain financial market and international products.
Notes to the financial statements
60Westpac New Zealand Limited

Note 27 Segment reporting
Accounting policy
Operating segments are presented on a basis that is consistent with information provided internally to the Banking Group’s chief operating
decision-maker and reflect the management of the business, rather than the legal structure of the Banking Group. The chief operating decision-
maker is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Banking
Group has determined that the Bank’s executive team is its chief operating decision-maker.
Inter-segment revenue and costs are eliminated at head office. Income and expenses directly associated with each segment are included in
determining business segment performance.
The Banking Group’s segment reporting incorporates Consumer Banking and Wealth and Institutional and Business Banking sectors within New
Zealand. On this basis, no geographical segment reporting is provided.
The operating segment results have been presented on a management reporting basis and consequently internal charges and transfer pricing
adjustments have been reflected in the performance of each operating segment. Intersegment pricing is determined on a cost recovery basis.
The Banking Group does not rely on any single major customer for its revenue base.
Segment comparative information for the year ended 30 September 2024 has been revised to align to the current year's basis for reporting, and is
consistent with the information provided internally to the Banking Group's chief operating decision-maker.
The Banking Group’s operating segments are defined by the customers they serve and the services they provide. The Banking Group has identified
the following main operating segments:
●Consumer Banking and Wealth provides financial services predominantly for individuals; and
●Institutional and Business Banking provides a broad range of financial services for small to medium enterprise, corporate, property finance,
agricultural, institutional and government customers.
Other primarily represents:
●business units that do not meet the definition of a reportable operating segment under NZ IFRS 8 Operating Segments;
●elimination entries on consolidation of the results, assets and liabilities of the Banking Group’s controlled entities in the preparation of the
consolidated financial statements of the Banking Group; and
●results of certain business units excluded for management reporting purposes, but included within the consolidated financial statements of
the Banking Group for statutory financial reporting purposes.
THE BANKING GROUP
$ millions
Consumer Banking
and Wealth
Institutional and
Business BankingOther Total
Year ended 30 September2025
2024
2025
2024
2025
2024
2025
2024
Net interest income 1,404
1,219
1,318
1,293
152
327
2,874
2,839
Net fees and commissions
Facility fees
27
25
19
26
-
-
46
51
Transaction fees and commissions
172
172
80
78
1
1
253
251
Other non-risk fee income
4
5
13
13
6
3
23
21
Fees and commissions income 203
202
112
117
7
4
322
323
Fees and commissions expenses
(79)
(76)
-
-
-
-
(79)
(76)
Net fees and commissions 124
126
112
117
7
4
243
247
Other non-interest income
-
-
-
-
2
9
2
9
Total non-interest income
124
126
112
117
9
13
245
256
Net operating income 1,528
1,345
1,430
1,410
161
340
3,119
3,095
Operating expenses
(873)
(791)
(539)
(514)
(81)
(60)
(1,493)
(1,365)
Impairment (charges)/benefits
14
(19)
30
(8)
-
-
44
(27)
Profit before income tax expense 669
535
921
888
80
280
1,670
1,703
Income tax expense
(186)
(149)
(258)
(247)
(23)
(81)
(467)
(477)
Profit after income tax expense 483
386
663
641
57
199
1,203
1,226
As at 30 September
Total gross loans
65,390
62,190
41,132
40,217
250
241
106,772
102,648
Total deposits and other borrowings
49,016
46,616
32,004
33,060
1,812
1,863
82,832
81,539
Notes to the financial statements
Westpac New Zealand Limited61