WBC - NZ Banking Group Disclosure Statement - 30 Sep 2025

ASX RELEASE


Westpac Banking Corporation
Level 18, 275 Kent Street
Sydney, NSW, 2000



11 November 2025

Westpac Banking Corporation – New Zealand Banking Group Disclosure
Statement


Westpac Banking Corporation (“Westpac”) today provides the attached Westpac New
Zealand Banking Group Disclosure Statement for the year ended 30 September 2025.









For further information:

Hayden Cooper Justin McCarthy
Group Head of Media Relations General Manager, Investor Relations
0402 393 619 0422 800 321


This document has been authorised for release by Tim Hartin, Company Secretary.

This page has been intentionally left blank

Glossary of terms
4
Directors' and the Chief Executive Officer, NZ Branch's statement
5
Financial statements
Income statement6Note 16 Deposits and other borrowings39
Statement of comprehensive income6Note 17 Other financial liabilities
39
Balance sheet7Note 18 Debt issues40
Statement of changes in equity8Note 19 Provisions41
Statement of cash flows9Note 20 Loan capital42
Note 1 Financial statements preparation 10Note 21 Shareholders' equity44
Note 2 Net interest income14Note 22 Related entities46
Note 3 Non-interest income 15Note 23 Derivative financial instruments49
Note 4 Operating expenses16Note 24 Fair values of financial assets and financial liabilities55
Note 5 Auditor’s remuneration17Note 25 Offsetting financial assets and financial liabilities59
Note 6 Impairment charges/(benefits)18
Note 26 Credit related commitments, contingent assets and
contingent liabilities
61
Note 7 Income tax expense19
Note 8 Imputation credit account19Note 27 Segment reporting62
Note 9 Trading securities and financial assets measured at
FVIS
20
Note 28 Securitisation, covered bonds and other
transferred assets
63
Note 10 Investment securities20Note 29 Structured entities64
Note 11 Loans21Note 30 Capital management 66
Note 12 Provision for expected credit losses22
Note 31 Risk management, funding and liquidity risk and
market risk
67
Note 13 Credit risk management30
Note 14 Deferred tax assets37Note 32 Notes to the statement of cash flows77
Note 15 Intangible assets38
Registered bank disclosures
i. General information 78
v. Insurance, securitisation, funds management, other
fiduciary activities, and marketing and distribution of
insurance products
91ii. Additional financial disclosures85
iii. Asset quality87
iv. Credit and market risk exposures and capital adequacy89vi. Risk management policies92
Conditions of Registration
95
Independent auditor’s report
98
Independent assurance report
103
Contents
Westpac Banking Corporation - New Zealand Banking Group3

Certain information contained in this Disclosure Statement is required by the Order.
In this Disclosure Statement, reference is made to five main reporting groups:
-Overseas Bank - refers to Westpac Banking Corporation;
-Overseas Banking Group - refers to the Overseas Bank and all other entities included in the Overseas Bank's group for the purposes of
public reporting of the group financial statements in Australia;
-NZ Branch - refers to the New Zealand business (as defined in the Order) of the Overseas Bank;
-Westpac New Zealand - refers to Westpac New Zealand Limited; and
-NZ Banking Group - refers to the financial reporting group (as defined in the Order) of the Overseas Bank. Controlled entities of the NZ
Banking Group as at 30 September 2025 are set out in Note 22 Related entities;
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
Group BRiskC
Overseas Bank's Board Risk Committee
ALCO
Asset and Liability Committee
GST
Goods and services tax
ALM
Asset and liability risk management
IAP
Individually assessed provisions
ANZSIC
Australian and New Zealand Standard Industrial
Classification
IRRBB
Interest rate risk in the banking book
LGD
Loss given default
APRA
Australian Prudential Regulation Authority
LVR
Loan-to-value ratio
AT1
Additional Tier 1 capital
MARCO
Market Risk Committee
AUSTRAC
Australian Transaction Reports and Analysis
Centre
Moody's
Moody's Investors Service
NaR
Net interest income-at-risk
BKBM
Bank bill benchmark rate
NCI
Non-controlling interests
Board
Board of Directors
NII
Net interest income
BPR
Banking Prudential Requirement
NZ IAS
New Zealand equivalents to international
Accounting Standards
BPS Act
Banking (Prudential Supervision) Act 1989
BRCC
Board Risk and Compliance Committee
NZ IFRS
New Zealand equivalents to International Financial
Reporting Standards
BS13
Reserve Bank document 'Liquidity Policy'
CAP
Collectively assessed provisions
OCI
Other comprehensive income
CCCFA
Credit Contracts and Consumer Finance Act 2003
Order
Registered Bank Disclosure Statements (Overseas
Incorporated Registered Banks) Order 2014 (as
amended)
CGU
Cash generating unit
CRG
Customer risk grade
EAD
Exposure at default
PD
Probability of default
ECL
Expected credit losses
PIE
Portfolio investment entities
ELE
Extended licensed entity
PPS
Perpetual preference shares
ESG
Environmental, social and governance
Reserve Bank
Reserve Bank of New Zealand
FCS
Financial Claims Scheme
RISKCO
Executive Risk Committee
Financial
statements
Consolidated financial statements
RMBS
Residential mortgage-backed securities
RWAs
Risk weighted assets or risk weighted exposures
FM
Financial Markets
S&P
S&P Global Ratings
Fitch
Fitch Ratings
SME
Small and medium-sized enterprises
FVIS
Fair value through income statement
SPPI
Solely payments of principal and interest
FVOCI
Fair value through other comprehensive income
VaR
Value-at-Risk
FX
Foreign exchange
XRB
External Reporting Board
GDP
Gross domestic product
Glossary of terms
4Westpac Banking Corporation - New Zealand Banking Group

Each Director of the Overseas Bank and the Chief Executive Officer, NZ Branch, 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 Overseas Bank and the Chief Executive Officer, NZ Branch, believes, after due enquiry, that, over the year ended 30
September 2025:
(a) the Overseas Bank has complied in all material respects with each condition of registration that applied during that period; and
(b) the NZ Branch and other members of the NZ Banking Group had systems in place to monitor and control adequately the material risks of
relevant members of the NZ Banking Group, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk,
liquidity risk and other business risks, and that those systems were being properly applied. For this purpose, a relevant member of the NZ
Banking Group means a member of the NZ Banking Group that is not a member of Westpac New Zealand's banking group, as defined in
Westpac New Zealand's Disclosure Statement for the year ended 30 September 2025. Refer to Note vi. Risk management policies - Risk
management frameworks on page 92 of this Disclosure Statement for further detail regarding the entities which had systems in place to
monitor and control the material risks of relevant members of the NZ Banking Group.
The Disclosure Statement has been signed on behalf of all of the Directors by Catherine McGrath, Chief Executive Officer, Westpac New Zealand,
and by Christopher Leuschke as Chief Executive Officer, NZ Branch.
Catherine McGrath
Christopher Leuschke
Dated this 11th day of November 2025
Directors' and the Chief Executive Officer, NZ Branch's statement
Westpac Banking Corporation - New Zealand Banking Group5

NZ BANKING GROUP
$ millions
Note
2025
2024
Interest income:
Calculated using the effective interest method2
6,891
7,521
Other2
239
272
Total interest income
2
7,130
7,793
Interest expense2
(4,228)
(4,864)
Net interest income 2,902
2,929
Non-interest income
Net fees and commissions3
196
201
Net wealth management3
47
43
Trading3
121
20
Other3
3
-
Total non-interest income 367
264
Net operating income 3,269
3,193
Operating expenses4
(1,564)
(1,427)
Impairment (charges)/benefits6
44
(27)
Profit before income tax expense 1,749
1,739
Income tax expense7
(488)
(486)
Profit after income tax expense 1,261
1,253
Net profit attributable to NCI
(19)
-
Net profit attributable to the owners of the Overseas Bank 1,242
1,253
The above income statement should be read in conjunction with the accompanying notes.
Statement of comprehensive income for the year ended 30 September 2025
NZ BANKING GROUP
$ millions2025
2024
Profit after income tax expense 1,261
1,253
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
(87)
(398)
Transferred to income statement:
Cash flow hedging instruments
(3)
(60)
Income tax on items taken to or transferred from equity:
Investment securities
(24)
(67)
Cash flow hedging instruments
25
128
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)
(159)
Total comprehensive income
1,258
1,094
Attributable to:
Owners of the Overseas Bank
1,239
1,094
NCI
19
-
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
Income statement for the year ended 30 September 2025
6Westpac Banking Corporation - New Zealand Banking Group

NZ BANKING GROUP
$ millions
Note
2025
2024
Assets
Cash and balances with central banks32
6,188
7,553
Collateral paid
176
244
Trading securities and financial assets measured at FVIS9
6,153
5,723
Derivative financial instruments 23
7,182
3,643
Investment securities10
8,206
7,535
Loans11,12
106,800
102,463
Other financial assets
1,248
1,117
Due from related entities22
3,004
3,429
Property and equipment
472
449
Deferred tax assets14
191
198
Intangible assets15
953
987
Other assets
177
160
Total assets140,750
133,501
Liabilities
Collateral received
1,332
198
Deposits and other borrowings16
82,832
81,539
Other financial liabilities17
4,989
5,435
Derivative financial instruments23
4,729
5,932
Due to related entities22
4,334
3,237
Debt issues18
26,406
21,619
Current tax liabilities
96
160
Provisions19
204
228
Other liabilities
322
366
Loan capital20
3,318
3,093
Total liabilities128,562
121,807
Net assets12,188
11,694
Head office account
Branch capital21
1,300
1,300
Retained profits
1,647
1,598
Total head office account2,947
2,898
NZ Banking Group equity
Share capital21
6,045
6,045
Reserves21
(68)
(64)
Retained profits
2,895
2,446
Total NZ Banking Group equity8,872
8,427
Total equity attributable to owners of the Overseas Bank11,819
11,325
NCI21
369
369
Total shareholders' equity and NCI12,188
11,694
The above balance sheet should be read in conjunction with the accompanying notes.
Signed on behalf of the Board of Directors.
Director Director
11 November 2025 11 November 2025
Balance sheet as at 30 September 2025
Westpac Banking Corporation - New Zealand Banking Group7

NZ BANKING GROUP
NZ Branch
Head Office Account
Other Members of
the NZ Banking Group
Total equity
attributable
to the
owners of
the Overseas
Bank
NCI
(Note 21)
Total
shareholders'
equity and
NCI$ millions
Branch
Capital
(Note 21)
Retained
Profits
Share
Capital
(Note 21)
Reserve
(Note 21)
Retained
Profits
As at 30 September 2023
1,300 1,472 6,045 94 1,918 10,829 - 10,829
Year ended 30 September 2024
Profit after income tax expense - 126 - - 1,127 1,253 - 1,253
Net gains/(losses) from changes in fair value - - - (159) - (159) - (159)
Income tax effect - - - 44 - 44 - 44
Transferred to income statement - - - (60) - (60) - (60)
Income tax effect - - - 17 - 17 - 17
Remeasurement of defined benefit obligations - - - - (1) (1) - (1)
Income tax effect - - - - - - - -
Total comprehensive income/(expense)
- 126 - (158) 1,126 1,094 - 1,094
Transactions with equity holders:
PPS issued (net of issue costs) - - - 369 369
Dividends paid on ordinary shares - - - - (598) (598) - (598)
As at 30 September 2024
1,300 1,598 6,045 (64) 2,446 11,325 369 11,694
As at 30 September 2024 1,300 1,598 6,045 (64) 2,446 11,325 369 11,694
Year ended 30 September 2025
Profit after income tax expense
- 149 - - 1,093 1,242 19 1,261
Net gains/(losses) from changes in fair value
- - - (2) - (2) - (2)
Income tax effect
- - - - - - - -
Transferred to income statement
- - - (3) - (3) - (3)
Income tax effect
- - - 1 - 1 - 1
Remeasurement of defined benefit obligations
- - - - 2 2 - 2
Income tax effect
- - - - (1) (1) - (1)
Total comprehensive income/(expense) - 149 - (4) 1,094 1,239 19 1,258
Transactions with equity holders:
Dividends paid on ordinary shares
- - - - (645) (645) - (645)
Dividends paid on PPS
- - - - - - (19) (19)
Profit repatriation
- (100) - - - (100) - (100)
As at 30 September 2025 1,300 1,647 6,045 (68) 2,895 11,819 369 12,188
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
8Westpac Banking Corporation - New Zealand Banking Group

NZ BANKING GROUP
$ millions
Note
2025
2024
Cash flows from operating activities
Interest received
7,157
7,807
Interest paid
(4,508)
(4,945)
Non-interest income received
37
322
Operating expenses paid
(1,299)
(1,285)
Income tax paid
(532)
(547)
Cash flows from operating activities before changes in operating assets and liabilities
855
1,352
Net (increase)/decrease in:
Collateral paid
68
(182)
Trading securities and financial assets measured at FVIS
(357)
(709)
Loans
(4,328)
(2,519)
Other financial assets
69
(125)
Due from related entities
1
-
1
Other assets
(2)
(6)
Net increase/(decrease) in:
Collateral received
1,134
(416)
Deposits and other borrowings
1,234
(649)
Other financial liabilities
(414)
(2,298)
Due to related entities
50
(84)
Other liabilities
(14)
2
Net movement in external and related entity derivative financial instruments
798
251
Net cash provided by/(used in) operating activities
32
(907)
(5,382)
Cash flows from investing activities
Proceeds from investment securities
921
1,529
Purchase of investment securities
(1,375)
(1,930)
Purchase of intangible assets
(106)
(118)
Purchase of property and equipment
(111)
(74)
Net cash provided by/(used in) investing activities (671)
(593)
Cash flows from financing activities
Proceeds from debt issues18
8,359
10,060
Repayments of debt issues18
(6,194)
(7,429)
Payments for the principal portion of lease liabilities
(55)
(51)
Maturities, repayments, buy-backs and reduction of loan capital20
6
(6)
Issue of perpetual preference shares (net of issue costs)21
-
369
Dividends paid on ordinary shares22
(645)
(598)
Dividends paid on PPS
(19)
-
Profit repatriation
(100)
-
Net movement in due to related entities
(48)
(90)
Net cash provided by/(used in) financing activities 1,304
2,255
Net increase/(decrease) in cash and cash equivalents (274)
(3,720)
Cash and cash equivalents at the beginning of the year
1
8,261
12,043
Effect of exchange rate changes on cash and cash equivalents
89
(62)
Cash and cash equivalents at the end of the year
32
8,076
8,261
1
Comparatives have been revised to include certain balances due from related entities as cash and cash equivalents, resulting in a $52 million increase in the opening
balance.
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
Westpac Banking Corporation - New Zealand Banking Group9

Note 1 Financial statements preparation
The Overseas Bank is registered as a public company limited by shares under the Australian Corporations Act 2001 and is entered on the register
maintained under the BPS Act. The Overseas Bank provides a broad range of banking and financial services, including consumer, business and
institutional banking and wealth management services.
The NZ Branch’s head office is situated at Westpac on Takutai Square, 16 Takutai Square, Auckland 1010, New Zealand and the address for service
of process on the NZ Branch is General Counsel, Legal, Westpac on Takutai Square, 53 Galway Street, Auckland 1010, New Zealand.
The financial statements are for the NZ Banking Group.
These financial statements were authorised for issue by the Overseas Bank’s Board of Directors on 11 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 NZ 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 NZ 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 NZ 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 NZ 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
10Westpac Banking Corporation - New Zealand Banking Group

Note 1 Financial statements preparation (continued)
b. Basis of aggregation
The NZ Banking Group as at 30 September 2025 has been aggregated by combining the sum of the capital and reserves of the NZ Branch, and the
consolidated capital and reserves of Westpac New Zealand Group Limited, BT Financial Group (NZ) Limited, Westpac Financial Services Group-
NZ-Limited, Westpac Group Investment-NZ-Limited, and their subsidiaries (including structured entities). For New Zealand entities acquired by
the Overseas Banking Group, capital and reserves at acquisition are netted and recognised as capital contributed to the NZ Banking Group.
Subsidiaries are entities over which the members of the NZ Banking Group have control as they are exposed to, or have rights to, variable returns
from their involvement with the entities, and can affect those returns through their power over the entities. All transactions between entities within
the NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 NZ Banking Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing the
business model the NZ 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
Westpac Banking Corporation - New Zealand Banking Group11

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 NZ 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 NZ 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 NZ
Banking Group and its customers. Responding to this heightened uncertainty, the NZ 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 NZ 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 NZ Banking Group for the financial year ended 30 September 2019. When
adopted, as permitted by the standard, the NZ 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 NZ 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 NZ 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 NZ Banking Group is continuing to assess the impact of adopting NZ IFRS 18.
Notes to the financial statements
12Westpac Banking Corporation - New Zealand Banking Group

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 NZ 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 NZ
Banking Group.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group13

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 NZ Banking Group's ECL model and
on the carrying amount net of the provision for ECL for financial assets in stage 3.
NZ BANKING GROUP
$ millions
Note
2025
2024
Interest income
Calculated using the effective interest method
Cash and balances with central banks
298
509
Collateral paid
5
4
Investment securities
291
218
Loans
6,235
6,675
Due from related entities
22
62
115
Total interest income calculated using the effective interest method 6,891
7,521
Other
Trading securities and financial assets measured at FVIS
239
272
Total other 239
272
Total interest income 7,130
7,793
Interest expense
Calculated using the effective interest method
Collateral received
40
26
Deposits and other borrowings
2,612
3,339
Due to related entities22
53
100
Debt issues
589
418
Loan capital
189
186
Other financial liabilities
120
243
Total interest expense calculated using the effective interest method 3,603
4,312
Other
Deposits and other borrowings
86
153
Debt issues
153
122
Other interest expense
1
386
277
Total other 625
552
Total interest expense 4,228
4,864
Net interest income 2,902
2,929
1
Includes the net impact of Treasury's interest rate and liquidity management activities.
Notes to the financial statements
14Westpac Banking Corporation - New Zealand Banking Group

Note 3 Non-interest income
Accounting policy
Non-interest income includes net fees and commissions income, net wealth management income, trading income and other income.
Net fees and commissions income
When another party is involved in providing goods or services to a NZ Banking Group customer, the NZ 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 NZ Banking Group is acting as an
agent for another party, the income earned by the NZ 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 NZ Banking Group has a future service obligation to
customers under the NZ 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.
Net wealth management income
Wealth management fees earned for the ongoing management of customer funds and investments are recognised when the performance
obligation is satisfied which is over the period of management.
Trading income
●Realised and unrealised gains or losses from changes in the fair value of trading assets, liabilities and derivatives are recognised in the
period in which they arise (except day one profits or losses which are deferred, refer to Note 24); and
●Net income related to Treasury’s interest rate and liquidity management activities is included in net interest income.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group15

Note 3 Non-interest income (continued)
NZ BANKING GROUP
$ millions2025
2024
Net fees and commissions
Facility fees
50
54
Transaction fees and commissions
202
200
Other non-risk fee income
1
23
23
Fees and commissions income 275
277
Credit card loyalty programmes
(30)
(31)
Transaction fees and commissions related expenses
(49)
(45)
Fees and commissions expenses (79)
(76)
Net fees and commissions 196
201
Net wealth management 47
43
Trading 121
20
Other
Net ineffectiveness on qualifying hedges
(4)
(9)
Other
7
9
Total other 3
-
Total non-interest income 367
264
1
Includes management fees due from related entities. Refer to Note 22.
Deferred income in relation to the credit card loyalty programmes for the NZ 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 NZ Banking Group.
Note 4 Operating expenses
NZ BANKING GROUP
$ millions
Note
2025
2024
Staff expenses
808
751
Lease expenses
19
17
Depreciation
116
99
Technology services and telecommunications
276
247
Purchased services
62
57
Software amortisation
140
113
Related entities - management fees22
14
15
Other
1
129
128
Total operating expenses 1,564
1,427
1
'Other' includes expenses such as advertising, property related costs, postage and freight and non-lending losses.
Notes to the financial statements
16Westpac Banking Corporation - New Zealand Banking Group

Note 5 Auditor’s remuneration18
The disclosure of fees paid to the NZ 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 NZ 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.
NZ BANKING GROUP
2025
2024
$'000sKPMG
PwC
Audit or review of financial statements
1
2,955
3,941
Audit or review related services
Agreed-upon procedures engagements
2,3
175
787
Total remuneration for audit or review related services 175
787
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
-
150
Total auditor's remuneration 3,300
4,878
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 NZ 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 NZ Banking Group's debt issuance programmes. As PwC are not the NZ 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 NZ 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 NZ 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
NZ Banking Group's external auditor for the year ended 30 September 2025, this is not included in the table above.
Audit and non-audit assurance services are provided to non-consolidated entities, including non-consolidated trusts and non-consolidated
superannuation funds or pension funds of which a member of the NZ Banking Group is manager or responsible entity. During the year ended 30
September 2025, the fees in respect of these services were nil paid to KPMG and $512,970 paid to PwC, due to the timing of the external auditor
transition as the balance date of the non-consolidated trusts and non-consolidated superannuation funds or pension funds is 31 March (30
September 2024: $490,392 paid to PwC). This amount is not included in the table above.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group17

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 NZ Banking Group’s loan recovery procedures, the NZ 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 NZ 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.
NZ 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 NZ Banking Group.
Notes to the financial statements
18Westpac Banking Corporation - New Zealand Banking Group

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.
NZ BANKING GROUP
$ millions2025
2024
Income tax expense
Current tax:
Current year
458
467
Prior year adjustments
(1)
1
Deferred tax (refer to Note 14):
Current year
31
19
Prior year adjustments
-
(1)
Total income tax expense 488
486
Profit before income tax expense 1,749
1,739
Tax calculated at tax rate of 28%
490
487
Income not subject to tax
-
-
Expenses not deductible for tax purposes
(1)
(1)
Prior year adjustments
(1)
-
Total income tax expense 488
486
The effective tax rate for the year ended 30 September 2025 was 27.9% (30 September 2024: 27.9%).
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 NZ Banking Group is part of an MNE group under the Overseas 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 NZ 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 NZ Banking Group does not expect a material exposure, if any, to Pillar Two income taxes.
Note 8 Imputation credit account
NZ BANKING GROUP
$ millions2025
2024
Imputation credits available for use in subsequent reporting periods
584
408
The imputation credit balance shown above represents imputation credits available to New Zealand tax resident members of the NZ Banking
Group. The 2025 imputation credit balance available to the Overseas Bank (not included in the NZ Banking Group balance above) is $537 million
(30 September 2024: $583 million).
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group19

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 NZ 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).
NZ BANKING GROUP
$ millions2025
2024
Trading securities
Government and semi-government securities
1,686
1,890
Other debt securities
612
1,294
Total trading securities 2,298
3,184
Other financial assets measured at FVIS
Government and semi-government securities
1,629
1,425
Other debt securities
724
946
Total other financial assets measured at FVIS 2,353
2,371
Reverse repurchase agreements 1,502
168
Total trading securities and financial assets measured at FVIS 6,153
5,723
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.
NZ BANKING GROUP
$ millions2025
2024
Government and semi-government securities
5,480
5,011
Other debt securities
2,726
2,524
Total investment securities 8,206
7,535
Notes to the financial statements
20Westpac Banking Corporation - New Zealand Banking Group

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:
NZ BANKING GROUP
$ millions2025
2024
Residential mortgages
71,300
68,011
Other retail
2,578
2,563
Corporate
33,142
32,098
Other
230
293
Total gross loans 107,250
102,965
Provision for ECL on loans (refer to Note 12)
(450)
(502)
Total net loans 106,800
102,463
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group21

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 NZ 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 NZ Banking Group considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by the NZ
Banking Group to action such as realising security. Indicators include a breach of contract with the NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group

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 NZ
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 NZ 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 NZ 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 NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group23

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 NZ Banking Group.
NZ 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
28 95 25 32 180
27 115 22 36 200
Total provision for ECL on
loans (refer to Note 11)
73 221 91 65 450
65 294 82 61 502
Provision for ECL on credit
commitments
Residential mortgages
4 6 - - 10
4 11 - - 15
Other retail
3 6 1 - 10
3 6 - - 9
Corporate
5 15 - 1 21
4 14 - 11 29
Total provision for ECL on
credit commitments (refer to
Note 19)
12 27 1 1 41
11 31 - 11 53
Total provision for ECL on
loans and credit
commitments
85 248 92 66 491
76 325 82 72 555
Gross loans
92,300 13,885 852 213 107,250
79,904 22,070 800 191 102,965
Credit commitments
1
26,908 2,940 34 3 29,885
23,657 3,702 20 19 27,398
Gross loans and credit
commitments
119,208 16,825 886 216 137,135
103,561 25,772 820 210 130,363
Coverage ratio on loans (%)
0.08 1.59 10.68 30.52 0.42
0.08 1.33 10.25 31.94 0.49
Coverage ratio on loans and
credit commitments (%)
0.07 1.47 10.38 30.56 0.36
0.07 1.26 10.00 34.29 0.42
1
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 Banking Corporation - New Zealand Banking Group

Note 12 Provision for expected credit losses (continued)
NZ 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
NZ 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 Banking Corporation - New Zealand Banking Group25

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:
NZ 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 Banking Corporation - New Zealand Banking Group

Note 12 Provision for expected credit losses (continued)

NZ 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 Banking Corporation - New Zealand Banking Group27

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.
NZ 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 NZ 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).
NZ BANKING GROUP
$ millions20252024
Reported probability-weighted ECL491555
100% base case ECL286341
100% downside ECL744850
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
lifetimeECL) 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 NZ 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 Banking Corporation - New Zealand Banking Group

Note 12 Provision for expected credit losses (continued)
The following table discloses the macroeconomic scenario weightings applied by the NZ 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.
NZ 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 NZ 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 $12.4 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 Banking Corporation - New Zealand Banking Group29

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 NZ 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 NZ Banking Group’s overall Risk Management Framework.
●The Overseas 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 Overseas Bank’s Credit Risk Management Framework describes the principles, methodologies, systems, roles and responsibilities,
reports and key controls for managing credit risk. Within the Credit Risk Management Framework, the NZ Banking Group has its own credit
approval limits approved by Westpac New Zealand’s Board and the Overseas Banking Group’s Chief Risk Officer.
●Westpac New Zealand's BRCC, Westpac New Zealand’s RISKCO and Westpac New Zealand’s CREDCO monitor the risk profile, performance
and management of the NZ Banking Group’s credit portfolio on at least a quarterly basis, and the development and review of key credit risk
policies are performed on at least an annual basis; other management reviews occur monthly or more frequently.
●Additionally, the NZ Branch Risk Committee monitors the risk profile, performance and management of the NZ Branch credit portfolio on a
quarterly basis. Other management reviews occur monthly or more frequently. Group BRiskC oversees the development and review of key
credit risk policies.
●The NZ 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 NZ Banking Group’s model risk
policies.
●An annual review is performed of the Credit Risk Rating System for approval by the Overseas Banking Group’s Group Chief Credit Officer and
noting by Group BRiskC and Overseas Banking Group CREDCO.
●Specific credit risk estimates (including PD, LGD and EAD) are overseen and reviewed annually in line with the Overseas Banking Group’s
Model Risk Policy. Models are approved under delegated authority from the Overseas Banking Group’s Chief Risk Officer. Model Risk is
overseen by the Overseas Banking Group’s Model Risk Committee (a subcommittee of the Group BRiskC).
●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 NZ Banking Group’s Chief Financial Officer
and Chief Risk Officer with oversight from the Westpac New Zealand Board (and its Committees).
●Policies for delegating credit approval authorities and formal limits for the extension of credit are established throughout the NZ Banking
Group.
●Credit policies are established and maintained throughout the NZ 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 Overseas Banking Group’s Related Entity Risk Management Policy and supporting policies govern credit exposures to related entities to
minimise the spread of credit risk between Overseas Banking Group entities and to comply with the prudential requirements prescribed by
APRA.
●Climate change-related credit risks are considered in line with the Overseas Banking Group’s Climate Change Position Statement and Action
Plan. Climate change risks are managed in line with the NZ Banking Group’s Risk Management Framework which is supported by the
Overseas Banking Group’s Sustainability Risk Management Framework, Westpac New Zealand's Climate Risk Policy, Westpac New
Zealand’s ESG Credit Risk Policy and Westpac New Zealand's and the Overseas Banking Group’s Board Risk Appetite Statements. Where
appropriate, these are applied at the portfolio, customer, and transaction level.
●Westpac New Zealand's CREDCO oversees work to identify and manage the potential impact on credit exposures from climate change-
related transition and physical risks across the NZ Banking Group.
●Westpac New Zealand’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 Banking Corporation - New Zealand Banking Group

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 NZ Banking Group is exposed. The NZ
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 NZ 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 NZ Banking Group’s high level CRGs for transaction-managed portfolios mapped to the NZ Banking Group’s credit
quality disclosure categories and to their corresponding external rating.
Transaction-managed
Financial Statement DisclosureNZ Banking Group’s CRGMoody's RatingS&P Rating
StrongAAaa – Aa3AAA – AA-
BA1 – A3A+ – A-
CBaa1 – Baa3BBB+ – BBB-
Good/satisfactoryDBa1 – B1BB+ – B+
NZ 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 NZ 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 NZ 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 NZ 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 NZ Banking Group’s industry risk appetite limits.
Individual countries
The NZ 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 NZ Banking Group, or the NZ Banking Group’s ability
to realise its assets in a particular country.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group31

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.
NZ BANKING GROUP
$ millions2025
2024
Financial assets
Cash and balances with central banks
6,188
7,553
Collateral paid
176
244
Trading securities and financial assets measured at FVIS
6,153
5,723
Derivative financial instruments
7,182
3,643
Investment securities
8,206
7,535
Gross loans
1
107,250
102,965
Other financial assets
1,248
1,117
Due from related entities
3,004
3,429
Total financial assets 139,407
132,209
Undrawn credit commitments
Letters of credit and guarantees
1,329
1,171
Commitments to extend credit
28,556
26,227
Total undrawn credit commitments
2, 3
29,885
27,398
Total maximum credit risk exposure 169,292
159,607
Concentration of credit exposures
NZ BANKING GROUP
On-balance sheetOff-balance sheet
$ millions2025
2024
2025
2024
Analysis of credit exposures by geographical areas
New Zealand
126,127
121,875
29,330
26,669
Overseas
13,280
10,334
555
729
Total credit exposures
1, 2
139,407
132,209
29,885
27,398
Analysis of credit exposures by industry sector
Accommodation, cafes and restaurants
376
369
71
71
Agriculture
8,655
8,869
554
508
Construction
587
437
656
665
Finance and insurance
15,762
11,629
2,217
2,002
Forestry and fishing, agriculture support services
338
313
100
127
Government, administration and defence
16,671
17,523
775
851
Manufacturing
2,200
1,985
1,537
1,560
Mining
103
166
144
138
Property
9,418
9,129
1,553
1,180
Property services and business services
1,224
1,139
630
447
Services
2,033
2,006
990
799
Trade
2,712
2,298
1,623
1,590
Transport and storage
693
804
604
384
Utilities
2,790
2,665
2,644
1,597
Retail lending
72,668
69,237
15,787
15,479
Subtotal 136,230
128,569
29,885
27,398
Due from related entities
3,004
3,429
-
-
Other financial assets
173
211
-
-
Total credit exposures
1, 2
139,407
132,209
29,885
27,398
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 $1,358 million (30 September 2024: $964 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 Banking Corporation - New Zealand Banking Group

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:
NZ 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
54,357 6,998 - 61,355
45,418 12,953 - 58,371
Weak
313 891 797 2,001
301 961 709 1,971
Total Loans - Residential mortgages 62,458 8,045 797 71,300
53,238 14,064 709 68,011
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
12,775 1,002 - 13,777
11,475 1,267 - 12,742
Good/satisfactory
14,903 3,231 - 18,134
13,129 4,646 - 17,775
Weak
- 1,017 214 1,231
- 1,356 225 1,581
Total Loans - Corporate 27,678 5,250 214 33,142
24,604 7,269 225 32,098
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
9,301 3 - 9,304
9,410 4 - 9,414
Good/satisfactory
151 23 - 174
156 47 - 203
Weak
1 4 2 7
1 6 3 10
Total all other financial assets 9,453 30 2 9,485
9,567 57 3 9,627
Undrawn credit commitments
2
Strong
15,061 811 - 15,872
12,948 772 - 13,720
Good/satisfactory
11,842 1,970 - 13,812
10,705 2,738 - 13,443
Weak
5 159 37 201
4 192 39 235
Total undrawn credit commitments 26,908 2,940 37 29,885
23,657 3,702 39 27,398
Total strong 54,283 2,046 - 56,329
50,020 2,325 - 52,345
Total good/satisfactory 82,248 12,651 - 94,899
70,315 20,892 - 91,207
Total weak 336 2,158 1,104 3,598
328 2,612 1,033 3,973
Total on- and off-balance sheet 136,867 16,855 1,104 154,826
120,663 25,829 1,033 147,525
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 Banking Corporation - New Zealand Banking Group33

Note 13 Credit risk management (continued)
13.5 Credit risk mitigation, collateral and other credit enhancements
The NZ Banking Group uses a variety of techniques to reduce the credit risk arising from its lending activities.
This includes the NZ 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.
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 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. Derivative transactions are increasingly being cleared through central
clearers.
1
This includes collateral held in relation to associated credit commitments.
Notes to the financial statements
34Westpac Banking Corporation - New Zealand Banking Group

Note 13 Credit risk management (continued)
Management of risk mitigation
The NZ Banking Group mitigates credit risk through controls covering:
Collateral and valuation
management
The Overseas Bank manages collateral under collateralisation agreements centrally for all branches of
the Overseas Bank and Westpac New Zealand.
The NZ 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 NZ 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 NZ 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 NZ Banking Group’s corporate, sovereign and bank credit
portfolios through monitoring the exposure and any offsetting hedge positions.
Credit Portfolio Management purchases credit protection from entities that meet minimum eligibility
requirements.
Offsetting
Creditworthy customers domiciled in New Zealand may enter into formal agreements with the NZ
Banking Group, permitting the NZ 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 NZ 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 NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group35

Note 13 Credit risk management (continued)
The NZ Banking Group's loan portfolio has the following coverage from collateral held:
NZ 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 72 49 90
Partially secured
- 3 9 - 3
- 3 9 - 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 - 69
89 56 35 - 75
Partially secured
15 16 44 - 21
11 8 35 - 16
Unsecured
- 27 41 - 10
- 36 30 - 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
NZ BANKING GROUP
$ millions2025
2024
Cash, primarily for derivatives
1,332
198
Securities under reverse repurchase agreements
1
1,502
168
Total other collateral held 2,834
366
1
Securities received as collateral are not recognised on the NZ Banking Group's balance sheet.
Notes to the financial statements
36Westpac Banking Corporation - New Zealand Banking Group

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.
NZ BANKING GROUP
$ millions2025
2024
Deferred tax assets/(liabilities) comprise the following temporary differences:
Provision for ECL on loans
125
140
Provision for ECL on credit commitments
11
15
Cash flow hedges
5
(20)
Provision for employee entitlements
20
21
Compliance, regulation and remediation provisions
4
8
Software, property and equipment
(62)
(57)
Lease liabilities
66
72
Financial Instruments
9
9
Other temporary differences
13
10
Net deferred tax assets 191
198
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
(4)
3
Provision for employee entitlements
-
-
Compliance, regulation and remediation provisions
(4)
(4)
Software, property and equipment
(5)
(24)
Lease liabilities
(6)
8
Financial Instruments
-
(1)
Other temporary differences
3
1
Total deferred tax (charge)/credit in income tax expense (31)
(18)
The deferred tax (charge)/credit in OCI comprises the following temporary differences:
Cash flow hedges
25
128
Provision for employee entitlements
(1)
-
Total deferred tax (charge)/credit in OCI 24
128
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group37

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 NZ 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 NZ 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
NZ BANKING GROUP
$ millions2025
2024
Goodwill
525
525
Computer software
428
462
Total intangible assets 953
987
Goodwill has been allocated to the following CGUs:
Consumer Banking and Wealth
512
512
BT Funds Management (NZ) Limited
13
13
Net carrying amount of goodwill 525
525
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 NZ 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 each relevant significant 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 NZ 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
CGUs.
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%
BT Funds Management (NZ) Limited
11.7% / 15.5%
11.7% / 15.4%
3 years / 2%
3 years / 2%
The NZ Banking Group discounts the projected cash flows by the adjusted pre-tax equity rate.
Notes to the financial statements
38Westpac Banking Corporation - New Zealand Banking Group

Note 15 Intangible assets (continued)
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 any significant CGU that would result in an indication of impairment or have a
material impact on the NZ Banking Group’s reported results.
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.
NZ 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:
●trading liabilities (i.e. securities sold short); and
●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.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group39

Note 17 Other financial liabilities (continued)
NZ BANKING GROUP
$ millions2025
2024
Repurchase agreements
1
2,485
3,076
Accrued interest payable
629
916
Securities purchased not delivered
960
704
Trade creditors and other accrued expenses
201
202
Securities sold short
695
408
Other
19
129
Total other financial liabilities 4,989
5,435
1
Repurchase agreements include those under the Funding for Lending Programme and Term Lending Facility. Refer to Note 31.2.2 for further details.
Note 18 Debt issues
Accounting policy
Debt issues are bonds, notes and commercial paper that have been issued by the NZ 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.
NZ 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
(6,194)
(7,429)
Total cash movements 2,165
2,631
FX translation impact
2,493
(456)
Fair value adjustments
(7)
9
Fair value hedge accounting adjustments
138
726
Other
1
(2)
112
Total non-cash movements 2,622
391
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 Banking Corporation - New Zealand Banking Group

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 NZ 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 NZ Banking Group of these matters (including
applicable customer refunds) is made on a case-by-case basis and specific provisions are made where appropriate.
NZ 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 and
other provisions Total
Balance as at 30 September 2024
105 53 40 23 7 228
Additions
107 - 7
4
36 154
Utilisation
(108) - (7) (3) (20) (138)
Reversal of unutilised provisions
(5) (12)
(21) - (2) (40)
Balance as at 30 September 2025 99 41 19 24 21 204
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 NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group41

Note 20 Loan capital
Accounting policy
Loan capital is comprised of debt instruments which qualify for inclusion as regulatory capital under either the Reserve Bank BPRs or, in relation
to the Overseas Bank, the APRA Prudential Standards. 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.
NZ BANKING GROUP
$ millions2025
2024
Additional Tier 1 loan capital - USD AT1 securities
2,091
1,881
Tier 2 loan capital - Subordinated notes
1,227
1,212
Total loan capital 3,318
3,093
NZ BANKING GROUP
$ millions2025
2024
Movement reconciliation
Balance at beginning of the year 3,093
3,051
Issuances
-
-
Maturities, repayments, buy-backs and reductions
6
(6)
Total cash movements 6
(6)
FX translation impact
195
(122)
Fair value hedge accounting adjustments
19
164
Other (amortisation of bond issue costs, etc)
5
6
Total non-cash movements 219
48
Balance at end of the year 3,318
3,093
Additional Tier 1 loan capital
A summary of the key terms and features of the USD AT1 securities is provided below:
$Issue dateCounterpartyInterest rateOptional redemption date
US$1,250 million securities
1
21 September 2017
External
5.00% p.a.
2
21 September 2027 and every fifth anniversary thereafter
1
The USD AT1 securities were issued by the Overseas Bank acting through its NZ Branch.
2
Fixed interest rate of 5.00% p.a., until, but excluding 21 September 2027 (the ‘first reset date’). Every fifth anniversary thereafter is a reset date. If the USD AT1
securities are not redeemed, converted or written-off by the first reset date, the interest rate from, and including, each reset date thereafter to, but excluding the
next succeeding reset date, will be a fixed rate per annum equal to the prevailing 5-year USD mid-market swap rate plus 2.888% p.a.
Interest payable
Semi-annual interest payments on the USD AT1 securities are at the absolute discretion of the Overseas Bank and will only be paid if the payment
conditions are satisfied, including that the interest payment will not result in a breach of the Overseas Bank’s capital requirements under APRA’s
prudential standards; not result in the Overseas Bank becoming, or being likely to become, insolvent; and if APRA does not object to the payment.
Broadly, if for any reason an interest payment has not been paid in full on the relevant payment date, the Overseas Bank must not determine or
pay any dividends on Overseas Bank ordinary shares or undertake a discretionary buy-back or capital reduction of Overseas Bank ordinary shares,
unless the unpaid interest is paid in full within 20 business days of the relevant payment date or in certain other circumstances.
Redemption
The Overseas Bank may redeem all (but not some) USD AT1 securities on 21 September 2027 and every fifth anniversary thereafter, or for certain
taxation or regulatory reasons, subject to APRA’s prior written approval.
Notes to the financial statements
42Westpac Banking Corporation - New Zealand Banking Group

Note 20 Loan capital (continued)
Conversion
If a capital trigger event or non-viability trigger event occurs, the Overseas Bank must convert some or all of the USD AT1 securities into a variable
number of Overseas Bank ordinary shares calculated using the formula described in the terms of the USD AT1 securities but subject to a maximum
conversion number. The conversion number of the Overseas Bank’s ordinary shares will be calculated using the outstanding principal amount of
each USD AT1 security translated into Australian dollars and the Overseas Bank ordinary share price determined over the five business day period
prior to the capital trigger event date or non-viability trigger event date and includes a 1% discount. The maximum conversion number is
calculated using the outstanding principal amount of each USD AT1 security translated into Australian dollars at the time of issue and the Overseas
Bank share price which is broadly equivalent to 20% of the Overseas Bank ordinary share price at the time of issue of the USD AT1 securities.
A capital trigger event occurs when the Overseas Bank determines, or APRA notifies the Overseas Bank in writing that it believes, the Overseas
Bank’s Common Equity Tier 1 capital ratio is equal to or less than 5.125% (on a level 1 or level 2 basis, refer to Note 30). A non-viability trigger event
will occur where APRA notifies the Overseas Bank in writing that it believes conversion of all or some USD AT1 securities (or conversion or write-
down of relevant capital instruments of the Overseas Banking Group), or public sector injection of capital (or equivalent support), in each case is
necessary because without it, the Overseas Bank would become non-viable. No conversion conditions apply in these circumstances.
If conversion of the USD AT1 securities does not occur within five business days, holders’ rights in relation to the USD AT1 securities will be
immediately and irrevocably terminated.
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
1
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
1
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
1
The subordinated notes were issued by Westpac New Zealand for the purposes of the Reserve Bank's capital requirements, however they do not constitute Tier 2
capital for the Overseas Banking Group as the terms of the Tier 2 capital do not satisfy APRA's capital requirements.
Common features of subordinated notes
Interest payable
Quarterly interest payments on the subordinated notes are subject to Westpac New Zealand being solvent at the time of, and immediately
following, the interest payment.
Early redemption
Westpac New Zealand 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 Banking Corporation - New Zealand Banking Group43

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.
Non-controlling interests
NCI represent the share in the net assets of controlled entities attributable to equity interests that are not owned directly or indirectly by a
parent. NCI reflect perpetual preference shares issued by Westpac New Zealand, recognised at the amount paid up per share, net of directly
attributable issue costs.
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.
Share capital
Share capital fully paidNZ BANKING GROUP
2025202420252024
Issued Shares
Issued Shares
$ millions
$ millions
Ordinary shares
6,045,000,000
6,045,000,000
6,045
6,045
Head office account - branch capital
1
-
-
1,300
1,300
Total share capital and branch capital6,045,000,000
6,045,000,000
7,345
7,345
1
Branch capital comprises funds provided by the Overseas Bank to support the NZ Branch. It is non-interest bearing, and there is no fixed date for repatriations.
On 10 April 2 0 2 5, BT Financial Group (NZ) Limited declared and paid a cash dividend of $7 million to Westpac Equity Holdings Pty Limited with
imputation credits of $54,335 attached (30 September 2024: $6 million on 15 March 2 0 2 4 with $2 million imputation credits attached).
On 20 February 2 0 2 5 and 29 August 2 0 2 5, Westpac New Zealand Group Limited declared and paid cash dividends of $308 million and $330 million
respectively to Westpac Overseas Holdings No.2 Pty Limited with imputation credits of $120 million and $128 million attached respectively (30
September 2024: $284 million on 26 February 2 0 2 4 and $308 million on 26 August 2 0 2 4 with $110 million and $120 million imputation credits
attached respectively).
On 15 September 2025, the NZ Branch repatriated profits of $100 million to the Overseas Bank.
Non-controlling interests
Perpetual preference shares fully paid
NZ Banking Group
2025202420252024
Issued Shares
Issued Shares
$ millions
$ millions
Perpetual preference shares
1,2
375,000,000
375,000,000
369
369
1
Net of $6 million issue costs.
2
The PPS were issued by Westpac New Zealand for the purposes of the Reserve Bank's capital requirements, however they do not constitute Additional Tier 1 capital
for the Overseas Banking Group as the terms of the PPS do not satisfy APRA's capital requirements.
On 13 September 2024, Westpac New Zealand issued 375 million PPS to external investors, which are quoted on the NZX Debt Market. The PPS
represent non-controlling interests in the NZ Banking Group.
A summary of the key terms of the PPS is provided below.
$Issue dateCounterpartyPPS dividend rateOptional redemption date
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
Notes to the financial statements
44Westpac Banking Corporation - New Zealand Banking Group

Note 21 Shareholders' equity (continued)
Ranking and rights in liquidation
The PPS were issued by Westpac New Zealand and, in a liquidation of Westpac New Zealand, rank equally amongst themselves and Westpac New
Zealand’s other Additional Tier 1 capital instruments, are subordinated to the claims of depositors and other creditors of Westpac New Zealand
(including holders of Tier 2 loan capital), and rank ahead of Westpac New Zealand’s ordinary shares. The PPS do not carry any voting rights.
PPS distributions payable
Quarterly PPS distributions are payable at the absolute discretion of Westpac New Zealand. In addition, PPS distributions will only be paid if
Westpac New Zealand 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 Westpac New Zealand’s conditions of registration as at the time of the payment.
PPS distributions are non-cumulative. If a PPS distribution is not paid in full, Westpac New Zealand may not determine or pay any dividends on its
ordinary shares or undertake a discretionary buy-back or capital reduction of Westpac New Zealand’s ordinary shares until a subsequent PPS
distribution is paid in full (except in limited circumstances).
Westpac New Zealand paid quarterly PPS distributions as set out below:
NZ BANKING GROUP
$ millions2025
Cash payment
Imputation creditPPS Distribution Date
1
Distribution
Supplementary
dividend
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
1
For the comparative period, no distributions were made for PPS between 1 October 2023 to 30 September 2024.
Redemption
Westpac New Zealand may elect to redeem all of the PPS on an 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 Westpac New Zealand remaining solvent
immediately after the redemption. Holders have no right to require redemption.
Conversion
The PPS have no conversion or exchange options and no non-viability triggers.
Reserves
Reconciliation of movement in reserves
NZ BANKING GROUP
Investment securities
reserve
Cash flow hedge reserveTotal
$ millions
2025
2024
2025
2024
2025
2024
Balance as at beginning of year (115)
(287)
51
381
(64)
94
Net gains/(losses) from changes in fair value
85
239
(87)
(398)
(2)
(159)
Income tax effect
(24)
(67)
24
111
-
44
Transferred to income statement
-
-
(3)
(60)
(3)
(60)
Income tax effect
-
-
1
17
1
17
Balance as at end of year (54)
(115)
(14)
51
(68)
(64)
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group45

Note 22 Related entities
Related entities
The NZ 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.
NZ Banking Group
The NZ Banking Group consists of the New Zealand operations of the Overseas Banking Group including the NZ Branch and the following
controlled entities as at 30 September 2025 whose business is required to be reported in the financial statements of the Overseas Banking Group’s
New Zealand business:
Name of entityPrincipal activityNotes
BT Financial Group (NZ) Limited (‘BTFGNZL’)Holding company
BT Funds Management (NZ) Limited (‘BTNZ’) Funds management company
Westpac Financial Services Group-NZ-Limited (‘WFSGNZL’) Holding company
Westpac Group Investment-NZ-Limited (‘WGINZL’) Holding company
Westpac Holdings-NZ-Limited (‘WHNZL’) Holding company
Westpac Capital-NZ-Limited (‘WCNZL’)Finance company
Westpac Equity Investments NZ LimitedNon-active company
Westpac New Zealand Group Limited (‘WNZGL’)Holding company
Westpac New Zealand LimitedRegistered bank
Westpac NZ Operations Limited (‘WNZOL’)Holding company
Number 120 Limited Finance 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
Limited
Trustee 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 company19% owned
2
Westpac NZ Covered Bond Limited (‘WNZCBL’)Guarantor19% owned
2
Westpac NZ Securitisation Holdings Limited (‘WNZSHL’) Holding company19% owned
3
Westpac NZ Securitisation Limited (‘WNZSL’) Funding company19% owned
3
Westpac Cash PIE Fund Portfolio investment entityNot owned
4
Westpac Notice Saver PIE Fund Portfolio 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 NZ Banking Group, through WNZOL (9.5%) and WHNZL (9.5%), has a total qualifying interest of 19% in WNZCBHL and its wholly-owned subsidiary company,
WNZCBL. Westpac New Zealand 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 NZ Banking Group.
3
The NZ Banking Group, through WNZOL (9.5%) and WHNZL (9.5%), has a total qualifying interest of 19% in WNZSHL and its wholly-owned subsidiary company,
WNZSL. Westpac New Zealand 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 NZ 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 BTNZ is the manager and issuer. The manager has appointed Westpac New Zealand to perform all customer management and
account administration for the PIE Funds. Westpac New Zealand is the PIE Funds’ registrar and administration manager. Westpac New Zealand 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 NZ Banking Group.
Notes to the financial statements
46Westpac Banking Corporation - New Zealand Banking Group

Note 22 Related entities (continued)
Other than as disclosed above, there have been no changes in the ownership percentages since 30 September 2024.
All entities in the NZ Banking Group are 100% owned unless otherwise stated. All the entities within the NZ 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.
Other significant related entities of the NZ Banking Group include the Overseas Bank and branches of the Overseas Bank based in London and New
York.
Nature of transactions
The NZ Banking Group has transactions with members of the Overseas Banking Group on commercial terms, including the provision of
management, distribution and administrative services and data processing facilities.
Loan finance and current account banking facilities are provided by the NZ Branch and the Overseas Bank to members of the NZ Banking Group on
normal commercial terms. The interest earned on these loans and the interest paid on deposits are at market rates.
The NZ Banking Group enters into derivative transactions with the Overseas Bank (refer to Note 23). They are accounted for as trading derivatives
except for cross currency swaps in place with the Overseas Bank, which are designated in a cash flow hedge relationship to hedge the currency
risk exposure of funding from the London Branch.
Transactions with related entities
NZ BANKING GROUP
$ millions
Note
2025
2024
Overseas Bank
Interest income2
62
115
Interest expense
1
2
53
100
Non-interest income - management fees received
5
3
Operating expenses - management fees4
14
15
Other
2
1
5
Profit repatriation
100
-
Other controlled entities of the Overseas Bank
BTFGNZL dividend paid to Westpac Equity Holdings Pty Limited ('WEHPL')21
7
6
WNZGL dividends paid to Westpac Overseas Holdings No. 2 Pty Limited ('WOHN2PL')21
638
592
1
Includes interest expense incurred on funding from the Overseas Bank.
2
Includes capitalised issue costs on financial or equity instruments and costs capitalised as software.
Due from and to related entities
NZ BANKING GROUP
$ millions2025
2024
Due from related entities
Overseas Bank
3,003
3,428
Other controlled entities of the Overseas Bank
1
1
Total due from related entities
1
3,004
3,429
Due to related entities
Overseas Bank
4,334
3,236
Other controlled entities of the Overseas Bank
-
1
Total due to related entities
2
4,334
3,237
1
Includes derivative financial instruments of $1,131 million (30 September 2024: $2,716 million) (refer to Note 23) which are measured at fair value.
2
Includes derivative financial instruments of $3,027 million (30 September 2024: $2,044 million) (refer to Note 23) and nil repurchase agreements (30 September
2024: $11 million) which are measured at fair value.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group47

Note 22 Related entities (continued)
Key management personnel compensation
Key management personnel are those persons who have authority and responsibility for planning, directing and controlling the activities of the NZ
Banking Group. This includes all Executive/Non-Executive Directors and the executive team of Westpac New Zealand, and other members of the
executive team of the NZ Banking Group.
NZ BANKING GROUP
$'000s2025
2024
Salaries and other short-term benefits
11,184
10,278
Post-employment benefits
801
764
Termination benefits
-
344
Share-based payments
1
3,453
2,530
Total key management personnel compensation 15,438
13,916
Loans to key management personnel
12,265
6,363
Deposits from key management personnel
3,023
5,583
Interest income on loans to key management personnel
533
279
Interest expense on deposits from key management personnel
40
74
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.
Where the Directors of the Overseas Bank have received remuneration from the NZ Banking Group, the amounts are included above. Details of
Directors’ remuneration are disclosed in the Overseas Banking Group’s 30 September 2025 Annual Report.
Loans and deposits with key management personnel
All loans and deposits are made in the ordinary course of business of the NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group

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 NZ Banking Group uses derivative financial instruments for meeting customers’ needs; our ALM activities, and undertaking market making
and positioning 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, along with derivatives used for meeting customers’ needs and undertaking market making and positioning activities 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 NZ 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 Banking Corporation - New Zealand Banking Group49

Note 23 Derivative financial instruments (continued)
The carrying values of derivative instruments are set out in the tables below:
NZ BANKING GROUP
2025
TradingHedging
Total derivatives carrying
value
$ millionsAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Interest rate contracts
Forward rate agreements
16,227 (16,442) - - 16,227 (16,442)
Swap agreements
238 (255) 388 (703) 626 (958)
Total interest rate contracts 16,465 (16,697) 388 (703) 16,853 (17,400)
FX contracts
Spot and forward contracts
1,443 (1,411) - - 1,443 (1,411)
Cross currency swap agreements (principal and
interest)
1,906 (2,822) 1,988 - 3,894 (2,822)
Total FX contracts 3,349 (4,233) 1,988 - 5,337 (4,233)
Total of gross derivatives 19,814 (20,930) 2,376 (703) 22,190 (21,633)
Impact of netting arrangements
(13,877) 13,877 - - (13,877) 13,877
Total of net derivatives 5,937 (7,053) 2,376 (703) 8,313 (7,756)
Consisting of:
Derivatives held with external counterparties
4,806 (4,026) 2,376 (703) 7,182 (4,729)
Derivatives held with related parties
1,131 (3,027) - - 1,131 (3,027)
NZ BANKING GROUP
2024
TradingHedging
Total derivatives carrying
value
$ millionsAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Interest rate contracts
Forward rate agreements 8 (75) - - 8 (75)
Swap agreements 10,321 (10,524) 449 (589) 10,770 (11,113)
Total interest rate contracts
10,329 (10,599) 449 (589) 10,778 (11,188)
FX contracts
Spot and forward contracts 1,938 (1,921) - - 1,938 (1,921)
Cross currency swap agreements (principal and
interest)
1,915 (3,000) 142 (281) 2,057 (3,281)
Total FX contracts
3,853 (4,921) 142 (281) 3,995 (5,202)
Total of gross derivatives
14,182 (15,520) 591 (870) 14,773 (16,390)
Impact of netting arrangements (8,414) 8,414 - - (8,414) 8,414
Total of net derivatives
5,768 (7,106) 591 (870) 6,359 (7,976)
Consisting of:
Derivatives held with external counterparties 3,052 (5,062) 591 (870) 3,643 (5,932)
Derivatives held with related parties 2,716 (2,044) - - 2,716 (2,044)
Notes to the financial statements
50Westpac Banking Corporation - New Zealand Banking Group

Note 23 Derivative financial instruments (continued)
Hedge accounting
The NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 NZ Banking Group primarily uses
one-to-one hedge accounting to manage specific exposures.
The NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 NZ 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 Banking Corporation - New Zealand Banking Group51

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.
NZ 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 6,669 2,322 9,091 186 (216)
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 2,129 -
Total one-to-one hedge relationships 6,172 40,605 3,132 49,909 2,174 (216)
Macro hedge relationships
Portfolio fair value hedgesInterest rate swapInterest rate risk
N/AN/AN/A 18,972 1 (250)
Macro cash flow hedgesInterest rate swapInterest rate risk
N/AN/AN/A 31,339 201 (237)
Total macro hedge relationshipsN/AN/AN/A 50,311 202 (487)
Total of gross hedging derivativesN/AN/AN/A 100,220 2,376 (703)
Impact of netting arrangements
N/AN/AN/AN/A - -
Total of net hedging derivativesN/AN/AN/AN/A 2,376 (703)
NZ 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 7,222 225 7,925 145 (148)
Cross currency swapInterest rate risk 785 12,300 1,314 14,399 131 (264)
Cash flow hedgesCross currency swapFX risk 785 12,300 1,314 14,399 11 (17)
Total one-to-one hedge relationships
2,048 31,822 2,853 36,723 287 (429)
Macro hedge relationships
Portfolio fair value hedgesInterest rate swapInterest rate riskN/AN/AN/A 15,803 3 (222)
Macro cash flow hedgesInterest rate swapInterest rate riskN/AN/AN/A 26,610 301 (219)
Total macro hedge relationships
N/AN/AN/A 42,413 304 (441)
Total of gross hedging derivatives
N/AN/AN/A 79,136 591 (870)
Impact of netting arrangementsN/AN/AN/AN/A - -
Total of net hedging derivatives
N/AN/AN/AN/A 591 (870)
Notes to the financial statements
52Westpac Banking Corporation - New Zealand Banking Group

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:
NZ 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.
NZ 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
19,104 132
15,911
107
Debt issues and loan capital
(23,968) 157
(17,701)
313
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:
NZ BANKING GROUP
2025
2024
$ millions
Interest rate
riskFX riskTotal
Interest rate
riskFX riskTotal
Cash flow hedge reserve
Balance at beginning of the year
137 (66) 71
578 (48) 530
Net gains/(losses) from changes in fair value
(61) (26) (87)
(179) (219) (398)
Transferred to net interest income
(57) 54 (3)
(262) 202 (60)
Balance at end of year
19 (38) (19)
137 (65) 72
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 Banking Corporation - New Zealand Banking Group53

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:
NZ 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
(79) 80 1
Cross currency swapInterest rate risk
112 (112) -
Cash flow hedges
Interest rate swapInterest rate risk
(123) 118 (5)
Cross currency swapFX risk
28 (28) -
Total (62) 58 (4)
NZ 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 (363) 371 8
Cross currency swapInterest rate risk 724 (729) (5)
Cash flow hedges
Interest rate swapInterest rate risk (452) 440 (12)
Cross currency swapFX risk (18) 18 -
Total
(109) 100 (9)
Notes to the financial statements
54Westpac Banking Corporation - New Zealand Banking Group

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 NZ 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 NZ 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 NZ 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 Overseas Banking 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 NZ Banking Group categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
The NZ 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 Banking Corporation - New Zealand Banking Group55

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
Exchange traded
products
Derivative financial
instruments
Exchange traded
interest rate futures -
derivative financial
instruments
These instruments are traded in liquid, active markets
where prices are readily observable. No modelling or
assumptions are used in the valuation.
Due from related entities
Due to related entities
FX products
Derivative financial
instruments
FX spot contracts
Debt instruments
Trading securities and
financial assets measured at
FVIS
New Zealand
Government bonds
Investment securities
Other financial liabilities
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 and FX
forward contracts –
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
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.
Notes to the financial statements
56Westpac Banking Corporation - New Zealand Banking Group

Note 24 Fair values of financial assets and financial liabilities (continued)
InstrumentBalance sheet categoryIncludesValuation
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 NZ 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.
Balances within this category of the fair value hierarchy are not considered material to the total derivative financial instruments balances.
These valuations are calculated using a high degree of management judgement.
InstrumentBalance sheet categoryIncludesValuation
Interest rate
derivatives
Derivative financial
instruments
Non-vanilla interest rate
(inflation indexed)
derivatives and long-
dated NZD caps
Valued using industry standard valuation models utilising
observable market inputs which are determined separately
for each parameter. Where unobservable, inputs will be set
with reference to an observable proxy.
Debt instruments
Trading securities and financial
assets measured at FVIS
Certain debt securities
with low observability,
usually issued via
private placement
These securities are evaluated by an independent pricing
service or based on third party revaluations. Due to their
illiquidity and/or complexity these are classified as Level 3
assets.
The following table summarises the attribution of financial instruments measured at fair value to the fair value hierarchy:
NZ 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
1,411 4,742 - 6,153
1,496 4,225 2 5,723
Derivative financial instruments
- 7,182 - 7,182
1 3,642 - 3,643
Investment securities
3,930 4,276 - 8,206
3,211 4,324 - 7,535
Due from related entities
- 1,131 - 1,131
- 2,716 - 2,716
Total financial assets measured at fair value 5,341 17,331 - 22,672
4,708 14,907 2 19,617
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
322 1,724 - 2,046
250 211 - 461
Derivative financial instruments
- 4,728 1 4,729
1 5,930 1 5,932
Due to related entities
- 3,027 - 3,027
- 2,055 - 2,055
Debt issues at fair value
- 2,746 - 2,746
- 3,726 - 3,726
Total financial liabilities measured at fair value 322 14,037 1 14,360
251 13,785 1 14,037
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 NZ 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, $697 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).
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group57

Note 24 Fair values of financial assets and financial liabilities (continued)
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 NZ 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.
NZ 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
6,188 6,188 - - 6,188
Collateral paid
176 176 - - 176
Loans
106,800 - - 107,094 107,094
Other financial assets
1,248 - 20 1,228 1,248
Due from related entities
1,873 - 1,873 -
1,873
Total financial assets not measured at fair value 116,285 6,364 1,893 108,322 116,579
Financial liabilities not measured at fair value
Collateral received
1,332 1,332 - - 1,332
Deposits and other borrowings
81,020 - 80,137 964 81,101
Other financial liabilities
2,943 - 2,943 - 2,943
Due to related entities
1,307 - 1,307 -
1,307
Debt issues
1
23,660 - 23,825 - 23,825
Loan capital
3,318 - 3,416 -
3,416
Total financial liabilities not measured at fair value 113,580 1,332 111,628 964 113,924
1
The estimated fair value of debt issues includes the impact of changes in the NZ Banking Group's credit spreads since origination.
Notes to the financial statements
58Westpac Banking Corporation - New Zealand Banking Group

Note 24 Fair values of financial assets and financial liabilities (continued)
NZ 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 7,553 7,553 - - 7,553
Collateral paid 244 244 - - 244
Loans 102,463 - - 102,474 102,474
Other financial assets
1,117 - 1 1,116 1,117
Due from related entities
713 - 713 - 713
Total financial assets not measured at fair value
112,090 7,797 714 103,590 112,101
Financial liabilities not measured at fair value
Collateral received 198 198 - - 198
Deposits and other borrowings 79,676 - 78,291 1,488 79,779
Other financial liabilities 4,974 - 4,973 - 4,973
Due to related entities 1,182 - 1,182 - 1,182
Debt issues
1
17,893 - 17,988 - 17,988
Loan capital
3,093 - 3,208 -
3,208
Total financial liabilities not measured at fair value
107,016 198 105,642 1,488 107,328
1
The estimated fair value of debt issues includes the impact of changes in the NZ 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 NZ 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.
Some of the NZ 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 NZ 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 NZ Banking Group are further explained in the
‘Management of risk mitigation’ section under Note 13.5.
Notes to the financial statements
Westpac Banking Corporation - New Zealand Banking Group59

Note 25 Offsetting financial assets and financial liabilities (continued)
NZ BANKING GROUP
2025
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
Reverse repurchase agreements9
1,502 - 1,502 - - (1,502) -
Derivative financial instruments
1
20,667 (13,877) 6,790 (2,136) (328) - 4,326
Due from related entities - derivative
financial instruments22
1,131 - 1,131 (1,131) - - -
Total assets 23,300 (13,877) 9,423 (3,267) (328) (1,502) 4,326
Liabilities
Repurchase agreements17
2,485 - 2,485 - - (2,485) -
Derivative financial instruments
1
23
18,512 (13,877) 4,635 (2,136) (61) - 2,438
Due to related entities - derivative
financial instruments22
3,027 - 3,027 (1,131) - - 1,896
Total liabilities 24,024 (13,877) 10,147 (3,267) (61) (2,485) 4,334
NZ 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
CollateralNet Amount
Assets
Reverse repurchase agreements9 168 - 168 - - (168) -
Derivative financial instruments
1
11,874 (8,414) 3,460 (1,704) (137) - 1,619
Due from related entities - derivative
financial instruments22 2,716 - 2,716 (2,044) - - 672
Total assets
14,758 (8,414) 6,344 (3,748) (137) (168) 2,291
Liabilities
Repurchase agreements17 3,076 - 3,076 - - (3,076) -
Derivative financial instruments
1
23 14,088 (8,414) 5,674 (1,704) (197) - 3,773
Due to related entities - derivative
financial instruments22 2,044 - 2,044 (2,044) - - -
Total liabilities
19,208 (8,414) 10,794 (3,748) (197) (3,076) 3,773
1
$392 million (30 September 2024: $183 million) of derivative financial assets and $94 million (30 September 2024: $258 million) of derivative financial liabilities are
not subject to enforceable netting arrangements.
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
60Westpac Banking Corporation - New Zealand Banking Group