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ASX RELEASE
Westpac Banking Corporation
Level 18, 275 Kent Street
Sydney, NSW, 2000
5 November 2025
Westpac Banking Corporation US Annual Report on Form 20-F
Westpac Banking Corporation (Westpac) has filed with the US Securities and Exchange
Commission an Annual Report on Form 20-F for the financial year ended 30 September
2025 which has been prepared specifically for distribution in the United States (2025
Form 20-F). This filing has been prepared to meet US securities law requirements and is
necessary to update Westpac’s US debt issuance programs.
As the 2025 Form 20-F has been prepared to meet US requirements, its presentation
differs in some limited respects from Westpac’s 2025 Annual Report lodged with ASX
Limited on 3 November 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.
For personal use only
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
Or
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 30, 2025
Or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Or
☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 1-10167
WESTPAC BANKING CORPORATION
Australian Business Number 33 007 457 141
(Exact name of Registrant as specified in its charter)
New South Wales, Australia
(Jurisdiction of incorporation or organization)
275 Kent Street, Sydney, NSW 2000, Australia
(Address of principal executive offices)
Westpac Banking Corporation, New York branch,
575 Fifth Avenue, 39th Floor, New York, New York 10017-2422,
Attention: Branch Manager, telephone number: (212) 551-1800
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act: None
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: 5.512% Notes due November 17, 2025, Floating Rate Notes due November 17, 2025, 5.200% Notes due April 16, 2026, Floating Rate Notes due April 16, 2026,
2.850% Notes due May 13, 2026, 1.150% Notes due June 3, 2026, Floating Rate Notes due June 3, 2026, 2.700% Notes due August 19, 2026, 4.600% Notes due October 20, 2026, Floating Rate Notes due October 20, 2026, 3.350% Notes due
March 8, 2027, 4.043% Notes due August 26, 2027, 5.457% Notes due November 18, 2027 3.400% Notes due January 25, 2028, 5.535% Notes due November 17, 2028, 1.953% Notes due November 20, 2028, 5.050% Notes due April 16, 2029,
Floating Rate Notes due April 16, 2029, 2.650% Notes due January 16, 2030, 4.354% Notes due July 1, 2030, Floating Rate Notes due July 1, 2030, 2.150% Notes due June 3, 2031, 4.322% Subordinated Notes due November 23, 2031, 5.405%
Subordinated Notes due August 10, 2033, 6.820% Subordinated Notes due November 17, 2033, 4.110% Subordinated Notes due July 24, 2034, 2.668% Subordinated Notes due November 15, 2035, 5.618% Subordinated Notes due November
20, 2035, 3.020% Subordinated Notes due November 18, 2036, 4.421% Subordinated Notes due July 24, 2039, 2.963% Subordinated Notes due November 16, 2040, 3.133% Subordinated Notes due November 18, 2041 and 5.000% Fixed Rate
Resetting Perpetual Subordinated Contingent Convertible Securities
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
Ordinary shares
3,420,353,305 fully paid
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒
No ☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐
No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒
No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registrant was required to submit such files).
Yes ☒
No ☐ (not currently applicable to registrant)
For personal use only
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
Emerging growth company ☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbannes-
Oxley Act (15 U.S.C. 7262(b)) by the registered public account firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial
statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant’s executive officers during the relevant
recovery period pursuant to §240.10D-1(b) ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒
Other ☐
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
“Item 17” ☐
“Item 18” ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company.
Yes ☐
No ☒
For personal use only
i
TABLE OF CONTENTS
FORM 20-F CROSS-REFERENCE INDEX
ii
PERFORMANCE REVIEW
273
FINANCIAL REPORT
1
Group performance
274
Income statements
2
Segment reporting
279
Statements of comprehensive income
3
FINANCIAL STATEMENTS
287
Balance sheets
4
ADDITIONAL INFORMATION
289
Statements of changes in equity
5
Reading this report
290
Cash flow statements
7
Shareholder Information
302
Notes to the Financial Statements
8
Other Westpac Business Information
321
Statutory Statements
128
Glossary of Abbreviations and Defined Terms
324
EXHIBITS INDEX
136
STRATEGIC REVIEW
144
Strategic review
144
Corporate governance
188
Directors’ report
208
Remuneration Report
222
Risk factors
254
Information on Westpac
268
In this Annual Report a reference to ‘Westpac’, ‘Group’, ‘Westpac Group’, ‘we’, ‘us’ and ‘our’ is to Westpac Banking Corporation ABN 33 007 457 141 and its subsidiaries unless it clearly
means just Westpac Banking Corporation.
For certain information about the basis of preparing the financial information in this Annual Report see Reading this report in Section 3. In addition, this Annual Report contains statements that
constitute ‘forward-looking statements’ within the meaning of Section 21E of the US Securities Exchange Act of 1934. For an explanation of forward-looking statements and the risks,
uncertainties and assumptions to which they are subject, see Reading this report in Section 3. Please consider those important disclaimers when reading the forward-looking statements in this
Annual Report.
References to the 2025 Risk Factors are to the Risk factors section in this 2025 Annual Report on Form 20-F.
Information contained in or accessible through the websites mentioned in this Annual Report does not form part of this report unless we specifically state that it is incorporated
by reference and forms part of this report. All references in this report to websites are inactive textual references and are for information only.
For personal use only
ii WESTPAC GROUP 2025 ANNUAL REPORT
FORM 20-F CROSS-REFERENCE INDEX
20-F item number and description
Page
Part I
Item 1.
Identity of directors, senior management and advisers
Not applicable
Item 2.
Offer statistics and expected timetable
Not applicable
Item 3.
Key information
Capitalisation and indebtedness
Not applicable
Reasons for the offer and use of proceeds
Not applicable
Risk factors
254-267
Item 4.
Information on Westpac
History and development of Westpac
144-148
Business overview
144-148
Organisational structure
107-108
Property, plants and equipment
321
Item 4A.
Unresolved staff comments
Not applicable
Item 5.
Operating and financial review and prospects
Operating results
274-286
Liquidity and capital resources
102-105
Research and development, patents and licences, etc.
Not applicable
Trend information
274-286
Critical accounting estimates
24, 33, 83, 96
Item 6.
Directors, senior management and employees
Directors and senior management
208-215, 218-219
Compensation
111-115, 222-252
Board practices
188-207
Employees
276
Share ownership
121, 218-219, 302
Item 7.
Major shareholders and related party transactions
Major shareholders
302-307
Related party transactions
120-121
Interests of experts and counsel
Not applicable
For personal use only
iii
FORM 20-F CROSS-REFERENCE INDEX
20-F item number and description
Page
Item 8.
Financial information
Consolidated statements and other financial information
1-135
Significant changes
268-269
Item 9.
The offer and listing
Offer and listing details
Not applicable
Plan of distribution
Not applicable
Markets
Not applicable
Selling shareholders
Not applicable
Dilution
Not applicable
Expenses of the issue
Not applicable
Item 10.
Additional information
Share capital
Not applicable
Memorandum and articles of association
316-318
Material contracts
321
Exchange controls
312-313
Taxation
313-315
Dividends and paying agents
Not applicable
Statements by experts
Not applicable
Documents on display
318
Subsidiary information
Not applicable
Item 11.
Quantitative and qualitative disclosures about market risk
81-82
Item 12.
Description of securities other than equity securities
Debt securities
Not applicable
Warrants and rights
Not applicable
Other securities
Not applicable
American depositary shares
Not applicable
Part II
Item 13.
Defaults, dividend arrearages and delinquencies
Not applicable
Item 14.
Material modifications to the rights of security holders and use of proceeds
Not applicable
For personal use only
iv WESTPAC GROUP 2025 ANNUAL REPORT
FORM 20-F CROSS-REFERENCE INDEX
20-F item number and description
Page
Item 15.
Controls and procedures
129, 323
Item 16A.
Audit committee financial expert
198
Item 16B.
Code of ethics
201-203
Item 16C.
Principal accountant fees and services, PCAOB ID: 1020; Auditor Remuneration
119, 205-207
Item 16D.
Exemptions from the Listing Standards for audit committees
Not applicable
Item 16E.
Purchases of equity securities by Westpac and affiliated purchasers
Not applicable
Item 16F.
Changes in Westpac’s certifying accountant
Not applicable
Item 16G.
Corporate governance
188
Item 16H.
Mine safety disclosure
Not applicable
Item 16I.
Disclosure regarding foreign jurisdictions that prevent inspections
Not applicable
Item 16J.
Insider trading policies
Not applicable
Item 16K.
Cybersecurity
272
Part III
Items 17. & 18.
Financial statements
1-135
Item 19.
Exhibits
136
Consolidated income statements for the years ended 30 September 2025, 2024 and 2023
2
Consolidated balance sheets as at 30 September 2025 and 2024
4
Consolidated statements of comprehensive income for the years ended 30 September 2025, 2024 and 2023
3
Consolidated statements of cash flows for the years ended 30 September 2025, 2024 and 2023
7
Notes to the financial statements
8-124
Management’s report on the internal control over financial reporting
129
Report of independent registered public accounting firm
130-133
Item 1402: Distribution of assets, liabilities and stockholders’ equity; interest rates and interest differential
Average balance sheets
17-18
Analysis of net interest earnings
16, 274-275, 284
Interest rate and interest differential analysis
16-20, 274-275, 284
For personal use only
v
FORM 20-F CROSS-REFERENCE INDEX
20-F item number and description
Page
Item 1403: Investments in debt securities t II Investment portfolio
Weighted average yield of debt securities
63
Calculation of weighted average yield; tax-exempt obligations
63
Item 1404: Loan Portfolio
Maturity and interest rate profile of loan portfolio
32
Item 1405: Allowances for Credit Losses
Credit ratios and material changes
33-43
Allocation of the allowance for credit losses
33-43
Item 1406: Deposits
Deposits by category
52-53
Uninsured deposits
52-53
Time deposits
52-53
For personal use only
vi WESTPAC GROUP 2025 ANNUAL REPORT
This page has been intentionally left blank.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
1
FINANCIAL
REPORT
Income statements
Statements of comprehensive income
INTANGIBLE ASSETS, PROVISIONS, COMMITMENTS AND
CONTINGENCIES
Balance sheets
Note 24.
Intangible assets
Statements of changes in equity
Cash flow statements
Note 25.
Provisions, contingent liabilities, contingent assets
and credit commitments
NOTES TO THE FINANCIAL STATEMENTS
CAPITAL AND DIVIDENDS
Note 1.
Financial statements preparation
Note 26.
Shareholders’ equity
Note 27.
Capital adequacy
FINANCIAL PERFORMANCE
Note 28.
Dividends
Note 2.
Segment reporting
Note 3.
Net interest income and average balance sheet and
interest rates
GROUP STRUCTURE
Note 4.
Non-interest income
Note 29.
Investments in subsidiaries and associates
Note 5.
Operating expenses
Note 30.
Structured entities
Note 6.
Impairment charges
Note 7.
Income tax
OTHER
Note 8.
Earnings per share
Note 31.
Share-based payments
Note 32.
Superannuation commitments
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Note 33.
Auditor’s remuneration
Note 34.
Related party disclosures
Lending and credit risk
Note 35.
Notes to the cash flow statements
Note 9.
Loans
Note 36.
Subsequent events
Note 10. Provision for expected credit losses
Note 11. Credit risk management
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Deposits and other funding arrangements
STATUTORY STATEMENTS
Note 12. Deposits and other borrowings
Directors’ declaration
Note 13. Debt issues
Management’s report on internal control over financial reporting
Note 14. Loan capital
Report of Independent Registered Public Accounting Firm
Note 15. Securitisation, covered bonds and other
transferred assets
Limitation on Independent Registered Public Accounting Firm’s Liability
Report of Predecessor Independent Registered Public Accounting Firm
Other financial instrument disclosures
Note 16. Trading securities and financial assets measured at
fair value through income statement (FVIS)
Note 17. Investment securities
Note 18. Other financial assets
Note 19. Other financial liabilities
Note 20. Derivative financial instruments
Note 21. Risk management, funding and liquidity risk and
market risk
Note 22. Fair values of financial assets and financial liabilities
Note 23. Offsetting financial assets and financial liabilities
For personal use only
2 WESTPAC GROUP 2025 ANNUAL REPORT
INCOME STATEMENTS
for the years ended 30 September
Westpac Banking Corporation
Consolidated
Parent Entity
$m
Note
2025
2024
2023
2025
2024
Interest income:
Calculated using the effective interest method
3
53,054
52,739
42,515
48,851
48,358
Other
3
1,988
1,608
1,237
2,196
1,571
Total interest income
55,042
54,347
43,752
51,047
49,929
Interest expense
3
(35,662)
(35,594)
(25,435)
(34,949)
(34,492)
Net interest income
19,380
18,753
18,317
16,098
15,437
Non-interest income
Net fees
4
1,732
1,672
1,645
1,543
1,494
Net wealth management
4
476
441
562
-
-
Trading
4
717
704
717
693
637
Other
4
79
18
404
1,546
1,851
Total non-interest income
3,004
2,835
3,328
3,782
3,982
Net operating income
22,384
21,588
21,645
19,880
19,419
Operating expenses
5
(11,916)
(10,944)
(10,692)
(10,455)
(9,728)
Impairment (charges)/benefits
6
(424)
(537)
(648)
(440)
(475)
Profit before income tax expense
10,044
10,107
10,305
8,985
9,216
Income tax expense
7
(3,111)
(3,117)
(3,104)
(2,489)
(2,525)
Profit after income tax expense
6,933
6,990
7,201
6,496
6,691
Net profit attributable to non-controlling interests (NCI)
(17)
-
(6)
-
-
Net profit attributable to owners of Westpac Banking Corporation (WBC)
6,916
6,990
7,195
6,496
6,691
Earnings per share (cents)
Basic
8
201.9
200.9
205.3
Diluted
8
199.4
191.7
195.2
The above income statements should be read in conjunction with the accompanying notes.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
3
STATEMENTS OF COMPREHENSIVE INCOME
for the years ended 30 September
Westpac Banking Corporation
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Profit after income tax expense
6,933
6,990
7,201
6,496
6,691
Other comprehensive income/(expense)
Items that may be reclassified subsequently to profit or loss
Gains/(losses) recognised in equity on:
Debt securities measured at fair value through other comprehensive income (FVOCI)
503
(588)
(201)
423
(813)
Cash flow hedging instruments
(233)
501
(635)
(154)
873
Transferred to income statement:
Debt securities measured at FVOCI
(19)
5
(125)
(19)
5
Cash flow hedging instruments
152
77
(309)
154
132
Loss allowance on debt securities measured at FVOCI
-
1
1
(1)
1
Exchange differences on translation of foreign operations (net of associated hedges)
(254)
(300)
367
31
(134)
Income tax on items taken to or transferred from equity:
Debt securities measured at FVOCI
(141)
179
98
(118)
242
Cash flow hedging instruments
22
(182)
283
-
(301)
Items that will not be reclassified subsequently to profit or loss
Gains/(losses) on equity securities measured at FVOCI (net of tax)
24
1
(10)
9
(3)
Own credit adjustment on financial liabilities designated at fair value (net of tax)
(21)
13
(21)
(21)
13
Remeasurement of defined benefit obligation recognised in equity (net of tax)
10
(14)
(105)
9
(12)
Net other comprehensive income/(expense) (net of tax)
43
(307)
(657)
313
3
Total comprehensive income
6,976
6,683
6,544
6,809
6,694
Attributable to:
Owners of WBC
6,974
6,685
6,536
6,809
6,694
NCI
2
(2)
8
-
-
Total comprehensive income
6,976
6,683
6,544
6,809
6,694
The above statements of comprehensive income should be read in conjunction with the accompanying notes.
For personal use only
4 WESTPAC GROUP 2025 ANNUAL REPORT
BALANCE SHEETS
as at 30 September
Westpac Banking Corporation
Consolidated
Parent Entity
$m
Note
2025
2024
2025
2024
Assets
Cash and balances with central banks
35
50,430
65,667
44,782
58,400
Collateral paid
4,590
6,269
4,562
6,199
Trading securities and financial assets measured at fair value through income statement (FVIS)
16
55,841
49,228
53,626
47,014
Derivative financial instruments
20
18,464
24,109
17,534
23,902
Investment securities
17
117,541
103,885
109,100
95,623
Loans
9
851,853
806,767
755,112
710,043
Other financial assets
18
10,766
5,456
10,126
4,951
Due from subsidiaries
-
-
48,830
52,339
Investment in subsidiaries
-
-
8,567
9,095
Property and equipment
2,266
2,251
1,805
1,804
Tax assets
7
2,078
2,160
1,843
1,896
Intangible assets
24
10,465
10,746
8,918
9,131
Other assets
1,062
1,006
916
837
Total assets
1,125,356
1,077,544
1,065,721
1,021,234
Liabilities
Collateral received
3,187
3,078
2,364
2,935
Deposits and other borrowings
12
770,457
720,489
696,660
644,481
Other financial liabilities
19
41,488
38,077
38,935
33,917
Derivative financial instruments
20
20,630
30,974
20,492
30,795
Debt issues
13
171,404
169,284
142,622
143,882
Tax liabilities
7
137
569
61
408
Due to subsidiaries
-
-
52,566
55,722
Provisions
25
2,612
2,505
2,376
2,271
Other liabilities
2,378
2,633
1,854
2,065
Total liabilities excluding loan capital
1,012,293
967,609
957,930
916,476
Loan capital
14
39,970
37,883
38,891
36,770
Total liabilities
1,052,263
1,005,492
996,821
953,246
Net assets
73,093
72,052
68,900
67,988
Shareholders’ equity
Share capital:
Ordinary share capital
26
37,263
37,958
37,263
37,958
Treasury shares
26
(845)
(758)
(902)
(816)
Reserves
26
1,880
1,732
2,176
1,757
Retained profits
34,468
32,773
30,363
29,089
Total equity attributable to owners of WBC
72,766
71,705
68,900
67,988
NCI
26
327
347
-
-
Total shareholders’ equity and NCI
73,093
72,052
68,900
67,988
The above balance sheets should be read in conjunction with the accompanying notes.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
5
STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Westpac Banking Corporation
Total equity
Total
Share
attributable
shareholders’
Consolidated
capital
Reserves
Retained
to owners
NCI
equity
$m
(Note 26)
(Note 26)
profits
of WBC
(Note 26)
and NCI
Balance as at 30 September 2022
39,011
2,378
29,063
70,452
57
70,509
Profit after income tax expense
-
-
7,195
7,195
6
7,201
Net other comprehensive income/(expense)
-
(533)
(126)
(659)
2
(657)
Total comprehensive income/(expense)
-
(533)
7,069
6,536
8
6,544
Transactions in capacity as equity holders:
Dividends on ordinary sharesa
-
-
(4,696)
(4,696)
-
(4,696)
Dividend reinvestment plan
192
-
-
192
-
192
Other equity movements:
Share-based payment arrangements
-
90
-
90
-
90
Purchase of shares
(32)
-
-
(32)
-
(32)
Net acquisition of treasury shares
(47)
-
-
(47)
-
(47)
Other
-
-
-
-
(21)
(21)
Total contributions and distributions
113
90
(4,696)
(4,493)
(21)
(4,514)
Balance as at 30 September 2023
39,124
1,935
31,436
72,495
44
72,539
Profit after income tax expense
-
-
6,990
6,990
-
6,990
Net other comprehensive income/(expense)
-
(304)
(1)
(305)
(2)
(307)
Total comprehensive income/(expense)
-
(304)
6,989
6,685
(2)
6,683
Transactions in capacity as equity holders:
Dividends on ordinary sharesa
-
-
(5,652)
(5,652)
-
(5,652)
Share buybackb
(1,812)
-
-
(1,812)
-
(1,812)
Other equity movements:
Share-based payment arrangements
-
96
-
96
-
96
Purchase of shares
(56)
-
-
(56)
-
(56)
Net acquisition of treasury shares
(56)
-
-
(56)
-
(56)
Acquisition of minority interest
-
5
-
5
(30)
(25)
Preference shares issuedc
-
-
-
-
339
339
Other
-
-
-
-
(4)
(4)
Total contributions and distributions
(1,924)
101
(5,652)
(7,475)
305
(7,170)
Balance as at 30 September 2024
37,200
1,732
32,773
71,705
347
72,052
Profit after income tax expense
-
-
6,916
6,916
17
6,933
Net other comprehensive income/(expense)
-
69
(11)
58
(15)
43
Total comprehensive income/(expense)
-
69
6,905
6,974
2
6,976
Transactions in capacity as equity holders:
Dividends on ordinary sharesa
-
-
(5,215)
(5,215)
-
(5,215)
Share buybackb
(672)
-
-
(672)
-
(672)
Other equity movements:
Share-based payment arrangements
-
94
-
94
-
94
Purchase of shares
(23)
-
-
(23)
-
(23)
Net acquisition of treasury shares
(87)
-
-
(87)
-
(87)
Acquisition of minority interest
-
-
-
-
(4)
(4)
Other
-
(15)
5
(10)
(18)
(28)
Total contributions and distributions
(782)
79
(5,210)
(5,913)
(22)
(5,935)
Balance as at 30 September 2025
36,418
1,880
34,468
72,766
327
73,093
a.
Relates to fully franked dividends at 30%:
- 2025: 2025 interim dividend of 76 cents per share ($2,601 million) and 2024 final dividend of 76 cents per share ($2,614 million);
- 2024: 2024 interim dividend of 75 cents per share and special dividend of 15 cents per share ($3,125 million) and 2023 final dividend of 72 cents per share ($2,527 million); and
- 2023: 2023 interim dividend of 70 cents per share ($2,456 millions) and 2022 final dividend of 64 cents per share ($2,240 million).
b.
Westpac previously announced its intention to undertake a $3.5 billion on market buyback of WBC ordinary shares. During 2025, Westpac bought back and cancelled 21,058,056 ordinary shares ($ 672 million) at an average
price of $31.93 (2024: 67,665,599 ordinary shares ($1,812 million) at an average price of $26.78).
c.
During 2024, Westpac New Zealand Limited issued NZD 375 million (AUD 339 million) of perpetual preference shares that qualified as Additional Tier 1 capital under RBNZ’s criteria. Westpac recognises this instrument as a non-
controlling interest.
The above statements of changes in equity should be read in conjunction with the accompanying notes.
For personal use only
6 WESTPAC GROUP 2025 ANNUAL REPORT
STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Westpac Banking Corporation
Total equity
Share
attributable
Parent Entity
capital
Reserves
Retained
to owners
$m
(Note 26)
(Note 26)
profits
of WBC
Balance as at 30 September 2023
39,066
1,659
28,049
68,774
Profit after income tax expense
-
-
6,691
6,691
Net other comprehensive income/(expense)
-
2
1
3
Total comprehensive income/(expense)
-
2
6,692
6,694
Transactions in capacity as equity holders:
Dividends on ordinary sharesa
-
-
(5,652)
(5,652)
Share buybackb
(1,812)
-
-
(1,812)
Other equity movements:
Share-based payment arrangements
-
96
-
96
Purchase of shares
(56)
-
-
(56)
Net acquisition of treasury shares
(56)
-
-
(56)
Other
-
-
-
-
Total contributions and distributions
(1,924)
96
(5,652)
(7,480)
Balance as at 30 September 2024
37,142
1,757
29,089
67,988
Profit after income tax expense
-
-
6,496
6,496
Net other comprehensive income/(expense)
-
325
(12)
313
Total comprehensive income/(expense)
-
325
6,484
6,809
Transactions in capacity as equity holders:
Dividends on ordinary sharesa
-
-
(5,215)
(5,215)
Share buybackb
(672)
-
-
(672)
Other equity movements:
Share-based payment arrangements
-
94
-
94
Purchase of shares
(23)
-
-
(23)
Net acquisition of treasury shares
(86)
-
-
(86)
Other
-
-
5
5
Total contributions and distributions
(781)
94
(5,210)
(5,897)
Balance as at 30 September 2025
36,361
2,176
30,363
68,900
a.
Relates to fully franked dividends at 30%:
- 2025: 2025 interim dividend of 76 cents per share ($2,601 million) and 2024 final dividend of 76 cents per share ($2,614 million); and
- 2024: 2024 interim dividend of 75 cents per share and special dividend of 15 cents per share ($3,125 million) and 2023 final dividend of 72 cents per share ($2,527 million).
b.
Westpac previously announced its intention to undertake a $3.5 billion on market buyback of WBC ordinary shares. During 2025, Westpac bought back and cancelled 21,058,056 ordinary shares ($672 million) at an average price
of $31.93 (2024: 67,665,599 ordinary shares ($1,812 million) at an average price of $26.78).
The above statements of changes in equity should be read in conjunction with the accompanying notes.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
7
CASH FLOW STATEMENTS
for the years ended 30 September
Westpac Banking Corporation
Consolidated
Parent Entity
$m
Note
2025
2024
2023
2025
2024
Cash flows from operating activities
Interest received
53,888
52,515
41,970
50,015
48,242
Interest paid
(35,638)
(34,000)
(22,654)
(34,723)
(33,039)
Dividends received
2
3
1
987
1,285
Other non-interest income received
2,241
4,314
3,567
2,173
4,274
Operating expenses paid
(10,096)
(9,679)
(9,856)
(9,004)
(8,464)
Income tax paid
(3,532)
(3,369)
(2,439)
(3,047)
(2,871)
Cash flows from operating activities before changes in operating assets and liabilities
6,865
9,784
10,589
6,401
9,427
Net (increase)/decrease in:
Collateral paid
1,945
(2,097)
1,545
1,905
(2,057)
Trading securities and financial assets measured at FVIS
(6,107)
(18,994)
(4,524)
(6,054)
(19,452)
Derivative financial instruments
5,650
(836)
4,082
1,013
1,358
Loans
(50,182)
(35,083)
(27,270)
(45,997)
(32,528)
Other financial assets
(48)
(348)
128
(26)
(231)
Other assets
(29)
(34)
8
2
2
Net increase/(decrease) in:
Collateral received
(5)
(318)
(2,888)
(709)
(181)
Deposits and other borrowings
51,853
35,243
24,692
50,803
35,870
Other financial liabilities
(457)
(7,084)
(17,146)
873
(5,281)
Other liabilities
4
-
(12)
-
(9)
Net cash provided by/(used in) operating activities
35
9,489
(19,767)
(10,796)
8,211
(13,082)
Cash flows from investing activities
Proceeds from investment securities
63,356
47,624
36,480
61,168
40,089
Purchase of investment securities
(75,810)
(72,786)
(33,753)
(73,463)
(65,072)
Net movement in amounts due to/from controlled entities
-
-
-
3,797
(1,283)
Proceeds from disposal of controlled entities and other businesses, net of cash disposed
35
-
-
293
-
-
Purchase of controlled entities and other businesses
35
-
(30)
-
-
-
Net (increase)/decrease in investments in controlled entities
-
-
-
478
(254)
Purchase of associates
(10)
(4)
(1)
(10)
(3)
Proceeds from sale of loans portfolioa
1,418
-
-
1,414
-
Proceeds from disposal of property and equipment
33
46
72
15
37
Purchase of property and equipment
(371)
(235)
(238)
(259)
(168)
Purchase of intangible assets
(776)
(782)
(1,141)
(674)
(673)
Net cash provided by/(used in) investing activities
(12,160)
(26,167)
1,712
(7,534)
(27,327)
Cash flows from financing activities
Proceeds from debt issues (net of issue costs)
68,850
80,245
70,974
59,404
68,438
Redemption of debt issues
(76,010)
(67,100)
(62,596)
(68,590)
(58,931)
Payments for the principal portion of lease liabilities
(390)
(416)
(401)
(338)
(365)
Issue of loan capital (net of issue costs)
5,042
6,326
3,453
5,042
6,326
Redemption of loan capital
(4,122)
(1,957)
(1,171)
(4,127)
(1,951)
Payments for share buyback
(672)
(1,812)
-
(672)
(1,812)
Issue of perpetual preference shares (net of issue cost)
-
339
-
-
-
Purchase of shares relating to share-based payment arrangements
(23)
(56)
(32)
(23)
(56)
Net purchase of treasury shares (including RSP and EIP restricted shares)
(87)
(56)
(47)
(86)
(56)
Payment of dividends
(5,215)
(5,652)
(4,504)
(5,215)
(5,652)
Dividends paid to NCI
(17)
(4)
(21)
-
-
Purchase of shares from NCI
35
(4)
(25)
-
-
-
Net cash provided by/(used in) financing activities
(12,648)
9,832
5,655
(14,605)
5,941
Net increase/(decrease) in cash and balances with central banks
(15,319)
(36,102)
(3,429)
(13,928)
(34,468)
Effect of exchange rate changes on cash and balances with central banks
82
(753)
694
310
(598)
Cash and balances with central banks as at beginning of year
65,667
102,522
105,257
58,400
93,466
Cash and balances with central banks as at end of year
35
50,430
65,667
102,522
44,782
58,400
a.
The sale of the auto finance loan portfolio to Resimac Asset Finance Pty Limited was completed on 1 March 2025. A loss on sale of $8 million is included in Net gain/(loss) on disposal of assets in Note 4.
The above cash flow statements should be read in conjunction with the accompanying notes.
For personal use only
8 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 1.
Financial statements preparation
This financial report of Westpac Banking Corporation (the Parent Entity), together with its controlled entities (the Group or Westpac), for the year ended 30 September 2025, was authorised for
issue by the Board of Directors on 2 November 2025. The Directors have the power to amend and reissue the financial report.
The material accounting policies are set out below and in the relevant notes to the financial statements. The accounting policy for the recognition, derecognition, classification and
measurement basis of financial assets and financial liabilities precedes Note 9. These policies have been consistently applied to all the years presented, unless otherwise stated.
a.
Basis of preparation
(i)
Basis of accounting
This financial report is a general purpose financial report prepared in accordance with:
●
The requirements for an Authorised Deposit-taking Institution (ADI) under the Banking Act 1959 (as amended);
●
Australian Accounting Standards (AAS) and Interpretations as issued by the Australian Accounting Standards Board (AASB); and
●
The Corporations Act 2001.
Westpac Banking Corporation is domiciled and incorporated in Australia and is a for-profit entity for the purposes of preparing these financial statements.
The financial report also complies with International Financial Reporting Accounting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and Interpretations as
issued by the IFRS Interpretations Committee (IFRIC). It also includes additional disclosures required for foreign registrants by the United States Securities and Exchange Commission (US
SEC).
All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, to the nearest million dollars, unless otherwise stated.
Westpac has elected to apply ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 and has presented both Parent Entity and Group financial statements in the
financial report.
(ii) Historical cost convention
The financial report has been prepared under the historical cost convention, as modified by applying fair value accounting to financial assets and financial liabilities (including derivative
instruments) measured at fair value through income statement (FVIS) or in other comprehensive income (OCI).
(iii) Standards adopted during the year ended 30 September 2025
No new accounting standards have been adopted by the Group for the year ended 30 September 2025. There have been no amendments to existing accounting standards that have had a
material impact to the Group or the Parent Entity.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
9
Note 1. Financial statements preparation (Continued)
(iv) Business combinations
Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair value at the date of acquisition of the assets
given, equity instruments issued or liabilities incurred or assumed. Acquisition-related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which
are recognised directly in equity).
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the acquisition date. Goodwill is measured as the excess
of the acquisition cost, the amount of any non-controlling interest and the fair value of any previous Westpac equity interest in the acquiree, over the fair value of the identifiable net assets
acquired.
(v) Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars which is the Parent Entity’s functional and presentation currency. The functional currency of offshore entities is usually
the main currency of the economy they operate in.
Transactions and balances
Foreign currency transactions are translated into the functional currency of the relevant branch or subsidiary using the exchange rates prevailing at the dates of the transactions. Foreign
exchange (FX) gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement, except when deferred in OCI for qualifying cash flow hedges and qualifying net investment hedges.
Foreign operations
Assets and liabilities of foreign branches and subsidiaries that have a functional currency other than the Australian dollar are translated at exchange rates prevailing on the balance date.
Income and expenses are translated at average exchange rates prevailing during the year. Equity balances are translated at historical exchange rates.
The resulting exchange differences are recognised in the foreign currency translation reserve in OCI.
Where Westpac hedges the currency translation risk arising from net investments in foreign operations, the gains or losses on the hedging instruments are also reflected in OCI to the extent
the hedge is effective. When all or part of a foreign operation is disposed or borrowings that are part of the net investments are repaid, a proportionate share of such exchange differences is
recognised in the income statement as part of the gain or loss on disposal or repayment of borrowing.
(vi) Comparative revisions
Comparative information has been revised where appropriate to conform to changes in presentation in the current year and to enhance comparability.
For personal use only
10 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Financial statements preparation (Continued)
b.
Critical accounting assumptions and estimates
Applying Westpac’s accounting policies requires the use of judgement, assumptions and estimates which impact the financial information. The significant assumptions and estimates used are
discussed in the relevant notes below:
Note 10 Provision for expected credit losses (ECL)
Note 22 Fair values of financial assets and financial liabilities
Note 25 Provisions, contingent liabilities, contingent assets and credit commitments
Geopolitical developments including in relation to international trade and tariff policies, global tensions and continuing global military conflict, have led to heightened uncertainty as to future
economic forecasts and potential impacts on the Group and its customers. Responding to this heightened uncertainty, the Group has increased the weighting of the downside scenario used in
the estimate of expected credit losses from 42.5% to 47.5% (refer to Note 10 for further details).
Impact of climate-related risks
Westpac has considered the potential risk of climate change on its financial statements including both physical risks and transition risks. Westpac has concluded that based on the information
and methodologies currently used, climate-related risks did not have a material impact on the judgements, assumptions and estimates for the year ended 30 September 2025. This conclusion
also reflects that the most significant impacts of climate change are expected to mostly occur beyond the expected life of our exposures.
Key considerations in reaching this conclusion included assessing Westpac’s exposure to:
●
higher transition risk industries as a proportion of overall credit exposures; and
●
physical risks that may arise from changing weather patterns and extreme weather events.
Climate change represents a significant source of uncertainty in the medium to long term which may affect our financial statements in the future. Measuring the financial impact of climate
change continues to evolve and Westpac will continue to improve its climate scenario analysis and stress testing modelling to assess these potential impacts.
Details of the provision for ECL, including overlays held in relation to climate-related risks, are provided in Note 10.
c.
Future developments
(i)
Accounting standards
AASB 9 Financial Instruments: Recognition and Measurement (AASB 9) became effective for the Group for the financial year ended 30 September 2019. When adopted, as permitted by the
standard, the Group elected to continue to comply with the hedge accounting requirements under AASB 139. The Group intends to adopt the hedge accounting requirements of AASB 9
prospectively for the financial year beginning 1 October 2025. All the Group’s existing hedge accounting relationships will continue to qualify for hedge accounting. It is intended to introduce
new hedge accounting relationships under AASB 9 for our foreign currency term funding over cross currency basis risk. This will result in associated costs of hedging being reflected in a new
cost of hedging reserve (COHR) rather than through the income statement. The quantum of this impact will be based on the valuation of the derivatives at the time.
AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) was issued on 7 June 2024 and will be effective for the 30 September 2028 year end unless early adopted. AASB 18
will replace AASB 101 Presentation of Financial Statements. This standard will not change the recognition and measurement of items in the financial statements, but will impact the
presentation and disclosure in the financial statements, including:
●
new categories and subtotals in the income statement to enhance comparability;
●
enhancing the disclosure of management defined performance measures; and
●
changes to the grouping of information in the financial statements to provide more useful information.
Westpac is continuing to assess the impact of adopting AASB 18.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
11
Note 1. Financial statements preparation (Continued)
AASB 2024-2 Amendments to Australian Accounting Standards – Classification and Measurement of Financial Instruments (AASB 2024-2) was issued on 29 July 2024 and is effective for the
30 September 2027 year end unless early adopted.
The amendments include:
●
changes to disclosures for investments in equity instruments designated at fair value through other comprehensive income and additional disclosures for financial instruments with
contingent features that do not relate directly to basic lending risks and costs;
●
guidance on derecognition of financial liabilities criteria when using an electronic payments system; and
●
guidance on assessing contractual cash flow characteristics of financial assets with environmental, social and corporate governance (ESG) and similar features.
Westpac is continuing to assess the impact of adopting AASB 2024-2.
(ii) Other developments
AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information (AASB S1) and AASB S2 Climate-related Disclosures (AASB S2) were issued by the AASB on 20
September 2024.
These standards are Australian Sustainability Reporting Standards which are issued by the AASB and set out the sustainability-related and climate-related financial disclosures for
sustainability reports and general purpose financial reports. The main features of these standards are described below.
AASB S1
This Standard applies to reporting sustainability-related financial information across a range of possible sustainability topics, including climate-related financial disclosures that form part of an
entity’s general-purpose financial reporting. It sets out general requirements for the presentation of those disclosures, guidelines for their structure and minimum requirements for their content
(including disclosures on governance, strategy, risk management, and metrics and targets), the location of disclosures, the timing of reporting and disclosures relating to judgements,
uncertainties and errors. AASB S1 is a voluntary standard and provides guidance on the application of AASB S2.
AASB S2
This standard sets out disclosure requirements in general purpose financial reports about climate-related risks and opportunities that could reasonably be expected to affect the entity’s cash
flows, access to finance or cost of capital over the short, medium or long term. The main climate-related financial disclosure requirements relate to four key areas of governance, strategy, risk
management, and metrics and targets. The standard also requires disclosures on scenario analysis and greenhouse gas emissions (Scope 1, 2 and 3). General requirements such as the
conceptual foundations for reporting such information, the location of disclosures, the timing of reporting and disclosures relating to judgements, uncertainties and errors are also provided. The
Group is continuing to progress the implementation of AASB S2 which becomes effective for the Group for the 30 September 2026 year end.
For personal use only
12 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL PERFORMANCE
Note 2.
Segment reporting
Accounting policy
Operating segments are presented on a basis consistent with information provided internally to Westpac’s key decision makers and reflect the management of the business, rather than the
legal structure of Westpac.
Internally, Westpac uses an adjusted AAS measure of performance which excludes Notable Items in assessing the financial performance of its segments.
Notable Items are items that management believes are not reflective of Westpac’s ongoing business performance and are grouped into the following broad categories:
●
Unrealised fair value gains and losses on economic hedges that do not qualify for hedge accounting
●
Net ineffectiveness on qualifying hedges
●
Large items that are not reflective of Westpac’s ordinary operations. In individual reporting periods large items may include:
–
Provisions for remediation, litigation, fines and penalties
–
The impact of asset sales and revaluations
–
The write-down of assets (including goodwill and capitalised software)
–
Restructuring costs
The performance of each operating segment reflects internal charges, transfer pricing adjustments and revenue and expenses resulting from inter-segment transactions. These are
eliminated on consolidation in the Group Businesses segment. Inter-segment pricing is determined on an arm’s length basis.
Notable Items presentation
In prior years, Segment information was presented with a separate line item for Notable Items impacting Operating income and Operating expense for each segments. To align with internal
presentation in 2025, Segment results are presented excluding Notable Items, and reconciled at a Group level to the Statutory Profit. Accordingly, prior period presentations have been
reclassified to reflect current presentation.
Reportable operating segments
We are one of Australia’s leading providers of banking and selected financial services, operating under multiple brands, and predominantly in Australia and New Zealand, with a small presence
in Europe, North America, Asia and the Pacific. We operate significant online capability supported by an extensive branch and ATM network, call centres and relationship bankers. Our
operations comprise the following key segments:
●
Consumer provides banking products and services to customers in Australia through three lines of business consisting of mortgages, consumer finance and cash and transactional
banking.
●
Business & Wealth comprises Business Banking for customers generally up to $200 million in exposure, Wealth Management, Private Wealth and Westpac Pacific.
●
Institutional delivers a broad range of financial products and services to corporate, institutional and government customers.
●
New Zealand provides banking, and wealth products and services for consumer, business and institutional customers in New Zealand.
●
Group Businesses includes Treasury, Enterprise services and other costs not directly attributable to segments including Corporate Affairs, Finance and HR services, a portion of enterprise
technology costs related to UNITE in prior periods, certain customer remediation expenses and enterprise provisions. It also includes Group-wide consolidation entries.
Changes in Segment Composition
In 2025, the following changes to Segment results were applied:
●
The merchants services business was transferred from Business & Wealth to Institutional given strategic alignment with the management of payments infrastructure;
●
The contribution from the auto finance portfolio, which was sold in March 2025, was transferred from Business & Wealth to Group Businesses; and
●
The realignment of Consumer, Business & Wealth and Institutional Human Resources and Finance function expenses to Group Businesses.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
13
Note 2.
Segment reporting (Continued)
Results for 2025 reflect the new segment composition. As the impact of these changes on segment results were immaterial, comparatives were not revised.
The following tables present the segment results for Westpac.
Business &
New
Group
Notable
Income
$m
Consumer
Wealth
Institutional
Zealand (A$)
Businesses
Total
Items
Statement
2025
Net interest income
7,863
5,346
2,413
2,568
1,283
19,473
(93)
19,380
Net fee income
538
256
773
170
(5)
1,732
-
1,732
Net wealth management income
-
434
-
43
(1)
476
-
476
Trading income
10
67
577
37
13
704
13
717
Other income
13
7
45
(4)
18
79
-
79
Net operating income
8,424
6,110
3,808
2,814
1,308
22,464
(80)
22,384
Operating expenses
(4,932)
(2,727)
(1,647)
(1,342)
(1,268)
(11,916)
-
(11,916)
Pre-provision profit
3,492
3,383
2,161
1,472
40
10,548
(80)
10,468
Impairment (charges)/benefits
(217)
(245)
1
41
(4)
(424)
-
(424)
Profit before income tax expense
3,275
3,138
2,162
1,513
36
10,124
(80)
10,044
Income tax (expense)/benefit
(993)
(952)
(587)
(423)
(180)
(3,135)
24
(3,111)
Net profit attributable to NCI
-
-
-
-
(17)
(17)
-
(17)
Net profit attributable to owners of WBC (excluding
Notable Items)
2,282
2,186
1,575
1,090
(161)
6,972
(56)
6,916
Notable Items (post-tax)
-
-
-
(3)
(53)
(56)
Net profit attributable to owners of WBC
2,282
2,186
1,575
1,087
(214)
6,916
Balance sheet
Loans
525,447
115,203
117,704
93,443
56
851,853
Deposits and other borrowings
366,299
152,312
131,379
72,806
47,661
770,457
2024
Net interest income
7,632
5,338
2,240
2,388
1,318
18,916
(163)
18,753
Net fee income
515
341
653
179
(16)
1,672
-
1,672
Net wealth management income
-
395
-
39
7
441
-
441
Trading income
-
57
635
40
(16)
716
(12)
704
Other income
13
5
(23)
(1)
24
18
-
18
Net operating income
8,160
6,136
3,505
2,645
1,317
21,763
(175)
21,588
Operating expenses
(4,787)
(2,626)
(1,465)
(1,262)
(804)
(10,944)
-
(10,944)
Pre-provision profit
3,373
3,510
2,040
1,383
513
10,819
(175)
10,644
Impairment (charges)/benefits
(248)
(142)
(120)
(25)
(2)
(537)
-
(537)
Profit before income tax expense
3,125
3,368
1,920
1,358
511
10,282
(175)
10,107
Income tax (expense)/benefit
(941)
(1,012)
(553)
(379)
(284)
(3,169)
52
(3,117)
Net profit attributable to NCI
-
-
-
-
-
-
-
-
Net profit attributable to owners of WBC (excluding
Notable Items)
2,184
2,356
1,367
979
227
7,113
(123)
6,990
Notable Items (post-tax)
-
-
-
(6)
(117)
(123)
Net profit attributable to owners of WBC
2,184
2,356
1,367
973
110
6,990
Balance sheet
Loans
510,317
101,989
100,582
93,833
46
806,767
Deposits and other borrowings
334,462
144,289
119,795
74,912
47,031
720,489
For personal use only
14 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 2.
Segment reporting (Continued)
Business &
New
Group
Notable
Income
$m
Consumer
Wealth
Institutional
Zealand (A$)
Businesses
Total
Items
Statement
2023
Net interest income
8,177
4,992
1,926
2,317
1,002
18,414
(97)
18,317
Net fee income
504
360
596
177
8
1,645
-
1,645
Net wealth management income
-
425
-
33
114
572
(10)
562
Trading income
-
47
692
33
(22)
750
(33)
717
Other income
20
12
79
(3)
53
161
243
404
Net operating income
8,701
5,836
3,293
2,557
1,155
21,542
103
21,645
Operating expenses
(4,533)
(2,459)
(1,316)
(1,186)
(738)
(10,232)
(460)
(10,692)
Pre-provision profit
4,168
3,377
1,977
1,371
417
11,310
(357)
10,953
Impairment (charges)/benefits
(179)
(257)
(87)
(124)
(1)
(648)
-
(648)
Profit before income tax expense
3,989
3,120
1,890
1,247
416
10,662
(357)
10,305
Income tax (expense)/benefit
(1,196)
(922)
(543)
(352)
(275)
(3,288)
184
(3,104)
Net profit attributable to NCI
-
(5)
-
-
(1)
(6)
-
(6)
Net profit attributable to owners of WBC (excluding
Notable Items)
2,793
2,193
1,347
895
140
7,368
(173)
7,195
Notable Items (post-tax)
(148)
(107)
(10)
(7)
99
(173)
Net profit attributable to owners of WBC
2,645
2,086
1,337
888
239
7,195
Balance sheet
Loans
492,716
95,548
92,568
92,488
(66)
773,254
Deposits and other borrowings
308,342
140,536
116,052
76,544
46,694
688,168
Notable Items after tax
$m
2025
2024
2023
Economic hedges
(43)
(128)
(92)
Hedge ineffectiveness
(13)
5
66
Hedging items
(56)
(123)
(26)
Provisions for remediation, litigation, fines and penalties
-
-
(176)
Asset sales and revaluations
-
-
256
The write-down of assets
-
-
(87)
Restructuring costs
-
-
(140)
Large items
-
-
(147)
Total Notable Items after tax
(56)
(123)
(173)
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
15
Note 2.
Segment reporting (Continued)
Revenue from products and services
Details of revenue from external customers by product or service are disclosed in Note 3 and Note 4. No single customer amounted to greater than 10% of the Group’s revenue.
Geographic segments
Geographic segments are based on the location of the office where the following items were recognised:
2025
2024
2023
$m
%
$m
%
$m
%
Revenue
Australia
48,212
83.1
48,442
84.7
40,222
85.4
New Zealand
8,014
13.8
6,809
11.9
5,053
10.7
Other overseasa
1,820
3.1
1,931
3.4
1,805
3.9
Total
58,046
100.0
57,182
100.0
47,080
100.0
Non-current assetsb
Australia
11,322
89.0
11,573
89.0
11,782
89.7
New Zealand
1,252
9.8
1,319
10.1
1,282
9.8
Other overseasa
157
1.2
105
0.9
67
0.5
Total
12,731
100.0
12,997
100.0
13,131
100.0
a.
Other overseas included Pacific Islands, Asia, the Americas and Europe.
b.
Non-current assets represents property and equipment, and intangible assets.
For personal use only
16 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3.
Net interest income and average balance sheet and interest rates
Net interest income
Accounting policy
Interest income and interest expense for all interest earning financial assets and interest bearing financial liabilities at amortised cost or FVOCI, detailed within the table below, are
recognised using the effective interest method. Net income from treasury’s interest rate and liquidity management activities and the cost of the Bank levy are included in net interest income.
The effective interest method calculates the amortised cost of a financial instrument by discounting the financial instrument’s estimated future cash receipts or payments to their present
value and allocates the interest income or interest expense, including any fees, costs, premiums or discounts integral to the instrument, over its expected life.
Interest income is calculated based on the gross carrying amount of financial assets in stages 1 and 2 of the Group’s ECL model and on the carrying amount net of the provision for ECL for
financial assets in stage 3.
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Interest income
Calculated using the effective interest method
Cash and balances with central banks
2,533
4,123
4,277
2,260
3,651
Collateral paid
468
647
581
467
646
Investment securities
4,587
3,494
2,037
4,274
3,254
Loans
45,451
44,460
35,582
39,617
38,217
Other financial assets
15
15
38
11
13
Due from subsidiaries
-
-
-
2,222
2,577
Total interest income calculated using the effective interest method
53,054
52,739
42,515
48,851
48,358
Other
Net ineffectiveness on qualifying hedges
(19)
8
94
(15)
16
Trading securities and financial assets measured at FVIS
2,007
1,600
1,143
1,911
1,474
Due from subsidiaries
-
-
-
300
81
Total other
1,988
1,608
1,237
2,196
1,571
Total interest income
55,042
54,347
43,752
51,047
49,929
Interest expense
Calculated using the effective interest method
Collateral received
(268)
(317)
(327)
(242)
(302)
Deposits and other borrowings
(21,121)
(21,268)
(14,993)
(18,743)
(18,190)
Debt Issues
(6,439)
(6,094)
(4,667)
(5,587)
(5,422)
Due to subsidiaries
-
-
-
(2,929)
(3,324)
Loan capital
(2,041)
(1,848)
(1,448)
(1,967)
(1,773)
Other financial liabilities
(334)
(394)
(516)
(246)
(177)
Total interest expense calculated using the effective interest method
(30,203)
(29,921)
(21,951)
(29,714)
(29,188)
Other
Deposits and other borrowings
(2,125)
(2,389)
(1,925)
(2,046)
(2,248)
Trading liabilitiesa
(2,610)
(2,643)
(653)
(2,633)
(2,785)
Debt issues
(227)
(194)
(494)
(88)
(82)
Bank levy
(393)
(357)
(332)
(390)
(357)
Due to subsidiaries
-
-
-
2
242
Other interest expense
(104)
(90)
(80)
(80)
(74)
Total other
(5,459)
(5,673)
(3,484)
(5,235)
(5,304)
Total interest expense
(35,662)
(35,594)
(25,435)
(34,949)
(34,492)
Net interest income
19,380
18,753
18,317
16,098
15,437
a.
Includes net impact of Treasury balance sheet management activities.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
17
Note 3.
Net interest income and average balance sheet and interest rates (Continued)
Average balance sheet and interest rates
The daily average balances of Westpac’s interest earning assets and interest bearing liabilities are shown below along with their interest income or expense.
2025
2024
2023
Average
Interest
Average
Average
Interest
Average
Average
Interest
Average
balance
income
rate
balance
income
rate
balance
income
rate
Consolidated
$m
$m
%
$m
$m
%
$m
$m
%
Assets
Interest earning assets
Loans:
Australia
660,395
39,151
5.9
633,772
37,865
6.0
607,154
30,164
5.0
New Zealand
93,509
5,680
6.1
92,222
6,155
6.7
90,130
5,028
5.6
Other overseas
10,456
620
5.9
6,666
440
6.6
6,548
390
6.0
Housinga
Australia
445,860
25,527
5.7
439,121
24,982
5.7
424,427
19,640
4.6
New Zealand
61,975
3,564
5.8
60,810
3,561
5.9
59,319
2,702
4.6
Other overseas
374
16
4.3
407
17
4.2
468
18
3.8
Personal
Australia
9,450
969
10.3
10,684
1,039
9.7
11,954
1,001
8.4
New Zealand
1,061
101
9.5
1,063
97
9.1
1,094
102
9.3
Other overseas
7
1
14.3
7
1
14.3
7
1
14.3
Business
Australia
205,085
12,655
6.2
183,967
11,844
6.4
170,773
9,523
5.6
New Zealand
30,473
2,015
6.6
30,349
2,497
8.2
29,717
2,224
7.5
Other overseas
10,075
603
6.0
6,252
422
6.7
6,073
371
6.1
Trading securities and financial assets measured at FVIS:
Australia
38,878
1,615
4.2
28,605
1,223
4.3
23,486
843
3.6
New Zealand
5,279
217
4.1
4,718
251
5.3
3,959
201
5.1
Other overseas
4,229
175
4.1
3,027
126
4.2
2,641
99
3.7
Investment securities:
Australia
102,571
4,183
4.1
85,208
3,227
3.8
66,631
1,822
2.7
New Zealand
7,174
265
3.7
6,570
201
3.1
6,164
148
2.4
Other overseas
3,524
139
3.9
2,147
66
3.1
2,082
67
3.2
Other interest earning assets:b
Australia
54,359
2,091
3.8
79,226
3,340
4.2
96,291
3,424
3.6
New Zealand
7,176
271
3.8
8,636
465
5.4
10,496
496
4.7
Other overseas
15,306
635
4.1
19,258
988
5.1
24,867
1,070
4.3
Total interest earning assets and interest income
1,002,856
55,042
5.5
970,055
54,347
5.6
940,449
43,752
4.7
Non-interest earning assets
Derivative financial instruments
24,885
16,786
23,423
All other assetsa,c
83,338
70,468
59,356
Total non-interest earning assets
108,223
87,254
82,779
Total assets
1,111,079
1,057,309
1,023,228
a.
Certain portions of loans are non-interest earning and are presented in All other assets. The non-interest earning portion represents the impact of mortgage offset deposits which are taken into consideration when calculating
interest charged on loans.
b.
Interest income includes net ineffectiveness on qualifying hedges.
c.
Includes property and equipment, intangible assets, deferred tax assets, non-interest earning loans relating to mortgage offset accounts and all other non-interest earning assets. Mortgage offset balances were $65,482 million
(2024: $57,028 million, 2023: $49,702 million).
For personal use only
18 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3.
Net interest income and average balance sheet and interest rates (Continued)
2025
2024
2023
Average
Interest
Average
Average
Interest
Average
Average
Interest
Average
balance
expense
rate
balance
expense
rate
balance
expense
rate
Consolidated
$m
$m
%
$m
$m
%
$m
$m
%
Liabilities
Interest bearing liabilities
Deposits and other borrowings:
Australia
513,451
19,865
3.9
489,693
19,413
4.0
460,149
13,544
2.9
New Zealand
65,233
2,454
3.8
65,070
3,220
4.9
63,760
2,464
3.9
Other overseas
20,705
927
4.5
19,356
1,024
5.3
20,132
910
4.5
Certificates of deposit
Australia
31,926
1,390
4.4
33,598
1,509
4.5
31,822
1,128
3.5
New Zealand
1,914
78
4.1
2,424
141
5.8
2,727
136
5.0
Other overseas
13,487
654
4.8
12,867
736
5.7
13,338
657
4.9
Transactions
Australia
119,953
4,051
3.4
122,235
4,112
3.4
129,760
3,083
2.4
New Zealand
9,136
242
2.6
8,836
404
4.6
8,647
322
3.7
Other overseas
853
13
1.5
823
13
1.6
868
7
0.8
Savings
Australia
209,812
7,513
3.6
189,405
7,007
3.7
164,800
4,620
2.8
New Zealand
18,540
396
2.1
18,465
635
3.4
19,376
537
2.8
Other overseas
1,126
26
2.3
996
25
2.5
1,035
25
2.4
Term
Australia
151,760
6,911
4.6
144,455
6,785
4.7
133,767
4,713
3.5
New Zealand
35,643
1,738
4.9
35,345
2,040
5.8
33,010
1,469
4.5
Other overseas
5,239
234
4.5
4,670
250
5.4
4,891
221
4.5
Repurchase agreements:
Australia
14,032
683
4.9
22,040
692
3.1
34,511
314
0.9
New Zealand
2,529
98
3.9
4,318
234
5.4
4,922
231
4.7
Other overseas
1,099
49
4.5
193
11
5.7
219
11
5.0
Loan capital:
Australia
40,130
1,869
4.7
37,229
1,676
4.5
31,895
1,313
4.1
New Zealand
3,021
172
5.7
2,983
172
5.8
2,489
135
5.4
Other interest bearing liabilities:a
Australia
171,977
8,481
4.9
164,722
8,370
5.1
154,859
5,990
3.9
New Zealand
22,636
1,078
4.8
20,134
768
3.8
19,986
464
2.3
Other overseas
594
(14)
(2.4)
953
14
1.5
1,854
59
3.2
Total interest bearing liabilities and interest expense
855,407
35,662
4.2
826,691
35,594
4.3
794,776
25,435
3.2
Non-interest bearing liabilities
Deposits and other borrowings:
Australia
134,244
119,408
117,538
New Zealand
10,755
10,891
12,213
Other overseas
1,202
1,333
1,292
Derivative financial instruments
26,751
21,413
26,353
All other liabilities
10,835
6,024
(218)
Total non-interest bearing liabilities
183,787
159,069
157,178
Total liabilities
1,039,194
985,760
951,954
Shareholders’ equity
71,544
71,493
71,229
NCI
341
56
45
Total equity
71,885
71,549
71,274
Total liabilities and equity
1,111,079
1,057,309
1,023,228
a.
Interest expense includes the net impact of Treasury balance sheet management activities and the bank levy.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
19
Note 3.
Net interest income and average balance sheet and interest rates (Continued)
Calculation of variances
Net interest income may vary from year to year due to changes in the volume of, and interest rates associated with, interest earning assets and interest bearing liabilities. Changes due to
volume and rates are calculated at the balance sheet line items. Disaggregation into product classification includes the impact of compositional changes (mix) from prior periods. As such,
calculations at a product level will result in a different outcome and will not sum to the balance sheet line item.
The following table allocates the change in net interest income between changes in volume and interest rate for those assets and liabilities:
●
Volume changes are determined based on the movements in average asset and liability balances; and
●
Interest rate changes are determined based on the change in interest rate associated with those assets and liabilities. Variances that arise due to a combination of volume and interest rate
changes are allocated to interest rate changes.
2025
2024
Consolidated
Change due to
Change due to
$m
Volume
Rate
Total
Volume
Rate
Total
Interest earning assets
Loans:
Australia
1,583
(297)
1,286
1,337
6,364
7,701
New Zealand
86
(561)
(475)
117
1,010
1,127
Other overseas
249
(69)
180
7
43
50
Housing
Australia
1,174
(629)
545
853
4,489
5,342
New Zealand
50
(47)
3
65
794
859
Other overseas
9
(10)
(1)
-
(1)
(1)
Personal
Australia
46
(116)
(70)
43
(5)
38
New Zealand
1
3
4
2
(7)
(5)
Other overseas
1
(1)
-
-
-
-
Business
Australia
363
448
811
441
1,880
2,321
New Zealand
35
(517)
(482)
50
223
273
Other overseas
239
(58)
181
7
44
51
Trading securities and financial assets measured at FVIS:
Australia
448
(56)
392
185
195
380
New Zealand
30
(64)
(34)
38
12
50
Other overseas
50
(1)
49
15
12
27
Investment securities:
Australia
658
298
956
508
897
1,405
New Zealand
18
46
64
10
43
53
Other overseas
42
31
73
2
(3)
(1)
Other interest earning assets:
Australia
(1,057)
(192)
(1,249)
(569)
485
(84)
New Zealand
(80)
(114)
(194)
(88)
57
(31)
Other overseas
(201)
(152)
(353)
(245)
163
(82)
Total change in interest income
1,826
(1,131)
695
1,317
9,278
10,595
For personal use only
20 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3.
Net interest income and average balance sheet and interest rates (Continued)
2025
2024
Consolidated
Change due to
Change due to
$m
Volume
Rate
Total
Volume
Rate
Total
Interest bearing liabilities
Deposits and other borrowings:
Australia
956
(504)
452
922
4,947
5,869
New Zealand
8
(774)
(766)
51
705
756
Other overseas
71
(168)
(97)
(35)
149
114
Certificates of deposits
Australia
54
(173)
(119)
128
253
381
New Zealand
-
(63)
(63)
3
2
5
Other overseas
51
(133)
(82)
(25)
104
79
Transactions
Australia
192
(253)
(61)
182
847
1,029
New Zealand
2
(164)
(162)
7
75
82
Other overseas
1
(1)
-
-
6
6
Savings
Australia
335
171
506
278
2,109
2,387
New Zealand
1
(240)
(239)
11
87
98
Other overseas
1
-
1
(1)
1
-
Term
Australia
375
(249)
126
334
1,738
2,072
New Zealand
5
(307)
(302)
30
541
571
Other overseas
18
(34)
(16)
(9)
38
29
Repurchase agreements:
Australia
(150)
141
(9)
134
244
378
New Zealand
(97)
(39)
(136)
(28)
31
3
Other overseas
51
(13)
38
(1)
1
-
Loan capital:
Australia
133
60
193
219
144
363
New Zealand
2
(2)
-
27
10
37
Other interest bearing liabilities:
Australia
322
(211)
111
350
2,030
2,380
New Zealand
78
232
310
3
301
304
Other overseas
(22)
(6)
(28)
(41)
(4)
(45)
Total change in interest expense
1,352
(1,284)
68
1,601
8,558
10,159
Change in net interest income:
Australia
371
267
638
(164)
576
412
New Zealand
63
(110)
(47)
24
75
99
Other overseas
40
(4)
36
(144)
69
(75)
Total change in net interest income
474
153
627
(284)
720
436
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
21
Note 4.
Non-interest income
Accounting policy
Non-interest income includes net fee income, net wealth management, trading income and other income.
Net fee income
When another party is involved in providing goods or services to a Westpac customer, Westpac assesses whether the nature of the arrangement with its customer is as a principal provider
or an agent of another party. Where Westpac is acting as an agent for another party, the income earned by Westpac is the net consideration received (i.e. the gross amount received from
the customer less amounts paid to a third-party provider). As an agent, the net consideration represents fee income for facilitating the transaction between the customer and the third-party
provider with primary responsibility for fulfilling the contract.
Fee income
Fee income is recognised when the performance obligation is satisfied by transferring the promised good or service to the customer. Fee income includes facility fees, transaction fees and
other non-risk fee income.
Facility fees include certain line fees, annual credit card fees and fees for providing customer bank accounts. They are recognised over the term of the facility/period of service on a straight-
line basis.
Transaction fees are earned for facilitating banking transactions such as FX fees, telegraphic transfers and issuing bank cheques. Fees for these one-off transactions are recognised once
the transaction has been completed. Transaction fees are also recognised for credit card transactions including interchange fees net of scheme charges. These are recognised once the
transaction has been completed; however, a component of interchange fees received is deferred as unearned income as Westpac has a future service obligation to customers under
Westpac’s credit card reward programs.
Other non-risk fee income includes advisory and underwriting fees which are recognised when the related service is completed.
Income which forms an integral part of the effective interest rate of a financial instrument is recognised using the effective interest method and recorded in interest income (for example, loan
origination fees).
Fee expenses
Fee expenses include incremental external costs that vary directly with the provision of goods or services to customers. An incremental cost is one that would not have been incurred if a
specific good or service had not been provided to a specific customer. Fee expenses which form an integral part of the effective interest rate of a financial instrument are recognised using
the effective interest method and recorded in net interest income. Fee expenses include the costs associated with credit card loyalty programs which are recognised as an expense when
the services are provided on the redemption of points as well as merchant transaction costs.
Net wealth management income
Wealth management fees earned for the ongoing management of customer funds and investments are recognised when the performance obligation is satisfied which is over the period of
management.
Trading income
●
Realised and unrealised gains or losses from changes in the fair value of trading assets, liabilities and derivatives are recognised in the period in which they arise (except day one profits
or losses which are deferred, refer to Note 22); and
●
Net income related to Treasury’s interest rate and liquidity management activities is included in net interest income.
Other income - dividend income
●
Dividends on quoted shares are recognised on the ex-dividend date; and
●
Dividends on unquoted shares are recognised when the Company’s right to receive payment is established.
For personal use only
22 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 4.
Non-interest income (Continued)
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Net fees
Facility fees
795
763
697
746
709
Transaction fees
1,126
1,118
1,146
944
935
Other non-risk fee income
195
135
154
138
125
Fee income
2,116
2,016
1,997
1,828
1,769
Credit card loyalty programs
(130)
(134)
(153)
(103)
(106)
Transaction fee related expenses
(254)
(210)
(199)
(182)
(169)
Fee expenses
(384)
(344)
(352)
(285)
(275)
Net fees
1,732
1,672
1,645
1,543
1,494
Net wealth management
476
441
562
-
-
Trading
717
704
717
693
637
Other
Dividends received from subsidiaries
-
-
-
986
1,284
Transactions with subsidiaries
-
-
-
453
564
Dividends received from other entities
2
3
1
1
1
Net gain/(loss) on disposal of assets
1
6
-
1
8
Net gain/(loss) on hedging of overseas operations
-
(1)
-
42
(4)
Net gain/(loss) on derivatives held for risk management purposesa
12
7
1
12
7
Net gain/(loss) on financial instruments measured at fair value
38
(24)
78
31
(32)
Net gain/(loss) on disposal of controlled entities and other businessesb
-
-
268
-
-
Other
26
27
56
20
23
Total other
79
18
404
1,546
1,851
Total non-interest income
3,004
2,835
3,328
3,782
3,982
a.
Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings.
b.
2023 included a $243 million gain on sale of Advance Asset Management Limited.
Deferred income in relation to the credit card loyalty programs for Westpac was $329 million as at 30 September 2025 (2024: $338 million, 2023: $324 million) and $37 million for the Parent
Entity (2024: $35 million). This will be recognised as fee income as the credit card reward points are redeemed.
There were no other material contract assets or contract liabilities for Westpac or the Parent Entity.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
23
Note 5.
Operating expenses
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Staff
Employee remuneration, entitlements and on-costs
5,626
5,160
5,254
4,977
4,540
Superannuation
597
551
521
538
491
Share-based payments
95
97
90
91
94
Restructuring costs
267
91
233
234
75
Total staff
6,585
5,899
6,098
5,840
5,200
Occupancy
Operating lease rentals
127
116
153
109
99
Depreciation and impairment of property and equipment
420
455
474
348
387
Other
105
129
159
97
120
Total occupancy
652
700
786
554
606
Technology
Amortisation and impairment of software assets
1,018
908
629
887
802
Depreciation and impairment of IT equipment
121
125
132
85
99
Technology services
1,052
871
735
942
770
Software maintenance and licences
869
770
603
736
653
Telecommunications
76
90
112
55
69
Total technology
3,136
2,764
2,211
2,705
2,393
Other
Professional and processing services
692
798
905
602
696
Postage and stationery
145
130
139
122
109
Advertising
220
176
169
194
150
Non-lending losses
147
111
65
102
88
Amortisation and impairment of other intangible assets and deferred expenditure
2
34
2
1
2
Impairment of investments in subsidiaries
-
-
-
10
117
Other expenses
337
332
317
325
367
Total other
1,543
1,581
1,597
1,356
1,529
Total operating expenses
11,916
10,944
10,692
10,455
9,728
For personal use only
24 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 6.
Impairment charges
Accounting policy
Impairment charges are based on an expected loss model which measures the difference between the current carrying amount and the present value of expected future cash flows taking
into account past experience, current conditions and multiple probability-weighted macroeconomic scenarios for reasonably supportable future economic conditions. Further details of the
calculation of ECL and the critical accounting assumptions and estimates relating to impairment charges are included in Note 10.
Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows:
●
Loans, debt securities at amortised cost and due from subsidiaries balances: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to
Note 10);
●
Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security (refer to Note 26); and
●
Credit commitments: as a provision (refer to Note 25).
Uncollectable loans
A loan may become uncollectable in full or part if, after following Westpac’s loan recovery procedures, Westpac remains unable to collect that loan’s contractual repayments. Uncollectable
amounts are written off against their related provision for ECL, after all possible repayments have been received.
Where loans are secured, amounts are generally written off after receiving the proceeds from the security, or in certain circumstances, where the net realisable value of the security has
been determined and this indicates that there is no reasonable expectation of full recovery, write-off may be earlier. Unsecured consumer loans are generally written off after 180 days past
due.
Westpac may subsequently be able to recover cash flows from loans written off. In the period which these recoveries are made, they are recognised in the income statement.
The following table details impairment charges.
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Provisions raised/(released)
Performing
(36)
(150)
274
14
(142)
Non-performing
707
877
565
666
801
Recoveries
(247)
(190)
(191)
(240)
(184)
Impairment charges/(benefits)
424
537
648
440
475
of which relates to:
Loans and credit commitments
427
536
647
466
469
Debt securities at amortised cost
(3)
-
-
(2)
1
Debt securities at FVOCI
-
1
1
(1)
1
Due from subsidiaries
-
-
-
(23)
4
Impairment charges/(benefits)
424
537
648
440
475
Further details are included in Note 10.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
25
Note 7.
Income tax
Accounting policy
The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in OCI, in which
case it is recognised in the statement of comprehensive income. As the Bank levy is not a levy on income, it is not included in income tax. It is included in interest expense in Note 3.
Current tax is the tax payable for the year using enacted or substantively enacted tax rates and laws for each jurisdiction. Current tax also includes adjustments to tax payable for
previous years.
Deferred tax accounts for temporary differences between the carrying amounts of assets and liabilities in the financial statements and their values for taxation purposes.
Deferred tax is determined using the enacted or substantively enacted tax rates and laws for each jurisdiction which are expected to apply when the assets will be realised or the liabilities
settled.
Deferred tax assets and liabilities have been offset where they relate to the same taxation authority, the same taxable entity or group, and where there is a legal right and intention to settle
on a net basis.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to utilise the assets.
Deferred tax is not recognised for the following temporary differences:
●
The initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting nor taxable profit or loss;
●
The initial recognition of goodwill in a business combination; and
●
Retained earnings in subsidiaries which the Parent Entity does not intend to distribute for the foreseeable future.
The Parent Entity is the head entity of a tax consolidated group with its wholly owned Australian subsidiaries. All entities in the tax consolidated group have entered into a tax sharing
agreement which, in the opinion of the Directors, limits the joint and several liabilities in the case of a default by the Parent Entity.
Current and deferred tax are recognised using a ‘group allocation basis’. As head entity, the Parent Entity recognises all current tax balances and deferred tax assets arising from unused
tax losses and relevant tax credits for the tax-consolidated group. The Parent Entity fully compensates/is compensated by the other members for these balances.
For personal use only
26 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 7.
Income tax (Continued)
Income tax expense
The following table reconciles income tax expense to the profit before income tax expense.
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Profit before income tax
10,044
10,107
10,305
8,985
9,216
Tax at the Australian company tax rate of 30%
3,013
3,032
3,092
2,696
2,765
The effect of amounts which are not deductible/(assessable) in calculating taxable income:
Hybrid capital distributions
129
139
117
129
139
Dividend adjustments
1
-
3
(295)
(379)
Other non-assessable items
(1)
(4)
(9)
(1)
(3)
Other non-deductible items
24
25
49
16
23
Adjustment for overseas tax rates
(15)
(27)
(25)
6
(4)
Income tax (over)/under provided in prior years
-
(20)
7
-
(13)
Other itemsa
(40)
(28)
(130)
(62)
(3)
Total income tax expense
3,111
3,117
3,104
2,489
2,525
Income tax expense comprises:
Current income tax
3,128
3,125
3,009
2,559
2,520
Movement in deferred tax
(17)
12
88
(70)
18
Income tax (over)/under provision in prior years
-
(20)
7
-
(13)
Total income tax expense
3,111
3,117
3,104
2,489
2,525
Total Australia
2,614
2,632
2,637
2,449
2,480
Total Overseas
497
485
467
40
45
Total income tax expense
3,111
3,117
3,104
2,489
2,525
a.
2023 included $86 million (Parent Entity: nil) related to the sale of Advance Asset Management Limited.
The effective tax rate was 30.97% in 2025 (2024: 30.84%, 2023: 30.12%).
International Tax Reform – Pillar Two Model Rules
Pillar Two introduces new ‘top-up’ taxes for multinational enterprises (MNEs) within the scope of the rules to ensure that these MNEs pay a minimum effective rate of tax of 15% on profits in all
jurisdictions.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which Westpac operates and became effective for the Group for the financial year beginning 1
October 2024.
The Group has recognised a current tax expense for Pillar Two top-up tax obligations of $7 million for the year ended 30 September 2025 which is included in the above total income tax
expense. The Group has applied the mandatory temporary exception from recognising and disclosing Pillar Two deferred taxes under AASB 112.
Tax assets
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Current tax assets
20
13
17
13
Deferred tax assets
2,058
2,147
1,826
1,883
Total tax assets
2,078
2,160
1,843
1,896
Tax liabilities
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Current tax liabilities
137
569
61
408
Total tax liabilities
137
569
61
408
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
27
Note 7.
Income tax (Continued)
Deferred tax assets
The balance comprises temporary differences attributable to:
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Amounts recognised in the income statements and opening retained profits
Provision for ECL on loans and credit commitments
1,481
1,519
1,312
1,314
Provision for long service leave, annual leave and other employee benefits
422
407
405
388
Property and equipment
190
203
192
192
Other provisions
195
167
172
141
Lease liabilities
518
576
456
508
All other liabilities
188
222
173
205
Total amounts recognised in the income statements and opening retained profits
2,994
3,094
2,710
2,748
Amounts recognised directly in OCI
Investment securities
83
206
83
206
Total amounts recognised directly in OCI
83
206
83
206
Gross deferred tax assets
3,077
3,300
2,793
2,954
Set-off of deferred tax assets and deferred tax liabilities
(1,019)
(1,153)
(967)
(1,071)
Net deferred tax assets
2,058
2,147
1,826
1,883
Movements
Balance as at beginning of year
2,147
2,095
1,883
1,957
Recognised in the income statements
(100)
(68)
(38)
(74)
Recognised in OCI
(123)
119
(123)
119
Set-off of deferred tax assets and deferred tax liabilities
134
1
104
(119)
Balance as at end of year
2,058
2,147
1,826
1,883
Deferred tax liabilities
The balance comprises temporary differences attributable to:
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Amounts recognised in the income statements and opening retained profits
Finance lease transactions
18
112
12
106
Property and equipment
514
538
464
482
All other assets
233
232
236
232
Total amounts recognised in the income statements and opening retained profits
765
882
712
820
Amounts recognised directly in OCI
Cash flow hedges
211
233
214
214
Defined benefit
43
38
41
37
Total amounts recognised directly in OCI
254
271
255
251
Gross deferred tax liabilities
1,019
1,153
967
1,071
Set-off of deferred tax assets and deferred tax liabilities
(1,019)
(1,153)
(967)
(1,071)
Net deferred tax liabilities
-
-
-
-
Movements
Balance as at beginning of year
-
-
-
-
Recognised in the income statements
(117)
(56)
(108)
(56)
Recognised in OCI
(17)
55
4
175
Set-off of deferred tax assets and deferred tax liabilities
134
1
104
(119)
Balance as at end of year
-
-
-
-
For personal use only
28 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 7.
Income tax (Continued)
Unrecognised deferred tax balances
The following potential deferred tax balances have not been recognised. The tax effect of the gross balances disclosed below would be based on the corporate tax rates applicable in the
relevant jurisdictions, which range between 15% and 40%.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Deductible temporary differences
Tax losses on revenue account
414
422
414
422
Tax losses on capital account
424
265
380
150
Taxable temporary differences
Retained earnings of subsidiaries that would be subject to withholding tax if distributed
401
402
-
-
Note 8.
Earnings per share
Accounting policy
Basic earnings per share (EPS) is calculated by dividing the net profit attributable to owners of WBC by the weighted average number of ordinary shares on issue during the period. These
numbers are adjusted for treasury shares and the dividends related to treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all dilutive potential ordinary
shares are converted. Refer to Note 14 and Note 31 for further information on the potential dilutive instruments.
2025
2024
2023
Basic
Diluted
Basic
Diluted
Basic
Diluted
Net profit attributable to owners of WBC ($m)
6,916
6,916
6,990
6,990
7,195
7,195
Adjustment for restricted share dividendsa
(6)
-
(7)
-
(5)
-
Adjustment for potential dilution:
Distributions to convertible loan capital holdersb
-
442
-
476
-
400
Adjusted net profit attributable to owners of WBC
6,910
7,358
6,983
7,466
7,190
7,595
Weighted average number of ordinary shares (# m)
Weighted average number of ordinary shares on issue
3,427
3,427
3,481
3,481
3,507
3,507
Treasury shares (including RSP and EIP restricted shares)a
(5)
(5)
(5)
(5)
(5)
(5)
Adjustment for potential dilution:
Share-based payments
-
7
-
6
-
4
Convertible loan capitalb
-
261
-
413
-
385
Adjusted weighted average number of ordinary shares
3,422
3,690
3,476
3,895
3,502
3,891
Earnings per ordinary share (cents)
201.9
199.4
200.9
191.7
205.3
195.2
a.
Restricted shares are explained in Note 31. Some shares under the RSP and EIP restricted shares have not vested and are not outstanding ordinary shares but do receive dividends. These RSP and EIP dividends are deducted
to show the profit attributable to ordinary shareholders.
b.
The Group has issued convertible loan capital which may convert into ordinary shares in the future (refer to Note 14 for further details). These convertible loan capital instruments are potentially dilutive instruments, and diluted
EPS is therefore calculated as if the instruments had been converted at the beginning of the year, or at the instruments’ issue date, where issuance occurred partway through the year.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
29
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Accounting policy
Recognition
Financial assets and financial liabilities, other than regular way transactions, are recognised when Westpac becomes a party to the terms of the contract, which is generally on settlement
date (the date payment is made or cash advanced). Purchases and sales of financial assets in regular way transactions are recognised on trade date (the date on which Westpac commits
to purchase or sell an asset).
Derecognition
Financial assets are de-recognised when the rights to receive cash flows from the asset have expired, or when Westpac has either transferred its rights to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full under a ‘pass through’ arrangement and transferred substantially all the risks and rewards of ownership.
There may be situations where Westpac has partially transferred the risks and rewards of ownership but has neither transferred nor retained substantially all the risks and rewards of
ownership. In such situations, where Westpac retains control of the transferred asset, it will continue to be recognised in the balance sheet to the extent of Westpac’s continuing involvement
in the asset.
Financial liabilities are de-recognised when the obligation is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, the exchange or modification is treated as a derecognition of the original liability and the
recognition of a new liability, with the difference in the respective carrying amounts recognised in the income statement.
The terms are deemed to be substantially different if the discounted present value of the cash flows under the new terms (discounted using the original effective interest rate) is at least 10%
different from the discounted present value of the remaining cash flows of the original financial liability. Qualitative factors such as a change in the currency the instrument is denominated in,
a change in the interest rate from fixed to floating and conversion features are also considered.
Classification and measurement basis
Financial assets
Financial assets are grouped into the following classes: cash and balances with central banks, collateral paid, trading securities and financial assets measured at FVIS, derivative financial
instruments, investment securities, loans and other financial assets.
Financial assets are classified based on a) the business model within which the assets are managed, and b) whether the contractual cash flows of the instrument represent solely payment
of principal and interest (SPPI).
Westpac determines the business model at the level that reflects how groups of financial assets are managed. When assessing the business model Westpac considers factors including
how performance and risks are managed, evaluated and reported and the frequency and volume of, and reason for, sales in previous periods and expectations of sales in future periods.
When assessing whether contractual cash flows are SPPI, interest is defined as consideration primarily for the time value of money and the credit risk of the principal outstanding. The time
value of money is defined as the element of interest that provides consideration only for the passage of time and not consideration for other risks or costs associated with holding the
financial asset. Terms that could change the contractual cash flows so that they may not meet the SPPI criteria include contingent and leverage features, non-recourse arrangements, and
features that could modify the time value of money.
Debt instruments
If the debt instruments have contractual cash flows which represent SPPI on the principal balance outstanding they are classified at:
●
Amortised cost if they are held within a business model whose objective is achieved through holding the financial asset to collect these cash flows; or
●
FVOCI if they are held within a business model whose objective is achieved both through collecting these cash flows or selling the financial asset; or
●
FVIS if they are held within a business model whose objective is achieved through selling the financial asset.
For personal use only
30 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL ASSETS AND FINANCIAL LIABILITIES (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.
Equity securities
Equity securities are classified and measured at FVOCI where they:
●
Are not held for trading; and
●
An irrevocable election is made by Westpac.
Otherwise, they are measured at FVIS.
Financial liabilities
Financial liabilities are grouped into the following classes: collateral received, deposits and other borrowings, other financial liabilities, derivative financial instruments, debt issues and loan
capital.
Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVIS, otherwise they are measured at FVIS.
Financial assets and financial liabilities measured at FVIS are recognised initially at fair value. All other financial assets and financial liabilities are recognised initially at fair value plus or
minus directly attributable transaction costs, respectively.
Further details of the accounting policy for each category of financial asset or financial liability mentioned above are set out in the note for the relevant item.
Westpac’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 22.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
31
Lending and credit risk
Note 9.
Loans
Accounting policy
Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees.
Loans are subsequently measured at amortised cost using the effective interest method where they have contractual cash flows which represent SPPI on the principal balance outstanding
and they are held within a business model whose objective is achieved through holding the loans to collect these cash flows. They are presented net of any provision for ECL.
Loans are subsequently measured at FVIS where they do not have cash flows which represent SPPI, are held within a business model whose objective is achieved by selling the financial
asset, or are designated at FVIS to eliminate or reduce an accounting mismatch.
Refer to Note 22 for balances which are measured at fair value and amortised cost.
Loan products that have both mortgage and deposit facilities are presented gross in the balance sheet, segregating the asset and liability component, because they do not meet the criteria
to be offset. Interest earned on these products is presented on a net basis in the income statement as this reflects how the customer is charged.
The loan portfolio is dis-aggregated by location of booking office and product type, as follows.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Australia
Housing
518,654
503,271
518,654
503,270
Personal
9,043
10,174
9,043
10,174
Business
221,840
195,483
219,187
193,042
Total Australia
749,537
708,928
746,884
706,486
New Zealand
Housing
62,672
62,484
-
-
Personal
1,043
1,058
-
-
Business
30,554
31,055
436
306
Total New Zealand
94,269
94,597
436
306
Total other overseas
12,556
7,810
11,760
7,189
Gross loans
856,362
811,335
759,080
713,981
Provision for ECL on loans (refer to Note 10)
(4,509)
(4,568)
(3,968)
(3,938)
Total loansa,b
851,853
806,767
755,112
710,043
a.
Total loans included Australian securitised residential loans of $5,195 million (2024: $5,185 million) for the Group and $5,988 million (2024: $6,054 million) for the Parent Entity. The level of securitised loans excludes loans where
Westpac is the holder of related debt securities.
b.
Total loans included assets pledged for the covered bond programs of $35,106 million (2024: $42,228 million) for the Group and $29,762 million (2024: $36,825 million) for the Parent Entity.
For personal use only
32 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 9.
Loans (Continued)
The following table shows Westpac’s contractual maturity distribution of all loans as at 30 September 2025.
Consolidated
Over 1 year to
Over 5 years to
$m
Up to 1 year
5 years
15 years
Over 15 years
Total
Australia
Housing
4,669
952
21,853
491,180
518,654
Personal
6,145
2,254
644
-
9,043
Business
65,300
136,863
10,833
8,844
221,840
Total Australia
76,114
140,069
33,330
500,024
749,537
New Zealand
Housing
152
560
4,244
57,716
62,672
Personal
830
211
2
-
1,043
Business
20,059
10,275
218
2
30,554
Total New Zealand
21,041
11,046
4,464
57,718
94,269
Total other overseas
4,432
6,912
1,212
-
12,556
Total loans
101,587
158,027
39,006
557,742
856,362
The following table shows Westpac’s interest rate segmentation of loans maturing after one year as at 30 September 2025.
Loans at
Loans at
Consolidated
variable
fixed
$m
interest rates
interest rates
Total
Interest rate segmentation of loans maturing after one year
Australia
Housing
499,981
14,004
513,985
Personal
1,644
1,254
2,898
Business
152,954
3,586
156,540
Total Australia
654,579
18,844
673,423
New Zealand
Housing
7,686
54,834
62,520
Personal
213
-
213
Business
882
9,613
10,495
Total New Zealand
8,781
64,447
73,228
Total other overseas
7,751
373
8,124
Total loans maturing after one year
671,111
83,664
754,775
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
33
Note 10. Provision for expected credit losses
Accounting policy
Note 6 provides details of impairment charges.
Impairment applies to all financial assets at amortised cost, lease receivables, debt securities measured at FVOCI, due from subsidiaries and credit commitments.
The ECL is recognised as follows:
●
Loans (including lease receivables), debt securities at amortised cost and due from subsidiaries: as a reduction of the carrying value of the financial asset through an offsetting provision
account (refer to Note 9 and Note 17);
●
Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security itself (refer to Note 17 and Note 26); and
●
Credit commitments: as a provision (refer to Note 25).
Measurement
Westpac calculates the provision for ECL based on a three-stage approach. The provision for ECL is a probability-weighted estimate of the cash shortfalls expected to result from defaults
over the relevant time frame. They are determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts
of future economic conditions.
The models use three main components to determine the ECL (as well as the time value of money) including:
●
Probability of default (PD): the probability that a counterparty will default;
●
Loss given default (LGD): the loss that is expected to arise in the event of a default; and
●
Exposure at default (EAD): the estimated outstanding amount of credit exposure at the time of the default.
Model stages
The three stages are as follows:
Stage 1: 12 months ECL – performing
For financial assets where there has been no significant increase in credit risk since origination, a provision for 12 months ECL is recognised.
Stage 2: Lifetime ECL – performing
For financial assets where there has been a significant increase in credit risk since origination but where the asset is still performing, a provision for lifetime ECL is recognised. The indicators
of a significant increase in credit risk are described on the following page.
Stage 3: Lifetime ECL – non-performing
Financial assets in Stage 3 are those that are in default. This is aligned to the regulatory definition of default applied in the calculation of credit risk weighted assets. A default occurs when:
●
Westpac considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by Westpac to actions such as realising security. Indicators include a breach of
contract with Westpac such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable economic conditions that correlate to
defaults on an individual basis; or
●
The customer is more than 90 days past due on any material credit obligation.
A provision for lifetime ECL is recognised on these financial assets.
Collective and individual assessment
Financial assets that are in Stages 1 and 2 are assessed on a collective basis. This means that they are grouped in pools of similar assets with similar credit risk characteristics including the
type of product and the customer risk grade. Financial assets in Stage 3 are assessed on an individual basis or calculated collectively for those below a specified threshold.
Expected life
In considering the lifetime time frame for ECL in Stages 2 and 3, the standard generally requires use of the remaining contractual life adjusted, where appropriate, for prepayments, extension
and other options. For certain revolving credit facilities which include both a drawn and undrawn component (e.g. credit cards and revolving lines of credit),
For personal use only
34 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
Westpac’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the exposure to credit losses to the contractual notice period. For these facilities,
lifetime is based on historical behaviour.
Movement between stages
Financial assets may move in both directions through the stages of the impairment model. Financial assets previously in Stage 2 may move back to Stage 1 if it is no longer considered that
there has been a significant increase in credit risk. Similarly, financial assets in Stage 3 may move back to Stage 1 or Stage 2 if they are no longer assessed to be non-performing.
Critical accounting assumptions and estimates
Key judgements include when a significant increase in credit risk has occurred, the estimation of forward-looking macroeconomic information and overlays. Other factors which can impact
the provision include the borrower’s financial situation, the realisable value of collateral, Westpac’s position relative to other claimants, the reliability of customer information and the likely cost
and duration of recovering the loan.
Significant increase in credit risk (SICR)
Determining when a financial asset has experienced a SICR since origination is a critical accounting judgement which is based on the change in the probability of default (PD) since
origination. In determining whether a change in PD represents a significant increase in risk, relative changes in PD and absolute PD thresholds are both considered based on the portfolio of
the exposure.
Westpac does not rebut the presumption that instruments that are 30 days past due have experienced a SICR but this is used as a backstop rather than the primary indicator. In addition,
providing a program-managed customer with a hardship arrangement or downgrading a transaction-managed exposure to a performing but weak credit risk grade of E (watchlist) or worse is
generally treated as an indication of a SICR. Note 11.2 provides further details on the Group’s credit risk rating system.
Forward-looking macroeconomic information
The measurement of ECL for each stage and the assessment of significant increase in credit risk considers information about past events and current conditions as well as reasonable and
supportable projections of future events and economic conditions. The estimation of forward-looking information is a critical accounting judgement. Westpac considers three future
macroeconomic scenarios including a base case scenario along with upside and downside scenarios.
The macroeconomic variables used in these scenarios, based on current economic forecasts, include (but are not limited to) employment to population rates, real gross domestic product
growth rates and residential and commercial property price indices.
●
Base case scenario
This scenario utilises the internal Westpac economics forecast used for strategic decision making and forecasting.
●
Upside scenario
This scenario represents a modest improvement on the base case scenario.
●
Downside scenario
The downside scenario is a more severe scenario with ECL higher than those under the base case scenario. This scenario assumes a recession with a combination of negative GDP
growth, declines in commercial and residential property prices and an increase in the unemployment rate, which simultaneously impact ECL across all portfolios from the reporting date.
The three macroeconomic scenarios are probability weighted and together represent Westpac’s view of the forward looking distribution of potential loss outcomes. The weighting applied to
each of the three macroeconomic scenarios takes into account historical frequency, current trends, and forward-looking conditions.
The macroeconomic variables and probability weightings of the three macroeconomic scenarios are subject to the approval of the Group Chief Financial Officer and Group Chief Risk Officer
with oversight from the Board of Directors (and its Committees).
Overlays
Where appropriate, adjustments will be made to modelled outcomes to reflect reasonable and supportable information not already incorporated in the models.
Judgements can change with time as new information becomes available which could result in changes to the provision for ECL.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
35
Note 10. Provision for expected credit losses (Continued)
Loans and credit commitments
The following tables disclose the provision for ECL on loans and credit commitments by stage for Westpac and the Parent Entity.
2025
2024
Non-
Non-
Performing
Performing
Performing
Performing
$m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Consolidated
Provision for ECL on loans
Housing
186
804
615
1,605
162
879
639
1,680
Personal
59
179
84
322
61
207
99
367
Business
538
1,067
977
2,582
405
1,163
953
2,521
Total loans ECL provision (Note 9)
783
2,050
1,676
4,509
628
2,249
1,691
4,568
Provision for ECL on credit commitments
Housing
11
21
-
32
7
18
-
25
Personal
14
20
-
34
16
27
-
43
Business
132
241
30
403
110
300
38
448
Total credit commitments ECL provision (Note 25)
157
282
30
469
133
345
38
516
Total provision for ECL on loans and credit commitments
940
2,332
1,706
4,978
761
2,594
1,729
5,084
Presented as provision for ECL on:
Individually assessed provisions
-
-
539
539
-
-
536
536
Collectively assessed provisions
940
2,332
1,167
4,439
761
2,594
1,193
4,548
Total provision for ECL on loans and credit commitments
940
2,332
1,706
4,978
761
2,594
1,729
5,084
Gross loans
711,230
135,475
9,657
856,362
639,900
161,121
10,314
811,335
Credit commitments
200,393
20,306
470
221,169
181,275
30,395
441
212,111
Gross loans and credit commitments
911,623
155,781
10,127
1,077,531
821,175
191,516
10,755
1,023,446
Coverage ratio on loans (%)
0.11
1.51
17.36
0.53
0.10
1.40
16.40
0.56
Coverage ratio on loans and credit commitments (%)
0.10
1.50
16.85
0.46
0.09
1.35
16.08
0.50
For personal use only
36 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
2025
2024
Non-
Non-
Performing
Performing
Performing
Performing
$m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Parent Entity
Provision for ECL on loans
Housing
155
712
540
1,407
136
743
575
1,454
Personal
52
159
77
288
54
184
92
330
Business
472
922
879
2,273
348
968
838
2,154
Total loans ECL provision (Note 9)
679
1,793
1,496
3,968
538
1,895
1,505
3,938
Provision for ECL on credit commitments
Housing
7
16
-
23
6
14
-
20
Personal
12
16
-
28
12
17
-
29
Business
128
223
28
379
105
283
27
415
Total credit commitments ECL provision (Note 25)
147
255
28
430
123
314
27
464
Total provision for ECL on loans and credit commitments
826
2,048
1,524
4,398
661
2,209
1,532
4,402
Presented as provision for ECL on:
Of which:
Individually assessed provisions
-
-
459
459
-
-
437
437
Collectively assessed provisions
826
2,048
1,065
3,939
661
2,209
1,095
3,965
Total provision for ECL on loans and credit commitments
826
2,048
1,524
4,398
661
2,209
1,532
4,402
Gross loans
628,492
121,947
8,641
759,080
564,844
139,828
9,309
713,981
Credit commitments
177,414
17,852
438
195,704
160,418
27,033
411
187,862
Gross loans and credit commitments
805,906
139,799
9,079
954,784
725,262
166,861
9,720
901,843
Coverage ratio on loans (%)
0.11
1.47
17.31
0.52
0.10
1.36
16.17
0.55
Coverage ratio on loans and credit commitments (%)
0.10
1.46
16.79
0.46
0.09
1.32
15.76
0.49
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
37
Note 10. Provision for expected credit losses (Continued)
Movement in provision for ECL on loans and credit commitments
The reconciliation of the provision for ECL tables for loans and credit commitments has been determined by an aggregation of monthly movements over the year. The key line items in the
reconciliation represent the following:
●
“Transfers between stages” represents transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of the provision for ECL;
●
“Business activity during the year” represents new accounts originated during the year net of those that were de-recognised due to final repayments during the year;
●
“Net remeasurement of provision for ECL” represents the impact on the provision for ECL due to changes in credit quality during the year (including transfers between stages), changes in
portfolio overlays, changes due to forward-looking economic scenarios and partial repayments and additional draw-downs on existing facilities over the year; and
●
“Write-offs” represents a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable expectation of full recovery.
Consolidated
Parent Entity
Non-
Non-
Performing
Performing
Performing
Performing
$m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Balance as at 30 September 2023
706
2,808
1,416
4,930
600
2,419
1,248
4,267
Transfers to Stage 1
1,222
(1,165)
(57)
-
1,088
(1,036)
(52)
-
Transfers to Stage 2
(315)
822
(507)
-
(274)
724
(450)
-
Transfers to Stage 3
(3)
(608)
611
-
(3)
(527)
530
-
Business activity during the year
303
(328)
(293)
(318)
267
(308)
(243)
(284)
Net remeasurement of provision for ECL
(1,149)
1,070
1,123
1,044
(1,016)
937
1,016
937
Write-offs
-
-
(620)
(620)
-
-
(573)
(573)
Exchange rate and other adjustments
(3)
(5)
56
48
(1)
-
56
55
Balance as at 30 September 2024
761
2,594
1,729
5,084
661
2,209
1,532
4,402
Transfers to Stage 1
1,386
(1,299)
(87)
-
1,214
(1,132)
(82)
-
Transfers to Stage 2
(201)
807
(606)
-
(174)
720
(546)
-
Transfers to Stage 3
(4)
(596)
600
-
(4)
(530)
534
-
Business activity during the year
306
(409)
(277)
(380)
266
(385)
(229)
(348)
Net remeasurement of provision for ECL
(1,304)
1,281
1,077
1,054
(1,137)
1,202
989
1,054
Write-offs
-
-
(763)
(763)
-
-
(705)
(705)
Exchange rate and other adjustments
(4)
(46)
33
(17)
-
(36)
31
(5)
Balance as at 30 September 2025
940
2,332
1,706
4,978
826
2,048
1,524
4,398
For personal use only
38 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
Consolidated
Parent Entity
Non-
Non-
Performing
Performing
Performing
Performing
$m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Housing
Balance as at 30 September 2023
158
1,052
513
1,723
121
920
446
1,487
Transfers to Stage 1
351
(345)
(6)
-
311
(307)
(4)
-
Transfers to Stage 2
(41)
310
(269)
-
(36)
276
(240)
-
Transfers to Stage 3
-
(196)
196
-
-
(183)
183
-
Business activity during the year
59
(131)
(158)
(230)
55
(123)
(143)
(211)
Net remeasurement of provision for ECL
(357)
209
396
248
(309)
174
357
222
Write-offs
-
-
(57)
(57)
-
-
(46)
(46)
Exchange rate and other adjustments
(1)
(2)
24
21
-
-
22
22
Balance as at 30 September 2024
169
897
639
1,705
142
757
575
1,474
Transfers to Stage 1
377
(367)
(10)
-
305
(295)
(10)
-
Transfers to Stage 2
(46)
445
(399)
-
(42)
398
(356)
-
Transfers to Stage 3
-
(173)
173
-
-
(152)
152
-
Business activity during the year
81
(177)
(170)
(266)
71
(160)
(141)
(230)
Net remeasurement of provision for ECL
(385)
197
409
221
(314)
180
342
208
Write-offs
-
-
(52)
(52)
-
-
(44)
(44)
Exchange rate and other adjustments
1
3
25
29
-
-
22
22
Balance as at 30 September 2025
197
825
615
1,637
162
728
540
1,430
Personal
Balance as at 30 September 2023
82
225
98
405
68
191
90
349
Transfers to Stage 1
358
(356)
(2)
-
325
(324)
(1)
-
Transfers to Stage 2
(59)
106
(47)
-
(56)
98
(42)
-
Transfers to Stage 3
-
(136)
136
-
-
(128)
128
-
Business activity during the year
36
(9)
-
27
34
(8)
-
26
Net remeasurement of provision for ECL
(340)
405
295
360
(305)
372
283
350
Write-offs
-
-
(394)
(394)
-
-
(378)
(378)
Exchange rate and other adjustments
-
(1)
13
12
-
-
12
12
Balance as at 30 September 2024
77
234
99
410
66
201
92
359
Transfers to Stage 1
342
(340)
(2)
-
310
(309)
(1)
-
Transfers to Stage 2
(53)
92
(39)
-
(51)
85
(34)
-
Transfers to Stage 3
-
(127)
127
-
(1)
(119)
120
-
Business activity during the year
31
(15)
-
16
29
(15)
-
14
Net remeasurement of provision for ECL
(319)
368
360
409
(288)
337
347
396
Write-offs
-
-
(461)
(461)
-
-
(447)
(447)
Exchange rate and other adjustments
(5)
(13)
-
(18)
(1)
(5)
-
(6)
Balance as at 30 September 2025
73
199
84
356
64
175
77
316
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
39
Note 10. Provision for expected credit losses (Continued)
Consolidated
Parent Entity
Non-
Non-
Performing
Performing
Performing
Performing
$m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Business
Balance as at 30 September 2023
466
1,531
805
2,802
411
1,308
712
2,431
Transfers to Stage 1
513
(464)
(49)
-
452
(405)
(47)
-
Transfers to Stage 2
(215)
406
(191)
-
(182)
350
(168)
-
Transfers to Stage 3
(3)
(276)
279
-
(3)
(216)
219
-
Business activity during the year
208
(188)
(135)
(115)
178
(177)
(100)
(99)
Net remeasurement of provision for ECL
(452)
456
432
436
(402)
391
376
365
Write-offs
-
-
(169)
(169)
-
-
(149)
(149)
Exchange rate and other adjustments
(2)
(2)
19
15
(1)
-
22
21
Balance as at 30 September 2024
515
1,463
991
2,969
453
1,251
865
2,569
Transfers to Stage 1
667
(592)
(75)
-
599
(528)
(71)
-
Transfers to Stage 2
(102)
270
(168)
-
(81)
237
(156)
-
Transfers to Stage 3
(4)
(296)
300
-
(3)
(259)
262
-
Business activity during the year
194
(217)
(107)
(130)
166
(210)
(88)
(132)
Net remeasurement of provision for ECL
(600)
716
308
424
(535)
685
300
450
Write-offs
-
-
(250)
(250)
-
-
(214)
(214)
Exchange rate and other adjustments
-
(36)
8
(28)
1
(31)
9
(21)
Balance as at 30 September 2025
670
1,308
1,007
2,985
600
1,145
907
2,652
Total provision for ECL
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Provision for ECL on loans and credit commitments
4,978
5,084
4,398
4,402
Provision for ECL on debt securities at amortised costa
3
6
-
2
Provision for ECL on debt securities at FVOCIb
6
6
5
6
Total provision for ECL
4,987
5,096
4,403
4,410
a.
Provision for ECL on debt securities at amortised cost is presented as part of investments securities.
b.
Provision for ECL on debt securities at FVOCI forms part of equity reserves.
Reconciliation of impairment charges
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Loans and credit commitments:
Business activity during the year
(380)
(318)
(348)
(284)
Net remeasurement of the provision for ECL
1,054
1,044
1,054
937
Impairment charges for debt securities at amortised cost
(3)
-
(2)
1
Impairment charges for debt securities at FVOCI
-
1
(1)
1
Impairment on due from subsidiaries
-
-
(23)
4
Recoveries
(247)
(190)
(240)
(184)
Impairment charges/(benefits) (Note 6)
424
537
440
475
For personal use only
40 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
Total write-offs net of recoveries to average loans
Consolidated
%
2025
2024
Housing
0.01
0.01
Personal
2.66
2.21
Business
0.08
0.05
Total write-offs net of recoveries to average loans
0.06
0.05
Write-offs still under enforcement activity
Of the amount of current year write-offs, $664 million for the Group (2024: $596 million) and $609 million (2024: $549 million) for the Parent Entity represent balances that the Group was still
entitled to recover.
Impact of overlays on the provision for ECL on loans and credit commitments
The following table attributes the provision for ECL on loans and credit commitments between individually assessed and collectively assessed provisions. Collectively assessed provisions are
disaggregated into the modelled ECL provision and portfolio overlays.
Portfolio overlays are used to capture areas of potential risk and uncertainty in the portfolio, that are not captured in the underlying modelled ECL.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Individually assessed provisions
539
536
459
437
Modelled provision for ECL on loans and credit commitments
4,201
4,369
3,691
3,768
Overlays
238
179
248
197
Total provision for ECL on loans and credit commitments
4,978
5,084
4,398
4,402
Details of changes related to forward-looking economic inputs and portfolio overlays, based on reasonable and supportable information up to the date of this report, are provided below.
Modelled provision for ECL on loans and credit commitments
The modelled provision for ECL on loans and credit commitments is a probability weighted estimate based on three scenarios which together represent the Group’s view of the forward-looking
distribution of potential loss outcomes. Overlays are used to capture potential risk and uncertainty in the portfolio that are not captured in the underlying modelled ECL. Changes in the
modelled provision for ECL and overlays are reflected through the “net remeasurement of provision for ECL” line item.
For personal use only
FINANCIAL
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STRATEGIC
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EXHIBIT 15.4
ADDITIONAL
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41
Note 10. Provision for expected credit losses (Continued)
The base case scenario uses the following Westpac Economic forecasts:
Key economic assumptions for base
case scenario
30 September 2025
30 September 2024
Annual GDP:
Australia
Forecast growth of
1.9% for calendar year 2025 and
2.4% for calendar year 2026
Forecast growth of
1.5% for calendar year 2024 and
2.4% for calendar year 2025
New Zealand
Forecast growth of
1.7% for calendar year 2025 and
3.1% for calendar year 2026
Forecast growth of
0.1% for calendar year 2024 and
2.0% for calendar year 2025
Commercial property index, Australia
Forecast price growth of
0.9% for calendar year 2025 and
3.8% for calendar year 2026
Forecast price contraction of
11.5% for calendar year 2024 and growth of
1.3% for calendar year 2025
Residential property prices:
Australia
Forecast price growth of
5.6% for calendar year 2025 and
9.0% for calendar year 2026
Forecast price growth of
5.7% for calendar year 2024 and
4.0% for calendar year 2025
New Zealand
Forecast price growth of
0.6% for calendar year 2025 and
5.4% for calendar year 2026
Forecast price growth of
0.7% for calendar year 2024 and
6.4% for calendar year 2025
Cash rate, Australia
Forecast cash rate of
3.35% at December 2025 and
2.85% at December 2026
Forecast cash rate of
4.35% at December 2024 and
3.35% at December 2025
Unemployment rate:
Australia
Forecast rate of
4.4% at December 2025 and
4.5% at December 2026
Forecast rate of
4.3% at December 2024 and
4.6% at December 2025
New Zealand
Forecast rate of
5.3% at December 2025 and
4.6% at December 2026
Forecast rate of
5.3% at December 2024 and
5.6% at December 2025
The downside scenario is a more severe scenario with expected credit losses higher than the base case. This scenario assumes a recession with a combination of negative GDP growth,
declines in commercial and residential property prices and an increase in the unemployment rate, which simultaneously impact expected credit losses across all portfolios from the reporting
date. The assumptions used in this scenario and relativities to the base case will be monitored having regard to the emerging economic conditions and updated where necessary. The upside
scenario represents a modest improvement to the base case.
For personal use only
42 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios and what the provision for ECL on loans and
credit commitments would be assuming a 100% weighting to the base case scenario and to the downside scenario (with all other assumptions held constant).
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Reported probability-weighted ECL
4,978
5,084
4,398
4,402
100% base case ECL
3,031
3,559
2,673
3,089
100% downside ECL
7,143
7,195
6,316
6,221
If 1% of Stage 1 loans and credit commitments (calculated on a 12 month ECL) were transferred to Stage 2 (calculated on a lifetime ECL), the provision for ECL on loans and credit
commitments would increase by $113 million (2024: $93 million) for Westpac and $97 million (2024: $81 million) for the Parent Entity. If 1% of Stage 2 loans and credit commitments
(calculated on a lifetime ECL) were transferred to Stage 1 (calculated on a 12 month ECL), the provision for ECL on loans and credit commitments would decrease by $20 million (2024: $21
million) for Westpac and $17 million (2024: $18 million) for the Parent Entity. These estimates apply the average modelled provision coverage ratio by stage to the transfer of loans and credit
commitments.
The following table discloses the economic weights applied by Westpac and the Parent Entity. In 2025, the following changes were applied to scenario weights to reflect greater uncertainty
from geopolitical developments, including in relation to international trade and tariff policies, global tensions and continuing global military conflicts:
●
5.0% increase to downside; and
●
2.5% decrease to both the upside and base scenarios.
Scenario weightings (%)
2025
2024
Upside
2.5
5.0
Base
50.0
52.5
Downside
47.5
42.5
The Group’s definition of default is aligned to the regulatory definition of default applied in the calculation of credit risk weighted assets.
Portfolio overlays
Portfolio overlays are used to address areas of risk, including significant uncertainties that are not captured in the underlying modelled ECL. Determination of portfolio overlays requires expert
judgement and is thoroughly documented and subject to comprehensive internal governance and oversight. Overlays are continually reassessed and if the risk is judged to have changed
(increased or decreased), or is subsequently captured in the modelled ECL, the overlay will be released or remeasured.
Westpac’s total portfolio overlays as at 30 September 2025 were $238 million (2024: $179 million) for the Group and $248 million (2024: $197 million) for the Parent Entity, and comprise:
●
Climate-related risk: $71 million (2024: $70 million) for the Group and $71 million (2024: $70 million) for the Parent Entity for the expected impact of climate-related physical risk and
transition risk to both retail and non-retail portfolios;
●
Non-retail portfolios: $159 million (2024: $32 million) for the Group and $146 million (2024: $21 million) for the Parent Entity. Current period overlays primarily relate to portfolio seasoning in
business lending and geographical areas experiencing higher stress not related to modelled outcomes; and
●
Retail portfolios: $8 million (2024: $77 million) for the Group and $31 million (2024: $106 million) for the Parent Entity. Current period overlays relate to geographical areas experiencing
higher stress and other risks not included in modelled outcomes.
Changes in portfolio overlays are reflected through the “net remeasurement of provision for ECL” line item.
Impact of changes in credit exposures on the provision for ECL on loans and credit commitments
●
Stage 1 credit exposures increased by $90.4 billion (2024: net increase of $37.4 billion) for Westpac and $80.6 billion (2024: net increase of $35.7 billion) for the Parent Entity, driven by
new lending across the housing and business loan portfolios. This volume growth, along with a deterioration in scenario weights and introduction of certain overlays, drove an increase in
stage 1 ECL.
●
Stage 2 credit exposures decreased by $35.7 billion (2024: increased by $0.1 billion) for Westpac and $27.1 billion (2024: increased by $1.6 billion) for the Parent Entity, driven by net
runoff across housing and business portfolios
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
43
Note 10. Provision for expected credit losses (Continued)
and net transfers to stage 1 in response to improved model economics, partly offset by a deterioration in scenario weights and reassessment of overlays. Overall, this drove a net decrease
in stage 2 ECL.
●
Stage 3 credit exposures decreased by $0.6 billion (2024: increased by $2.0 billion) for Westpac and $0.6 billion (2024: increased by $1.9 billion) for the Parent Entity. This was driven by a
slowdown in new mortgage defaults and an increase in mortgages returning to performing, offset by certain downgrades in the business portfolio.
Note 11. Credit risk management
Note
Index
Note name
number
Credit risk
Credit risk management framework
11.1
The risk of financial loss where a customer or counterparty fails to meet their
financial obligations to Westpac.
Credit risk ratings system
11.2
Credit risk concentrations and maximum exposure to credit risk
11.3
Credit quality of financial assets
11.4
Credit risk mitigation, collateral and other credit enhancements
11.5
11.1. Credit risk management framework
Please refer to Note 21.1 for details of Westpac’s overall risk management framework.
●
Westpac maintains a Credit Risk Management Framework, Credit Risk Management Strategy, Credit Risk Appetite Statement, and a number of supporting policies that define roles and
responsibilities, acceptable practices, limits and key controls.
●
The Credit Risk Management Framework describes Westpac’s approach to managing Credit Risk and to deliver fair customer outcomes. It includes the following components: business
strategy, risk identification, risk appetite, stress testing and scenario analysis, people and infrastructure, controls, monitoring and reporting, and governance.
●
The BRiskC, Westpac Group Executive Risk Committee (RISKCO) and Westpac Group Credit Risk Committee (CREDCO) monitor the risk profile, performance and management of
Westpac’s credit portfolio and the development and review of key credit risk policies.
●
The Credit Risk Rating System Policy applies across the full credit risk ratings and risk estimates lifecycle (i.e. development, implementation, monitoring, validation, use, and independent
review), helping us reliably assess the credit risk to which Westpac may be exposed. A senior management self-assessment is presented for discussion at BRiskC annually. An
independent review is also completed annually.
●
Model Risk independently assesses and approves all credit risk models, and periodically reviews these in line with the Group Model Risk Policy and governance. Models are approved
under delegated authority from the Deputy Chief Risk Officer. Model Risk is overseen by Westpac’s Model Risk Committee.
●
In determining the provision for ECL, the forward-looking economic inputs and the probability weightings of the forward-looking scenarios as well as any adjustments made to the modelled
outcomes are subject to the approval of the Chief Financial Officer and the Chief Risk Officer with oversight from the Board of Directors (and its Committees).
●
Policies are in place for the delegation of credit approval authorities and formal limits for the extension of credit.
●
Credit policies are established and maintained throughout Westpac covering the end-to-end credit lifecycle including origination, evaluation, approval, documentation, settlement and
ongoing management of credit risks. Specific policies and limits are in place to manage concentration risks, including to large exposures, industry concentration, and country risk.
●
Climate change-related credit risks are considered in line with our Positions, Action Plans, and Sustainability Customer Requirements. Climate change risks are managed in accordance
with the Sustainability Risk Management Framework (SRMF); Climate Risk Policy, Environmental, Social and Governance (ESG) Credit Risk Policy; and Board Risk Appetite Statements
(RAS). The Climate Change Credit Risk Committee oversees work to identify and manage the potential impact on credit exposures from climate change-related transition and physical risks
across Westpac and is a sub-committee of CREDCO.
●
Westpac’s ESG Credit Risk Policy details Westpac’s overall approach to managing ESG risks in the credit risk process for applicable customers and transactions in Business & Wealth and
Institutional.
For personal use only
44 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Credit risk management (Continued)
11.2. Credit risk ratings system
The principal objective of the credit risk rating system is to assess the credit risk to which Westpac is exposed. Westpac has two main approaches to this assessment.
Transaction-managed customers
Transaction managed customers are generally customers with business lending exposures. They are individually assigned a Customer Risk Grade (CRG), corresponding to their expected PD.
Each facility is assigned an LGD. Westpac’s risk rating system has a tiered scale of risk grades for both non-defaulted customers and defaulted customers. Non-defaulted CRGs are mapped to
Moody’s and S&P Global Ratings (S&P) external senior unsecured ratings.
The table below shows Westpac’s high level CRGs for transaction-managed portfolios mapped to Westpac’s credit quality disclosure categories and to their corresponding external rating.
Transaction-managed
Financial statement disclosure
Westpac CRG
Moody’s Rating
S&P Rating
Strong
A
Aaa – Aa3
AAA – AA–
B
A1 – A3
A+ – A–
C
Baa1 – Baa3
BBB+ – BBB–
Good/satisfactory
D
Ba1 – B1
BB+ – B+
Westpac Rating
Weak
E
Watchlist
F
Special Mention
G
Substandard/Default
H
Doubtful/Default
Program-managed portfolio
The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit cards) as well as certain small to medium sized enterprise lending.
These credit exposures are grouped into pools of similar risk based on the analysis of characteristics that have historically predicted the likelihood of default, and a PD is assigned relative to
the credit exposure’s pool. The exposure is then assigned to strong, satisfactory or weak by benchmarking that PD against transaction-managed exposures, which are in turn mapped to
external ratings per the above table. In addition, any program-managed exposures that are one or more days past due are classified as weak.
11.3. Credit risk concentrations and maximum exposure to credit risk
Credit risk concentrations
Credit risk is concentrated when a number of counterparties are engaged in similar activities, have similar economic characteristics and thus may be similarly affected by changes in economic
or other conditions.
Westpac monitors its credit portfolio to manage risk concentrations and rebalance the portfolio.
Individual customers or groups of related customers
Westpac has large exposure limits governing the aggregate size of credit exposure normally acceptable to individual customers and groups of related customers. These limits are tiered by
customer risk grade.
Specific industries
Exposures to businesses, governments and other financial institutions are classified into a number of industry clusters based on related Australian and New Zealand Standard Industrial
Classification (ANZSIC) codes and are monitored against Westpac’s industry risk appetite limits.
Individual countries
Westpac has limits governing risks related to individual countries, such as political situations, government policies and economic conditions that may adversely affect either a customer’s ability
to meet its obligations to Westpac, or Westpac’s ability to realise its assets in a particular country.
For personal use only
FINANCIAL
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EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
45
Note 11. Credit risk management (Continued)
Maximum exposure to credit risk
The maximum exposure to credit risk (excluding collateral received) is represented by the carrying amount of on-balance sheet financial assets (which comprise cash and balances with central
banks, collateral paid, trading securities and financial assets measured at FVIS, derivative financial instruments, investment securities, loans, other financial assets, and undrawn credit
commitments.
The following tables set out the credit risk concentrations to which Westpac and the Parent Entity are exposed for on-balance sheet financial assets and for undrawn credit commitments.
The balances for trading securities and financial assets measured at FVIS and investment securities exclude equity securities as the primary financial risk is not credit risk.
The credit concentrations for each significant class of financial asset are:
Trading securities and financial assets measured at
FVIS (Note 16)
●
58% (2024: 47%) were issued by financial institutions for Westpac;
59% (2024: 48%) for the Parent Entity.
●
41% (2024: 50%) were issued by government or semi-government authorities for Westpac;
40% (2024: 49%) for the Parent Entity.
●
87% (2024: 82%) were held in Australia by Westpac;
90% (2024: 86%) by the Parent Entity.
Investment securities (Note 17)
●
14% (2024: 17%) were issued by financial institutions for Westpac;
14% (2024: 17%) for the Parent Entity.
●
85% (2024: 82%) were issued by government or semi-government authorities for Westpac;
86% (2024: 83%) for the Parent Entity.
●
85% (2024: 91%) were held in Australia by Westpac;
92% (2024: 99%) by the Parent Entity.
Loans (Note 9)
The following tables provides a detailed breakdown of loans by industry and geographic classification.
Derivative financial instruments (Note 20)
●
78% (2024: 81%) were issued by financial institutions for Westpac;
77% (2024: 81%) by the Parent Entity.
●
73% (2024: 90%) were held in Australia by Westpac;
76% (2024: 91%) by the Parent Entity.
For personal use only
46 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Credit risk management (Continued)
2025
2024
Total all
Undrawn
Total all
Undrawn
other on
credit
other on
credit
Consolidated
balance
commit-
balance
commit-
$m
Loans
sheet
ments
Total
Loans
sheet
ments
Total
Australia
Accommodation, cafes and restaurants
11,517
29
1,681
13,227
9,810
26
1,637
11,473
Agriculture, forestry and fishing
16,640
47
3,102
19,789
13,733
40
2,713
16,486
Construction
8,642
25
4,907
13,574
7,900
33
4,623
12,556
Finance and insurance
31,608
99,150
17,399
148,157
29,484
112,860
13,801
156,145
Government, administration and defence
690
108,516
1,679
110,885
811
99,830
1,558
102,199
Manufacturing
10,483
331
8,065
18,879
9,997
499
8,361
18,857
Mining
3,656
430
3,157
7,243
2,865
415
3,038
6,318
Property
66,631
516
15,006
82,153
60,767
546
13,771
75,084
Property services and business services
15,194
136
8,269
23,599
14,321
149
7,921
22,391
Services
15,215
101
8,426
23,742
13,015
108
8,369
21,492
Trade
17,384
241
9,288
26,913
15,159
366
9,933
25,458
Transport and storage
12,812
691
6,076
19,579
10,289
681
6,313
17,283
Utilities
10,587
754
8,561
19,902
8,175
983
8,373
17,531
Retail lending
527,181
995
82,940
611,116
511,025
1,056
84,006
596,087
Other
1,297
614
1,356
3,267
1,577
592
1,781
3,950
Total Australia
749,537
212,576
179,912
1,142,025
708,928
218,184
176,198
1,103,310
New Zealand
Accommodation, cafes and restaurants
305
3
31
339
313
3
32
348
Agriculture, forestry and fishing
7,838
47
565
8,450
8,352
41
573
8,966
Construction
508
1
528
1,037
385
1
566
952
Finance and insurance
4,066
13,101
1,951
19,118
4,757
11,364
1,838
17,959
Government, administration and defence
183
9,872
712
10,767
210
8,820
812
9,842
Manufacturing
1,846
100
1,424
3,370
1,785
58
1,444
3,287
Mining
91
1
124
216
151
2
125
278
Property
7,835
407
1,362
9,604
7,604
649
1,080
9,333
Property services and business services
972
54
497
1,523
962
121
357
1,440
Services
1,951
42
968
2,961
1,961
45
823
2,829
Trade
2,475
30
1,155
3,660
2,164
32
1,154
3,350
Transport and storage
581
55
521
1,157
661
105
362
1,128
Utilities
1,768
416
2,177
4,361
1,621
557
1,340
3,518
Retail lending
63,738
101
13,877
77,716
63,563
117
14,221
77,901
Other
112
99
146
357
108
77
123
308
Total New Zealand
94,269
24,329
26,038
144,636
94,597
21,992
24,850
141,439
Other overseas
Accommodation, cafes and restaurants
76
-
15
91
85
-
11
96
Agriculture, forestry and fishing
2
-
1
3
2
-
1
3
Construction
35
-
82
117
34
-
73
107
Finance and insurance
6,056
9,000
5,669
20,725
3,656
9,447
4,964
18,067
Government, administration and defence
53
11,034
-
11,087
-
4,389
-
4,389
Manufacturing
1,498
4
2,313
3,815
958
3
1,500
2,461
Mining
38
-
961
999
28
-
931
959
Property
651
2
131
784
472
2
37
511
Property services and business services
962
30
936
1,928
503
35
797
1,335
Services
65
-
556
621
36
-
629
665
Trade
1,324
4
2,575
3,903
909
3
1,813
2,725
Transport and storage
741
17
422
1,180
527
15
108
650
Utilities
644
2
1,495
2,141
232
1
139
372
Retail lending
340
-
22
362
328
-
13
341
Other
71
161
41
273
40
97
47
184
Total other overseas
12,556
20,254
15,219
48,029
7,810
13,992
11,063
32,865
Total gross credit risk
856,362
257,159
221,169
1,334,690
811,335
254,168
212,111
1,277,614
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
47
Note 11. Credit risk management (Continued)
2025
2024
Total all
Undrawn
Total all
Undrawn
other on
credit
other on
credit
Parent Entity
balance
commit-
balance
commit-
$m
Loans
sheet
ments
Total
Loans
sheet
ments
Total
Australia
Accommodation, cafes and restaurants
11,482
29
1,681
13,192
9,777
26
1,637
11,440
Agriculture, forestry and fishing
16,551
47
3,102
19,700
13,659
40
2,713
16,412
Construction
7,835
24
4,907
12,766
7,188
31
4,623
11,842
Finance and insurance
31,561
143,639
17,399
192,599
29,430
160,947
13,801
204,178
Government, administration and defence
689
108,518
1,679
110,886
809
99,831
1,558
102,198
Manufacturing
10,289
331
8,065
18,685
9,811
496
8,361
18,668
Mining
3,609
430
3,157
7,196
2,816
415
3,038
6,269
Property
66,610
518
15,006
82,134
60,743
548
13,771
75,062
Property services and business services
14,879
135
8,269
23,283
14,013
151
7,921
22,085
Services
14,985
101
8,426
23,512
12,802
107
8,369
21,278
Trade
17,179
241
9,288
26,708
14,962
365
9,933
25,260
Transport and storage
12,424
691
6,076
19,191
9,978
682
6,313
16,973
Utilities
10,556
755
8,561
19,872
8,145
983
8,373
17,501
Retail lending
527,180
995
82,940
611,115
511,023
1,056
84,006
596,085
Other
1,055
559
1,356
2,970
1,330
521
1,781
3,632
Total Australia
746,884
257,013
179,912
1,183,809
706,486
266,199
176,198
1,148,883
New Zealand
Accommodation, cafes and restaurants
-
2
-
2
-
2
-
2
Agriculture, forestry and fishing
-
27
3
30
-
11
4
15
Construction
1
-
38
39
2
-
78
80
Finance and insurance
-
8,207
109
8,316
-
5,969
112
6,081
Government, administration and defence
-
2,529
8
2,537
-
2,087
2
2,089
Manufacturing
29
96
83
208
35
55
82
172
Mining
2
1
-
3
-
1
61
62
Property
-
82
-
82
-
141
-
141
Property services and business services
2
51
18
71
2
21
13
36
Services
-
37
8
45
-
39
6
45
Trade
397
28
237
662
266
28
223
517
Transport and storage
1
56
30
87
1
76
32
109
Utilities
4
300
141
445
-
327
94
421
Retail lending
-
-
-
-
-
-
-
-
Other
-
5
1
6
-
-
1
1
Total New Zealand
436
11,421
676
12,533
306
8,757
708
9,771
Other overseas
Accommodation, cafes and restaurants
67
-
14
81
74
-
11
85
Agriculture, forestry and fishing
1
-
1
2
1
-
1
2
Construction
23
-
66
89
24
-
66
90
Finance and insurance
6,051
8,926
5,656
20,633
3,648
9,047
4,957
17,652
Government, administration and defence
53
10,051
-
10,104
-
3,288
-
3,288
Manufacturing
1,409
4
2,309
3,722
895
4
1,498
2,397
Mining
15
-
959
974
2
-
928
930
Property
378
1
117
496
241
1
16
258
Property services and business services
894
30
932
1,856
480
35
794
1,309
Services
41
-
554
595
17
-
626
643
Trade
1,121
3
2,543
3,667
768
3
1,787
2,558
Transport and storage
705
17
419
1,141
499
15
103
617
Utilities
639
2
1,495
2,136
228
1
139
368
Retail lending
308
-
22
330
282
-
10
292
Other
55
90
29
174
30
94
20
144
Total other overseas
11,760
19,124
15,116
46,000
7,189
12,488
10,956
30,633
Total gross credit risk
759,080
287,558
195,704
1,242,342
713,981
287,444
187,862
1,189,287
For personal use only
48 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Credit risk management (Continued)
11.4. Credit quality of financial assets
Credit quality disclosures
The following tables show the credit quality of gross credit risk exposures measured at amortised cost or at FVOCI to which the impairment requirements apply. The credit quality is determined
by reference to the credit risk ratings system (refer to Note 11.2) and expectations of future economic conditions under multiple scenarios.
Consolidated
2025
2024
$m
Stage 1
Stage 2
Stage 3
Totala
Stage 1
Stage 2
Stage 3
Totala
Loans - housing
Strong
332,203
27,057
-
359,260
311,054
24,975
-
336,029
Good/satisfactory
159,998
40,537
-
200,535
159,016
45,242
-
204,258
Weak
1,939
13,973
5,959
21,871
2,512
16,389
6,893
25,794
Total loans - housing
494,140
81,567
5,959
581,666
472,582
86,606
6,893
566,081
Loans - personal
Strong
3,964
81
-
4,045
4,104
104
-
4,208
Good/satisfactory
4,561
744
-
5,305
5,254
825
-
6,079
Weak
127
465
152
744
191
570
190
951
Total loans - personal
8,652
1,290
152
10,094
9,549
1,499
190
11,238
Loans - business
Strong
108,843
9,453
-
118,296
81,696
19,387
-
101,083
Good/satisfactory
99,300
37,145
-
136,445
75,873
47,282
-
123,155
Weak
295
6,020
3,546
9,861
200
6,347
3,231
9,778
Total loans - business
208,438
52,618
3,546
264,602
157,769
73,016
3,231
234,016
Investment securities
Strong
116,574
-
-
116,574
102,721
-
-
102,721
Good/satisfactory
-
-
-
-
-
71
-
71
Weak
-
494
-
494
-
649
-
649
Total investment securitiesb
116,574
494
-
117,068
102,721
720
-
103,441
All other financial assets
Strong
64,722
-
-
64,722
76,264
-
-
76,264
Good/satisfactory
848
-
-
848
899
-
-
899
Weak
216
-
-
216
229
-
-
229
Total all other financial assets
65,786
-
-
65,786
77,392
-
-
77,392
Undrawn credit commitments
Strong
154,443
8,981
-
163,424
140,786
14,341
-
155,127
Good/satisfactory
45,778
9,984
-
55,762
40,271
14,186
-
54,457
Weak
172
1,341
470
1,983
218
1,868
441
2,527
Total undrawn credit commitments
200,393
20,306
470
221,169
181,275
30,395
441
212,111
Total strong
780,749
45,572
-
826,321
716,625
58,807
-
775,432
Total good/satisfactory
310,485
88,410
-
398,895
281,313
107,606
-
388,919
Total weak
2,749
22,293
10,127
35,169
3,350
25,823
10,755
39,928
Total on and off-balance sheet
1,093,983
156,275
10,127
1,260,385
1,001,288
192,236
10,755
1,204,279
a.
This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS,
and derivative financial instruments.
b.
Excludes equity instruments. Includes $976 million (2024: $1,172 million) debt securities at amortised cost, of which $482 million (2024: $452 million) were classified as strong, Nil (2024: $71 million) as good/satisfactory and
$494 million (2024: $649 million) as weak.
Details of collateral held in support of these balances are provided in Note 11.5.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
49
Note 11. Credit risk management (Continued)
Parent Entity
2025
2024
$m
Stage 1
Stage 2
Stage 3
Totala
Stage 1
Stage 2
Stage 3
Totala
Loans - housing
Strong
325,333
26,908
-
352,241
304,169
24,829
-
328,998
Good/satisfactory
112,497
34,157
-
146,654
117,339
33,284
-
150,623
Weak
1,661
13,153
5,253
20,067
2,233
15,471
6,235
23,939
Total loans - housing
439,491
74,218
5,253
518,962
423,741
73,584
6,235
503,560
Loans - personal
Strong
3,588
70
-
3,658
3,721
92
-
3,813
Good/satisfactory
4,135
585
-
4,720
4,849
647
-
5,496
Weak
114
413
144
671
178
512
180
870
Total loans - personal
7,837
1,068
144
9,049
8,748
1,251
180
10,179
Loans - business
Strong
96,856
8,462
-
105,318
70,448
18,047
-
88,495
Good/satisfactory
84,140
33,297
-
117,437
61,784
42,132
-
103,916
Weak
168
4,902
3,244
8,314
123
4,814
2,894
7,831
Total loans - business
181,164
46,661
3,244
231,069
132,355
64,993
2,894
200,242
Investment securities
Strong
108,880
-
-
108,880
95,346
-
-
95,346
Good/satisfactory
-
-
-
-
-
71
-
71
Total investment securitiesb
108,880
-
-
108,880
95,346
71
-
95,417
All other financial assets
Strong
105,946
-
-
105,946
119,265
-
-
119,265
Good/satisfactory
708
-
-
708
731
-
-
731
Weak
58
-
-
58
71
-
-
71
Total all other financial assets
106,712
-
-
106,712
120,067
-
-
120,067
Undrawn credit commitments
Strong
141,517
8,385
-
149,902
129,379
13,659
-
143,038
Good/satisfactory
35,731
8,259
-
43,990
30,827
11,667
-
42,494
Weak
166
1,208
438
1,812
212
1,707
411
2,330
Total undrawn credit commitments
177,414
17,852
438
195,704
160,418
27,033
411
187,862
Total strong
782,120
43,825
-
825,945
722,328
56,627
-
778,955
Total good/satisfactory
237,211
76,298
-
313,509
215,530
87,801
-
303,331
Total weak
2,167
19,676
9,079
30,922
2,817
22,504
9,720
35,041
Total on and off-balance sheet
1,021,498
139,799
9,079
1,170,376
940,675
166,932
9,720
1,117,327
a.
This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS,
and derivative financial instruments.
b.
Excludes equity instruments. Includes Nil (2024: $71 million) debt securities at amortised cost which are all classified as good/satisfactory.
Details of collateral held in support of these balances are provided in Note 11.5.
For personal use only
50 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Credit risk management (Continued)
11.5. Credit risk mitigation, collateral and other credit enhancements
Westpac uses a variety of techniques to reduce the credit risk arising from its lending activities. This includes Westpac establishing that it has direct, irrevocable and unconditional recourse to
collateral and other credit enhancements through obtaining legally enforceable documentation.
Collateral
The table below describes the nature of collateral or security held for each relevant class of financial asset.
Loans – housing and personala
Housing loans are secured by a mortgage over property and additional security may take the form of guarantees and deposits.
Personal lending (including credit cards and overdrafts) is predominantly unsecured. Where security is taken, it is restricted to eligible motor vehicles, caravans, campers, motor
homes and boats. Personal lending also includes margin lending which is secured primarily by shares or managed funds.
Loans – business
Business loans may be secured, partially secured or unsecured. Security is typically taken by way of a mortgage over property and/or a general security agreement over business
assets or other assets.
Other security such as guarantees, standby letters of credit or derivative protection may also be taken as collateral, if appropriate.
Trading securities, financial assets measured at FVIS and
derivatives
These exposures are carried at fair value which reflects the credit risk.
For trading securities, no collateral is sought directly from the issuer or counterparty; however this may be implicit in the terms of the instrument (such as an asset-backed security).
The terms of debt securities may include collateralisation.
For derivatives, master netting agreements are typically used to enable the effects of derivative assets and liabilities with the same counterparty to be offset when measuring these
exposures. Additionally, collateralisation agreements are also typically entered into with major institutional counterparties to avoid the potential build-up of excessive mark-to-market
positions. Derivative transactions are increasingly being cleared through central clearers.
a.
This includes collateral held in relation to associated credit commitments.
Management or risk mitigation
Westpac mitigates credit risk through controls covering:
Collateral and valuation management
The estimated realisable value of collateral held in support of loans is based on a combination of:
●
Formal valuations currently held for such collateral; and
●
Management’s assessment of the estimated realisable value of all collateral held.
This analysis also takes into consideration any other relevant knowledge available to management at the time. Updated valuations are obtained when appropriate.
Westpac revalues collateral related to financial markets positions on a daily basis and has formal processes in place to promptly call for collateral top-ups, if required. These
processes include margining for non-centrally cleared customer derivatives as regulated by Australian Prudential Standard CPS226. The collateralisation arrangements are
documented via the Credit Support Annex of the ISDA dealing agreements and Global Master Repurchase Agreements (GMRA) for repurchase transactions.
In relation to financial markets positions, Westpac only recognises collateral which is:
●
Cash, primarily in Australian dollars (AUD), New Zealand dollars (NZD), US dollars (USD), Canadian dollars (CAD), British pounds (GBP) or European Union euro (EUR);
●
Bonds issued by Australian Commonwealth, State and Territory governments or their Public Sector Enterprises, provided these attract a zero risk-weighting under Australian
Prudential Standard (APS) 112;
●
Securities issued by other sovereign governments and supranationals as approved by an authorised credit officer; or
●
Protection bought via credit-linked notes (provided the proceeds are invested in cash or other eligible collateral).
Other credit enhancements
Westpac only recognises guarantees, standby letters of credit, or credit derivative protection from entities meeting minimum eligibility requirements (provided they are not related to
the entity with which Westpac has a credit exposure) including but not limited to:
●
Sovereign;
●
Australia and New Zealand public sector;
●
ADIs and overseas banks with a minimum risk grade equivalent of A3 / A–; and
●
Others with a minimum risk grade equivalent of A3 / A–.
Credit Portfolio Management (CPM) manages Westpac’s corporate, sovereign and bank credit portfolios through monitoring the exposure and any offsetting hedge positions. CPM
purchases credit protection from entities that meet minimum eligibility requirements.
Offsetting
Creditworthy customers domiciled in Australia and New Zealand may enter into formal agreements with Westpac, permitting Westpac to set-off gross credit and debit balances in
their nominated accounts. Cross-border set-offs are not permitted.
Close-out netting is undertaken with counterparties with whom the Group has entered into a legally enforceable master netting agreement for their off-balance sheet financial market
transactions in the event of default.
Further details of offsetting are provided in Note 23.
Central clearing
Westpac executes derivative transactions through central clearing counterparties. Central clearing counterparties mitigate risk through stringent membership requirements, the
collection of margin against all trades placed, the default fund, and an explicitly defined order of priority of payments in the event of default.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
51
Note 11. Credit risk management (Continued)
Collateral held against loans
Westpac analyses the coverage of the loan portfolio which is secured by the collateral that it holds. Coverage is measured as follows:
Coverage
Secured loan to collateral value ratio
Fully secured
Less than or equal to 100%
Partially secured
Greater 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)
Westpac and the Parent Entity’s loan portfolio have the following coverage from collateral held:
2025
2024
Housing
Personal
Business
Housing
Personal
Business
%
loansa
loans
loans
Total
loansa
loans
loans
Total
Performing loans
Consolidated
Fully secured
100.0
10.2
67.3
88.9
100.0
9.7
68.1
89.6
Partially secured
-
4.6
14.7
4.6
-
11.1
14.2
4.2
Unsecured
-
85.2
18.0
6.5
-
79.2
17.7
6.2
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Parent Entity
Fully secured
100.0
11.3
67.5
89.1
100.0
10.7
68.3
89.9
Partially secured
-
5.2
14.6
4.5
-
12.2
14.1
4.1
Unsecured
-
83.5
17.9
6.4
-
77.1
17.6
6.0
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Non-performing loans
Consolidated
Fully secured
88.8
-
54.6
74.9
91.5
-
56.7
79.0
Partially secured
11.2
4.6
27.9
17.2
8.5
23.2
23.4
13.4
Unsecured
-
95.4
17.5
7.9
-
76.8
19.9
7.6
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Parent Entity
Fully secured
89.4
-
57.9
76.1
91.8
-
59.7
80.0
Partially secured
10.6
4.9
26.1
16.3
8.2
24.4
21.7
12.7
Unsecured
-
95.1
16.0
7.6
-
75.6
18.6
7.3
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
a.
For the purpose of collateral classification, housing loans are classified as fully secured, unless they are non-performing in which case they may be classified as partially secured.
Details of the carrying value and associated provision for ECL are disclosed in Note 9 and Note 10, respectively. The credit quality of loans is disclosed in Note 11.4.
Collateral held against financial assets other than loans
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Cash, primarily for derivatives
3,188
3,079
2,365
2,936
Securities under reverse repurchase agreementsa
28,269
17,950
28,269
17,950
Securities under derivativesa
679
112
452
112
Total other collateral held
32,136
21,141
31,086
20,998
a.
Securities received as collateral are not recognised in the Group and Parent Entity’s balance sheet.
For personal use only
52 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Deposits and other funding arrangements
Note 12. Deposits and other borrowings
Accounting policy
Deposits and other borrowings are initially recognised at fair value and subsequently either measured at amortised cost using the effective interest method or at fair value.
Deposits and other borrowings are designated at fair value if they are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative.
Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are recognised in the income statement. The change in the fair value that is
attributable to changes in credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the income statement.
Refer to Note 22 for balances measured at fair value and amortised cost.
Interest expense incurred is recognised in net interest income using the effective interest method.
Non-interest bearing relates to instruments which do not carry an entitlement to interest.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Australia
Certificates of deposit
33,940
33,215
33,940
33,215
Non-interest bearing, repayable at call
140,842
128,705
140,842
128,705
Other interest bearing - transactions
120,830
110,393
120,830
110,393
Other interest bearing - savings
223,216
197,415
223,216
197,415
Other interest bearing term
157,675
157,282
157,675
157,282
Total Australia
676,503
627,010
676,503
627,010
New Zealand
Certificates of deposit
1,593
1,711
-
-
Non-interest bearing, repayable at call
10,700
10,287
-
-
Other interest bearing - transactions
7,884
8,815
-
-
Other interest bearing - savings
18,502
17,854
-
-
Other interest bearing term
34,128
36,245
-
-
Total New Zealand
72,807
74,912
-
-
Other overseas
Certificates of deposit
11,953
11,948
11,953
11,948
Non-interest bearing, repayable at call
1,147
1,193
546
503
Other interest bearing - transactions
910
736
729
532
Other interest bearing - savings
1,254
987
1,161
892
Other interest bearing term
5,883
3,703
5,768
3,596
Total other overseas
21,147
18,567
20,157
17,471
Total deposits and other borrowings
770,457
720,489
696,660
644,481
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
53
Note 12. Deposits and other borrowings (Continued)
Uninsured time deposits
Uninsured time deposits are the principal amount of deposits that are not covered by a government based deposit insurance scheme and which have contractual impediments on withdrawal.
For Westpac, this encompass certificates of deposits and term deposits that are in excess of, or ineligible for, the Australian Government’s Financial Claims Scheme (FCS) limit. The table
below shows the time deposits by categories and remaining maturity as at 30 September 2025:
Consolidated
Over 3 months to
Over 6 months to
$m
Up to 3 months
6 months
1 year
Over 1 year
Total
Certificates of deposit in excess of insured amounts
Australia
15,215
18,210
492
23
33,940
New Zealand
1,392
201
-
-
1,593
Other overseas
3,713
4,666
3,574
-
11,953
Total certificates of deposit in excess of insured amounts
20,320
23,077
4,066
23
47,486
Term deposits in excess of insured amounts
Australia
62,513
24,044
30,812
5,615
122,984
New Zealand
13,178
8,660
4,292
2,037
28,167
Other overseas
3,485
906
1,406
84
5,881
Total term deposits in excess of insured amounts
79,176
33,610
36,510
7,736
157,032
Interbank term deposits in excess of insured amountsa
Australia
1,939
2,326
1,795
7
6,067
Other overseas
270
-
-
27
297
Total interbank term deposits in excess of insured amounts
2,209
2,326
1,795
34
6,364
a.
Interbank term deposits are included in Note 19.
For personal use only
54 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 13. Debt issues
Accounting policy
Debt issues are bonds, notes, commercial paper and debentures that have been issued by entities in Westpac.
Debt issues are initially measured at fair value and subsequently either measured at amortised cost using the effective interest method or at fair value.
Debt issues are designated at fair value if they reduce or eliminate an accounting mismatch or contain an embedded derivative.
Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are recognised in the income statement. The change in the fair value that is
attributable to changes in credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the income statement.
Refer to Note 22 for balances measured at fair value and amortised cost.
Interest expense incurred is recognised within net interest income using the effective interest method.
In the following table, the distinction between short-term (12 months or less) and long-term (greater than 12 months) debt is based on the original maturity of the underlying security.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Short-term debt
Own issuances
34,665
32,328
32,252
28,905
Total short-term debt
34,665
32,328
32,252
28,905
Long-term debt
Covered bonds
37,671
39,472
31,911
35,513
Senior
93,489
91,945
78,459
79,464
Securitisation
5,579
5,539
-
-
Total long-term debt
136,739
136,956
110,370
114,977
Total debt issues
171,404
169,284
142,622
143,882
Movement reconciliation
Balance as at beginning of year
169,284
156,573
143,882
134,957
Issuances
68,850
80,245
59,404
68,438
Maturities, repayments, buybacks and reductions
(76,010)
(67,100)
(68,590)
(58,931)
Total cash movements
(7,160)
13,145
(9,186)
9,507
FX translation impact
8,442
(5,798)
7,295
(5,167)
Fair value adjustments
(125)
283
(118)
275
Fair value hedge accounting adjustments
396
4,338
265
3,659
Other
567
743
484
651
Total non-cash movements
9,280
(434)
7,926
(582)
Balance as at end of year
171,404
169,284
142,622
143,882
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
55
Note 13. Debt issues (Continued)
Consolidated
$m
2025
2024
Short-term debt
Own issuances:
US commercial paper
25,958
22,507
EUR commercial paper
4,014
1,048
Senior Debt:
AUD
1,199
1,900
EUR
-
483
GBP
1,834
5,313
USD
152
-
Other
1,508
1,077
Total short-term debt
34,665
32,328
Long-term debt (by currency):
AUD
38,398
41,191
CHF
2,853
2,554
EUR
36,605
32,182
GBP
5,705
5,695
JPY
72
78
NZD
3,104
3,483
USD
48,583
50,258
Other
1,419
1,515
Total long-term debt
136,739
136,956
Westpac manages FX exposure from debt issuances as part of its hedging activities. Further details of Westpac’s hedge accounting are in Note 20.
For personal use only
56 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 14. Loan capital
Accounting policy
Loan capital are instruments issued by Westpac which qualify for inclusion as regulatory capital under the standards issued by the prudential regulator in the relevant jurisdiction. Loan capital
is initially measured at fair value and subsequently measured at amortised cost using the effective interest method. Interest expense incurred is recognised in net interest income.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Additional Tier 1 (AT1) loan capital
Westpac capital notes
6,697
8,376
6,697
8,376
USD AT1 securities
1,838
1,728
1,838
1,728
Total AT1 loan capital
8,535
10,104
8,535
10,104
Tier 2 loan capital
Subordinated notes
31,435
27,779
30,356
26,666
Total Tier 2 loan capital
31,435
27,779
30,356
26,666
Total loan capital
39,970
37,883
38,891
36,770
Movement reconciliation
Balance as at beginning of year
37,883
33,176
36,770
32,085
Issuances
5,042
6,326
5,042
6,326
Maturities, repayments, buybacks and reductions
(4,122)
(1,957)
(4,127)
(1,951)
Total cash movements
920
4,369
915
4,375
FX translation impact
1,219
(1,416)
1,267
(1,401)
Fair value hedge accounting adjustments
(68)
1,714
(74)
1,675
Other
16
40
13
36
Total non-cash movements
1,167
338
1,206
310
Balance as at end of year
39,970
37,883
38,891
36,770
Additional Tier 1 loan capital
A summary of the key terms and common features of AT1 instruments is provided below.
Consolidated and Parent Entity
Potential scheduled
Optional
$m
Distribution or interest rate
conversion datea
redemption dateb
2025
2024
Westpac capital notes (WCN)
AUD 1,690 million WCN5
(3-month BBSW rate + 3.20% p.a.)
22 September 2027
22 September 2025c
-
1,688
x (1 - Australian corporate tax rate)
AUD 1,723 million WCN7
(3-month BBSW rate + 3.40% p.a.)
22 March 2029
22 March 2027
1,719
1,716
x (1 - Australian corporate tax rate)
AUD 1,750 million WCN8
(3-month BBSW rate + 2.90% p.a.)
21 June 2032
21 September 2029
1,742
1,740
x (1 - Australian corporate tax rate)
AUD 1,509 million WCN9
(3-month BBSW rate + 3.40% p.a.)
22 June 2031
22 September 2028
1,501
1,499
x (1 - Australian corporate tax rate)
AUD 1,750 million WCN10
(3-month BBSW rate + 3.10% p.a.)
22 June 2034
22 September 2031
1,735
1,733
x (1 - Australian corporate tax rate)
Total WCN
6,697
8,376
USD AT1 securities
USD 1,250 million USD AT1 securities
Fixed 5.00% p.a.d
n/a
21 September 2027
1,838
1,728
Total USD AT1 securities
1,838
1,728
a.
Conversion is subject to the satisfaction of the scheduled conversion conditions. If the conversion conditions are not satisfied on the relevant scheduled conversion date, conversion will not occur until the next distribution
payment date on which the scheduled conversion conditions are satisfied, if ever.
b.
Certain AT1 instruments may have more than one optional redemption date and for the purposes of the table above the first optional redemption date is shown. Westpac may elect to redeem the relevant AT1 instrument on the
optional redemption date or dates, subject to APRA’s prior written approval.
c.
On 22 September 2025, Westpac redeemed all Westpac Capital Notes 5 (WCN5) on issue.
d.
Until but excluding 21 September 2027 (first reset date). If not redeemed, converted or written-off earlier, from, and including, each reset date to, but excluding, the next succeeding reset date, at a fixed rate p.a. equal to the
prevailing 5-year USD mid-market swap rate plus 2.89% p.a.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
57
Note 14. Loan capital (Continued)
Common features of AT1 instruments issued by Westpac Banking Corporation
Payment conditions
Distributions and interest payments on the AT1 instruments are discretionary and will only be paid if the payment conditions are satisfied, including that the payment will not result in a breach
of Westpac’s capital requirements under APRA’s prudential standards; not result in Westpac becoming, or being likely to become, insolvent; and if APRA does not object to the payment.
Broadly, if for any reason a distribution or interest payment has not been paid in full on the relevant payment date, Westpac must not determine or pay any dividends on Westpac ordinary
shares or undertake a discretionary buyback or capital reduction of Westpac ordinary shares, unless the unpaid amount is paid in full within 20 business days of the relevant payment date or in
certain other circumstances.
The AT1 instruments convert into Westpac ordinary shares in the following circumstances:
●
Scheduled Conversion
On the scheduled conversion date, provided certain conversion conditions are satisfied, the relevant AT1 instrument1 will convert and holders will receive a variable number of Westpac
ordinary shares calculated using the face value of the relevant AT1 instrument and the Westpac ordinary share price determined over the 20 business day period prior to the scheduled
conversion date, including a 1% discount.
●
Capital Trigger Event or Non-Viability Trigger Event
Westpac will be required to convert some or all AT1 instruments upon the occurrence of:
–
A capital trigger event, when Westpac determines, or APRA notifies Westpac in writing that it believes, Westpac’s Common Equity Tier 1 Capital ratio is equal to or less than 5.125%
(on a Level 1 or Level 2 basis2); or
–
A non-viability trigger event, when APRA notifies Westpac in writing that it believes conversion, write-off or write-down of capital instruments of the Westpac, or public sector injection of
capital (or equivalent support), in each case is necessary because without it, Westpac would become non-viable
For each AT1 instrument converted, holders will receive a variable number of Westpac ordinary shares calculated using the face value of the relevant AT1 instrument and the Westpac
ordinary share price over the five business day period prior to the capital trigger event date or non-viability trigger event date and includes a 1% discount, subject to a maximum conversion
number. The maximum conversion number is based on an ordinary share price broadly equivalent to 20% of the Westpac ordinary share price at the time of issue.
Following the occurrence of a capital trigger event or non-viability trigger event, if conversion does not occur within five business days, holders’ rights in relation to the relevant AT1
instrument will be immediately and irrevocably terminated.
●
Conversion in other circumstances
Westpac is able to elect to convert1, or may be required to convert1, AT1 instruments early in certain circumstances. The terms of conversion are broadly similar to scheduled conversion,
however, the maximum conversion number will depend on the conversion event.
●
Early Redemption
Westpac is able to elect to redeem the relevant AT1 instrument on the optional redemption dates or for certain taxation or regulatory reasons, subject to APRA’s prior written approval.
1.
Excludes USD AT1 securities.
2.
Level 1 comprises Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as being part of an ‘Extended Licensed Entity’ for the purpose of measuring capital adequacy. Level 2 is the
consolidation of Westpac Banking Corporation and all its subsidiary entities except those entities specifically excluded by APRA regulations. The head of the Level 2 group is Westpac Banking Corporation.
For personal use only
58 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 14. Loan capital (Continued)
Tier 2 loan capital
A summary of the key terms and common features of Westpac’s Tier 2 instruments (subordinated notes) is provided below:
Optional
$m
Interest ratea
Maturity date
redemption dateb
2025
2024
Subordinated notes issued by Westpac Banking Corporation
USD 100 million
Fixed
23 February 2046
n/a
107
110
JPY 20,000 million
Fixed
19 May 2026
n/a
204
202
JPY 10,200 million
Fixed
2 June 2026
n/a
104
103
JPY 10,000 million
Fixed
9 June 2026
n/a
102
101
USD 1,500 million
Fixed
23 November 2031
23 November 2026
2,227
2,095
AUD 185 million
Fixed
24 January 2048
n/a
184
184
AUD 130 million
Fixed
2 March 2048
n/a
130
130
USD 1,000 million
Fixed
24 July 2039
n/a
1,205
1,196
USD 1,250 million
Fixed
24 July 2034
24 July 2029
1,782
1,686
USD 1,500 million
Fixed
4 February 2030
4 February 2025
-
2,141
USD 1,500 million
Fixed
15 November 2035
15 November 2030
1,978
1,854
USD 1,000 million
Fixed
16 November 2040
n/a
1,013
1,010
AUD 1,250 million
Floating
29 January 2031
29 January 2026
1,249
1,250
EUR 1,000 million
Fixed
13 May 2031
13 May 2026
1,753
1,544
USD 1,000 million
Fixed
18 November 2041
n/a
1,054
1,059
USD 1,250 million
Fixed
18 November 2036
18 November 2031
1,660
1,572
JPY 26,000 million
Fixed
8 June 2032
8 June 2027
262
261
USD 1,000 million
Fixed
10 August 2033
10 August 2032
1,425
1,368
SGD 450 million
Fixed
7 September 2032
7 September 2027
544
516
AUD 1,500 million
Floating
23 June 2033
23 June 2028
1,500
1,496
AUD 300 million
Fixed/Floating
23 June 2033
23 June 2028
299
300
AUD 1,100 million
Fixed/Floating
23 June 2038
23 June 2033
1,093
1,100
AUD 1,500 million
Fixed/Floating
15 November 2038
n/a
1,495
1,502
USD 750 million
Fixed
17 November 2033
n/a
1,177
1,148
AUD 650 million
Floating
3 April 2034
3 April 2029
648
649
AUD 600 million
Fixed/Floating
3 April 2034
3 April 2029
600
593
AUD 1,000 million
Floating
10 July 2034
10 July 2029
1,000
996
AUD 500 million
Fixed/Floating
10 July 2034
10 July 2029
500
500
USD 1,500 million
Fixed
20 November 2035
20 November 2034
2,318
-
AUD 850 million
Floating
12 February 2035
12 February 2030
843
-
AUD 400 million
Fixed/Floating
12 February 2035
12 February 2030
400
-
AUD 1,500 million
Fixed/Floating
4 June 2040
4 June 2035
1,500
-
Total subordinated notes issued by Westpac Banking Corporation
30,356
26,666
Subordinated notes issued by Westpac New Zealand Limitedc
NZD 600 million
Fixed/Floating
16 September 2032
16 September 2027
525
541
NZD 600 million
Fixed/Floating
14 February 2034
14 February 2029
554
572
Total subordinated notes issued by Westpac New Zealand Limited
1,079
1,113
Total subordinated notes
31,435
27,779
a.
Certain subordinated notes have a fixed interest rate for the period up to the optional redemption date and a floating interest rate thereafter.
b.
Certain Tier 2 instruments may have more than one optional redemption date and for the purposes of the table above the first optional redemption date is shown. Westpac Banking Corporation may elect to redeem the relevant
Tier 2 instrument on the optional redemption date or dates, subject to APRA’s prior written approval.
c.
For subordinated notes issued by Westpac New Zealand Limited, it may elect to redeem all or some of the Tier 2 instruments for their face value together with accrued interest (if any) on the optional redemption date or any
interest payment date thereafter, subject to RBNZ’s prior written approval. Early redemption of all of the Tier 2 instruments for certain tax or regulatory reasons is permitted on an interest payment date subject to the RBNZ’s prior
written approval.
For personal use only
FINANCIAL
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EXHIBITS INDEX
STRATEGIC
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PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
59
Note 14. Loan capital (Continued)
Common features of subordinated notes
Issued by Westpac Banking Corporation
Interest payments are subject to Westpac being solvent at the time of, and immediately following, the interest payment.
Non-viability trigger event
The definition of non-viability trigger event is described under AT1 loan capital. Upon the occurrence of a non-viability trigger event, Westpac will be required to convert some or all
subordinated notes into a variable number of Westpac ordinary shares calculated in a manner similar to that described under AT1 loan capital.
Following the occurrence of a non-viability trigger event, if conversion of a Tier 2 instrument does not occur within five business days, holders’ rights in relation to the relevant Tier 2 instrument
will be immediately and irrevocably terminated.
Issued by Westpac New Zealand Limited
Interest payments are subject to Westpac New Zealand Limited being solvent at the time of, and immediately following, the interest payment.
Non-viability trigger event
Tier 2 instruments issued by Westpac New Zealand Limited do not have a non-viability trigger event. These instruments qualify as Tier 2 capital under the RBNZ capital adequacy framework
but not under APRA’s capital adequacy framework.
Note 15. Securitisation, covered bonds and other transferred assets
Westpac enters into transactions in the normal course of business by which financial assets are transferred to counterparties or structured entities. Depending on the circumstances, these
transfers may result in derecognition of the assets in their entirety, partial derecognition or no derecognition of the assets subject to the transfer. For Westpac’s accounting policy on
derecognition of financial assets refer to the Financial Assets and Financial Liabilities.
Securitisation
Securitisation is the transferring of assets (or an interest in either the assets or the cash flows arising from the assets) to a structured entity which then issues the majority of interest bearing
debt securities to third party investors for funding deals and to Westpac for liquidity deals. The Group transfers residential mortgages to these structured entities, however the Group retains the
risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets.
Securitisation of its own assets is used by Westpac as a funding and liquidity tool. For securitisation structured entities which Westpac controls, as defined in Note 30, the structured entities
are classified as subsidiaries and consolidated. When assessing whether Westpac controls a structured entity, it considers its exposure to and ability to affect variable returns. Westpac may
have variable returns from a structured entity through ongoing exposures to the risks and rewards associated with the assets, the provision of derivatives, liquidity facilities, trust management
and operational services.
Undrawn funding and liquidity facilities of $251 million (2024: $345 million) were provided by Westpac for the securitisation of its own assets.
Covered bonds
Westpac has two covered bond programs relating to Australian residential mortgages (Australian Program) and New Zealand residential mortgages (New Zealand Program). Under these
programs, selected pools of residential mortgages are assigned to bankruptcy remote structured entities which provide guarantees on the payments to bondholders. The Group retains the
majority of the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets. Through the guarantees and derivatives with the structured
entities, Westpac has variable returns from these structured entities and consolidates them.
Repurchase agreements
Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their original category (i.e. Trading securities or
Investment securities).
The cash consideration received is recognised as a liability (Repurchase agreements). Refer to Note 19 for further details.
For personal use only
60 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 15. Securitisation, covered bonds and other transferred assets (Continued)
The following tables present Westpac’s assets transferred and their associated liabilities.
For those liabilities that only have
recourse to the transferred assets:
Carrying
Carrying
amount of
amount of
Fair value of
Fair value of
transferred
associated
transferred
transferred
Net fair
$m
assets
liabilities
assets
liabilities
value position
Consolidated
2025
Securitisationa
5,627
5,587
5,627
5,617
10
Covered bondsb
42,890
37,671
n/a
n/a
n/a
Repurchase agreements
15,230
14,664
n/a
n/a
n/a
Total
63,747
57,922
5,627
5,617
10
2024
Securitisationa
5,580
5,539
5,575
5,552
23
Covered bondsb
50,269
39,472
n/a
n/a
n/a
Repurchase agreements
19,938
18,848
n/a
n/a
n/a
Total
75,787
63,859
5,575
5,552
23
Parent Entity
2025
Securitisationa
6,420
6,380
6,421
6,410
11
Covered bondsb
36,264
31,911
n/a
n/a
n/a
Repurchase agreements
13,379
13,183
n/a
n/a
n/a
Total
56,063
51,474
6,421
6,410
11
2024
Securitisationa
6,449
6,407
6,443
6,420
23
Covered bondsb
43,337
35,512
n/a
n/a
n/a
Repurchase agreements
16,205
16,071
n/a
n/a
n/a
Total
65,991
57,990
6,443
6,420
23
a.
The carrying amount of assets securitised exceeds the amount of notes issued primarily because the carrying amount includes both principal and income received from the transferred assets.
b.
The difference between the carrying values of covered bonds and the assets pledged reflects the over-collateralisation required to maintain the ratings of the covered bonds and also additional assets to allow immediate issuance
of additional covered bonds if required. These additional assets can be repurchased by Westpac at its discretion, subject to the conditions set out in the transaction documents.
For personal use only
FINANCIAL
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
61
Other financial instrument disclosures
Note 16. Trading securities and financial assets measured at fair value through income statement (FVIS)
Accounting policy
Trading securities
Trading securities include portfolios of actively traded debt and equity instruments, pledged instruments and instruments acquired for sale in the near term, including those backed by
government and semi-government securities. The instruments are measured at fair value.
As part of its trading activities, Westpac also lends and borrows securities on a collateralised basis. Securities lent remain on Westpac’s balance sheet and securities borrowed are not
reflected on Westpac’s balance sheet, as the risks and rewards of ownership remain with the initial holder. Where cash is provided as collateral, the amount advanced to or received from
third parties is recognised as a receivable in collateral paid or as a borrowing in collateral received respectively.
Reverse repurchase agreements
Securities purchased under these agreements are not recognised in the balance sheet, as Westpac 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.
Other financial assets measured at FVIS
Other financial assets measured at FVIS include:
●
Non-trading portfolio securities measured 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;
●
Non-trading debt securities that do not have contractual cash flows that represent SPPI on the principal balance outstanding; or
●
Non-trading equity securities for which we have not made irrevocable designation to be measured at FVOCI.
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 (Note 3) while dividends
on equity securities are recognised in non-interest income (Note 4).
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Trading securities
Government and semi-government securities
10,429
24,532
10,429
23,225
Other debt securities
4,124
5,958
4,124
5,089
Other
376
285
376
282
Total trading securities
14,929
30,775
14,929
28,596
Reverse repurchase agreements
28,304
17,990
28,304
17,990
Other financial assets measured at FVIS
Government and semi-government securities
11,681
-
10,250
-
Other debt securities
927
461
143
428
Equity securities
-
2
-
-
Total other financial assets measured at FVIS
12,608
463
10,393
428
Total trading securities and financial assets measured at FVIS
55,841
49,228
53,626
47,014
For personal use only
62 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 17. Investment securities
Accounting policy
Investment securities include debt securities and equity securities. It includes debt and equity securities that are measured at FVOCI and debt securities measured at amortised cost. These
instruments are classified based on the criteria disclosed under the heading “Financial assets and financial liabilities” prior to Note 9.
Debt securities measured at FVOCI
Includes debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and 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, 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 6 and Note 10 for further details.
The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed.
Debt securities measured at amortised cost
Includes debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and are held within a business model whose objective is achieved
through holding the financial asset to collect these cash flows.
These securities are initially recognised at fair value plus directly attributable transaction costs. They are subsequently measured at amortised cost using the effective interest method and
are presented net of any provision for ECL, determined using the ECL model.
Equity securities
Equity securities are measured at FVOCI where they are not held for trading, Westpac does not have control or significant influence over the investee and where an irrevocable election is
made to measure them at FVOCI.
These securities are measured at fair value with unrealised gains and losses recognised in OCI except for dividend income which is recognised in the income statement. The cumulative
gain or loss recognised in OCI is not subsequently recognised in the income statement when the instrument is disposed.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Investment securities
Investments securities measured at FVOCI
Government and semi-government debt securities
98,456
83,403
93,639
78,798
Other debt securities
17,636
18,866
15,241
16,548
Equity securities
476
450
220
208
Total investment securities measured at FVOCIa
116,568
102,719
109,100
95,554
Investment securities measured at amortised cost
Government and semi-government debt securities
976
1,172
-
71
Total investment securities measured at amortised cost
976
1,172
-
71
Provision for ECL on debt securities at amortised cost
(3)
(6)
-
(2)
Total net investment securities measured at amortised cost
973
1,166
-
69
Total investment securities
117,541
103,885
109,100
95,623
a.
Impairment is recognised in the income statement with a corresponding amount in OCI (refer to Note 26). There is no reduction of the carrying value of the debt securities which remains at fair value.
For personal use only
FINANCIAL
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EXHIBITS INDEX
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PERFORMANCE
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
63
Note 17. Investment securities (Continued)
The following table shows the maturities and the weighted average yield of Westpac’s outstanding investment securities as at 30 September 2025. There are no tax-exempt securities.
Over 1
Over 5
No
Up to 1
year to 5
years to
Over 10
specific
Weighted
year
years
10 years
years
maturity
Total
average
2025
$m
%
$m
%
$m
%
$m
%
$m
%
$m
%
Carrying Amount
Government and semi-government securities
12,466
3.6
44,201
3.6
35,025
4.4
7,737
5.1
-
-
99,429
4.0
Other debt securities
4,702
4.8
12,934
5.0
-
-
-
-
-
-
17,636
4.9
Equity securities
-
-
-
-
-
-
-
-
476
-
476
-
Total by maturity
17,168
57,135
35,025
7,737
476
117,541
The maturity profile is determined based upon contractual terms for investment securities.
Note 18. Other financial assets
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Accrued interest receivable
1,921
2,223
1,735
1,987
Securities sold not delivered
7,048
1,716
7,041
1,716
Trade debtors
430
343
255
320
Interbank lending
319
174
246
173
Clearing and settlement balances
530
602
474
480
Accrued fees and commissions
401
276
258
155
Other
117
122
117
120
Total other financial assets
10,766
5,456
10,126
4,951
For personal use only
64 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 19. 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).
Refer to Note 22 for balances measured at fair value and amortised cost.
Repurchase agreements
Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their original category (i.e. ‘Trading securities’ or
‘Investment securities’).
The cash consideration received is recognised as a liability (‘Repurchase agreements’). 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 changes 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.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Repurchase agreements
14,664
18,848
13,183
16,071
Interbank placements
6,405
3,635
6,402
3,631
Accrued interest payable
4,235
4,940
3,684
4,094
Securities purchased not delivered
7,574
2,966
7,574
2,966
Trade creditors and other accrued expenses
2,363
2,375
1,887
1,994
Settlement and clearing balances
869
934
848
801
Securities sold short
4,215
3,248
4,215
3,248
Other
1,163
1,131
1,142
1,112
Total other financial liabilities
41,488
38,077
38,935
33,917
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
65
Note 20. 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.
Westpac uses derivative financial instruments for meeting customers’ needs, our Asset and Liability Management (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.
Hedging derivatives
Hedging derivatives are those which are used in our ALM activities and have also been designated into one of three hedge accounting relationships: fair value hedge; cash flow hedge; or
hedge of a net investment in a foreign operation. These derivatives are measured at fair value. These hedge designations and the associated accounting treatment are detailed below.
For more details regarding Westpac’s ALM activities, refer to Note 21.
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 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 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 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 in 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.
Net investment hedges
Net investment hedges are used to hedge FX risks arising from a net investment of a foreign operation.
For effective hedges, changes in the fair value of derivatives are recognised in the foreign currency translation reserve through OCI.
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 foreign operation is disposed of, any cumulative gain or loss in OCI is immediately recognised in non-interest income.
For personal use only
66 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 20. Derivative financial instruments (Continued)
Total derivatives
The carrying values of derivative instruments are set out in the tables below.
Total derivatives
Consolidated
Trading
Hedging
carrying value
$m
Assets
Liabilities
Assets
Liabilities
Assets
Liabilities
2025
Interest rate contracts
Swap agreements
48,585
(51,397)
5,301
(5,334)
53,886
(56,731)
Options
256
(109)
-
-
256
(109)
Total interest rate contracts
48,841
(51,506)
5,301
(5,334)
54,142
(56,840)
FX contracts
Spot and forward contracts
7,141
(6,963)
83
(37)
7,224
(7,000)
Cross currency swap agreements
5,596
(9,460)
1,830
(104)
7,426
(9,564)
Options
134
(126)
-
-
134
(126)
Total FX contracts
12,871
(16,549)
1,913
(141)
14,784
(16,690)
Credit default swaps
Credit protection bought
-
(408)
-
-
-
(408)
Credit protection sold
353
-
-
-
353
-
Total credit default swaps
353
(408)
-
-
353
(408)
Commodity contracts
151
(50)
-
-
151
(50)
Total of gross derivatives
62,216
(68,513)
7,214
(5,475)
69,430
(73,988)
Impact of netting arrangements
(45,845)
48,218
(5,121)
5,140
(50,966)
53,358
Total of net derivatives
16,371
(20,295)
2,093
(335)
18,464
(20,630)
2024
Interest rate contracts
Swap agreements
47,697
(49,742)
5,619
(5,969)
53,316
(55,711)
Options
235
(186)
-
-
235
(186)
Total interest rate contracts
47,932
(49,928)
5,619
(5,969)
53,551
(55,897)
FX contracts
Spot and forward contracts
10,887
(11,643)
20
(171)
10,907
(11,814)
Cross currency swap agreements
9,330
(14,783)
183
(373)
9,513
(15,156)
Options
152
(135)
-
-
152
(135)
Total FX contracts
20,369
(26,561)
203
(544)
20,572
(27,105)
Credit default swaps
Credit protection bought
-
(276)
-
-
-
(276)
Credit protection sold
225
-
-
-
225
-
Total credit default swaps
225
(276)
-
-
225
(276)
Commodity contracts
235
(85)
-
-
235
(85)
Total of gross derivatives
68,761
(76,850)
5,822
(6,513)
74,583
(83,363)
Impact of netting arrangements
(45,045)
46,533
(5,429)
5,856
(50,474)
52,389
Total of net derivatives
23,716
(30,317)
393
(657)
24,109
(30,974)
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
67
Note 20. Derivative financial instruments (Continued)
Total derivatives
Parent Entity
Trading
Hedging
carrying value
$m
Assets
Liabilities
Assets
Liabilities
Assets
Liabilities
2025
Interest rate contracts
Swap agreements
48,751
(51,819)
4,960
(4,777)
53,711
(56,596)
Options
256
(109)
-
-
256
(109)
Total interest rate contracts
49,007
(51,928)
4,960
(4,777)
53,967
(56,705)
FX contracts
Spot and forward contracts
7,179
(6,963)
45
(37)
7,224
(7,000)
Cross currency swap agreements
6,589
(9,457)
83
(104)
6,672
(9,561)
Options
133
(126)
-
-
133
(126)
Total FX contracts
13,901
(16,546)
128
(141)
14,029
(16,687)
Credit default swaps
Credit protection bought
-
(408)
-
-
-
(408)
Credit protection sold
353
-
-
-
353
-
Total credit default swaps
353
(408)
-
-
353
(408)
Commodity contracts
151
(50)
-
-
151
(50)
Total of gross derivatives
63,412
(68,932)
5,088
(4,918)
68,500
(73,850)
Impact of netting arrangements
(46,014)
48,645
(4,952)
4,713
(50,966)
53,358
Total of net derivatives
17,398
(20,287)
136
(205)
17,534
(20,492)
2024
Interest rate contracts
Swap agreements
47,973
(50,141)
5,186
(5,495)
53,159
(55,636)
Options
235
(186)
-
-
235
(186)
Total interest rate contracts
48,208
(50,327)
5,186
(5,495)
53,394
(55,822)
FX contracts
Spot and forward contracts
10,887
(11,665)
20
(149)
10,907
(11,814)
Cross currency swap agreements
9,411
(14,917)
52
(135)
9,463
(15,052)
Options
152
(135)
-
-
152
(135)
Total FX contracts
20,450
(26,717)
72
(284)
20,522
(27,001)
Credit default swaps
Credit protection bought
-
(276)
-
-
-
(276)
Credit protection sold
225
-
-
-
225
-
Total credit default swaps
225
(276)
-
-
225
(276)
Commodity contracts
235
(85)
-
-
235
(85)
Total of gross derivatives
69,118
(77,405)
5,258
(5,779)
74,376
(83,184)
Impact of netting arrangements
(45,323)
46,938
(5,151)
5,451
(50,474)
52,389
Total of net derivatives
23,795
(30,467)
107
(328)
23,902
(30,795)
For personal use only
68 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 20. Derivative financial instruments (Continued)
Hedge accounting
Westpac 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.
Westpac 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. Westpac 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
Westpac 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. Westpac also hedges its benchmark
interest rate risk from fixed rate foreign currency denominated debt issuances using interest rate swaps and cross currency swaps. In applying fair value hedge accounting, Westpac primarily
uses one-to-one hedge accounting to manage specific exposures.
Westpac 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 accordingly to the capacity in the relevant time buckets.
Westpac 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, BBSW and AONIA for AUD interest rates, 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 the 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 re-designated periodically.
Cash flow hedges
Interest rate risk
Westpac’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 accordingly to the gross
asset or gross liability positions for the relevant time buckets. Westpac 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, BBSW and AONIA for AUD interest rates, 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 capacity for the relevant time buckets. The hedge accounting relationship is reviewed on a monthly
basis and the hedging relationships are de-designated and re-designated if necessary.
FX risk
Westpac’s exposure to foreign currency principal and credit margin cash flows from fixed and floating rate foreign currency debt issuances is hedged through the use of cross currency and
foreign exchange derivative contracts in a one-to-one hedging relationship to manage the changes between the foreign currency and AUD. In addition, for floating rate foreign currency debt
issuances, Westpac hedges from foreign floating to primarily AUD or NZD floating interest rates. These exposures represent the most significant components of fair value. Ineffectiveness may
arise from timing or discounting differences on repricing between the hedged item and the cross currency derivative.
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
69
Note 20. Derivative financial instruments (Continued)
Net investment hedges
FX risk
Structural FX risk results from Westpac’s capital deployed in offshore branches and subsidiaries, where it is denominated in currencies other than Australian dollars. As exchange rates move,
the Australian dollar equivalent of offshore capital is subject to change that could introduce significant variability to Westpac’s reported financial results and capital ratios.
Westpac uses FX forward contracts when hedging the currency translation risk arising from net investments in foreign operations. Westpac currently applies hedge accounting, predominantly
to its net investment in New Zealand operations which is the most material offshore operation and therefore the hedged risk is the movement of the NZD against the AUD. Ineffectiveness only
arises if the notional values of the FX forward contracts exceed the net investment.
Economic hedges
As part of Westpac’s ALM activities, economic hedges may be entered into to hedge New Zealand future earnings and long-term funding transactions for risk management purposes. These
hedges do not qualify for hedge accounting and therefore are not included in the hedging instrument disclosures below.
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.
Notional amounts
Consolidated
Within 1
Over 1 year
Over 5
Carrying value
$m
Hedging instrument
Hedged risk
year
to 5 years
years
Total
Assets
Liabilities
2025
One-to-one hedge relationships
Fair value hedges
Interest rate swap
Interest rate risk
21,314
83,617
67,516
172,447
3,766
(4,398)
Cross currency swap
Interest rate risk
3,484
15,127
1,079
19,690
(89)
(23)
Cash flow hedges
Cross currency swap
FX risk
3,484
15,127
1,079
19,690
1,919
(81)
Foreign exchange forwards and swaps
FX risk
3,623
-
-
3,623
2
(37)
Net investment hedges
Forward contracts
FX risk
4,106
-
-
4,106
81
-
Total one-to-one hedge relationships
36,011
113,871
69,674
219,556
5,679
(4,539)
Macro hedge relationships
Portfolio fair value hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
16,776
3
(220)
Macro cash flow hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
607,343
1,532
(716)
Total macro hedge relationships
n/a
n/a
n/a
624,119
1,535
(936)
Total of gross hedging derivatives
n/a
n/a
n/a
843,675
7,214
(5,475)
Impact of netting arrangements
n/a
n/a
n/a
n/a
(5,121)
5,140
Total of net hedging derivatives
n/a
n/a
n/a
n/a
2,093
(335)
2024
One-to-one hedge relationships
Fair value hedges
Interest rate swap
Interest rate risk
21,400
82,571
55,004
158,975
3,611
(4,858)
Cross currency swap
Interest rate risk
1,098
13,188
981
15,267
(22)
(281)
Cash flow hedges
Cross currency swap
FX risk
1,098
13,188
981
15,267
205
(92)
Foreign exchange forwards and swaps
FX risk
3,663
-
-
3,663
2
(144)
Net investment hedges
Forward contracts
FX risk
3,631
-
-
3,631
18
(27)
Total one-to-one hedge relationships
30,890
108,947
56,966
196,803
3,814
(5,402)
Macro hedge relationships
Portfolio fair value hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
16,317
35
(204)
Macro cash flow hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
422,943
1,973
(907)
Total macro hedge relationships
n/a
n/a
n/a
439,260
2,008
(1,111)
Total of gross hedging derivatives
n/a
n/a
n/a
636,063
5,822
(6,513)
Impact of netting arrangements
n/a
n/a
n/a
n/a
(5,429)
5,856
Total of net hedging derivatives
n/a
n/a
n/a
n/a
393
(657)
For personal use only
70 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 20. Derivative financial instruments (Continued)
Notional amounts
Parent Entity
Within 1
Over 1 year
Over 5
Carrying value
$m
Hedging instrument
Hedged risk
year
to 5 years
years
Total
Assets
Liabilities
2025
One-to-one hedge relationships
Fair value hedges
Interest rate swap
Interest rate risk
21,226
79,652
65,475
166,353
3,602
(4,270)
Cross currency swap
Interest rate risk
815
213
723
1,751
(6)
(23)
Cash flow hedges
Cross currency swap
FX risk
815
213
723
1,751
89
(81)
Foreign exchange forwards and swaps
FX risk
3,623
-
-
3,623
2
(37)
Net investment hedges
Forward contracts
FX risk
3,107
-
-
3,107
43
-
Total one-to-one hedge relationships
29,586
80,078
66,921
176,585
3,730
(4,411)
Macro hedge relationships
Portfolio fair value hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
100
3
-
Macro cash flow hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
579,797
1,355
(507)
Total macro hedge relationships
n/a
n/a
n/a
579,897
1,358
(507)
Total of gross hedging derivatives
n/a
n/a
n/a
756,482
5,088
(4,918)
Impact of netting arrangements
n/a
n/a
n/a
n/a
(4,952)
4,713
Total of net hedging derivatives
n/a
n/a
n/a
n/a
136
(205)
2024
One-to-one hedge relationships
Fair value hedges
Interest rate swap
Interest rate risk
20,962
77,739
54,797
153,498
3,457
(4,789)
Cross currency swap
Interest rate risk
377
1,002
659
2,038
(23)
(23)
Cash flow hedges
Cross currency swap
FX risk
377
1,002
659
2,038
75
(112)
Foreign exchange forwards and swaps
FX risk
3,663
-
-
3,663
2
(144)
Net investment hedges
Forward contracts
FX risk
2,636
-
-
2,636
18
(5)
Total one-to-one hedge relationships
28,015
79,743
56,115
163,873
3,529
(5,073)
Macro hedge relationships
Portfolio fair value hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
1,797
32
-
Macro cash flow hedges
Interest rate swap
Interest rate risk
n/a
n/a
n/a
398,519
1,697
(706)
Total macro hedge relationships
n/a
n/a
n/a
400,316
1,729
(706)
Total of gross hedging derivatives
n/a
n/a
n/a
564,189
5,258
(5,779)
Impact of netting arrangements
n/a
n/a
n/a
n/a
(5,151)
5,451
Total of net hedging derivatives
n/a
n/a
n/a
n/a
107
(328)
The following tables show the weighted average FX rate related to significant hedging instruments in one-to-one hedge relationships.
Weighted average rate
Hedging instrument
Hedged risk
Currency pair
2025
2024
Consolidated
Cash flow hedges
Cross currency swap
FX risk
EUR:NZD
0.5846
0.5963
USD:NZD
0.6071
0.6252
Foreign exchange swap
FX risk
USD:AUD
0.6658
0.6676
Net investment hedges
Forward contracts
FX risk
NZD:AUD
1.1113
1.0984
USD:AUD
0.6537
0.6745
Parent Entity
Cash flow hedges
Cross currency swap
FX risk
EUR:AUD
0.6650
0.6650
JPY:AUD
79.6448
79.6448
CNH:AUD
4.7418
4.7334
HKD:AUD
5.5978
5.6124
Foreign exchange swap
FX risk
USD:AUD
0.6658
0.6676
Net investment hedges
Forward contracts
FX risk
NZD:AUD
1.1185
1.0905
USD:AUD
0.6537
0.6745
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
71
Note 20. Derivative financial instruments (Continued)
Impact of hedge accounting in the balance sheets 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
adjustments (FVHA).
2025
2024
Carrying amount of
Carrying amount of
$m
hedged item
FVHA
hedged item
FVHA
Consolidated
Interest rate risk
Investment securitiesa
83,382
494
65,585
(165)
Loans
17,234
117
16,638
77
Debt issues and loan capital
(102,521)
3,421
(102,039)
3,749
Parent Entity
Interest rate risk
Investment securitiesa
78,771
284
61,775
(294)
Loans
442
1
2,019
(22)
Debt issues and loan capital
(83,381)
3,341
(87,495)
3,532
a.
The carrying amount of investment securities at fair value through other comprehensive income 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 other comprehensive income to the income statement.
There were nil FVHA gains/losses (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 and net investment hedges on cash flow hedge reserves is detailed below:
2025
2024
Interest
FX
Interest
FX
$m
rate risk
risk
Total
rate risk
risk
Total
Consolidated
Balance as at beginning of year
978
(198)
780
249
(47)
202
Net gains/(losses) from changes in fair value
(364)
131
(233)
878
(377)
501
Transferred to interest income
80
72
152
(149)
226
77
Balance as at end of year
694
5
699
978
(198)
780
Parent Entity
Balance as at beginning of year
852
(136)
716
(288)
(1)
(289)
Net gains/(losses) from changes in fair value
(305)
151
(154)
1,049
(176)
873
Transferred to interest income
129
25
154
91
41
132
Balance as at end of year
676
40
716
852
(136)
716
There were nil net gains/losses (2024: net gains $16 million) remaining in the cash flow hedge reserve relating to hedge relationships for which hedge accounting is no longer applied for
Westpac and the Parent Entity.
As disclosed in Note 26, the net gains from changes in the fair value of net investment hedges were $95 million (2024: net gain $28 million) for Westpac and $53 million (2024: net gain $31
million) for the Parent Entity. Included in the foreign currency translation reserve is a loss of $158 million (2024: $158 million loss) for Westpac and $162 million (2024: $162 million loss) for the
Parent Entity relating to discontinued hedges of our net investment in USD operations. This would only be transferred to the income statement on disposal of the related USD operations.
For personal use only
72 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 20. 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:
Change in fair
value of
Change in
hedging
value of the
Hedge
instrument
hedged item
Hedge
ineffectiveness
used for
used for
ineffectiveness
recognised
calculating
calculating
recognised in
in non-
$m
Hedging instrument
Hedged risk
ineffectiveness
ineffectiveness
interest income
interest income
Consolidated
2025
Fair value hedges
Interest rate swap
Interest rate risk
(526)
491
(35)
n/a
Cross currency swap
Interest rate risk
117
(120)
(3)
n/a
Cash flow hedges
Interest rate swap
Interest rate risk
(249)
268
19
n/a
Cross currency swap
FX risk
21
(21)
-
n/a
Foreign exchange forwards and swaps
FX risk
182
(182)
-
n/a
Net investment hedges
Forward contracts
FX risk
95
(95)
n/a
-
Total
(360)
341
(19)
-
2024
Fair value hedges
Interest rate swap
Interest rate risk
1,845
(1,817)
28
n/a
Cross currency swap
Interest rate risk
761
(765)
(4)
n/a
Cash flow hedges
Interest rate swap
Interest rate risk
698
(714)
(16)
n/a
Cross currency swap
FX risk
(25)
25
-
n/a
Foreign exchange forwards and swaps
FX risk
(126)
126
-
n/a
Net investment hedges
Forward contracts
FX risk
28
(28)
n/a
-
Total
3,181
(3,173)
8
-
Parent Entity
2025
Fair value hedges
Interest rate swap
Interest rate risk
(455)
420
(35)
n/a
Cross currency swap
Interest rate risk
7
(10)
(3)
n/a
Cash flow hedges
Interest rate swap
Interest rate risk
(136)
159
23
n/a
Cross currency swap
FX risk
(6)
6
-
n/a
Foreign exchange forwards and swaps
FX risk
182
(182)
-
n/a
Net investment hedges
Forward contracts
FX risk
53
(53)
n/a
-
Total
(355)
340
(15)
-
2024
Fair value hedges
Interest rate swap
Interest rate risk
2,295
(2,274)
21
n/a
Cross currency swap
Interest rate risk
84
(84)
-
n/a
Cash flow hedges
Interest rate swap
Interest rate risk
1,121
(1,126)
(5)
n/a
Cross currency swap
FX risk
(9)
9
-
n/a
Foreign exchange forwards and swaps
FX risk
(126)
126
-
n/a
Net investment hedges
Forward contracts
FX risk
31
(31)
n/a
-
Total
3,396
(3,380)
16
-
For personal use only
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ADDITIONAL
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73
Note 21. Risk management, funding and liquidity risk and market risk
Financial instruments are fundamental to Westpac’s business of providing banking and financial services. The associated financial risks (including credit risk, funding and liquidity risk and
market risk) are a significant proportion of the total risks faced by Westpac.
This note details the financial risk management policies, practices and quantitative information of Westpac’s principal financial risk exposures.
Note
Index
Note Name
number
Overview
Risk management frameworks
21.1
Credit risk
Refer to Note 11 Credit risk management
11
Funding and liquidity risk
The risk that Westpac cannot meet its payment obligations or that it does not
have the appropriate amount, tenor and composition of funding and liquidity to
support its assets.
Liquidity modelling
Sources of funding
Assets pledged as collateral
Contractual maturity of financial liabilities
Expected maturity
21.2.1
21.2.2
21.2.3
21.2.4
21.2.5
Market risk
The risk of an adverse impact on Westpac’s financial performance or financial
position resulting from changes in market factors, such as foreign exchange
rates, commodity prices and equity prices, credit spreads and interest rates.
This includes interest rate risk in the banking book which is the risk of loss in
earnings or economic value in the banking book as a consequence of
movements in interest rates.
Value-at-Risk (VaR)
Traded market risk
Non-traded market risk
21.3.1
21.3.2
21.3.3
21.1. Risk management frameworks
The Board is responsible for approving Westpac’s Risk Management Strategy (incorporating the Risk Management Framework) and Board Risk Appetite Statement and for monitoring the
effectiveness of risk management by Westpac. The Board has delegated to the Board Risk Committee (BRiskC) responsibility to:
●
Review and recommend Westpac’s Risk Management Strategy (incorporating the Risk Management Framework) and Board Risk Appetite Statement to the Board for approval;
●
Review and monitor Westpac’s risk profile and controls for consistency with the Board Risk Appetite Statement;
●
Approve frameworks, policies and processes for managing risk (consistent with the Risk Management Strategy and Board Risk Appetite Statement); and
●
Review and, where appropriate, approve risks beyond the approval discretion provided to management.
For personal use only
74 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
For each of its material risks, Westpac maintains risk management frameworks and a number of supporting policies that define roles and responsibilities, acceptable practices, limits and key
controls:
Risk
Risk management framework and controls
Funding and
liquidity risk
●
Funding and liquidity risk is measured and managed in accordance with the policies and processes defined in the Board-approved Liquidity Risk
Management Framework which is part of the Westpac Board-approved Risk Management Strategy.
●
Responsibility for managing Westpac’s liquidity and funding positions in accordance with the Liquidity Risk Management Framework is delegated to
Treasury, under the oversight of Group ALCO and Treasury Risk.
●
Westpac’s Liquidity Risk Management Framework sets out Westpac’s funding and liquidity risk appetite, roles and responsibilities of key people managing
funding and liquidity risk within Westpac, risk reporting and control processes and limits and targets used to manage Westpac’s balance sheet.
●
Treasury undertakes an annual funding review that outlines Westpac’s balance sheet funding strategy over a five year period. This review encompasses
trends in global markets, peer analysis, wholesale funding capacity, expected funding requirements and a funding risk analysis. This strategy is
continuously reviewed to take account of changing market conditions, investor sentiment and estimations of asset and liability growth rates.
●
Westpac monitors the composition and stability of its funding so that it remains within Westpac’s funding risk appetite. This includes compliance with both
the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
●
Westpac holds a portfolio of liquid assets for several purposes, including as a buffer against unforeseen funding requirements. The level of liquid assets
held takes into account the liquidity requirements of Westpac’s balance sheet under normal and stress conditions.
●
Treasury maintains a contingent funding plan that outlines the steps that should be taken by Westpac in the event of an emerging ‘funding crisis’. The plan
is aligned with Westpac’s broader Liquidity Crisis Management Policy which is approved annually by the Board.
●
Daily liquidity risk reports are reviewed by Westpac’s Treasury and Treasury Risk teams. Liquidity reports are presented to Group ALCO monthly and to the
Board quarterly.
Market risk
●
The Market Risk Framework describes Westpac’s approach to managing traded and non- traded market risk.
●
Traded market risk includes interest rate, FX, commodity, equity price, credit spread and volatility risks. Non-traded market risk includes interest rate and
credit spread risks.
●
Market risk is managed using VaR and Stressed VaR (SVaR) limits, Net interest income at risk (NaR) and structural risk limits (including credit spread and
interest rate basis point value limits) as well as scenario analysis and stress testing.
●
The BRiskC approves the risk appetite for traded and non-traded risks through the use of VaR, SVaR, NaR and specific structural risk limits. This includes
separate VaR sub-limits for the trading activities of Financial Markets and Treasury and for non-traded ALM activities.
●
Market risk limits are assigned to business management based upon the Bank’s risk appetite and business strategies in addition to the consideration of
market liquidity and concentration.
●
Market risk positions are managed by the trading desks and ALM unit consistent with their delegated authorities and the nature and scale of the market
risks involved.
●
Daily monitoring of current exposure and limit utilisation is conducted independently by Market Risk teams, which monitor market risk exposures against
VaR and structural risk limits. Daily VaR position reports are produced by risk type, by product lines and by geographic region. Quarterly reports are
produced for the Westpac Group Market Risk Committee (MARCO), RISKCO and the BRiskC.
●
Daily stress testing and back testing of VaR results are performed to support model integrity and to analyse extreme or unexpected movements, and the
Head of Market, Capital & Liquidity Risk has ratified an approved stress escalation framework.
●
The BRiskC has approved a framework for profit or loss escalation which considers both single day and 20 day cumulative results.
●
Treasury’s ALM unit is responsible for managing the non-traded interest rate risk including risk mitigation through hedging using derivatives. This is
overseen by the Market Risk unit and reviewed by Treasury Financial Risk Committee (TRFC), MARCO, RISKCO and BRiskC. The Group ALCO provides
additional oversight of non-traded market risk and alignment with Group strategy in reviewing NaR and the durations of capital and non-rate sensitive
deposit hedges.
For personal use only
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75
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
21.2. Funding and liquidity risk
21.2.1. Liquidity modelling
In managing liquidity for Westpac, Treasury utilises balance sheet forecasts and the maturity profile of Westpac’s wholesale funding portfolio to project liquidity outcomes. Local liquidity limits
are also used by Westpac in applicable jurisdictions to ensure liquidity is managed efficiently and prudently.
In addition, Westpac conducts regular stress testing to assess its ability to meet cash flow obligations under a range of market conditions and scenarios. These scenarios inform liquidity limits
and strategic planning.
21.2.2. Sources of funding
Sources of funding are regularly reviewed to maintain a wide diversification by currency, geography, product and term. Sources include, but are not limited to:
●
Deposits;
●
Debt issues;
●
Proceeds from sale of marketable securities;
●
Repurchase agreements with central banks;
●
Principal repayments on loans;
●
Interest income; and
●
Fee income.
Liquid assets
Treasury holds a portfolio of high-quality liquid assets as a buffer against unforeseen funding requirements. These assets are held in cash, or are otherwise eligible for repurchase agreements
with the Reserve Bank of Australia or another central bank and include Government, State Government and highly rated investment grade securities. The level of liquid asset holdings is
reviewed frequently and is consistent with both the requirements of the balance sheet and market conditions.
A summary of Westpac’s liquid asset holdings is as follows:
Consolidated
Parent Entity
2025
2024
2025
2024
$m
Actual
Average
Actual
Average
Actual
Average
Actual
Average
Cash
50,157
66,322
65,356
94,468
44,607
58,836
58,236
85,384
Trading securities and financial assets measured at FVIS
40,840
31,936
31,717
19,183
39,257
29,702
29,538
16,954
Investment securities
117,065
113,488
103,435
92,622
108,880
105,065
95,415
85,076
Other financial assets
319
273
174
199
246
240
173
195
Total on-balance sheet liquid assets
208,381
212,019
200,682
206,472
192,990
193,843
183,362
187,609
In addition, Westpac has $81,653 million (2024: $70,306 million) and the Parent Entity has $76,094 million (2024: $62,770 million) of loans that are self-originated AAA rated mortgage backed
securities which are eligible for repurchase with the RBA and Reserve Bank of New Zealand under certain circumstances. Average year-to-date balances amount to $76,439 million (2024:
$70,282 million) for Westpac and $70,708 million (2024: $63,975 million) for the Parent Entity.
For personal use only
76 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
Westpac’s funding composition
Westpac monitors the composition and stability of its funding so that it remains within Westpac’s funding risk appetite. This includes compliance with both the LCR and NSFR.
%
2025
2024
Customer deposits
68.1
66.9
Wholesale term funding with residual maturity greater than 12 months
12.9
13.9
Wholesale funding with a residual maturity less than 12 months
11.6
11.4
Equity
6.9
7.2
Securitisation
0.5
0.6
Group’s total funding
100.0
100.0
Movements in Westpac’s funding composition in 2025 included:
●
Customer deposits increased by $49.4 billion and now account for 68.1% of Westpac’s total funding (including equity) at 30 September 2025, up from 66.9% at 30 September 2024;
●
Long-term funding with a residual maturity greater than 12 months accounted for 12.9% of Westpac’s total funding at 30 September 2025. Funding from securitisation accounted for a
further 0.5% of total funding. Westpac raised $28.1 billion of long-term wholesale funding in 2025, supported by constructive conditions in global capital markets. This was lower than prior
financial years reflecting strong growth in customer deposits and lower wholesale funding maturities to be refinanced;
●
Wholesale funding with a residual maturity less than 12 months accounted for 11.6% of Westpac’s total funding at 30 September 2025, up from 11.4% at 30 September 2024. This portfolio,
including long-term funding with a residual maturity less than one year, had a weighted average maturity of 153 days; and
●
Funding from equity increased by $1.0 billion in 2025 and made up 6.9% of total funding at 30 September 2025, down from 7.2% at 30 September 2024, reflecting the impact of the on-
market share buyback.
Borrowings and outstanding issuances from existing debt programs at 30 September 2025 can be found in Note 12, Note 13, Note 14 and Note 19.
Funding for Lending Programme (FLP)
On 11 November 2020, the Reserve Bank of New Zealand (RBNZ) announced a stimulus through the FLP commencing in December 2020. The FLP provided funding to New Zealand banks
at the prevailing OCR for a term of three years secured by high quality collateral. The size of the funding available under the FLP included an initial allocation of 4% of each bank’s eligible
loans. A conditional additional allocation of up to 2% of eligible loans was also available, subject to growth in eligible loans, for a total size of up to 6% of eligible loans. The programme started
on 7 December 2020 and ran until 6 December 2022. During the year, Westpac New Zealand Limited has made scheduled repayments on the programme and as at 30 September 2025 the
amount outstanding totalled NZ$1,110 million (30 September 2024: NZ$2,981 million).
Credit ratings
As at 30 September 2025 the Parent Entity’s credit ratings were:
2025
Short-term
Long-term
Outlook
Fitch Ratings
F1+
AA-
Stable
Moody’s Ratings
P-1
Aa2
Stable
S&P Global Ratings
A-1+
AA-
Stable
For personal use only
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77
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
21.2.3. Assets pledged as collateral
Westpac and the Parent Entity are required to provide collateral (predominantly to other financial institutions), as part of standard terms, to secure liabilities. In addition to assets supporting
securitisation and covered bond programs disclosed in Note 15, the carrying value of these financial assets pledged as collateral is:
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Cash
4,590
6,269
4,562
6,199
Securities (including certificates of deposit)
2,535
1,721
2,307
1,721
Securities pledged under repurchase agreements
15,230
19,938
13,379
16,205
Securities pledged on contingent liabilities
119
56
119
56
Total amount pledged to secure liabilities/contingent liabilities
22,474
27,984
20,367
24,181
21.2.4. Contractual maturity of financial liabilities
The following tables present cash flows associated with financial liabilities, payable at the balance sheet date, by remaining contractual maturity. The amounts disclosed in the table are the
future contractual undiscounted cash flows, whereas Westpac manages inherent liquidity risk based on expected cash flows.
Cash flows associated with financial liabilities include both principal payments as well as fixed or variable interest payments incorporated into the relevant coupon period. Principal payments
reflect the earliest contractual maturity date. Derivative liabilities designated in hedge accounting relationships and used as economic hedges are expected to be held for their remaining
contractual lives, and reflect gross cash flows over the remaining contractual term.
Derivatives held for trading (excluding economic hedges) and certain liabilities classified in “Other financial liabilities” which are measured at FVIS are not managed for liquidity purposes on the
basis of their contractual maturity, and accordingly these liabilities are presented in the up to 1 month column. Only the liabilities that Westpac manages based on their contractual maturity are
presented on a contractual undiscounted basis in the following tables.
For personal use only
78 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
Consolidated
Over 1 month
Over 3 months
Over 1 year to
$m
Up to 1 month
to 3 months
to 1 year
5 years
Over 5 years
Total
2025
Financial liabilities
Collateral received
3,194
-
-
-
-
3,194
Deposits and other borrowings
564,053
77,359
125,412
9,924
62
776,810
Other financial liabilities
30,575
2,445
4,724
8
-
37,752
Derivative financial instruments:
Held for trading
15,915
-
-
-
-
15,915
Held for hedging purposes (net settled)
18
(39)
(42)
239
391
567
Held for hedging purposes (gross settled):
Cash outflow
15,370
19,254
56,774
103,183
40,431
235,012
Cash inflow
(14,750)
(17,974)
(56,043)
(100,546)
(38,150)
(227,463)
Debt issues
3,401
10,307
57,360
102,381
16,597
190,046
Total financial liabilities excluding loan capital
617,776
91,352
188,185
115,189
19,331
1,031,833
Loan capital
56
456
1,433
7,874
48,506
58,325
Total undiscounted financial liabilities
617,832
91,808
189,618
123,063
67,837
1,090,158
Total contingent liabilities and commitments
Financial guarantees, letters of credit and other credit substitutes
15,721
-
-
-
-
15,721
Performance-related contingencies
6,709
-
-
-
-
6,709
Remaining commitments to extend credit
198,739
-
-
-
-
198,739
Total undiscounted contingent liabilities and commitments
221,169
-
-
-
-
221,169
2024
Financial liabilities
Collateral received
3,092
-
-
-
-
3,092
Deposits and other borrowings
518,458
69,841
129,864
10,056
50
728,269
Other financial liabilities
25,759
1,851
4,593
1,049
5
33,257
Derivative financial instruments:
Held for trading
23,158
-
-
-
-
23,158
Held for hedging purposes (net settled)
(18)
(198)
(269)
(381)
36
(830)
Held for hedging purposes (gross settled):
Cash outflow
13,556
20,755
39,009
92,784
44,267
210,371
Cash inflow
(11,622)
(16,220)
(38,699)
(91,167)
(41,207)
(198,915)
Debt issues
5,609
12,192
47,472
105,035
18,327
188,635
Total financial liabilities excluding loan capital
577,992
88,221
181,970
117,376
21,478
987,037
Loan capital
62
332
889
9,650
42,891
53,824
Total undiscounted financial liabilities
578,054
88,553
182,859
127,026
64,369
1,040,861
Total contingent liabilities and commitments
Financial guarantees, letters of credit and other credit substitutes
15,220
-
-
-
-
15,220
Performance-related contingencies
5,393
-
-
-
-
5,393
Remaining commitments to extend credit
191,498
-
-
-
-
191,498
Total undiscounted contingent liabilities and commitments
212,111
-
-
-
-
212,111
For personal use only
FINANCIAL
REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
79
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
Parent Entity
Over 1 month
Over 3 months
Over 1 year to
$m
Up to 1 month
to 3 months
to 1 year
5 years
Over 5 years
Total
2025
Financial liabilities
Collateral received
2,371
-
-
-
-
2,371
Deposits and other borrowings
519,315
66,463
108,989
7,295
62
702,124
Other financial liabilities
28,910
1,804
4,703
8
-
35,425
Derivative financial instruments:
Held for trading
15,915
-
-
-
-
15,915
Held for hedging purposes (net settled)
18
(39)
(46)
143
353
429
Held for hedging purposes (gross settled):
Cash outflow
15,370
19,254
56,774
103,183
40,431
235,012
Cash inflow
(14,750)
(17,974)
(56,043)
(100,546)
(38,150)
(227,463)
Debt issues
2,425
8,961
50,517
79,968
15,381
157,252
Due to subsidiaries
16,022
572
2,957
10,337
41,308
71,196
Total financial liabilities excluding loan capital
585,596
79,041
167,851
100,388
59,385
992,261
Loan capital
56
439
1,382
7,633
47,295
56,805
Total undiscounted financial liabilities
585,652
79,480
169,233
108,021
106,680
1,049,066
Total contingent liabilities and commitments
Financial guarantees, letters of credit and other credit substitutes
15,254
-
-
-
-
15,254
Performance-related contingencies
6,484
-
-
-
-
6,484
Remaining commitments to extend credit
173,966
-
-
-
-
173,966
Total undiscounted contingent liabilities and commitments
195,704
-
-
-
-
195,704
2024
Financial liabilities
Collateral received
2,949
-
-
-
-
2,949
Deposits and other borrowings
472,586
59,872
109,208
7,816
50
649,532
Other financial liabilities
25,217
1,851
2,829
8
-
29,905
Derivative financial instruments:
Held for trading
23,158
-
-
-
-
23,158
Held for hedging purposes (net settled)
(23)
(187)
(287)
(322)
43
(776)
Held for hedging purposes (gross settled):
Cash outflow
13,566
20,885
39,202
98,148
44,600
216,401
Cash inflow
(11,622)
(16,288)
(38,924)
(96,397)
(41,544)
(204,775)
Debt issues
5,245
11,104
42,214
85,150
16,935
160,648
Due to subsidiaries
12,301
651
3,114
13,039
55,010
84,115
Total financial liabilities excluding loan capital
543,377
77,888
157,356
107,442
75,094
961,157
Loan capital
62
315
836
9,375
41,551
52,139
Total undiscounted financial liabilities
543,439
78,203
158,192
116,817
116,645
1,013,296
Total contingent liabilities and commitments
Financial guarantees, letters of credit and other credit substitutes
14,642
-
-
-
-
14,642
Performance-related contingencies
5,369
-
-
-
-
5,369
Remaining commitments to extend credit
167,851
-
-
-
-
167,851
Total undiscounted contingent liabilities and commitments
187,862
-
-
-
-
187,862
For personal use only
80 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
21.2.5. Expected maturity
The financial liability balances in the following tables will not agree to the contractual maturity tables (Note 21.2.4) due to the impact of discounting and the exclusion of interest accruals
beyond the reporting period. Assets and liabilities that have no specific maturity (such as equity securities) are generally included in the ‘Greater than 12 months’ column. Loans and deposits
are presented in the following table on a contractual basis, however the behavioural life may differ. Loans may be repaid earlier than their contractual maturity and Westpac would expect a
large proportion of deposit balances to be retained.
2025
2024
Consolidated
Due within
Greater than
Due within
Greater than
$m
12 months
12 months
Total
12 months
12 months
Total
Assets
Cash and balances with central banks
50,430
-
50,430
65,667
-
65,667
Collateral paid
4,590
-
4,590
6,269
-
6,269
Trading securities and financial assets measured at FVIS
43,742
12,099
55,841
33,090
16,138
49,228
Derivative financial instruments
15,983
2,481
18,464
21,978
2,131
24,109
Investment securities
17,168
100,373
117,541
20,930
82,955
103,885
Loans (net of provisions)
100,242
751,611
851,853
97,010
709,757
806,767
Other financial assets
10,663
103
10,766
5,355
101
5,456
All other assets
1,016
14,855
15,871
921
15,242
16,163
Total assets
243,834
881,522
1,125,356
251,220
826,324
1,077,544
Liabilities
Collateral received
3,187
-
3,187
3,078
-
3,078
Deposits and other borrowings
761,063
9,394
770,457
711,076
9,413
720,489
Other financial liabilities
41,481
7
41,488
37,024
1,053
38,077
Derivative financial instruments
17,137
3,493
20,630
25,390
5,584
30,974
Debt issues
66,785
104,619
171,404
59,911
109,373
169,284
All other liabilities
2,409
2,718
5,127
2,732
2,975
5,707
Total liabilities excluding loan capital
892,062
120,231
1,012,293
839,211
128,398
967,609
Loan capital
3,412
36,558
39,970
3,829
34,054
37,883
Total liabilities
895,474
156,789
1,052,263
843,040
162,452
1,005,492
Net assets/(liabilities)
(651,640)
724,733
73,093
(591,820)
663,872
72,052
For personal use only
FINANCIAL
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
81
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
2025
2024
Parent Entity
Due within
Greater than
Due within
Greater than
$m
12 months
12 months
Total
12 months
12 months
Total
Assets
Cash and balances with central banks
44,782
-
44,782
58,400
-
58,400
Collateral paid
4,562
-
4,562
6,199
-
6,199
Trading securities and financial assets measured at FVIS
42,284
11,342
53,626
31,736
15,278
47,014
Derivative financial instruments
15,979
1,555
17,534
21,976
1,926
23,902
Investment securities
15,699
93,401
109,100
18,748
76,875
95,623
Loans (net of provisions)
79,253
675,859
755,112
76,274
633,769
710,043
Other financial assets
10,023
103
10,126
4,850
101
4,951
Due from subsidiaries
12,286
36,544
48,830
8,735
43,604
52,339
Investment in subsidiaries
-
8,567
8,567
-
9,095
9,095
All other assets
821
12,661
13,482
719
12,949
13,668
Total assets
225,689
840,032
1,065,721
227,637
793,597
1,021,234
Liabilities
Collateral received
2,364
-
2,364
2,935
-
2,935
Deposits and other borrowings
689,722
6,938
696,660
637,088
7,393
644,481
Other financial liabilities
38,928
7
38,935
33,883
34
33,917
Derivative financial instruments
17,130
3,362
20,492
25,392
5,403
30,795
Debt issues
58,590
84,032
142,622
53,982
89,900
143,882
Due to subsidiaries
17,678
34,888
52,566
13,492
42,230
55,722
All other liabilities
2,105
2,186
4,291
2,357
2,387
4,744
Total liabilities excluding loan capital
826,517
131,413
957,930
769,129
147,347
916,476
Loan capital
3,412
35,479
38,891
3,829
32,941
36,770
Total liabilities
829,929
166,892
996,821
772,958
180,288
953,246
Net assets/(liabilities)
(604,240)
673,140
68,900
(545,321)
613,309
67,988
21.3. Market risk
21.3.1. Value-at-Risk
Westpac uses VaR as one of the mechanisms for controlling both traded and non-traded market risk.
VaR is a statistical estimate of the potential loss in earnings over a specified period of time and to a given level of confidence based on historical market movements. The confidence level
indicates the probability that the loss will not exceed the VaR estimate on any given day.
VaR seeks to take account of all material market variables that may cause a change in the value of the portfolio, including interest rates, FX rates, price changes, volatility and the correlations
between these variables. Daily monitoring of current exposures and VaR and structural concentration limit utilisation is conducted independently by the Market Risk unit. These limits are
supplemented by escalation triggers for material profit or loss, and stress testing of risks beyond the 99% confidence interval.
The key parameters of VaR are:
Traded market risk
Non-traded market risk
Holding period
1 day
1 year
Confidence level
99%
99%
Period of historical data used
1 year
6 years
For personal use only
82 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Risk management, funding and liquidity risk and market risk (Continued)
21.3.2. Traded market risk
The following table depicts the aggregate VaR, by risk type:
Consolidated and Parent Entity
2025
2024
2023
$m
High
Low
Average
High
Low
Average
High
Low
Average
Interest rate risk
16.7
4.3
8.6
21.2
5.4
10.8
21.8
7.2
11.0
FX risk
4.4
1.1
2.1
7.3
0.9
2.4
14.2
1.1
4.3
Equity risk
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
Commodity risk
1.2
0.3
0.5
1.7
0.6
1.2
3.5
0.9
2.0
Other market risksa
7.4
2.3
4.3
10.1
1.9
5.4
9.4
3.2
6.0
Diversification effect
n/a
n/a
(5.8)
n/a
n/a
(6.9)
n/a
n/a
(8.1)
Net market risk
17.9
6.6
9.7
23.4
6.8
12.9
31.8
8.8
15.2
a.
Includes prepayment risk and credit spread risk (exposure to movements in generic credit rating bands).
21.3.3. Non-traded market risk
Non-traded market risk includes Interest Rate Risk in the Banking Book (IRRBB) – the risk to net interest income or the economic value on banking book items as a result of interest rate
changes.
Net interest income (NII) sensitivity is monitored using the Net interest income-at-Risk (NaR) model. The NaR model combines the underlying balance sheet data with assumptions about
runoffs, new business, and expected repricing behaviour. This simulates a series of potential NII outcomes, over a one year time horizon subject to 100 basis point shift up and down from the
current market interest rates in Australia and New Zealand.
Net interest income-at-Risk
The following table depicts potential NII outcomes assuming a worst case outcome between a 100 basis point rate shock up or down with a 12 month time horizon (expressed as a percentage
of reported NII):
2025
2024
Maximum
Minimum
Average
Maximum
Minimum
Average
% (increase)/decrease in NII
As at
exposure
exposure
exposure
As at
exposure
exposure
exposure
Consolidated
1.05
1.63
0.57
1.23
1.84
1.84
0.97
1.42
Parent Entity
0.46
1.21
0.16
0.80
1.40
1.43
0.59
1.03
Value at Risk - IRRBB
The table below depicts internal VaR for IRRBB1:
2025
2024
$m
As at
High
Low
Average
As at
High
Low
Average
Consolidated
96.2
101.7
67.5
85.7
77.7
80.6
37.5
50.0
As at 30 September 2025 the Value at Risk – IRRBB for the Parent Entity was $104 million (2024: $77 million).
Risk mitigation
IRRBB stems from the ordinary course of banking activities, including structural interest rate risk (the mismatch between the duration of assets and liabilities) and capital management.
Westpac hedges its exposure to such interest rate risk using derivatives. Further details on Westpac’s hedge accounting are discussed in Note 20.
The same controls used to monitor traded market risk allow management to monitor and manage IRRBB.
Structural FX risk
Structural FX risk results from the generation of foreign currency denominated earnings and from Westpac’s capital deployed in offshore branches and subsidiaries, where it is denominated in
currencies other than Australian dollars. As exchange rates move, the Australian dollar equivalent of offshore earnings and capital is subject to change that could introduce significant variability
to the Bank’s reported financial results and capital ratios.
Note 20 includes details on the net investment hedges related to structural FX risk and economic hedges of New Zealand future earnings.
1.
Based on a 1 day holding period and 1 year of historical data to allow comparison to the traded market risk results, noting IRRBB is managed to a longer holding period.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
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83
Note 22. 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 Westpac 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 Westpac’s
assessment of factors that market participants would consider in setting the fair value.
These adjustments incorporate bid/offer spreads, credit valuation adjustments (CVA) and funding valuation adjustments (FVA).
Fair Valuation Control Framework
Westpac 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 Westpac. 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.
Westpac categorises all fair value instruments according to the hierarchy described below.
Valuation techniques
Westpac applies market accepted valuation techniques in determining the fair valuation of over the counter (OTC) derivatives. This includes CVA and FVA, which incorporate credit risk and
funding costs and benefits that arise primarily 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:
For personal use only
84 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 22. Fair values of financial assets and financial liabilities (Continued)
Level 1 instruments (Level 1)
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.
Instrument
Balance sheet category
Includes
Valuation
Exchange traded products
Derivatives
Exchange traded interest rate futures and
options and commodity and carbon futures
FX products
Derivatives
FX spot and futures contracts
Equity products
Derivatives
Trading securities and financial
assets measured at FVIS
Other financial liabilities
Listed equities and equity indices
All these instruments are traded in liquid, active markets where prices are readily observable.
No modelling or assumptions are used in the valuation.
Debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Other financial liabilities
Australian government and semi-
government bonds, New Zealand
government bonds, US Treasury Securities
Level 2 instruments (Level 2)
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.
Instrument
Balance sheet category
Includes
Valuation
Interest rate products
Derivatives
Interest rate and inflation swaps, swaptions,
caps, floors, collars and other non-vanilla
interest rate derivatives
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 and actively 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
Derivatives
FX swaps, FX forward contracts, FX options
and other non-vanilla FX derivatives
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.
Other credit products
Derivatives
Single name and index credit default swaps
Valued using an industry standard model that incorporates the credit spread as its
principal input. Credit spreads are obtained from consensus data providers. If consensus
prices are not available, these are classified as Level 3 instruments.
Commodity products
Derivatives
Commodity and carbon derivatives
Valued using industry standard models.
The models calculate the expected future value of deliveries and payments and discount
them back to a present value. The model inputs include forward curves, volatilities
implied from market observable inputs, discount curves and underlying spot and futures
prices. The significant inputs are market observable or available through a consensus
data service. If consensus prices are not available, these are classified as Level 3
instruments.
Equity products
Derivatives
Exchange traded equity options, OTC equity
options and equity warrants
Due to low liquidity, exchange traded equity options are Level 2.
Valued using industry standard models based on observable parameters such as stock
prices, dividends, volatilities and interest rates.
For personal use only
FINANCIAL
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EXHIBITS INDEX
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
85
Note 22. Fair values of financial assets and financial liabilities (Continued)
Instrument
Balance sheet category
Includes
Valuation
Asset backed debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
Australian residential mortgage backed
securities (RMBS) and other asset backed
securities (ABS)
Valued using an industry approach to value floating rate debt with prepayment features.
Australian RMBS are valued using prices sourced from a consensus data provider. 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
State and other government bonds, corporate
bonds and commercial paper
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.
Loans at fair value
Loans
Fixed rate bills and syndicated loans
Discounted cash flow approach, using a discount rate which reflects the terms of the
instrument and the timing of cash flows, adjusted for creditworthiness, or expected sale
amount.
Certificates of deposit
Deposits and other borrowings
Certificates of deposit
Discounted cash flow using market rates offered for deposits of similar remaining
maturities.
Debt issues at fair value
Debt issues
Debt issues
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 Westpac’s
implied credit worthiness.
Level 3 instruments (Level 3)
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. These inputs are generally derived and extrapolated from other relevant market data and calibrated against current market trends and historical transactions.
These valuations are calculated using a high degree of management judgement.
Instrument
Balance sheet category
Includes
Valuation
Debt instruments
Trading securities and financial
assets measured at FVIS
Investment securities
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.
Equity instruments
Investment securities
Strategic equity investments
Valued using valuation techniques appropriate to the instrument, including the use of
recent arm’s length transactions where available, discounted cash flow approach or
reference to the net assets of the entity.
Due to their illiquidity, complexity and/or use of unobservable inputs into valuation models,
they are classified as Level 3 assets.
For personal use only
86 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 22. Fair values of financial assets and financial liabilities (Continued)
The following tables summarise the attribution of financial instruments measured at fair value to the fair value hierarchy.
2025
2024
$m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Consolidated
Financial assets measured at fair value on a recurring basis
Trading securities and financial assets measured at FVIS
17,431
38,408
2
55,841
15,522
33,700
6
49,228
Derivative financial instruments
16
18,442
6
18,464
13
24,089
7
24,109
Investment securities
77,044
39,049
475
116,568
14,117
88,155
447
102,719
Loans
-
51
15
66
-
210
15
225
Total financial assets measured at fair value on a recurring basis
94,491
95,950
498
190,939
29,652
146,154
475
176,281
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowingsa
-
47,514
-
47,514
-
46,878
-
46,878
Other financial liabilitiesb
3,740
14,143
-
17,883
891
18,428
-
19,319
Derivative financial instruments
7
20,619
4
20,630
14
30,955
5
30,974
Debt issuesc
-
4,478
-
4,478
-
5,385
-
5,385
Total financial liabilities measured at fair value on a recurring basis
3,747
86,754
4
90,505
905
101,646
5
102,556
Parent Entity
Financial assets measured at fair value on a recurring basis
Trading securities and financial assets measured at FVIS
17,196
36,428
2
53,626
15,091
31,918
5
47,014
Derivative financial instruments
16
17,512
6
17,534
13
23,883
6
23,902
Investment securities
73,589
35,291
220
109,100
11,166
84,182
206
95,554
Loans
-
51
-
51
-
210
1
211
Due from subsidiaries
-
806
-
806
-
1,044
-
1,044
Total financial assets measured at fair value on a recurring basis
90,801
90,088
228
181,117
26,270
141,237
218
167,725
Financial liabilities measured at fair value on a recurring basis
Deposits and other borrowingsa
-
45,920
-
45,920
-
45,167
-
45,167
Other financial liabilitiesb
3,740
13,659
-
17,399
891
18,428
-
19,319
Derivative financial instruments
7
20,481
4
20,492
14
30,776
5
30,795
Debt issuesc
-
2,064
-
2,064
-
1,961
-
1,961
Due to subsidiaries
-
1,190
-
1,190
-
344
-
344
Total financial liabilities measured at fair value on a recurring basis
3,747
83,314
4
87,065
905
96,676
5
97,586
a.
The contractual outstanding amount payable at maturity was $47,838 million (2024: $47,328 million) for the Group and $46,239 million (2024: $45,603 million) for the Parent Entity.
b.
The contractual outstanding amount payable at maturity for the Group is $20,032 million (2024: $19,320 million) and $19,548 million for the Parent Entity (2024: $19,320 million).
c.
The contractual outstanding payable at maturity was $4,877 million (2024: $5,678 million) for the Group and $2,446 million (2024: $2,226 million) for the Parent Entity. The cumulative change in the fair value of debt issues
attributable to changes in Westpac’s own credit risk was $37 million decrease (2024: $58 million decrease) for the Group and Parent Entity.
$48,184 million of assets and $274 million of liabilities for the Group and Parent Entity have been transferred from Level 2 to Level 1 in 2025. This followed a detailed review of the levelling of
certain US Treasury securities and certain Australian semi-government bonds using additional granular data sourced from independent pricing services, which confirmed that observable prices
in an active market are available for the securities transferred. Transfers in and transfers out are reported using the end of period fair values.
For personal use only
FINANCIAL
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EXHIBITS INDEX
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PERFORMANCE
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
87
Note 22. Fair values of financial assets and financial liabilities (Continued)
Reconciliation of non-market observables
The following tables summarise the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3).
Trading
securities and
financial assets
measured
Investment
Derivative and
Total Level
Derivative
Total Level
$m
at FVIS
securities
other assets
3 assets
liabilities
3 liabilities
Consolidated
Balance as at 30 September 2023
27
441
41
509
15
15
Gains/(losses) on assets/(gains)/losses on liabilities recognised in:
Income statements
(1)
-
(28)
(29)
2
2
OCI
-
(11)
-
(11)
-
-
Acquisitions and issues
9
21
231
261
308
308
Disposals and settlements
(11)
(5)
(220)
(236)
(311)
(311)
Transfer into or out of non-market observables
(18)
-
(2)
(20)
(9)
(9)
Foreign currency translation impacts
-
1
-
1
-
-
Balance as at 30 September 2024
6
447
22
475
5
5
Gains/(losses) on assets/(gains)/losses on liabilities recognised in:
Income statements
-
-
1
1
7
7
OCI
-
25
-
25
-
-
Acquisitions and issues
8
1
4
13
14
14
Disposals and settlements
(12)
(1)
(4)
(17)
(3)
(3)
Transfer into or out of non-market observables
-
-
(1)
(1)
(19)
(19)
Foreign currency translation impacts
-
3
(1)
2
-
-
Balance as at 30 September 2025
2
475
21
498
4
4
Unrealised gains/(losses) recognised in the income statements for financial instruments held
as at:
30 September 2024
-
-
5
5
1
1
30 September 2025
-
-
1
1
(2)
(2)
For personal use only
88 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 22. Fair values of financial assets and financial liabilities (Continued)
Trading
securities and
financial assets
measured
Investment
Derivative and
Total Level
Derivative
Total Level
$m
at FVIS
securities
other assets
3 assets
liabilities
3 liabilities
Parent Entity
Balance as at 30 September 2023
26
202
29
257
15
15
Gains/(losses) on assets/(gains)/losses on liabilities recognised in:
Income statements
(1)
-
(28)
(29)
2
2
OCI
-
(13)
-
(13)
-
-
Acquisitions and issues
9
16
228
253
308
308
Disposals and settlements
(11)
-
(220)
(231)
(311)
(311)
Transfer into or out of non-market observables
(18)
-
(2)
(20)
(9)
(9)
Foreign currency translation impacts
-
1
-
1
-
-
Balance as at 30 September 2024
5
206
7
218
5
5
Gains/(losses) on assets/(gains)/losses on liabilities recognised in:
Income statements
-
-
1
1
7
7
OCI
-
10
-
10
-
-
Acquisitions and issues
8
1
2
11
14
14
Disposals and settlements
(11)
-
(3)
(14)
(3)
(3)
Transfer into or out of non-market observables
-
-
(1)
(1)
(19)
(19)
Foreign currency translation impacts
-
3
-
3
-
-
Balance as at 30 September 2025
2
220
6
228
4
4
Unrealised gains/(losses) recognised in the income statements for financial instruments held
as at:
30 September 2024
-
-
5
5
1
1
30 September 2025
-
-
1
1
(2)
(2)
Transfers into and out of Level 3 have occurred due to changes in observability in the significant inputs into the valuation models used to determine the fair value of the related financial
instruments. Transfers in and transfers out are reported using the end of period fair values.
Significant unobservable inputs
Sensitivities to reasonably possible changes in non-market observable valuation assumptions would not have a material impact on Westpac’s reported results.
Day one profit or loss
The closing balance of unrecognised day one profit for both Westpac and the Parent Entity as at 30 September 2025 was $2 million (2024: $1 million).
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:
Instrument
Valuation
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 credit worthiness of the borrower.
Investment securities
The carrying value approximates the fair value. The balance principally relates to government securities from illiquid markets. Fair value is monitored by reference to recent issuances.
Deposits and other borrowings
Fair values of deposit liabilities payable on demand (non-interest bearing, 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.
Debt issues and loan capital
Fair values are calculated using a discounted cash flow model. The discount rates applied reflect the terms of the instruments, the timing of the estimated cash flows and are adjusted for any
changes in Westpac’s credit spreads.
All other financial assets and
liabilities
For all other financial assets and liabilities, the carrying value approximates the fair value. These items are either short-term in nature, re-price frequently or are of a high credit rating.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
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89
Note 22. Fair values of financial assets and financial liabilities (Continued)
The following tables summarise the estimated fair value and fair value hierarchy of financial instruments not measured at fair value.
Estimated fair value
Consolidated
Carrying
$m
amount
Level 1
Level 2
Level 3
Total
2025
Financial assets not measured at fair value
Cash and balances with central banks
50,430
50,430
-
-
50,430
Collateral paid
4,590
4,590
-
-
4,590
Investment securities
973
-
482
491
973
Loans
851,787
-
-
852,108
852,108
Other financial assets
10,766
-
10,766
-
10,766
Total financial assets not measured at fair value
918,546
55,020
11,248
852,599
918,867
Financial liabilities not measured at fair value
Collateral received
3,187
3,187
-
-
3,187
Deposits and other borrowings
722,943
-
720,311
3,360
723,671
Other financial liabilities
23,605
-
23,605
-
23,605
Debt issuesa
166,926
-
165,969
1,762
167,731
Loan capitala
39,970
-
41,731
-
41,731
Total financial liabilities not measured at fair value
956,631
3,187
951,616
5,122
959,925
2024
Financial assets not measured at fair value
Cash and balances with central banks
65,667
65,667
-
-
65,667
Collateral paid
6,269
6,269
-
-
6,269
Investment securities
1,166
-
452
714
1,166
Loans
806,542
-
-
805,776
805,776
Other financial assets
5,456
-
5,456
-
5,456
Total financial assets not measured at fair value
885,100
71,936
5,908
806,490
884,334
Financial liabilities not measured at fair value
Collateral received
3,078
3,078
-
-
3,078
Deposits and other borrowings
673,611
-
670,515
3,869
674,384
Other financial liabilities
18,758
-
18,758
-
18,758
Debt issuesa
163,899
-
162,750
1,755
164,505
Loan capitala
37,883
-
39,390
-
39,390
Total financial liabilities not measured at fair value
897,229
3,078
891,413
5,624
900,115
a.
The estimated fair values of debt issues and loan capital include the impact of changes in Westpac’s credit spreads since origination.
For personal use only
90 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 22. Fair values of financial assets and financial liabilities (Continued)
Estimated fair value
Parent Entity
Carrying
$m
amount
Level 1
Level 2
Level 3
Total
2025
Financial assets not measured at fair value
Cash and balances with central banks
44,782
44,782
-
-
44,782
Collateral paid
4,562
4,562
-
-
4,562
Loans
755,061
-
-
755,074
755,074
Due from subsidiariesa
47,242
-
6,528
40,714
47,242
Other financial assets
10,126
-
10,126
-
10,126
Total financial assets not measured at fair value
861,773
49,344
16,654
795,788
861,786
Financial liabilities not measured at fair value
Collateral received
2,364
2,364
-
-
2,364
Deposits and other borrowings
650,740
-
649,873
1,522
651,395
Other financial liabilities
21,536
-
21,536
-
21,536
Debt issuesb
140,558
-
141,181
-
141,181
Due to subsidiaries
51,376
-
2,541
48,835
51,376
Loan capitalb
38,891
-
40,623
-
40,623
Total financial liabilities not measured at fair value
905,465
2,364
855,754
50,357
908,475
2024
Financial assets not measured at fair value
Cash and balances with central banks
58,400
58,400
-
-
58,400
Collateral paid
6,199
6,199
-
-
6,199
Investment securities
69
-
-
69
69
Loans
709,832
-
-
709,048
709,048
Due from subsidiariesa
50,517
-
4,683
45,834
50,517
Other financial assets
4,951
-
4,951
-
4,951
Total financial assets not measured at fair value
829,968
64,599
9,634
754,951
829,184
Financial liabilities not measured at fair value
Collateral received
2,935
2,935
-
-
2,935
Deposits and other borrowings
599,314
-
598,587
1,405
599,992
Other financial liabilities
14,598
-
14,598
-
14,598
Debt issuesb
141,921
-
142,427
-
142,427
Due to subsidiaries
55,378
-
3,505
51,873
55,378
Loan capitalb
36,770
-
38,240
-
38,240
Total financial liabilities not measured at fair value
850,916
2,935
797,357
53,278
853,570
a.
Due from subsidiaries excluded $782 million (2024: $778 million) of long-term debt instruments with equity-like characteristics which are part of the total investment in subsidiaries.
b.
The estimated fair values of debt issues and loan capital include the impact of changes in Westpac’s credit spreads since origination.
For personal use only
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ADDITIONAL
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91
Note 23. Offsetting financial assets and financial liabilities
Accounting policy
Financial assets and liabilities are presented net in the balance sheet when Westpac 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 in the balance sheet are
disclosed in the following tables.
Some of Westpac’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 Westpac or Parent Entity. Refer to Note 11 for
information on credit risk management. The offsetting and collateral arrangements and other credit risk mitigation strategies used by Westpac are further explained in the ‘Management of risk
mitigation’ section of Note 11.5.
Amounts subject to enforceable netting arrangements
Effects of offsetting
Amounts subject to enforceable
in the balance sheet
netting arrangements but not offset
Net amounts
Other
reported in
recognised
Financial
Consolidated
Gross
Amounts
the balance
financial
Cash
instrument
$m
amounts
offset
sheet
instruments
collaterala,b
collateral
Net amount
2025
Assets
Collateral paidc
5,014
(4,994)
20
-
-
-
20
Derivative financial instrumentsd
67,954
(50,966)
16,988
(11,320)
(3,068)
(679)
1,921
Reverse repurchase agreementse
30,453
(2,149)
28,304
-
(120)
(28,184)
-
Loansf
26,809
(26,784)
25
-
-
-
25
Total assets
130,230
(84,893)
45,337
(11,320)
(3,188)
(28,863)
1,966
Liabilities
Collateral received
2,684
(2,603)
81
-
-
-
81
Derivative financial instrumentsd
72,525
(53,358)
19,167
(11,320)
(4,256)
(2,535)
1,056
Repurchase agreementsg
16,813
(2,149)
14,664
-
(17)
(14,647)
-
Deposits and other borrowingsf
52,146
(26,784)
25,362
-
-
-
25,362
Total liabilities
144,168
(84,894)
59,274
(11,320)
(4,273)
(17,182)
26,499
2024
Assets
Collateral paidc
4,532
(4,474)
58
-
-
-
58
Derivative financial instrumentsd
73,247
(50,474)
22,773
(17,071)
(3,065)
(112)
2,525
Reverse repurchase agreementse
19,898
(1,908)
17,990
-
(14)
(17,950)
26
Loansf
23,218
(23,147)
71
-
-
-
71
Total assets
120,895
(80,003)
40,892
(17,071)
(3,079)
(18,062)
2,680
Liabilities
Collateral received
2,562
(2,559)
3
-
-
-
3
Derivative financial instrumentsd
80,776
(52,389)
28,387
(17,071)
(5,870)
(1,721)
3,725
Repurchase agreementsg
20,756
(1,908)
18,848
-
(57)
(18,791)
-
Deposits and other borrowingsf
49,007
(23,147)
25,860
-
-
-
25,860
Total liabilities
153,101
(80,003)
73,098
(17,071)
(5,927)
(20,512)
29,588
a.
$3,187 million (2024: $3,078 million) of cash collateral on derivative financial assets and reverse repurchase agreements, is disclosed as collateral received in the balance sheet. The remainder is included in term deposits
recognised in deposits and other borrowings within Note 12.
b.
$4,273 million (2024: $5,927 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet.
The remainder of collateral paid, as disclosed in the balance sheet, consists of $317 million (2024: $342 million) in futures margin that does not form part of this column.
c.
Gross amounts consist of variation margin held directly with central clearing counterparties. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of
collateral received. Amounts offset relate to variation margin.
d.
$1,476 million (2024: $1,336 million) of derivative financial assets and $1,463 million (2024: $2,587 million) of derivative financial liabilities are not subject to enforceable netting arrangements.
e.
Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 16.
f.
Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 9 and part of deposits and other borrowings in Note
12.
g.
Repurchase agreements form part of other financial liabilities in Note 19.
For personal use only
92 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 23. Offsetting financial assets and financial liabilities (Continued)
Amounts subject to enforceable netting arrangements
Effects of offsetting
Amounts subject to enforceable
in the balance sheet
netting arrangements but not offset
Net amounts
Other
reported in
recognised
Financial
Parent Entity
Gross
Amounts
the balance
financial
Cash
instrument
$m
amounts
offset
sheet
instruments
collaterala,b
collateral
Net amount
2025
Assets
Collateral paidc
5,014
(4,994)
20
-
-
-
20
Derivative financial instrumentsd
67,025
(50,966)
16,059
(11,199)
(2,245)
(452)
2,163
Reverse repurchase agreementse
30,453
(2,149)
28,304
-
(120)
(28,184)
-
Loansf
26,809
(26,784)
25
-
-
-
25
Total assets
129,301
(84,893)
44,408
(11,199)
(2,365)
(28,636)
2,208
Liabilities
Collateral received
2,684
(2,603)
81
-
-
-
81
Derivative financial instrumentsd
72,391
(53,358)
19,033
(11,199)
(4,228)
(2,307)
1,299
Repurchase agreementsg
15,332
(2,149)
13,183
-
(17)
(13,166)
-
Deposits and other borrowingsf
52,146
(26,784)
25,362
-
-
-
25,362
Total liabilities
142,553
(84,894)
57,659
(11,199)
(4,245)
(15,473)
26,742
2024
Assets
Collateral paidc
4,532
(4,474)
58
-
-
-
58
Derivative financial instrumentsd
73,041
(50,474)
22,567
(16,971)
(2,922)
(112)
2,562
Reverse repurchase agreementse
19,898
(1,908)
17,990
-
(14)
(17,950)
26
Loansf
23,218
(23,147)
71
-
-
-
71
Total assets
120,689
(80,003)
40,686
(16,971)
(2,936)
(18,062)
2,717
Liabilities
Collateral received
2,562
(2,559)
3
-
-
-
3
Derivative financial instrumentsd
80,595
(52,389)
28,206
(16,971)
(5,800)
(1,721)
3,714
Repurchase agreementsg
17,979
(1,908)
16,071
-
(57)
(16,014)
-
Deposits and other borrowingsf
49,007
(23,147)
25,860
-
-
-
25,860
Total liabilities
150,143
(80,003)
70,140
(16,971)
(5,857)
(17,735)
29,577
a.
$2,364 million (2024: $2,935 million) of cash collateral on derivative financial assets and reverse repurchase agreements, is disclosed as collateral received in the balance sheet. The remainder is included in term deposits
recognised in deposits and other borrowings within Note 12.
b.
$4,245 million (2024: $5,857 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet.
The remainder of collateral paid, as disclosed in the balance sheet, consists of $317 million (2024: $342 million) in futures margin that does not form part of this column.
c.
Gross amounts consist of variation margin held directly with central clearing counterparties. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of
collateral received. Amounts offset relate to variation margin.
d.
$1,475 million (2024: $1,335 million) of derivative financial assets and $1,459 million (2024: $2,589 million) of derivative financial liabilities are not subject to enforceable netting arrangements.
e.
Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 16.
f.
Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 9 and part of deposits and other borrowings in Note
12.
g.
Repurchase agreements form part of other financial liabilities in Note 19.
Other recognised financial instruments
These financial assets and liabilities are subject to master netting agreements which are not enforceable in all circumstances, so they are recognised gross in 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.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
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93
INTANGIBLE ASSETS, PROVISIONS, COMMITMENTS AND CONTINGENCIES
Note 24. Intangible assets
Accounting policy
Indefinite life intangible assets
Goodwill
Goodwill acquired in a business combination is initially measured at cost, generally being the excess of:
(i)
The consideration paid; over
(ii)
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 cash generating unit’s (CGU) 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.
Westpac’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 groups of assets. They reflect the
level at which Westpac monitors and manages its operations.
Brand names
Brand names acquired in a business combination, including St.George, BT and BankSA, are initially recognised at cost. As these assets have been assessed as having indefinite useful lives they are
not amortised but tested for impairment at least annually or whenever there is an indication of impairment. The useful life of each brand name intangible asset is also reviewed each period to determine
whether events and circumstances continue to support the indefinite useful life assessment.
Finite life intangible assets
Finite life intangibles, such as computer software, are recognised initially at cost and subsequently at amortised cost less any impairment.
Intangible
Useful life
Depreciation method
Goodwill
Indefinite
Not applicable
Brand names
Indefinite
Not applicable
Computer software
3 to 10 years
Straight-line or the diminishing balance method (using the Sum of the Years Digits)
For personal use only
94 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 24. Intangible assets (Continued)
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Goodwill
Balance as at beginning of year
7,433
7,419
6,253
6,253
Additionsa
-
21
-
-
Other adjustments
(20)
(7)
-
-
Balance as at end of year
7,413
7,433
6,253
6,253
Computer software
Balance as at beginning of year
2,675
2,797
2,242
2,371
Additions
776
792
674
673
Impairment
(23)
(19)
(23)
(19)
Amortisation
(995)
(889)
(864)
(783)
Other adjustments
(19)
(6)
-
-
Balance as at end of year
2,414
2,675
2,029
2,242
Cost
8,705
8,856
7,303
7,493
Accumulated amortisation and impairment
(6,291)
(6,181)
(5,274)
(5,251)
Carrying amount
2,414
2,675
2,029
2,242
Brand names
638
638
636
636
Total intangible assets
10,465
10,746
8,918
9,131
Goodwill has been allocated to the following CGUs:
Consumer
4,829
4,829
4,484
4,484
Business & Wealthb
2,122
2,122
1,769
1,769
New Zealand
462
482
-
-
Total goodwill
7,413
7,433
6,253
6,253
Brand names has been allocated to the following CGUs:
Consumer
350
350
350
350
Business & Wealth
288
288
286
286
Total brand names
638
638
636
636
a.
Related to the acquisition of HealthPoint.
b.
The Business and Wealth segment comprises individual CGUs (Business, Platforms, Margin Lending and HealthPoint) to which goodwill has been allocated. The carrying amount of goodwill for Business was $1,812m as at 30
September 2025 and 30 September 2024. The carrying amount of goodwill allocated to the remaining individual CGUs in this segment is not significant compared to total Group goodwill.
For personal use only
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ADDITIONAL
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95
Note 24. Intangible assets (Continued)
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. For assets
other than goodwill management also assess whether there is any indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. If any such
indication exists, the recoverable amount of the asset is estimated. The primary test for recoverable amount is determined based on value-in-use which refers to the present value of expected
cash flows under its current use. Fair value less costs to sell is also considered for those CGUs where value-in-use is lower than carrying value. In the current year, this was not required to be
considered.
Significant assumptions used in recoverable amount calculations
The assumptions made for the impairment testing of indefinite life of intangibles 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, Westpac has reassessed these assumptions and revised them where necessary in
order to provide a reasonable estimate of the value-in-use of the CGUs and Group.
Discount rate
Cash flows
Post-tax rate/Pre-tax rate
Forecast period/terminal growth rate
2025
2024
2025
2024
Australian CGUsa
9% / 11.8%-12.8%
9% / 11.7%-11.9%
5 years / 2%
5 years / 2%
New Zealand
9% / 11.4%
9% / 11.4%-11.7%
5 years / 2%
5 years / 2%
a.
Australian CGUs comprise Consumer and the CGUs within Business & Wealth.
Westpac discounts the projected cash flows by its adjusted pre-tax equity rate.
The cashflows used are based on approved forecasts. These forecasts utilise information about current and future economic conditions, observable historical information and management
expectations of future business performance. The terminal growth rate represents the growth rate applied to extrapolate cash flows beyond the forecast period and reflects the lower end of the
RBA’s target long-term inflation rate band. For all CGUs tested, the recoverability of goodwill is not reliant on any one particular assumption. 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 Westpac’s reported results.
For personal use only
96 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments
Accounting policy
Provisions
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 – long service leave provision
Long service leave is granted to certain employees in Australia and New Zealand. The provision is calculated based on the expected payments. When payments are expected to be more
than one year in the future, the provision is discounted to present value using assumptions for expected employee service, utilisation and average salary increases.
Provisions carried for long service leave are supported by an independent actuarial report.
Employee benefits – annual leave and other employee benefits provision
The provision for annual leave and other employee benefits (including 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
Westpac is committed to provide facilities and guarantees as explained below. The provision for ECL is calculated using the methodology described in Note 10.
Compliance, Regulation and Remediation provisions
The compliance, regulation and remediation provisions relate to matters of potential misconduct in providing services to customers identified both as a result of regulatory action and internal
reviews. An assessment of the likely cost of these matters to Westpac (including applicable customer refunds) is made on a case-by-case basis and specific provisions are made where
appropriate.
Contingent liabilities
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events, and present obligations where the transfer of economic resources is not
probable or cannot be reliably measured. Contingent liabilities are not recognised in the balance sheet but are disclosed unless the outflow of economic resources is remote.
Undrawn credit commitments
Westpac enters into various arrangements with customers which are only recognised in the balance sheet when called upon. These arrangements include commitments to extend credit, bill
endorsements, financial guarantees, standby letters of credit and underwriting facilities.
Contingent assets
Contingent assets are possible assets whose existence will be confirmed only by uncertain future events. Contingent assets are not recognised in the balance sheet but are disclosed if an
inflow of economic benefits is probable.
Critical accounting assumptions and estimates
The financial reporting of provisions for litigation and non-lending losses and for compliance, regulation and remediation matters involves a significant degree of judgement in relation to
identifying whether a present obligation exists and also in estimating the probability, timing, nature and quantum of the outflows that may arise from past events. These judgements are
made based on the specific facts and circumstances relating to individual events.
For personal use only
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PERFORMANCE
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
97
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments (Continued)
Provisions
Litigation,
Annual leave
Provision for
non-lending
and other
impairment
Lease
Restructuring
losses and
Long service
employee
on credit
restoration
and other
remediation
$m
leave
benefits
commitments
obligations
provisions
provisions
Total
Consolidated
Balance as at 30 September 2024
477
899
516
163
210
240
2,505
Additions
90
1,200
49
6
369
189
1,903
Utilisation
(56)
(1,167)
-
(8)
(225)
(90)
(1,546)
Reversal of unutilised provisions
(17)
(2)
(96)
(2)
(71)
(62)
(250)
Balance as at 30 September 2025
494
930
469
159
283
277
2,612
Parent Entity
Balance as at 30 September 2024
465
824
464
141
198
179
2,271
Additions
89
1,161
49
4
336
142
1,781
Utilisation
(55)
(1,128)
-
(6)
(203)
(70)
(1,462)
Reversal of unutilised provisions
(17)
(2)
(83)
(2)
(66)
(44)
(214)
Balance as at 30 September 2025
482
855
430
137
265
207
2,376
Legislative liabilities
Westpac had the following assessed liabilities as at 30 September 2025:
●
$26 million (2024: $22 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation Act 1987 and the Workplace Injury Management and Workers’
Compensation Act 1998 (New South Wales);
●
$7 million (2024: $7 million) based on actuarial assessment as a self-insurer under the Accident Compensation Act 1985 (Victoria);
●
$7 million (2024: $7 million) based on actuarial assessment as a self-insurer under the Workers’ Rehabilitation and Compensation Act 1986 (South Australia);
●
$2 million (2024: $2 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation and Rehabilitation Act 2003 (Queensland);
●
Nil (2024: nil) based on an actuarial assessment as a self-insurer under the Workers’ Compensation Act 1951 (Australian Capital Territory);
●
Nil (2024: nil) based on an actuarial assessment as a self-insurer under the Return to Work Act 1986 (Northern Territory);
●
$1 million (2024: $1 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation and Injury Management Act 1981 (Western Australia); and
●
$2 million (2024: $2 million) based on an actuarial assessment as a self-insurer under the Workers’ Rehabilitation and Compensation Act 1988 (Tasmania).
Appropriate provision has been made for these liabilities in the provision for annual leave and other employee benefits above.
For personal use only
98 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments (Continued)
Provisions
Litigation, non-lending losses and remediation provisions
Provisions for the financial year 2025 include estimates of:
●
Customer refunds associated with matters of potential historical misconduct;
●
Costs of completing remediation programs; and
●
Potential non-lending losses and costs connected with certain litigation and regulatory investigations.
It is possible that the final outcome could be below or above the provision, if the actual outcome differs 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.
Certain litigation and regulatory matters
As at 30 September 2025, the Group held provisions in respect of potential non-lending losses and costs connected with certain litigation and regulatory matters, including:
●
Civil penalty proceedings commenced by ASIC against Westpac on 4 September 2023, alleging contraventions under the National Credit Code (Credit Code) and National Consumer
Credit Protection Act 2009 (Cth). The proceedings relate to system and operational failures and allege that Westpac did not respond to 277 online hardship applications between 2015 and
2023 within the time-frames required under the Credit Code. Westpac self-reported the incidents to ASIC and has remediated impacted customers. ASIC also alleges that Westpac failed to
do all things necessary to ensure that credit activities were engaged in efficiently, honestly and fairly. The Court’s judgment is reserved following the hearing on liability and penalty on 26
May 2025.
●
A class action commenced against Westpac and St.George Finance Limited (SGF) on 15 July 2020, in the Supreme Court of Victoria in relation to flex commissions paid to auto dealers
from 1 March 2013 to 31 October 2018. Westpac and SGF settled the class action on 14 March 2025 without admission of liability. On 27 August 2025, the Court approved the settlement
amount of $130 million.
●
Agreed civil penalty proceedings between ASIC and RAMS Financial Group Pty Limited (RFG) relating to RFG’s oversight of conduct of RAMS third-party franchisees and franchisee
employees who were authorised credit representatives of RFG between 3 June 2019 to 30 April 2023. On 24 October 2025, the Court delivered its judgement and imposed a penalty of
$20 million plus costs.
Where matters have not been resolved, there remains uncertainty as to the expense that may be associated with these matters, including the approach that the relevant counterparty or Courts
may take in relation to these matters, and the Court’s assessment of applicable fines, penalties, loss or damages. It is possible that the actual aggregate expense to Westpac associated with a
Court determined resolution of these matters may be higher or lower than the provision.
Restructuring provisions
Westpac carries restructuring provisions for committed business restructures and branch closures. The provisions held primarily relate to staff separation costs and redundancies.
Lease restoration obligations
The lease restoration provision reflects an estimate of the cost of making good leasehold premises at the end of Westpac’s property leases.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
99
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments (Continued)
Contingent liabilities
Regulatory investigations, reviews and inquiries
Domestic regulators, statutory authorities and other bodies, such as ASIC, the ACCC, APRA, AUSTRAC, BCCC, AFCA, the OAIC, the ATO and the Fair Work Ombudsman (FWO), as well as
certain international regulators and other bodies such as the Reserve Bank of New Zealand, New Zealand Financial Markets Authority, New Zealand Commerce Commission, BPNG and its
Financial Analysis & Supervision Unit, Reserve Bank of Fiji, and the SEC, from time to time conduct investigations, reviews or inquiries (some of which may be industry wide). These activities
can cover a range of matters (including potential contraventions and non-compliance) that involve, or may in the future, involve the Group.
These currently include:
●
An investigation by the FWO in relation to Westpac’s self-disclosed remediation program regarding employee pay-related entitlements. Westpac considers enforcement action against it
likely, and could include an Enforceable Undertaking; and
●
Regulatory investigations, reviews or inquiries into other areas such as the AML/CTF Program and associated processes and procedures, compliance with industry codes, monitoring of
certain consumer transactions, consumer lending conduct, responsible lending and compliance with lending obligations, consumer credit contracts, banking products and services, and
hardship processes.
It is uncertain what (if any) actions will result following the conclusion of these investigations or matters. No provisions have yet been made in relation to any financial liability that might arise, or
costs that may be incurred in the event proceedings are pursued in relation to the matters outlined above. Such investigations, reviews or inquiries, or risk-based decisions taken by Westpac
regarding relevant businesses, have previously resulted, and/or may in the future result in litigation (including class action proceedings and criminal proceedings), significant fines and
penalties, infringement notices, enforcement action including enforceable undertakings, requirement to undertake a review, referral to the relevant Commonwealth or State Director of Public
Prosecutions for consideration for criminal prosecution, imposition of capital or liquidity requirements, licence revocation, suspension or variation, customer remediation or other sanctions or
actions being taken by regulators or other parties. Investigations have in some instances resulted, and could in the future result, in findings of a significant number of breaches of obligations.
This in turn could lead to significant financial and other penalties. Prior penalties and contraventions by Westpac in relation to similar issues can also affect penalties that may be imposed.
Reliance on third parties and any contributing actions of third parties may not mitigate penalties.
Litigation
There are ongoing Court proceedings, claims and possible claims against the Group. Contingent liabilities exist in respect of actual and potential claims and proceedings, including those listed
below.
Class actions
In addition to the class action litigation noted under Provisions, above:
●
Westpac is defending a class action proceeding which was commenced in December 2019 in the Federal Court of Australia on behalf of certain investors who acquired an interest in
Westpac securities between 30 June 2014 and 19 November 2019. The proceeding involves allegations relating to market disclosure issues connected to Westpac’s monitoring of financial
crime over the relevant period and matters which were the subject of the AUSTRAC civil proceedings. The damages sought on behalf of members of the class have not yet been specified.
However, in the course of a procedural hearing in August 2022, the applicant indicated that a preliminary estimate of the losses that may be alleged in respect of a subset of potential group
members exceeded $1 billion. While it remains unclear how the applicant will ultimately formulate their estimate of alleged damages claimed on behalf of group members, it is possible that
the claim may be higher (or lower) than the amount referred to above. Given the time period and the nature of the claims alleged to be in question, along with the reduction in our market
capitalisation at the time of the commencement of the AUSTRAC civil proceedings, it is likely that any total alleged damages (when, and if, ultimately articulated by the applicant) will be
significant. Westpac continues to deny both that its disclosure was inappropriate and, as such, that any group member has incurred damage. The Court has made orders for a hearing to
commence on 5 April 2027 with an estimated duration of six weeks; and
●
Disputes have been raised by franchisees who were exited by RFG, including the commencement of a class action in May 2024. The class action and an additional proceeding
commenced by an exited franchisee have been listed for hearing to commence on 31 August 2026.
For personal use only
100 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments (Continued)
Internal reviews and remediation
As in prior periods, Westpac is continuing to undertake a number of reviews to identify and resolve issues that have the potential to impact us, our customers, employees, other stakeholders
and our reputation. These internal reviews continue to identify issues, in respect of which, we are taking, or will take, action so that Westpac, our customers and employees (as applicable) are
not disadvantaged from certain past practices, including by making compensation/remediation payments and providing refunds where appropriate. These issues include, among other things,
consumer lending conduct; responsible lending and compliance with lending obligations; hardship processes; sufficiency of training, policies, processes and procedures; AML/CTF Program
and associated processes and procedures; use of our products or services for an improper purpose; product disclosure; protection and destruction of personal information; and impacts from
inadequate product governance, including the way some product terms and conditions are operationalised.
By undertaking these reviews, we can also improve our processes and controls, including those of our contractors, agents, and authorised credit representatives. An assessment of the
Group’s likely loss has been made on a case-by-case basis for the purpose of the financial statements but cannot always be reliably estimated. Even where Westpac has remediated or
compensated customers, employees or issues, there can still be the risk of regulators challenging the basis, scope or pace of remediation, taking enforcement action (including seeking
enforceable undertakings and contrition payments), or imposing fines/penalties or other sanctions, including civil or criminal prosecutions. Contingent liabilities may exist in respect of actual or
potential claims or proceedings (which could be brought by customers, individuals, employees/unions, regulators or criminal prosecutors), compensation/remediation payments and/or refunds
identified as part of these reviews.
Contingent levies
The Group is subject to a number of regulatory levies, which may be imposed at the discretion of the relevant regulating body. These include levies that fund the Financial Claims Scheme and
the Compensation Scheme of Last Resort.
Exposures to third parties relating to divested businesses
The Group has potential exposures relating to warranties, indemnities and other commitments it has provided to third parties in connection with various divestments of entities, businesses and
assets. The warranties, indemnities and other commitments cover a range of matters, conduct and risks. We have made payments under these indemnities and are in discussions with one or
more parties in relation to claims made, and potential claims, under these arrangements. Provisions have been raised for matters where a present obligation exists, and a probable settlement
can be reliably estimated.
Contingent tax risk
Tax and regulatory authorities in Australia and in other jurisdictions review, in the normal course of business, the direct and indirect taxation treatment of transactions (both historical and
present-day transactions) undertaken by the Group. The Group also responds to various notices and requests for information it receives from tax and regulatory authorities.
These reviews, notices and requests may result in additional tax liabilities (including interest and penalties).
Westpac has assessed these and other taxation matters arising in Australia and elsewhere, including seeking independent advice.
Clearing and settlement obligations
Westpac is subject to the rules governing clearing and settlement activities under which loss sharing arrangements may arise. This includes the requirements of central clearing houses where
the Group has made contributions to a default fund. In the event of a default of another clearing member, the Group could be required to make additional default fund contributions.
Parent entity guarantees and undertakings to subsidiaries
Westpac Banking Corporation, as the parent entity of Westpac, provides letters of comfort in respect of certain subsidiaries in the normal course of business. These recognise that Westpac
has a responsibility that those subsidiaries continue to meet their obligations.
Previously the parent entity also provided guarantees to certain wholly-owned subsidiaries which are Australian financial services or credit licensees to comply with legislative requirements. All
but two of these guarantees were capped at $20 million per year and two specific guarantees were capped at $2 million. In 2025, these guarantees have been either replaced by a professional
indemnity insurance policy or have been cancelled.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
INFORMATION
101
Note 25. Provisions, contingent liabilities, contingent assets and credit commitments (Continued)
Contingent assets
The credit commitments shown in the following table also constitute contingent assets. These commitments would be classified as loans in the balance sheet on the contingent event occurring.
Undrawn credit commitments
Westpac enters into various arrangements with customers that constitute contingent assets. If a specified contingent event occurs, these commitments will be called upon and recognised on
the balance sheet as loans.
Any associated cash outflows expose Westpac to liquidity risk, while the resulting receivable exposes Westpac to credit risk should the counterparty fail to repay amounts owed as they
become due. Westpac’s maximum exposure to credit losses is the contractual or notional amount of the arrangement, noting that some credit commitments can be cancelled by Westpac at
any time, and a significant portion are expected to expire without being drawn upon. As a result, notional amounts do not necessarily reflect future cash requirements.
Westpac applies the same credit policies when entering into these arrangements as it does for on balance sheet instruments. Refer to Note 11 and Note 21 of the 2025 Annual Report for
further details of credit risk and liquidity risk management, respectively.
Undrawn credit commitments, excluding derivatives, are disclosed in the below table:
●
Financial guarantees, letters of credit and other credit substitutes support the financial obligations of customers to third parties. Utilisation of these contracts is generally dependent on the
creditworthiness of the customer. The Group may hold cash as collateral for certain financial guarantees issued;
●
Performance-related contingencies support the non-monetary obligations of customers to third parties, where payment will generally need to be made if a customer fails to fulfil a non-
monetary contractual obligation to that third party;
●
Remaining commitments to extend credit mainly comprises various forms of credit facilities.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Undrawn credit commitmentsa
Financial guarantees, letters of credit and other credit substitutes
15,721
15,220
15,254
14,642
Performance-related contingencies
6,709
5,393
6,484
5,369
Remaining commitments to extend creditb
198,739
191,498
173,966
167,851
Total undrawn credit commitments
221,169
212,111
195,704
187,862
a.
The composition of undrawn credit commitments has been revised to better reflect the nature of the types of commitments provided. Comparatives have been revised to align with current period presentation.
b.
Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements.
In addition to the commitments disclosed above, $7.4 billion (2024: $6.0 billion) for the Group and $6.3 billion (2024: $5.1 billion) for the Parent Entity of credit exposures were offered and accepted but still revocable. These
represent part of Westpac Group’s maximum credit exposure to credit risk.
For personal use only
102 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
CAPITAL AND DIVIDENDS
Note 26. Shareholders’ equity
Accounting policy
Share capital
Ordinary shares are recognised at the amount paid up per ordinary share, net of directly attributable issue costs. Treasury shares are shares in the Parent Entity, purchased by the Parent
Entity or other entities within Westpac. These shares are adjusted against share capital as the net of the consideration paid to purchase the shares and, where applicable, any consideration
received from the subsequent sale or reissue of these shares.
Non-controlling interests
Non-controlling interests represent the share in the net assets of subsidiaries attributable to equity interests that are not owned directly or indirectly by the Parent Entity.
Reserves
Foreign currency translation reserve
Exchange differences arising on translation of Westpac’s foreign operations, and any offsetting gains or losses on hedging the net investment are reflected in the foreign currency translation
reserve. A cumulative credit balance in this reserve would not normally be regarded as being available for payment of dividends until such gains are realised and recognised in the income
statement on sale or disposal of the foreign operation.
Debt securities at FVOCI reserve
This reserve comprises the changes in 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 the income statement when the asset is disposed.
Equity securities at FVOCI reserve
This reserve comprises the changes in fair value of equity securities measured at FVOCI, net of tax. These changes are not transferred to the income statement when the asset is disposed.
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-based payment reserve
This comprises the fair value of equity-settled share-based payments recognised as an expense.
Other reserves
Other reserves for the Parent Entity relate to certain historic internal group restructurings performed at fair value. The reserve is eliminated on consolidation.
Other reserves for Westpac consist of transactions relating to changes in the Parent Entity’s ownership of a subsidiary that do not result in a loss of control.
The amount recorded in other reserves reflects the difference between the amount by which NCI are adjusted and the fair value of any consideration paid or received.
For personal use only
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EXHIBIT 15.4
ADDITIONAL
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103
Note 26. Shareholders’ equity (Continued)
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Share capital
Ordinary share capital, fully paid
37,263
37,958
37,263
37,958
Treasury sharesa
(845)
(758)
(902)
(816)
Total share capital
36,418
37,200
36,361
37,142
Non-controlling interest
Perpetual Preference Shares
324
339
-
-
Other
3
8
-
-
Total non-controlling interests
327
347
-
-
a.
2025: 5,789,312 unvested RSP and EIP treasury shares held (2024: 6,173,874).
Perpetual Preference Shares (PPS)
Westpac New Zealand Limited (WNZL), a wholly-owned subsidiary of Westpac, has NZD375 million of PPS with external investors. The PPS is recognised as a non-controlling interests to the
Group at the amount paid up per share, net of directly attributable issue costs (NZD6 million). Discretionary distributions on PPS are recognised in equity when paid.
Ordinary shares
Westpac does not have authorised capital and the ordinary shares have no par value. Ordinary shares entitle the holder to participate in dividends and, in the event of Westpac winding up, to a
share of the proceeds in proportion to the number of and amounts paid on the shares held.
Each ordinary share entitles the holder to one vote, either in person or by proxy, at a shareholder meeting.
Reconciliation of movement in number of ordinary shares
Consolidated and Parent Entity
(number)
2025
2024
Opening balance
3,441,411,361
3,509,076,960
Share buybacka
(21,058,056)
(67,665,599)
Closing balance
3,420,353,305
3,441,411,361
a.
Westpac previously announced its intention to undertake a $3.5 billion on market buyback of WBC ordinary shares. During 2025 Westpac has bought back and cancelled 21,058,056 ordinary shares ($672 million) at an average
price of $31.93.
Ordinary shares purchased on market
2025
Consolidated and Parent Entity
Number
Average Price ($)
For share-based payment arrangements:
Employee share plan (ESP)
807,480
31.77
Westpac Equity Incentive Plan (EIP) - Restricted Sharesa
1,913,828
32.26
Westpac Performance Plan (WPP) - share rights exercised
43,924
31.58
Westpac Equity Incentive Plan (EIP) - Unhurdled share rights exercised
21,345
32.75
Westpac on-market share purchase for future share rights exercises and restricted shares allocationsb
752,522
36.91
Long Term Variable Reward (LTVR) Plan – share rights exercised
3,835
31.10
Total number of ordinary shares purchased on market
3,542,934
a.
Ordinary shares allocated to employees under the EIP as Restricted Shares are classified as treasury shares until the shares vest.
b.
Unallocated shares in the Westpac Employee Equity Plans Trust that are classified as treasury shares.
For details of the share-based payment arrangements refer to Note 31.
For personal use only
104 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 26. Shareholders’ equity (Continued)
Reconciliation of movement in reserves
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Debt securities at FVOCI reserve
Balance as at beginning of year
(568)
(165)
(462)
103
Net gains/(losses) from changes in fair value
500
(591)
423
(813)
Income tax effect
(147)
180
(124)
243
Transferred to income statements
(19)
5
(19)
5
Income tax effect
6
(1)
6
(1)
Loss allowance on debt securities measured at FVOCI
-
1
(1)
1
Other
3
3
-
-
Balance as at end of year
(225)
(568)
(177)
(462)
Equity securities at FVOCI reserve
Balance as at beginning of year
127
126
(18)
(15)
Net gains/(losses) from changes in fair value
25
(2)
10
(5)
Exchange differences on translation
2
1
2
-
Income tax effect
(3)
2
(3)
2
Balance as at end of year
151
127
(9)
(18)
Share-based payment reserve
Balance as at beginning of year
2,079
1,983
1,970
1,874
Share-based payment expense
94
96
94
96
Balance as at end of year
2,173
2,079
2,064
1,970
Cash flow hedge reserve
Balance as at beginning of year
548
152
501
(203)
Net gains/(losses) from changes in fair value
(233)
501
(154)
873
Income tax effect
68
(158)
46
(262)
Transferred to income statements
152
77
154
132
Income tax effect
(46)
(24)
(46)
(39)
Balance as at end of year
489
548
501
501
Foreign currency translation reserve
Balance as at beginning of year
(438)
(138)
(275)
(141)
Exchange differences on translation of foreign operations
(349)
(328)
(22)
(165)
Gains/(losses) on net investment hedges
95
28
53
31
Balance as at end of year
(692)
(438)
(244)
(275)
Other reserves
Balance as at beginning of year
(16)
(23)
41
41
Transactions with owners
-
7
-
-
Balance as at end of year
(16)
(16)
41
41
Total reserves
1,880
1,732
2,176
1,757
For personal use only
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REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
105
Note 27. Capital adequacy
APRA is the prudential regulator of ADIs including Westpac. APRA measures an ADI’s regulatory capital using the following measures:
Level of capital
Definition
Common Equity Tier 1 (CET1) Capital
Comprises the highest quality components of capital that consists of paid-up share capital, retained profits and certain reserves,
less certain intangible assets, capitalised expenses and software, and investments and retained profits in insurance and funds
management subsidiaries that are not consolidated for capital adequacy purposes.
Tier 1 Capital
The sum of CET1 and Additional Tier 1 (AT1) Capital. AT1 Capital comprises high quality components of capital that consists of
certain securities not included in CET1, but which include loss absorbing characteristics. AT1 instruments convert into equity and
absorb losses when certain triggers are met.
Total Capital
The sum of Tier 1 Capital and Tier 2 Capital. Tier 2 Capital includes subordinated instruments and other components of capital that,
to varying degrees, do not meet the criteria for Tier 1 Capital, but nonetheless contribute to the overall strength of an ADI and its
capacity to absorb losses when certain triggers are met.
Leverage ratio
The leverage ratio is defined by APRA as Tier 1 capital divided by the “Exposure measure” and is expressed as a percentage.
“Exposure measure” includes on- balance sheet exposures, derivatives exposures, securities financing transaction (SFT)
exposures, and other off-balance sheet exposures.
Under APRA’s Prudential Standards, Australian ADIs, including Westpac, are required to maintain minimum Prudential Capital Requirements expressed as a percentage of total risk weighted
assets as follows:
●
CET1 Capital ratio of at least 4.5%;
●
Tier 1 Capital ratio of at least 6.0%; and
●
Total Capital ratio of at least 8.0%.
APRA may also require ADIs, including Westpac, to meet Prudential Capital Requirements above the industry minimum. APRA does not allow the Prudential Capital Requirements for
individual ADIs to be disclosed. APRA also requires ADIs to hold additional CET1 buffers comprising of:
●
A capital conservation buffer of 4.75% that includes a 1% surcharge for ADIs designated by APRA as D-SIBs. APRA has determined that Westpac is a D-SIB; and
●
Countercyclical capital buffer of 1.0%. The countercyclical buffer is set on a jurisdictional basis and APRA is responsible for setting the requirement in Australia. The countercyclical buffer
requirement is currently set to the default of 1.0% for Australian exposures, however this may be varied by APRA in the range of 0% to 3.5%.
Collectively, the above buffers are referred to as the “Capital Buffer”. Should the CET1 capital ratio fall within the capital buffer range, restrictions on the distribution of earnings will apply. This
includes restrictions on the amount of earnings that can be distributed through dividends, AT1 Capital distributions and discretionary staff bonuses.
The Total CET1 Requirement for Westpac is at least 10.25%, (based on an industry minimum CET1 requirement of 4.5% plus a Capital Buffer of at least 5.75% applicable to D-SIBs), the Tier
1 Capital Ratio requirement is at least 11.75% and the Total Capital Ratio requirement is at least 13.75%1.
In addition, APRA’s capital framework also requires an ADI to maintain a minimum leverage ratio of 3.5%. APRA may also vary the minimum leverage ratio for an individual ADI.
Westpac’s capital adequacy was compliant with APRA’s requirements throughout 2025.
APRA has announced changes to banks’ capital requirements with effect from 1 January 2027. This includes changes to CET1, Tier 1, Total capital and the Leverage ratio.
Capital management strategy
Westpac’s capital management strategy is reviewed on an ongoing basis, including through an annual Internal Capital Adequacy Assessment Process (ICAAP). Key features include:
●
The development of a capital management strategy, including consideration of regulatory capital minimums, capital buffers and contingency plans;
●
Consideration of regulatory capital requirements and the perspectives of external stakeholders including rating agencies as well as equity and debt investors; and
●
A stress testing framework that tests our resilience under a range of adverse economic scenarios.
The Board has determined a target post dividend CET1 capital ratio of above 11.25% in normal operating conditions. This target includes consideration of APRA’s increase in the minimum
CET1 ratio of 0.25% to 10.50% effective 1 January 2027 and replaces the previous CET1 capital operating range of between 11.00% and 11.50%.
1.
Noting that APRA may apply higher requirements for an individual ADI.
For personal use only
106 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 28. Dividends
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Dividends not recognised at year end
Since year end the Directors have proposed the following dividends:
Final dividend 77 cents per share (2024: 76 cents, 2023: 72 cents) all fully franked at 30%
2,634
2,615
2,527
2,634
2,615
Total dividends not recognised at year end
2,634
2,615
2,527
2,634
2,615
The Board has determined a final fully franked dividend of 77 cents per share, to be paid on 19 December 2025 to shareholders on the register at the record date of 7 November 2025.
Shareholders can choose to receive their dividends as cash or reinvest their dividend in additional shares under the Dividend Reinvestment Plan.
The Board has determined to satisfy the Dividend Reinvestment Plan (DRP) for the 2025 final ordinary dividend by arranging for the purchase of shares in the market by a third party. The
market price used to determine the number of shares provided to DRP participants will be set over the 15 trading days commencing 12 November 2025 and will not include a discount.
Details of dividends recognised during the year are provided in the statement of changes in equity.
Australian franking credits available to the Parent Entity for subsequent years are $3,714 million (2024: $3,504 million, 2023: $3,520 million). This is calculated as the year end franking credit
balance, adjusted for the Australian current tax liability and the proposed 2025 final dividend.
New Zealand imputation credits
New Zealand imputation credits of NZ$0.06 (2024: NZ$0.06, 2023: NZ$0.07) per share will be attached to the proposed 2025 final dividend. New Zealand imputation credits available to the
Parent Entity for subsequent years are NZ$332 million (2024: NZ$374 million, 2023: NZ$557 million). This is calculated on the same basis as the Australian franking credits but using the New
Zealand current tax liability.
For personal use only
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107
GROUP STRUCTURE
Note 29. Investments in subsidiaries and associates
Accounting policy
Subsidiaries
Westpac’s subsidiaries are entities which it controls and consolidates as it is exposed to, or has rights to, variable returns from the entity, and can affect those returns through its power over
the entity.
When Westpac ceases to control a subsidiary, any retained interest in the entity is remeasured to fair value, with any resulting gain or loss recognised in the income statement.
Changes in Westpac’s ownership interest in a subsidiary which do not result in a loss of control are accounted for as transactions with equity holders in their capacity as equity holders.
In the Parent Entity’s financial statements, investments in subsidiaries are initially recorded at cost and are subsequently held at the lower of cost and recoverable amount.
All transactions between Westpac entities are eliminated on consolidation.
Associates
Associates are entities in which Westpac has significant influence, but not control, over the operating and financial policies. Westpac accounts for associates using the equity method. The
investments are initially recognised at cost (except where recognised at fair value due to a loss of control of a subsidiary), and increased (or decreased) each year by Westpac’s share of the
associate’s profit (or loss). Dividends received from the associate reduce the investment in the associate.
Overseas companies predominantly carry on business in the country of incorporation. For unincorporated entities, ‘Country of incorporation’ refers to the country where business is carried on.
The financial years of all controlled entities are the same as that of Westpac unless otherwise stated. From time to time, Westpac consolidates a number of unit trusts where Westpac has
variable returns from its involvement with the trusts, and has the ability to affect those returns through its power over the trusts. These unit trusts are excluded from the table.
A complete list of controlled entities can be found in the Consolidated Entity Disclosure Statement. The following table includes the material controlled entities of Westpac as at
30 September 2025.
Country
Country
Name
of incorporation
Name
of incorporation
Asgard Capital Management Ltd
Australia
Westpac Equity Holdings Pty Limited
Australia
BT Portfolio Services Limited
Australia
Westpac Financial Services Group Pty Limited
Australia
Capital Finance Australia Limited
Australia
Westpac New Zealand Group Limited
New Zealand
Crusade trust No.2P of 2008
Australia
Westpac New Zealand Limited
New Zealand
Series 2008-1M WST Trust
Australia
Westpac NZ Covered Bond Limiteda
New Zealand
Series 2022-1P WST Trust
Australia
Westpac NZ Securitisation Limiteda
New Zealand
Series 2024-1 WST Trust
Australia
Westpac Overseas Holdings No. 2 Pty Limited
Australia
Series 2024-2 WST Trust
Australia
Westpac Securities NZ Limited
New Zealand
Sixty Martin Place (Holdings) Pty Limited
Australia
Westpac Securitisation Holdings Pty Limited
Australia
Westpac Bank - PNG - Limited
Papua New Guinea
Westpac Term Pie Fund
New Zealand
Westpac Covered Bond Trust
Australia
a.
The Group indirectly owns 19% of these entities, however, due to contractual and structural arrangements both these entities are considered to be controlled entities within the Group.
The following controlled entities have been granted relief from compliance with the balance date synchronisation provisions in the Corporations Act 2001:
●
Westpac Cash PIE Fund;
●
Westpac Notice Saver PIE Fund; and
●
Westpac Term PIE Fund.
For personal use only
108 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 29. Investments in subsidiaries and associates (Continued)
Non-controlling interests
The following material controlled entities are not wholly owned:
Percentage Owned
2025
2024
Westpac Bank - PNG - Limited
98.7%
89.9%
Westpac NZ Covered Bond Limited
19.0%
19.0%
Westpac NZ Securitisation Limited
19.0%
19.0%
Details of the balance of NCIs are set out in Note 26. There are no NCIs that are material to Westpac.
Significant restrictions
There were no significant restrictions on the ability to transfer cash or other assets, pay dividends or other capital distributions, provide or repay loans and advances between the entities within
Westpac. There were also no significant restrictions on Westpac’s ability to access or use the assets and settle the liabilities of Westpac resulting from protective rights of NCIs.
Associates
There are no associates that are material to Westpac.
Changes in ownership of subsidiaries or other businesses
Businesses acquisitions
During the year ended 30 September:
2025
●
Westpac Banking Corporation acquired 58,000 shares from a minority shareholder of Westpac Bank - PNG - Limited (WPNG) which will raise its controlling interest to 99.73%. As at the
reporting date, the registration of the share transfer was pending. On behalf of the Parent Entity, the acquisition cost of PGK8 million was paid by WPNG to the minority shareholder, in lieu
of the Parent Entity receiving unpaid dividends and as a result was a non-cash transaction for the Parent Entity.
2024:
●
Westpac Banking Corporation acquired 8.74% of shares from minority shareholders of WPNG, raising its controlling interest to 98.65%. On behalf of the Parent Entity, the acquisition cost
of PGK66 million to minority shareholders, in lieu of the Parent Entity receiving unpaid dividends and as a result was a non-cash transaction for the Parent Entity; and
●
The business of HealthPoint Claims Pty Ltd on 6 April 2024.
2023 - no businesses were acquired.
Businesses disposals
During the year ended 30 September:
2025 - no businesses were sold.
2024 - no businesses were sold.
2023 - Westpac sold its interest in Advance Asset Management Limited on 31 March 2023.
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109
Note 30. Structured entities
Accounting policy
Structured entities are generally created to achieve a specific, defined objective and their operations are restricted such as only purchasing specific assets. Structured entities are commonly
financed by debt or equity securities that are collateralised by and/or indexed to their underlying assets. The debt and equity securities issued by structured entities may include tranches with
varying levels of subordination.
Structured entities are classified as subsidiaries and consolidated if they meet the definition in Note 29. If Westpac does not control a structured entity then it will not be consolidated.
Westpac engages in various transactions with both consolidated and unconsolidated structured entities that are mainly involved in securitisations, asset backed and other financing structures
and managed funds.
Consolidated structured entities
Securitisation and covered bonds
Westpac uses structured entities to securitise its financial assets, including two covered bond programs, to assign pools of residential mortgages to bankruptcy remote structured entities. Refer
to Note 15 for further details.
Westpac managed funds
Westpac acts as the responsible entity and/or fund manager for various investment management funds. As fund manager, if Westpac is deemed to be acting as a principal rather than an agent
then it consolidates the fund. The principal versus agent decision requires judgement of whether Westpac has sufficient exposure to variable returns.
Non-contractual financial support
Westpac does not provide non-contractual financial support to these consolidated structured entities.
Unconsolidated structured entities
Westpac has interests in various unconsolidated structured entities including debt or equity instruments, guarantees, liquidity and other credit support arrangements, lending, loan
commitments, certain derivatives and investment management agreements.
Interests exclude non-complex derivatives (e.g. interest rate or currency swaps), instruments that create, rather than absorb, variability in the entity (e.g. credit protection under a credit default
swap), and lending to a structured entity with recourse to a wider operating entity, not just the structured entity.
Westpac’s main interests in unconsolidated structured entities, which arise in the normal course of business, are:
Trading securities
Westpac actively trades interests in structured entities and normally has no other involvement with the structured entity. Westpac earns interest
income on these securities and also recognises fair value changes through trading income in non-interest income.
Investment securities
Westpac holds mortgage-backed securities for liquidity purposes and Westpac normally has no other involvement with the structured entity. These
assets are highly-rated, investment grade and eligible for repurchase agreements with the RBA or another central bank. Westpac earns interest
income and net gains or losses on selling these assets are recognised in the income statements.
Loans and other credit commitments
Westpac lends to unconsolidated structured entities, subject to Westpac’s collateral and credit approval processes, in order to earn interest and fee
income. The structured entities are mainly property trusts, securitisation entities and those associated with project and property financing transactions.
Investment management agreements
Westpac manages funds that provide customers with investment opportunities. Westpac earns management fee income which is recognised in non-
interest income.
Westpac may also retain units in these investment management funds. Westpac earns fund distribution income and recognises fair value movements
through non-interest income.
For personal use only
110 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 30. Structured entities (Continued)
The following tables show Westpac’s interests in unconsolidated structured entities and its maximum exposure to loss in relation to those interests. The maximum exposure does not take into
account any collateral or hedges that will reduce the risk of loss.
●
For on-balance sheet instruments, including debt and equity instruments in and loans to unconsolidated structured entities, the maximum exposure to loss is the carrying value.
●
For off-balance sheet instruments, including liquidity facilities, loan and other credit commitments and guarantees, the maximum exposure to loss is the notional amounts.
Investment in third
party mortgage
Financing to
Consolidated
and other asset-
securitisation
Group
Interest in other
$m
backed securitiesa
vehicles
managed funds
structured entities
Total
2025
Assets
Trading securities and financial assets measured at FVIS
795
-
1
6,483
7,279
Investment securities
9,162
-
-
-
9,162
Loans
-
28,274
-
27,602
55,876
Other financial assets
1
-
57
-
58
Total on-balance sheet exposures
9,958
28,274
58
34,085
72,375
Total notional amounts of off-balance sheet exposures
-
10,355
-
9,848
20,203
Maximum exposure to loss
9,958
38,629
58
43,933
92,578
Size of structured entitiesb
102,946
38,629
16,318
43,933
201,826
2024
Assets
Trading securities and financial assets measured at FVIS
1,055
-
2
8,241
9,298
Investment securities
8,881
-
-
-
8,881
Loans
-
27,786
-
23,871
51,657
Other financial assets
2
-
53
-
55
Total on-balance sheet exposures
9,938
27,786
55
32,112
69,891
Total notional amounts of off-balance sheet exposures
-
7,638
-
9,145
16,783
Maximum exposure to loss
9,938
35,424
55
41,257
86,674
Size of structured entitiesb
90,864
35,424
15,811
41,257
183,356
a.
The Group’s interests in third-party mortgages and other asset-backed securities are senior tranches of notes and are investment grade rated.
b.
Represents either the total assets or market capitalisation of the entity, or if not available, the Group’s total committed exposure (for lending arrangements and external debt and equity holdings), funds under management (for
Group managed funds) or the total value of notes on issue (for investments in third-party asset-backed securities).
Non-contractual financial support
Westpac does not provide non-contractual financial support to these unconsolidated structured entities.
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OTHER
Note 31. Share-based payments
Accounting policy
Westpac enters into various share-based payment arrangements with its employees as a component of overall compensation for services provided. Share-based payment arrangements
comprise rights to receive shares for free (share rights) and restricted shares (issued at no cost). Share-based payment arrangements typically require a specified period of continuing
employment (the service period or vesting period) and may include performance targets (vesting conditions). Specific details of each arrangement are provided below.
Share-based payments must be classified as either cash-settled or equity-settled arrangements. Westpac’s significant arrangements are equity-settled, as Westpac is not obliged to settle in
cash.
Share rights
Share rights are equity-settled arrangements. The fair value is measured at grant date and is recognised as an expense over the service period, with a corresponding increase in the share-
based payment reserve in equity.
The fair values of share rights are estimated at grant date using a binomial/Monte Carlo simulation pricing model which incorporates the vesting and market-related performance targets of
the grants. The fair value of share rights excludes non-market vesting conditions such as employees’ continuing employment by Westpac. The non-market vesting conditions are instead
incorporated in estimating the number of share rights that are expected to vest and are therefore recognised as an expense. At each reporting date the non-market vesting assumptions are
revised and the expense recognised each year takes into account the most recent estimates. The market-related assumptions are not revised each year as the fair value is not re-estimated
after the grant date.
Up to 1 January 2023 share rights were issued under the Westpac Long Term Variable Reward Plan (LTVR) and Westpac Performance Plan (WPP). From 1 January 2023 share rights have
been issued under the Equity Incentive Plan (EIP). Refer below for further details.
Restricted shares
Restricted shares are accounted for as an equity-settled arrangement. The fair value of shares allocated to employees for nil consideration is recognised as an expense over the vesting
period with a corresponding increase in the share-based payments reserve in equity. The fair value of ordinary shares issued to satisfy the obligation to employees is measured at grant date
and is recognised as a separate component of equity.
Up to 1 January 2023 restricted shares were issued under the Restricted Share Plan (RSP). From 1 January 2023 restricted shares have been issued under the Equity Incentive Plan (EIP).
Refer below for further details.
Equity Incentive Plan (EIP)
The Equity Incentive Plan (EIP) was introduced effective 1 January 2023 and is a consolidated plan that replaced the RSP, WPP and LTVR plans. Existing allocations under the RSP, WPP
and LTVR continue to be governed by their respective plan rules, however, all grants from 1 January 2023 are made under the EIP. Securities issued under the EIP include restricted shares,
unhurdled share rights, performance rights and restricted rights. The underlying terms of the EIP are similar to RSP, WPP and LTVR and are accounted for as equity-settled arrangements in
line with the share rights and restricted shares specified above.
In respect of the above mentioned plans, the Board has discretion to adjust unvested allocations, including to zero, in specified circumstances. Clawback may also apply to vested awards, to
the extent legally permissible and practicable.
Employee share plan (ESP)
The value of shares expected to be allocated to employees for nil consideration is recognised as an expense over the financial year and provided for as other employee benefits. The fair
value of any ordinary shares purchased on market or issued to satisfy the obligation to employees is recognised in equity.
For personal use only
112 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 31. Share-based payments (Continued)
Scheme name
Westpac Long Term Variable Reward
Plan (LTVR)/ EIP LTVR – Performance
Rights and Restricted Rights
Westpac Performance Plan (WPP)/ EIP
- Unhurdled Share Rights
Restricted Share Plan
(RSP)/ EIP -
Restricted Shares
Employee Share Plan (ESP)
Type of share-based payment
Share rights (allocated at no cost).
Share rights (allocated at no cost).
Westpac ordinary shares (allocated at no
cost).
Westpac ordinary shares (allocated at
no cost) of up to $1,000 per employee
per year.
How it is used
Aligns executive remuneration and accountability
with shareholder interests over the long term.
Primarily used for mandatory deferral of a
portion of short-term variable reward for New
Zealand employees and key employees based
outside Australia.
Primarily used to reward key employees
and for mandatory deferral of a portion of
short-term variable reward for certain
Australian employees and some other
offshore jurisdictions.
To reward eligible Australian
employees (unless they have already
been provided instruments under
another scheme for the previous year).
Exercise price
Nil
Nil
n/a
n/a
Performance conditionsa
Awards from 2022 to 2023: TSR over a four-year
performance period.
Awards from 2024 onwards: 50% of the award is
measured against Relative Total Shareholder
Return (TSR) over a four-year performance period
(performance rights) and the remaining 50% is
measured against risk culture and other internal
measures (restricted rights). After the testing
period, further deferral periods are applicable for
performance rights granted to all participants and
for restricted rights granted to the CEO.
Noneb
None
None
Service conditions
Continued employment throughout the vesting
period or as determined by the Board.
Continued employment throughout the vesting
period or as determined by the Board.
Continued employment throughout the
restriction period or as determined by the
Board.
Shares must normally remain within
the ESP for three years from granting
unless the employee leaves Westpac.
Vesting period (period over which
expenses are recognised)c
Awards for 2022 to 2023: 4 years
Awards from 2024 onwards:
CEO performance rights: 6 years
GE performance rights: 5 years
CEO restricted rights: 50% over 4 years and 50%
over 5 years
GE restricted rights: 4 years
Defined period set out at time of grantc
Defined period set out at time of grant
1 year
Treatment at end of term
Automatically exercised at the end of the term.
Automatically exercised at the end of the term.
Shares are released at the end of the
restriction period.
Shares are released at the end of the
restriction period or when the
employee leaves Westpac (whichever
occurs first).
Does the employee receive dividends
and voting rights during the vesting
period?d
No
No
Yes
Yes
a.
The Board has discretion to adjust the number of restricted shares, unhurdled share rights, performance rights and restricted rights downwards, including to zero, in specified circumstances including serious misconduct, if serious
circumstances or new information come to light which mean that in the Board’s view all or part of the award was not appropriate, or where required by law or prudential standards. The Board will typically apply the adjustment to
unvested LTVR where an adjustment to current and deferred STVR is considered insufficient or unavailable. Clawback may also apply to vested LTVR, to the extent legally permissible and practicable.
b.
Excluding the UNITE Award that is granted as share rights under the EIP and is subject to internal performance measures.
c.
Vested share rights granted after July 2015 under the 2020 to 2023 LTVR awards and unhurdled WPP/EIP awards may be exercised up to a maximum of 15 years (generally 10 years for NZ) from their commencement date.
Vested share rights under the 2024 and 2025 LTVR award (performance rights and restricted rights) are exercisable up to 2 years after the vesting date.
d.
For LTVR restricted rights, dividend equivalent payments (DEP) are accrued for the vesting period. For LTVR performance rights, DEP are only accrued for the further deferral period after the performance period. These DEP are
calculated by multiplying the number of LTVR restricted or performance rights eligible to vest by the declared dividend price on each respective record date during the applicable period. The calculation excludes franking credits.
They are paid at the end of the deferral period.
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113
Note 31. Share-based payments (Continued)
Each share-based payment scheme is quantified below.
i.
Westpac Equity Incentive Plan (EIP) - Unhurdled Share Rights
Outstanding
Outstanding as
and exercisable
at beginning
Granted during
Exercised
Lapsed during
Outstanding as
as at end
of year
the year
during the year
the year
at end of year
of year
2025
Share rights
One-year vesting period
111,458
73,112
88,657
1,164
94,749
27,527
Two-year vesting period
89,542
57,439
1,984
5,342
139,655
3,210
Three-year vesting period
32,446
34,829
-
-
67,275
-
Four-year vesting period
81,761
68,775
-
8,273
142,263
-
Five-year vesting period
15,270
313,268
-
79,573
248,965
-
Six-year vesting period
9,661
4,377
-
-
14,038
-
Seven-year vesting period
10,250
4,599
-
-
14,849
-
Total share rights
350,388
556,399
90,641
94,352
721,794
30,737
Weighted average remaining contractual life
13.8 years
13.3 years
2024
Share rights
24,698
334,167
836
7,641
350,388
-
The weighted average fair value at grant date of EIP service-based share rights issued during the year was $27.13 (2024: $20.65).
ii.
Westpac Equity Incentive Plan (EIP) Long Term Variable Reward (LTVR) - Performance Rights and Restricted Rights
Outstanding
Outstanding as
and exercisable
at beginning
Granted during
Exercised
Lapsed during
Outstanding as
as at end
of year
the year
during the year
the year
at end of year
of year
2025
Share rights
898,756
574,717
-
-
1,473,473
-
Weighted average remaining contractual life
5.8 years
5.2 years
2024
Share rights
-
898,756
-
-
898,756
-
The weighted average fair value at grant date of EIP LTVR Performance Rights and Restricted Rights issued during the year was $22.94 (2024: $18.00).
iii.
Westpac Long-Term Variable Reward Plan (LTVR)
Outstanding
Outstanding as
and exercisable
at beginning
Granted during
Exercised
Lapsed during
Outstanding as
as at end
of year
the year
during the year
the year
at end of year
of year
2025
Share rights
3,383,798
-
630,069
687,808
2,065,921
53,460
Weighted average remaining contractual life
11.9 years
11.5 years
2024
Share rights
4,028,972
-
-
645,174
3,383,798
-
No LTVR share rights were issued in the year ending 30 September 2025 following the introduction of the EIP from 1 January 2023.
For personal use only
114 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 31. Share-based payments (Continued)
iv.
Westpac Performance Plan (WPP)
Outstanding
Outstanding as
and exercisable
at beginning
Granted during
Exercised
Lapsed during
Outstanding as
as at end
of year
the year
during the year
the year
at end of year
of year
2025
Share rights
One-year vesting period
64,336
-
26,586
1,533
36,217
36,217
Two-year vesting period
98,511
-
50,107
3,508
44,896
41,127
Three-year vesting period
37,645
-
13,932
-
23,713
4,661
Four-year vesting period
213,798
-
87,430
20,168
106,200
-
Five-year vesting period
6,927
-
-
-
6,927
-
Six-year vesting period
6,576
-
-
-
6,576
-
Seven-year vesting period
6,977
-
-
-
6,977
-
Total share rights
434,770
-
178,055
25,209
231,506
82,005
Weighted average remaining contractual life
11.7 years
10.8 years
2024
Share rights
809,018
-
317,173
57,075
434,770
111,078
No WPP share rights were issued in the year ending 30 September 2025 following the introduction of the EIP from 1 January 2023.
v.
Westpac Equity Incentive Plan (EIP) - Restricted Shares
Outstanding as at
Granted during
Forfeited during
Outstanding as at
Allocation date
beginning of year
the year
Released
the year
end of year
2025
2,550,472
2,083,370
838,759
121,426
3,673,657
2024
310,649
2,393,902
115,752
38,327
2,550,472
The weighted average fair value at grant date of EIP restricted shares issued during the year was $32.46 (2024: $23.14).
vi.
Restricted Share Plan (RSP)
Outstanding as at
Granted during
Forfeited during
Outstanding as at
Allocation date
beginning of year
the year
Released
the year
end of year
2025
2,738,389
-
1,382,492
6,396
1,349,501
2024
4,916,346
-
2,085,417
92,540
2,738,389
No RSP shares were issued in the year ending 30 September 2025 following the introduction of the EIP from 1 January 2023.
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INFORMATION
115
Note 31. Share-based payments (Continued)
vii. Employee Share Plan (ESP)
Average number
Number
of shares allocated
Total number of
Market price
Allocation date
of participants
per participant
shares allocated
per sharea
Total fair value
2025
20 November 2024
26,916
30
807,480
$
32.82
$
26,501,494
2024
23 November 2023
27,549
47
1,294,803
$
21.20
$
27,449,824
a.
The market price per share for the allocation is based on the five day volume-weighted average price up to the grant date.
The 2024 ESP award was satisfied through the purchase of shares on market.
The liability accrued for the ESP at 30 September 2025 was $28 million (2024: $28 million) and was provided for as other employee benefits.
viii. Other plans
Westpac also provides share-based plans for small, specialised parts of the Group. The benefits under these plans are directly linked to growth and performance of the relevant part of the
business. The plans, individually and in aggregate, are not material to Westpac in terms of expenses and dilution of earnings.
The names of all persons who hold share options and/or rights currently on issue are entered in Westpac’s register of option holders which may be inspected at MUFG Corporate Markets (AU)
Limited, Liberty Place, Level 41, 161 Castlereagh Street, Sydney, New South Wales.
ix.
Fair value assumptions
The fair value of share rights have been independently calculated at their respective grant dates.
The fair value of share rights with performance targets based on relative TSR takes into account the average TSR outcome determined using a Monte Carlo simulation pricing model.
The fair value of share rights without TSR based performance targets (i.e. unhurdled share rights and restricted rights) have been determined with reference to the share price at grant date. A
discount rate reflecting the expected dividend yield over their vesting periods also applies to unhurdled share rights and LTVR performance rights.
Other significant assumptions include:
●
Risk-free rates of return of 3.3%-3.8% applied to TSR-hurdled grants;
●
The dividend yield on Westpac shares applied to TSR-hurdled grants ranged from 4.0%-5.0% for those issued under the LTVR and for those issued under the EIP;
●
Volatility in Westpac’s TSR of 20%-21%, applied to TSR-hurdled grants; and
●
Volatilities of, and correlation factors between, TSR of the comparator group and Westpac for TSR-hurdled grants.
For personal use only
116 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 32. Superannuation commitments
Accounting policy
Westpac recognises an asset or a liability for its defined benefit schemes, being the net of the defined benefit obligations and the fair value of the schemes’ assets. The defined benefit
obligation is calculated as the present value of the estimated future cash flows, discounted using high-quality long dated corporate bond rates.
The superannuation expense is recognised in operating expenses and remeasurements are recognised through OCI.
Westpac had the following defined benefit plans at 30 September 2025:
Date of last actuarial assessment of
Name of plan
Type
Form of benefit
the funding status
Westpac Group Plan (WGP)
Defined benefit and accumulation
Indexed pension and lump sum
30 June 2023
Westpac New Zealand Superannuation Scheme (WNZS)
Defined benefit and accumulation
Indexed pension and lump sum
30 June 2023
Westpac Banking Corporation UK Staff Superannuation Scheme (UKSS)
Defined benefit
Indexed pension and lump sum
5 April 2024
Westpac UK Medical Benefits Scheme
Defined benefit
Medical benefits
n/a
The defined benefit sections of the schemes are closed to new members. Westpac has no obligation beyond the annual contributions for the accumulation or defined contribution sections of
the schemes.
The WGP is Westpac’s principal defined benefit plan and is managed and administered in accordance with the terms of its trust deed and relevant legislation in Australia. Its defined benefit
liabilities are based on salary and length of membership for active members and inflation in the case of pensioners.
The defined benefit schemes expose Westpac to the following risks:
●
Discount rate – reductions in the discount rate would increase the present value of the future payments;
●
Inflation rate – increases in the inflation rate would increase the payments to pensioners;
●
Investment risk – lower investment returns would increase the contributions needed to offset the shortfall;
●
Mortality risk – members may live longer than expected extending the cash flows payable by Westpac;
●
Behavioural risk – higher proportion of members taking some of their benefits as a pension rather than a lump sum would increase the cash flows payable by Westpac; and
●
Legislative risk – legislative changes could be made which increase the cost of providing defined benefits.
Investment risk is managed by setting benchmarks for the allocation of plan assets between asset classes. The long-term investment strategy will often adopt relatively high levels of equity
investment in order to:
●
Secure attractive long-term investment returns; and
●
Provide an opportunity for capital appreciation and dividend growth, which gives some protection against inflation.
Funding recommendations for the WGP, WNZS and the UKSS are made based on actuarial valuations. The funding valuations of the defined benefit plans are based on different assumptions
to the calculation of the defined benefit surplus/deficit for accounting purposes. Based on the most recent valuations, the defined benefit plan assets are adequate to cover the present value of
the accrued benefits of all members with a combined surplus of $161 million (2024: $140 million). Current contribution rates are as follows:
●
WGP – contributions are made to the WGP at the rate of 16.9% of members’ salaries;
●
WNZS – contributions are made to the WNZS at the rate of 17.4% of members’ salaries; and
●
UKSS – not required to make contributions under the 2024 actuarial assessment.
For personal use only
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117
Note 32. Superannuation commitments (Continued)
Contributions
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Employer contributions
29
30
28
30
Member contributions
6
7
6
7
Expected employer contributions for the year ending 30 September 2026 were $23 million.
Expense recognised
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Current service cost
23
27
26
23
26
Net interest cost on net benefit liability
(9)
(11)
(14)
(10)
(10)
Total defined benefit expense
14
16
12
13
16
Defined benefit balances recognised
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Benefit obligation as at end of year
2,282
2,218
2,238
2,169
Fair value of plan assets as at end of year
2,525
2,424
2,481
2,380
Net surplus/(deficit)
243
206
243
211
Defined benefit surplus included in other assets
247
215
247
215
Defined benefit deficit included in other liabilities
(4)
(9)
(4)
(4)
Net surplus/(deficit)
243
206
243
211
The average duration of the defined benefit obligation is 12 years (2024: 12 years).
Significant assumptions
2025
2024
Consolidated and Parent Entity
Australian funds
Overseas funds
Australian funds
Overseas funds
Discount rate
5.4%
4.2%-5.7%
5.6%
4.3%-5.0%
Salary increases
3.4%
3.0%-4.0%
3.5%
3.0%-3.9%
Inflation rate (pensioners received inflationary increase)
2.4%
2.0%-3.1%
2.5%
2.0%-3.2%
Life expectancy of a 60-year-old male
32.1
27.7-27.9
31.9
27.6-27.8
Life expectancy of a 60-year-old female
34.6
29.5-29.8
34.5
29.6
For personal use only
118 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 32. Superannuation commitments (Continued)
Sensitivity to changes in significant assumptions
The following table shows the impact of changes in assumptions on the defined benefit obligation for the WGP. No reasonably possible changes in the assumptions of Westpac’s other defined
benefit plans would have a material impact on the defined benefit obligation.
Increase in obligation
$m
2025
2024
0.5% decrease in discount rate
136
136
0.5% increase in annual salary increases
2
3
0.5% increase in inflation rate (pensioners receive inflationary increase)
133
131
1 year increase in life expectancy
48
46
Asset allocation
The table below provides a breakdown of the schemes’ investments by asset class.
2025
2024
Australian
Australian
%
funds
Overseas funds
funds
Overseas funds
Cash
5%
4%
5%
3%
Equity instruments
44%
9%
43%
9%
Debt instruments
26%
5%
26%
5%
Property
8%
1%
8%
2%
Other assets
17%
81%
18%
81%
Total
100%
100%
100%
100%
Equity and debt instruments are mainly quoted assets while property and other assets are mainly unquoted. Other assets include infrastructure funds and private equity funds.
For personal use only
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119
Note 33. Auditor’s remuneration
Following approval by Westpac’s shareholders at the 2024 AGM on 13 December 2024, KPMG commenced as Westpac’s external auditor for the 2025 financial year.
The fees payable to the auditor in Australia and overseas firms belonging to the network of firms were:
Consolidated
Parent Entity
2025
2024
2025
2024
$’000
KPMG
PwC
KPMG
PwC
Audit and audit-related fees
Audit fees
Australia
23,977
28,035
23,605
27,673
Overseas
5,197
5,429
708
689
Total audit fees
29,174
33,464
24,313
28,362
Audit-related fees
Australia
2,221
2,888
2,221
2,888
Overseas
464
279
102
30
Total audit-related fees
2,685
3,167
2,323
2,918
Total audit and audit-related fees
31,859
36,631
26,636
31,280
Tax fees
Overseas
395
-
300
-
Total tax fees
395
-
300
-
Other fees
Overseas
-
69
-
-
Total other fees
-
69
-
-
Total audit and non-audit fees
32,254
36,700
26,936
31,280
Fees payable to the auditor have been categorised as follows:
Audit
The year end audit, half-year review and comfort letters associated with debt issues and capital raisings.
Audit-related
Consultations regarding accounting standards and reporting requirements, regulatory compliance reviews and assurance related to debt and capital offerings.
Tax
Tax compliance services.
Other
Various services including systems assurance, compliance advice and controls reviews.
It is Westpac’s policy to engage KPMG on assignments additional to its statutory audit duties only if its independence is not impaired or seen to be impaired and where its expertise and
experience with Westpac is important. All services were approved by the Board Audit Committee in accordance with Westpac’s Pre-Approval of Engagement of the External Auditor for Audit or
Non-Audit Services Policy.
KPMG also received fees of $0.2 million and PwC of $6.4 million (2024 PwC: $6.6 million) for various entities which are related to Westpac but not consolidated. These non-consolidated
entities include entities sponsored by Westpac, trusts of which a Westpac entity is trustee, manager or responsible entity, superannuation funds and pension funds.
For personal use only
120 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 34. Related party disclosures
Related parties
Westpac’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.
Key management personnel (KMP)
Key management personnel are those persons who have the authority and responsibility for planning, directing and controlling the activities of Westpac, directly or indirectly, including any
director (whether executive or otherwise).
Parent Entity
Westpac Banking Corporation is the ultimate parent company of the Group.
Subsidiaries - Note 29
The Parent Entity has the following related party transactions and balances with subsidiaries:
Type of transaction/balance
Details disclosed in
Balances due to/from subsidiaries
Balance Sheet
Dividend income/Transactions with subsidiaries
Note 4
Interest income and Interest expense
Note 3
Tax consolidated group transactions and undertakings
Note 7
Guarantees and undertakings
Note 25
The balances due to/from subsidiaries include a wide range of banking and other financial facilities.
The terms and conditions of related party transactions between the Parent Entity and subsidiaries are sometimes different to commercial terms and conditions. Related party transactions
between the Parent Entity and subsidiaries eliminate on consolidation.
Associates - Note 29
Westpac provides a wide range of banking and other financial facilities and funds management activities to its associates on commercial terms and conditions.
Superannuation plans
Westpac contributed $583 million (2024: $535 million) to defined contribution plans and $29 million (2024: $30 million) to defined benefit plans. Refer to Note 32.
Remuneration of KMP
Total remuneration of the KMP was:
Post
Short-
employment
Other long-
Termination
Share-
$
term benefits
benefits
term benefits
benefits
based payments
Total
Consolidated
2025
22,058,824
731,736
362,316
4,518,632
23,176,814
50,848,322
2024
22,085,122
613,423
175,780
-
15,481,114
38,355,439
Parent Entity
2025
20,825,040
603,850
362,316
4,518,632
22,059,466
48,369,304
2024
20,907,779
493,529
175,780
-
14,569,565
36,146,653
For personal use only
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121
Note 34. Related party disclosures (Continued)
Other transactions with KMP
KMP receive personal banking and financial investment services from Westpac in the ordinary course of business. The terms and conditions, for example interest rates and collateral, and the
risks to Westpac are comparable to transactions with other employees and did not involve more than the normal risk of repayment or present other unfavourable features.
Details of loans provided and the related interest charged to KMP and their related parties are as follows:
Interest payable
Closing
Number of KMP
$
for the year
loan balance
with loans
2025
1,003,143
15,815,278
11
2024
1,030,280
32,064,184
10
Share rights holdings
For compliance with SEC disclosure requirements, the following table sets out certain details of the performance share rights, restricted share rights and unhurdled share rights held at 30
September 2025 by the CEO and other key management personnel (including their related parties):
Latest Date of Exercise
Number of Share Rights
Managing Director and Chief Executive Officer
Anthony Miller
Ranges from 15 November 2029 to 1 October 2037
368,811
Group Executivesa
Scott Collary
Ranges from 15 November 2029 to 1 October 2037
337,165
Paul Fowler
Ranges from 13 May 2031 to 13 May 2032
19,044
Peter Herbert
Ranges from 15 November 2030 to 15 November 2031
24,224
Nell Hutton
Ranges from 15 November 2029 to 15 November 2031
140,020
Carolyn McCann
Ranges from 15 November 2029 to 1 October 2037
241,195
Catherine McGrath
Ranges from 1 October 2026 to 1 October 2037
282,641
Michael Rowland
Ranges from 15 November 2029 to 1 October 2037
261,748
Ryan Zanin
Ranges from 15 November 2029 to 1 October 2037
299,764
Former Group Executives
Peter King
Ranges from 15 November 2029 to 1 October 2037
448,117
Christine Parker
Ranges from 15 November 2029 to 1 October 2037
225,269
Jason Yetton
Ranges from 15 November 2029 to 1 October 2037
326,680
a.
References to Group Executives are only to those who are KMP.
Westpac has not issued any options during the year and there are no outstanding options as at 30 September 2025.
For personal use only
122 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 35. Notes to the cash flow statements
Accounting policy
Cash and balances with central banks include cash held at branches and in ATMs, balances with overseas banks in their local currency and balances with central banks including accounts
with the RBA and accounts with overseas central banks.
Reconciliation of net cash provided by/(used in) operating activities to net profit for the year is set out below.
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Profit after income tax expense
6,933
6,990
7,201
6,496
6,691
Adjustments:
Depreciation, amortisation and impairment
1,561
1,522
1,237
1,331
1,407
Impairment charges/(benefits)
671
727
839
680
659
Net decrease/(increase) in current and deferred tax
(421)
(252)
665
(558)
(346)
(Increase)/decrease in accrued interest receivable
302
(227)
(730)
252
(207)
(Decrease)/increase in accrued interest payable
(705)
802
2,400
(410)
757
(Decrease)/increase in provisions
107
(272)
(173)
105
(272)
Unrealised (gain)/loss in trading income
(498)
1,615
280
(498)
1,596
Other non-cash items
(1,085)
(1,121)
(1,130)
(997)
(858)
Cash flows from operating activities before changes in operating assets and liabilities
6,865
9,784
10,589
6,401
9,427
Net (increase)/decrease in:
Collateral paid
1,945
(2,097)
1,545
1,905
(2,057)
Trading securities and financial assets measured at FVIS
(6,107)
(18,994)
(4,524)
(6,054)
(19,452)
Derivative financial instruments
5,650
(836)
4,082
1,013
1,358
Loans
(50,182)
(35,083)
(27,270)
(45,997)
(32,528)
Other financial assets
(48)
(348)
128
(26)
(231)
Other assets
(29)
(34)
8
2
2
Net increase/(decrease) in:
Collateral received
(5)
(318)
(2,888)
(709)
(181)
Deposits and other borrowings
51,853
35,243
24,692
50,803
35,870
Other financial liabilities
(457)
(7,084)
(17,146)
873
(5,281)
Other liabilities
4
-
(12)
-
(9)
Net cash provided by/(used in) operating activities
9,489
(19,767)
(10,796)
8,211
(13,082)
For personal use only
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123
Note 35. Notes to the cash flow statements (Continued)
Details of the assets and liabilities over which control ceased
In 2025 and 2024, there were no changes in the Group or Parent’s ownership interest in entities which resulted in a loss of control.
Details of the entity over which control ceased in 2023 are provided in Note 29.
Consolidated
$m
2023
Assets
Cash and balances with central banks
18
Other financial assets
18
Intangible assets
55
Total assets
91
Liabilities
Other financial liabilities
22
Provisions
1
Total liabilities
23
Total equity attributable to owners of WBC
68
Cash proceeds received (net of transaction costs)
311
Total consideration
311
Gain/(loss) on disposal
243
Reconciliation of cash proceeds from disposal:
Cash proceeds received (net of transaction costs)
311
Less: Cash deconsolidated
(18)
Cash consideration (paid)/received (net of transaction costs and cash held)
293
Non-cash investing activities
There were no material non-cash investing activities in 2025.
On 21 December 2023, WNZL issued two classes of AT1 Perpetual Preference Shares to the Parent Entity, Westpac Banking Corporation Limited, totalling NZD1,000 million. The transactions
were settled through the redemption of NZD1,000 million AT1 loan capital notes and as a result no cash was transferred. As WNZL is a wholly owned subsidiary of the Parent Entity, these
transactions eliminate on consolidation.
Non-cash financing activities
Consolidated
Parent Entity
$m
2025
2024
2023
2025
2024
Shares issued under the dividend reinvestment plan
-
-
192
-
-
Increase in lease liabilities
223
399
235
181
319
On 10 September 2025, Westpac Bank - PNG - Limited (WPNG) paid PGK8 million to minority shareholders, on behalf of the Parent Entity, to acquire 1.09% in WPNG. This was in lieu of the
Parent Entity receiving unpaid dividends from WPNG and as a result was a non-cash transaction for the Parent Entity.
On 11 September 2024, WPNG paid PGK66 million to minority shareholders, on behalf of the Parent Entity, to acquire 8.74% in WPNG. This was also in lieu of the Parent Entity receiving
unpaid dividends from WPNG and as a result was a non-cash transaction for the Parent Entity.
On 18 December 2023, $802 million of WCN6 were transferred to the WCN6 nominated party for $100 each pursuant to the WCN10 reinvestment offer. Those WCN6 were subsequently
redeemed and cancelled by Westpac. On 31 July 2024, Westpac redeemed the remaining outstanding WCN6.
For personal use only
124 WESTPAC GROUP 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 35. Notes to the cash flow statements (Continued)
Cash and balances with central banks
The following table provides the breakdown of cash and cash balances with central banks.
Consolidated
Parent Entity
$m
2025
2024
2025
2024
Cash and cash at bank
10,141
9,320
9,805
8,961
Exchange settlement accounts
40,017
56,036
34,802
49,276
Regulatory deposits with central banks
272
311
175
163
Total cash and balances with central banks
50,430
65,667
44,782
58,400
Restricted cash
Certain of our foreign operations are required to maintain reserves or minimum balances with central banks in their respective countries of operation, totalling $273 million (2024: $311 million)
for Westpac and $175 million (2024: $164 million) for the Parent Entity which are included in cash and balances with central banks.
Note 36. Subsequent events
Since 30 September 2025, the Board has determined to pay a fully franked final dividend of 77 cents per fully paid ordinary share. The dividend is expected to be $2,634 million. The dividend
is not recognised as a liability at 30 September 2025. The proposed payment date of the dividend is 19 December 2025.
The Board has determined to satisfy the DRP for the 2025 final dividend by arranging for the purchase of shares in the market by a third party. The market price used to determine the number
of shares provided to DRP participants will be set over the 15 trading days commencing 12 November 2025 and will not include a discount.
No other matters have arisen since the year ended 30 September 2025 which are not otherwise dealt with in this report, that have significantly affected or may significantly affect the operations
of Westpac, the results of its operations or the state of affairs of Westpac in subsequent periods.
For personal use only
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125
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
The following table includes details of the controlled entities of Westpac. The entity’s role as a trustee, partner or participant in a joint venture (if applicable), of an entity within the Group is
disclosed in ‘Type of entity’. Overseas companies predominantly carry on business in the country of incorporation. For unincorporated entities, ‘Country of incorporation’ refers to the country
where business is carried on. Where the tax residency of an entity is foreign (as defined in the Income Tax Assessment Act 1997), the relevant country of tax residency is disclosed.
% of share
capital
Name of entity
Type of entity
held
Country of incorporation
Tax residency
1925 (Commercial) Pty Limited
Body Corporate
100
Australia
Australia
1925 (Industrial) Pty Limited
Body Corporate
100
Australia
Australia
1925 Advances Pty Limited
Body Corporate
100
Australia
Australia
Altitude Administration Pty Limited
Body Corporate, trustee
100
Australia
Australia
Altitude Rewards Pty Limited
Body Corporate
100
Australia
Australia
Asgard Capital Management Ltd
Body Corporate
100
Australia
Australia
Bill Acceptance Corporation Pty Limited
Body Corporate
100
Australia
Australia
BT (Queensland) Pty. Limited
Body Corporate
100
Australia
Australia
BT Financial Group (NZ) Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
BT Financial Group Pty Limited
Body Corporate
100
Australia
Australia
BT Funds Management (NZ) Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
BT Funds Management Limited
Body Corporate
100
Australia
Australia
BT Funds Management No. 2 Limited
Body Corporate
100
Australia
Australia
BT Portfolio Services Ltd
Body Corporate
100
Australia
Australia
BT Securities Ltd
Body Corporate
100
Australia
Australia
Capital Finance Australia Limited
Body Corporate
100
Australia
Australia
CBA Pty Limited
Body Corporate
100
Australia
Australia
Challenge Pty Limited
Body Corporate
100
Australia
Australia
Crusade Trust No.2P of 2008
Trust
N/A
Australia
Australia
General Credits Pty Limited
Body Corporate
100
Australia
Australia
GIS Private Nominees Pty Limited
Body Corporate
100
Australia
Australia
HealthPoint Claims Pty. Limited
Body Corporate
100
Australia
Australia
Hyde Potts Insurance Services Pte. Limited
Body Corporate
100
Singapore
Foreign - Singapore
Mortgage Management Pty Limited
Body Corporate
100
Australia
Australia
Net Nominees Pty Limited
Body Corporate
100
Australia
Australia
Number 120 Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Pendal Short Term Income Fund
Trust
N/A
Australia
Australia
Qvalent Pty Ltd
Body Corporate
100
Australia
Australia
RAMS Financial Group Pty Limited
Body Corporate
100
Australia
Australia
Red Bird Ventures Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Reinventure Fund, I.L.P.
Limited Partnership
N/A
Australia
Australia
Reinventure Fund II I.L.P.
Limited Partnership
N/A
Australia
Australia
Reinventure Fund III I.L.P.
Limited Partnership
N/A
Australia
Australia
Reinventure Special Purpose Investment Unit Trust
Trust
N/A
Australia
Australia
RMS Warehouse Trust 2007-1
Trust
N/A
Australia
Australia
Securitor Financial Group Pty Limited
Body Corporate
100
Australia
Australia
For personal use only
126 WESTPAC GROUP 2025 ANNUAL REPORT
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
% of share
capital
Name of entity
Type of entity
held
Country of incorporation
Tax residency
Series 2008-1M WST Trust
Trust
N/A
Australia
Australia
Series 2019-1 WST Trust
Trust
N/A
Australia
Australia
Series 2020-1 WST Trust
Trust
N/A
Australia
Australia
Series 2021-1 WST Trust
Trust
N/A
Australia
Australia
Series 2022-1P WST Trust
Trust
N/A
Australia
Australia
Series 2023-1P WST Trust
Trust
N/A
Australia
Australia
Series 2024-1 WST Trust
Trust
N/A
Australia
Australia
Series 2024-2 WST Trust
Trust
N/A
Australia
Australia
Sixty Martin Place (Holdings) Pty Ltd
Body Corporate
100
Australia
Australia
St.George Finance Holdings Pty Limited
Body Corporate
100
Australia
Australia
St.George Finance Pty Limited
Body Corporate
100
Australia
Australia
St.George Motor Finance Pty Limited
Body Corporate
75
Australia
Australia
The Home Mortgage Company Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Value Nominees Pty. Limited
Body Corporate
100
Australia
Australia
Westpac (NZ) Investments Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Administration 2 Pty Limited
Body Corporate
100
Australia
Australia
Westpac Administration 3 Pty Limited
Body Corporate
100
Australia
Australia
Westpac Administration 4 Pty. Limited
Body Corporate
100
Australia
Australia
Westpac Administration Pty. Limited
Body Corporate
100
Australia
Australia
Westpac Altitude Rewards Trust
Trust
N/A
Australia
Australia
Westpac Americas Inc.
Body Corporate
100
United States
Foreign - United States
Westpac Bank - PNG - Limiteda
Body Corporate
98.65
Papua New Guinea
Foreign - Papua New Guinea
Westpac Banking Corporation
Body Corporate, partner
N/A
Australia
Australia
Westpac Capital - NZ - Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Capital Markets Holding Corp.
Body Corporate
100
United States
Foreign - United States
Westpac Capital Markets LLC
Body Corporate
100
United States
Foreign - United States
Westpac Cash PIE Fundb
Trust
N/A
New Zealand
Foreign - New Zealand
Westpac Covered Bond Trust
Trust
N/A
Australia
Australia
Westpac Equity Holdings Pty Ltd
Body Corporate
100
Australia
Australia
Westpac Equity Investments NZ Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Europe GmbH
Body Corporate
100
Germany
Foreign - Germany
Westpac Financial Services Group Pty Limited
Body Corporate
100
Australia
Australia
Westpac Financial Services Group-NZ-Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Financial Services Limited
Body Corporate
100
Australia
Australia
Westpac Group Investment-NZ-Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Holdings - NZ - Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Investment Capital Corporation
Body Corporate
100
United States
Foreign - United States
Westpac New Zealand Group Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac New Zealand Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac New Zealand Staff Superannuation Scheme Trustee Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Notice Saver PIE Fundb
Trust
N/A
New Zealand
Foreign - New Zealand
Westpac NZ Covered Bond Holdings Limitedc
Body Corporate
19
New Zealand
Foreign - New Zealand
Westpac NZ Covered Bond Limitedc
Body Corporate
19
New Zealand
Foreign - New Zealand
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127
% of share
capital
Name of entity
Type of entity
held
Country of incorporation
Tax residency
Westpac NZ Operations Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac NZ Securitisation Holdings Limitedc
Body Corporate
19
New Zealand
Foreign - New Zealand
Westpac NZ Securitisation Limitedc
Body Corporate
19
New Zealand
Foreign - New Zealand
Westpac Overseas Holdings No. 2 Pty Limited
Body Corporate
100
Australia
Australia
Westpac Overseas Holdings Pty Ltd
Body Corporate
100
Australia
Australia
Westpac Properties Pty Limited
Body Corporate
100
Australia
Australia
Westpac Securities Limited
Body Corporate
100
Australia
Australia
Westpac Securities NZ Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Securitisation Holdings Pty Limited
Body Corporate
100
Australia
Australia
Westpac Securitisation Management NZ Limited
Body Corporate
100
New Zealand
Foreign - New Zealand
Westpac Securitisation Management Pty Limited
Body Corporate
100
Australia
Australia
Westpac Term PIE Fundb
Trust
N/A
New Zealand
Foreign - New Zealand
a.
Refer to Note 29 for further details.
b.
The Group has funding agreements in place with these entities and is deemed to have exposure to the associated risks and rewards. These entities are consolidated where the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
c.
The Group indirectly owns 19% of these entities, however, due to contractual and structural arrangements these entities are considered to be controlled entities within the Group.
For personal use only
128 WESTPAC GROUP 2025 ANNUAL REPORT
STATUTORY STATEMENTS
Directors’ declaration
In the Directors’ opinion:
(a) the financial statements and notes set out in ‘Financial report’ for the year ended 30 September 2025 are in accordance with the Corporations Act 2001, including:
(i) complying with Australian Accounting Standards, the Corporations Regulations 2001 (Cth) and other mandatory professional reporting requirements; and
(ii) giving a true and fair view of Westpac Banking Corporation and the Group’s financial position as at 30 September 2025 and of their performance for the financial year ended on that
date.
(b) The Consolidated Entity Disclosure Statement included in ‘Financial report’ as at 30 September 2025 has been prepared in accordance with the Corporation Act 2001 and is true and
correct.
(c) there are reasonable grounds to believe that Westpac will be able to pay its debts as and when they become due and payable.
Note 1(a) includes a statement that the financial report also complies with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board.
The Directors have been given the declaration by the Chief Executive Officer and the Chief Financial Officer required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
For and on behalf of the Board.
Steven Gregg
Chairman
Sydney
2 November 2025
Anthony Miller
Managing Director and Chief Executive Officer
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Management’s report on internal control over financial reporting
The following report is required by rules of the US Securities and Exchange Commission.
The management of Westpac is responsible for establishing and maintaining adequate internal control over financial reporting for Westpac as defined in Rule 13a - 15(f) under the Securities
Exchange Act of 1934, as amended. Westpac’s internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with applicable accounting standards.
Westpac’s internal control over financial reporting includes policies and procedures that: pertain to the maintenance of records that in reasonable detail accurately reflect the transactions and
dispositions of the assets of Westpac and its consolidated entities; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with applicable accounting standards, and that receipts and expenditures of Westpac are being made only in accordance with authorizations of management and directors of
Westpac and its consolidated entities; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of Westpac and
its consolidated entities that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Westpac management, with the participation of the CEO and CFO, assessed the effectiveness of Westpac’s internal control over financial reporting as of 30 September 2025 based on the
criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in its 2013 Internal Control Integrated Framework. Based on this assessment,
management has concluded that Westpac’s internal control over financial reporting as of 30 September 2025 was effective.
The effectiveness of Westpac’s internal control over financial reporting as of 30 September 2025 has been audited by KPMG, an independent registered public accounting firm, as stated in its
report which is included herein.
For personal use only
130 WESTPAC GROUP 2025 ANNUAL REPORT
STATUTORY STATEMENTS
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Westpac Banking Corporation
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheet of Westpac Banking Corporation and its subsidiaries (the Company) as of September 30, 2025, the related consolidated income statement, statement of
comprehensive income, statement of changes in equity, and cash flow statement for the year then ended and the related notes (collectively, the ‘consolidated financial statements’). We also have audited the
Company’s internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2025, and the results of its operations and its
cash flows for the year then ended, in conformity with Australian Accounting Standards as issued by the Australian Accounting Standards Board and IFRS Accounting Standards as issued by the International
Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control
over financial reporting, included in Management’s report on internal control over financial reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on
the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audit of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered
necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
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131
Supplemental Information
The parent entity only information on the face of the consolidated financial statements and other parent entity only disclosures in the notes to the financial statements (the ‘supplemental information’) have been
subjected to audit procedures performed in conjunction with the audit of the Company’s consolidated financial statements. The supplemental information is the responsibility of the Company’s management. Our audit
procedures included determining whether the supplemental information reconciles to the consolidated financial statements or the underlying accounting and other records, as applicable, and procedures to test the
completeness and accuracy of the information presented in the supplemental information. The supplemental information, which is prepared for purposes of additional analysis, is presented on a basis that differs from
the consolidated financial statements and is not a required part of the consolidated financial statements presented in accordance with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and IFRS Accounting Standards as issued by the International Accounting Standards Board. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the consolidated
financial statements as a whole.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee
and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical
audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the
critical audit matter or on the accounts or disclosures to which it relates.
For personal use only
132 WESTPAC GROUP 2025 ANNUAL REPORT
STATUTORY STATEMENTS
Provisions for expected credit losses on loans and credit commitments (ECL)
As discussed in Note 10 to the consolidated financial statements, the provision for ECL was $4,978 million for the Company at 30 September 2025. The Company uses models that estimate ECL using three main
components: probability of default (PD), loss given default (LGD) and exposure at default (EAD). The Company applies forward-looking economic scenarios and associated probability weights to its models when
determining an ECL estimate.
We identified the assessment of the provision for ECL as a critical audit matter. A high degree of audit effort, including specialised skills and knowledge, was required because of the significant measurement
uncertainty involved in the Company’s estimation of ECL. Subjective and complex auditor judgement was required to assess the following:
●
the Company’s modelled estimations of ECL due to the inherently judgmental and complex nature of the models, namely those used to derive the PD, LGD and EAD, and key associated model assumptions.
Certain models and model assumptions are the key drivers of complexity and measurement uncertainty, and minor changes to the model assumptions could have a significant effect on the Company’s calculation
of the provision for ECL; and
●
the Company’s economic judgements, including the severity of the forward-looking downside economic scenario and the probability weightings used in the models.
The following are the primary procedures we performed to address this critical audit matter:
●
We evaluated the design and tested the operating effectiveness of certain internal controls related to the ECL estimation process. This included certain controls relating to:
‒
model validation and monitoring;
‒
credit reviews that determine customer risk grades (CRGs); and
‒
the selection of the downside economic scenario and probability weightings.
●
We involved our credit risk professionals with specialised skills and knowledge who assisted in evaluating the Company’s models and associated model assumptions as follows:
‒
evaluating the Company’s methodology used in the models to derive the PD, LGD and EAD and associated model assumptions against criteria in the accounting standards and industry practice;
‒
inspecting model code for the calculation of certain model components to assess its consistency with the Company’s modelling methodology;
‒
reperforming the model output for a selection of models using the Company’s documented methodology and comparing our output with the Company’s outputs; and
‒
reperforming model monitoring for a selection of the current models to evaluate the models’ performance.
●
For a selection of customers in the business portfolios, we challenged the Company’s assessment of CRGs using relevant information in the loan file, including the customer’s financial position, to inform our
overall assessment of the CRG against the Company’s policies.
●
We involved our economic and credit risk professionals with specialised skills and knowledge, who assisted in challenging the macroeconomic variable forecasts against external economic data, evaluating the
severity of the downside economic scenario and evaluating the probability weights.
We have served as the Company’s auditor since 2025.
KPMG
Sydney, Australia
2 November 2025
For personal use only
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133
Limitation on Independent Registered Public Accounting Firm’s Liability
The liability of KPMG in relation to the performance of their professional services provided to Westpac including, without limitation, KPMG's audits and reviews of Westpac's financial
statements, is limited under the Chartered Accountants Australia and New Zealand Scheme approved by the New South Wales Professional Standards Council or such other applicable
scheme approved pursuant to the Professional Standards Act 1994 (NSW) (the "Professional Standards Act"), as amended from time to time (the "Accountants Scheme"). Specifically, the
Accountants Scheme limits the liability of an accountant to a maximum amount of AU$75 million for audit. The Accountants Scheme does not limit liability for a breach of trust, fraud or
dishonesty.
For personal use only
134 WESTPAC GROUP 2025 ANNUAL REPORT
STATUTORY STATEMENTS
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Westpac Banking Corporation
Opinion on the Financial Statements
We have audited the consolidated balance sheet of Westpac Banking Corporation and its subsidiaries (the “Company”) as of September 30, 2024, and the related consolidated income
statements, statements of comprehensive income, statements of changes in equity and cash flow statements for each of the two years in the period ended September 30, 2024, including the
related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company as of September 30, 2024, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2024 in conformity with
Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards as issued by the International Accounting Standards
Board.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s consolidated financial statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also
included evaluating
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, BARANGAROO NSW 2000,
GPO BOX 2650 SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
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135
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our
audits provide a reasonable basis for our opinion.
Supplemental Information
The parent entity only information on the face of the consolidated financial statements and other parent entity only disclosures in the notes to the financial statements (the “supplemental
information”) have been subjected to audit procedures performed in conjunction with the audit of the Company’s consolidated financial statements. The supplemental information is the
responsibility of the Company’s management. Our audit procedures included determining whether the supplemental information reconciles to the consolidated financial statements or the
underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. The
supplemental information, which is presented for purposes of additional analysis, is presented on a basis that differs from the consolidated financial statements and is not a required part of the
consolidated financial statements presented in accordance with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting
Standards as issued by the International Accounting Standards Board. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the consolidated
financial statements as a whole.
PricewaterhouseCoopers
Sydney, Australia
November 3, 2024
We served as the Company's auditor from 1968 to 2024
For personal use only
136 WESTPAC GROUP 2025 ANNUAL REPORT
ITEM 19. EXHIBITS INDEX
1.
Constitution (as amended) incorporated by reference to our Form 6-K filed on 15 December 2021
4(c).2
Form of Access and Indemnity Deed between Westpac Banking Corporation and Director, incorporated by reference to our Annual Report on Form 20-F for the year ended
30 September 2008
4(c).3
Indemnity Deed Poll dated 10 September 2009, of Westpac Banking Corporation, incorporated by reference to our Annual Report on Form 20-F for the year ended 30
September 2009
8.
List of controlled entities – refer to Note 29 to the financial statements in this Annual Report
11(b)
Westpac Group Securities Trading Policy, incorporated by reference to our Annual Report on Form 20-F for the year ended 30 September 2024
12.
Certifications pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
13.
Certifications pursuant to 18 U.S.C. Section 1350
15.1
KPMG’s consent dated 4 November 2025
15.2
PricewaterhouseCoopers' consent dated 4 November 2025
15.3
Westpac Group 2025 Annual Report on Form 20-F
15.4
Cybersecurity management and governance disclosure
101.INS
Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
Copies of any instrument relating to the long-term debt of Westpac Banking Corporation that is not being attached as an exhibit to this Annual Report on Form 20-F and which does not exceed
10% of the total consolidated assets of Westpac Banking Corporation will be furnished to the SEC upon request.
For personal use only
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137
Signatures
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this Annual Report on its behalf.
WESTPAC BANKING CORPORATION
By: /s/ Michael Clayton
Michael Clayton
General Counsel – Corporate, Treasury and WIB
Dated 4 November 2025
For personal use only
Exhibit 12
142 WESTPAC GROUP 2025 ANNUAL REPORT
EXHIBIT 12
SECTION 302 CERTIFICATION
I, Anthony James Miller, certify that:
1.
I have reviewed this annual report on Form 20-F of Westpac Banking Corporation (“the company”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the company as of, and for, the periods presented in this report;
4.
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;
(c)
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit
committee of the company’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
company’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
Date: 2 November 2025
/s/ Anthony James Miller
Anthony James Miller
Managing Director and Chief Executive Officer
For personal use only
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REVIEW
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143
EXHIBIT 12
SECTION 302 CERTIFICATION
I, Nathan Laurence Goonan, certify that:
1.
I have reviewed this annual report on Form 20-F of Westpac Banking Corporation (“the company”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the company as of, and for, the periods presented in this report;
4.
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;
(c)
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit
committee of the company’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
company’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
Date: 2 November 2025
/s/ Nathan Laurence Goonan
Nathan Laurence Goonan
Chief Financial Officer
For personal use only
Exhibit 13
144 WESTPAC GROUP 2025 ANNUAL REPORT
EXHIBIT 13
SECTION 906 CERTIFICATIONS
Pursuant to 18 U.S.C. § 1350
I, Anthony James Miller, certify that the Annual Report on Form 20-F for the year ended 30 September 2025 of Westpac Banking Corporation (the “issuer”) fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the report fairly presents, in all material respects, the financial
condition and results of operations of the issuer.
Date: 2 November 2025
/s/ Anthony James Miller
Anthony James Miller
Managing Director and Chief
Executive Officer
I, Nathan Laurence Goonan, certify that the Annual Report on Form 20-F for the year ended 30 September 2025 of Westpac Banking Corporation (the “issuer”) fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the report fairly presents, in all material respects, the financial
condition and results of operations of the issuer.
Date: 2 November 2025
/s/ Nathan Laurence Goonan
Nathan Laurence Goonan
Chief Financial Officer
For personal use only
Exhibit 15.1
FINANCIAL REPORT
EXHIBITS INDEX
STRATEGIC
REVIEW
PERFORMANCE
REVIEW
EXHIBIT 15.4
ADDITIONAL
INFORMATION
145
EXHIBIT 15.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the registration statements (Nos. 333-283007 and 333-283008) on Form F-3 of our report dated 2 November 2025, with respect to the
consolidated financial statements of Westpac Banking Corporation and the effectiveness of internal control over financial reporting.
/s/ KPMG
Sydney, Australia
4 November 2025
For personal use only
Exhibit 15.2
146 WESTPAC GROUP 2025 ANNUAL REPORT
EXHIBIT 15.2
Consent of Independent Registered Public Accounting Firm
We hereby consent to the incorporation by reference in the Registration Statements on Form F-3 (Nos. 333-283007 and 333-283008) of Westpac Banking Corporation of our report dated
3 November 2024 relating to the financial statements, which appears in this Form 20-F.
/s/ PricewaterhouseCoopers
Sydney, Australia
4 November 2025
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 143 EXHIBIT 15.3 Exhibit 15.3 Westpac Group 2025 Annual Report on Form 20-F
Section 1 144 Strategic review 144 Corporate governance 188 Directors’ report 208 Remuneration report 222
Risk factors 254 Information on Westpac 268 Section 2 Financial statements 287 Section 3 289 Reading this
report 290 Shareholder information 302 Other Westpac business information 321 Glossary of abbreviations and
defined terms 324
Exhibit 15.3
For personal use only
144 WESTPAC GROUP 2025 ANNUAL REPORT ABOUT WESTPAC As Australia's first bank, we've been taking
action to support people, businesses and communities for more than 200 years. Established in New South Wales
in 1817, Westpac has grown to be one of Australia’s largest companies and employers. We’re proud to contribute
to the prosperity of Australia and New Zealand. We support 13 million customers with a range of banking
products and services, including helping them into homes, starting and growing businesses and supporting large
corporates with their banking needs. We help foster stronger, more inclusive communities by promoting financial
inclusion and literacy, investing in regional banking services and respecting human rights. Since founding our first
charity in 1879, we've broadened our social impact through the independent Foundations and Trusts1 . These
have contributed more than $100 million in the past decade to create meaningful change in people’s lives. For
our 35,000 employees, we strive to create a workplace where they feel valued, inspired and motivated to reach
their potential. As part of our environmental commitment, we support businesses in transitioning to a low-carbon
future and adapting to climate change, while continuing to reduce our operational emissions and build climate
resilience. This year, we paid $6.6 billion in salaries, $5.2 billion in shareholder dividends, $3.5 billion in taxes and
levies and spent $4.74 billion with suppliers inside Australia2 . As we evolve, we're inspired by customers, their
needs and our purpose of taking action now to create a better future. Market share AUSTRALIA NEW ZEALAND
Household depositsaa 21% Consumer lendingb 18% Mortgagesa 21% Depositsb 17% Business lendinga 16%
Business lendingb 16% a. APRA Banking Statistics, September 2025. b. RBNZ, September 2025. 1. In FY25,
Westpac Group provided support to the Westpac Community Trust and the Westpac Buckland Fund (known as
the Westpac Foundation), Westpac Scholars Trust and the St George Foundation Trust (known as St George
Foundation, BankSA Foundation and the Bank of Melbourne Foundation). While Westpac was involved in
establishing these foundations, they are non-profit organisations that are separate to the Westpac Group. The
trustee of St George Foundation Trust (St George Foundation Limited) is a related body corporate of Westpac. 2.
Refer to the 2025 Sustainability Index and Datasheet for details.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 145 OPERATING ENVIRONMENT1 Australian economy recovering despite
productivity challenges The Australian economy is showing signs of improvement after a sustained period of
below trend growth. However, the transition from the public to the private sector as the dominant driver of activity
has been more challenging than expected. GDP growth is improving and expected to rise to 2.4% in 2026.
Stronger growth should be underpinned by rising real wages, falling interest rates and a robust labour market.
Productivity growth remains elusive with improvement requiring a coordinated response across both public and
private sectors. Households navigate uneven recovery After an extended period of cost-of-living pressures,
Australian households have begun to experience some relief. Real disposable incomes are rising, supported by
easing inflation, declining interest rates and steady wage growth. Spending has recovered yet consumers remain
cautious. Mortgage stress remains evident but has started to decline. Both demand and supply side factors are
contributing to housing under-supply. This structural imbalance is expected to persist with house prices and credit
demand expected to increase by 9% and 6.5% respectively in 2026. Business conditions improve as SMEs show
green shoots Australian businesses have begun to emerge from a period of subdued activity, supported by
easing inflation and interest rates. A recovery is underway though it remains uneven as the economy transitions
from public to private sector led growth. Larger businesses have fared better than small and medium-sized
businesses (SME). However, the share of SMEs experiencing an improvement in cash flows has risen for the
third consecutive quarter in 2025 to its highest level since 2022. While private sector investment has moderated,
total business credit demand remains strong and is expected to grow by 7.2% in 2026. New Zealand economy
slows amid policy support New Zealand’s economic recovery has been slower than anticipated, despite the
Reserve Bank of New Zealand delivering 300 basis points of monetary easing since mid 2024 to stimulate the
economy. Export activity has been dampened by global trade uncertainty and broad-based industry weakness.
Household spending remains constrained by elevated living costs, labour market softness and the delayed
impact of rate cuts due to the prevalence of fixed rate mortgages. While the recovery in economic activity has
been delayed, lower interest rates has supported housing demand with credit growth expected to rise to 5.7% in
2025 and 6.3% in 2026. Monetary easing supports a balanced global outlook The global economic backdrop
remains mixed. Inflation is broadly within target ranges across most advanced economies, enabling a gradual
easing in monetary policy. This has supported modest global growth, with GDP expected to expand by around
3% in both 2025 and 2026. However, risks to the outlook remain elevated. These include ongoing global trade
tensions, geopolitical uncertainties and lingering inflationary pressures, all of which continue to weigh on
sentiment and investment. 1. All dates refer to calendar years unless otherwise stated. Forecasts by Westpac
Economics and Westpac NZ Economics.
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146 WESTPAC GROUP 2025 ANNUAL REPORT OUR STRATEGY Our refreshed strategy outlines five priorities
that will help us achieve our ambition: To be our customers' number one bank and partner through life.
PERFORMANCE CUSTOMER TRANSFORMATION PEOPLE RISK For customers, we are focused on delivering
a seamless banking experience across every channel; in branch, digitally and by phone. A whole-of-bank
approach seeks to bring our people together, to offer the full breadth of our products with more timely,
personalised service. This, combined with digital innovation and investment in platforms such as BizEdge,
Westpac One and Digital Banker, supports our ambition to lead in Consumer and Business Net Promoter Score
(NPS1 ) and for Institutional, to achieve the number one position in the Relationship Strength Index (RSI2 ). For
our people, we recognise we must provide a market-leading employee proposition to deliver superior customer
experiences. To sustain high engagement and attract and retain the best talent, we’re committed to equipping our
people with future-ready skills and creating a more rewarding, supportive work environment. Proactive risk
management is central to Westpac's strength and resilience. Through the completion of the CORE program,
we’ve taken steps to significantly transform our risk culture, governance and management practices. Sustaining
and continuously strengthening these improvements across Westpac remains a priority. Transformation is critical
to our future success. Our cornerstone program UNITE aims to unlock long-term value simplifying products,
processes and systems to help deliver improved customer experience, make work easier for our people and
reduce operating costs. Complementing UNITE are two flagship digital innovations, BizEdge and Westpac One.
We measure performance by market position and return on tangible equity (ROTE). We are pursuing growth that
delivers sustainable returns, focusing on areas where we can differentiate Westpac's customer offering.
Maintaining cost discipline remains important, with simplification through UNITE expected to play a key role in
reducing our cost base and closing our cost to income gap relative to peers. 1. Refer to the Glossary (pages 324-
327) for more information on NPS. 2. Coalition Greenwich Voice of Client 2025 Australia Large Corporate
Relationship Banking Study.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 147 Foundations for sustainable growth BALANCE SHEET STRENGTH
DIVERSIFIED PORTFOLIO EMPLOYEE ENGAGEMENT Capacity to invest and grow for the long term Enviable
portfolio mix across four business segments Top quartile of workplaces globally (OHI) Our business segments
Segment Who we serve Key execution focus areas Consumer Helping more Australians into their home, save for
the future and manage their money through a range of banking products and services offered through the
Westpac, St.George, BankSA and Bank of Melbourne brands. • Elevate experiences through personalised, digital
first service; • Deepen relationships and expand in priority segments; and • Grow proportion of proprietary
lending. Business & Wealth Serving the needs of small to medium businesses, commercial and agribusiness
customers across Australia. The segment includes Private Wealth, supporting high-net-worth individuals, as well
as BT Financial Group, which provides wealth management platform services. It also includes Westpac Pacific,
operating in Fiji and Papua New Guinea. • Continue lending momentum through BizEdge; • Deepen relationships
and enhance transaction banking capability; and • Expand banker presence, training and expertise. Institutional
Delivering financial services to corporate, institutional and government clients through three areas of
specialisation: Corporate & Institutional Banking, Global Transaction Services and Financial Markets. Clients are
supported throughout Australia and via branches and subsidiaries located in New Zealand, New York, London,
Frankfurt and Singapore. • Rollout Westpac One and payments innovation; • Deepen client relationships and
grow share of FX and commodities; and • Invest in expert bankers enabled by data, analytics and AI. New
Zealand Providing banking and wealth services for consumer, business and institutional customers in New
Zealand, through the Westpac New Zealand, Westpac Life and BT Funds Management (NZ) brands. • Target
growth in business lending; • Invest in digital capability; and • Improve market position and returns.
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148 WESTPAC GROUP 2025 ANNUAL REPORT Top and emerging risks We regularly assess our operating
environment to identify changes, emerging risks and opportunities. The factors1 below may affect Westpac’s
ability to create value over the short, medium or long term. For further information, refer to Risk Management
(pages 180-187) and 2025 Risk Factors. Geopolitical risk Uncertainty around world trade policy remains a key
global risk, with potential impacts on trade, supply chains and investor confidence. Combined with broader
geopolitical tensions and ongoing global conflicts, these factors may influence export demand, commodity prices
and inflation not only in Australia and New Zealand but also in other markets where Westpac operates. Our
response Credit markets where Westpac operates remain resilient, supported by strong domestic fundamentals
and a stable financial system. Westpac’s capital position and balance sheet remain strong. We will continue to
monitor developments closely and, as part of our origination process, assess all known risks at the time of
origination to help manage risk whilst meeting customer needs. Refer to Credit Risk and Market Risk (pages 182-
187). Technology risk Technology remains a key priority for Westpac, enhancing our ability to create long term
value for stakeholders. The adoption of AI is progressing rapidly within the financial services industry. AI will have
positive impacts such as improving operational efficiency however it is important to ensure its safe and
responsible use. Our response Westpac continues to invest in technology and has introduced Responsible AI
Principles and an AI Risk Management Standard, which is designed to support effective management of AI-
related risks. Its implementation is supported by awareness campaigns and training programs aimed at
strengthening overall risk management capabilities. Refer to Strategic Risk (pages 182-187). Cyber risk The
cyber threat landscape poses a risk to financial stability by targeting critical infrastructure, undermining public
trust, and exposing institutions to operational, legal and reputational harm. High levels of interconnectedness and
dependence on third party suppliers, combined with rapid technological change, such as the adoption of AI and a
rise in international threats, are contributing to increased cyber risk. Our response We continually assess and
strengthen our cyber resilience to defend against increasingly sophisticated and capable threat actors. We also
actively work with government, regulators, and industry stakeholders to bolster Australia’s cyber defences,
including through threat intelligence sharing and support for cyber security reforms. Refer to Cyber Risk and
Operational Risk (pages 182-187). Culture and capability Managing and responding to expectations from
customers, regulators and the community requires strong risk management. Poor conduct, negative customer
experience, or failing to adequately respond to risks such as scams can impact our integrity and the trust of our
stakeholders. Our response Risk is one of our top five strategic priorities. We regularly assess our risk culture
and have strengthened our risk management and governance through the successful delivery of the CORE
program. We aim to build on these improvements by ensuring our people and processes are aligned to deliver
our purpose and strategy. Refer to Reputational and Sustainability Risk and Compliance and Conduct Risk
(pages 182-187). Competition Competition in the lending market remains elevated, driven by financial institutions
and non-bank lenders seeking to expand market share. At the same time the increasing share of brokers is
placing pressure on returns. The potential for regulatory arbitrage between bank and non-bank lenders is
reshaping the lending landscape, influencing how lenders compete across risk, capital and service delivery. Our
response We actively manage the impact of external changes that may affect our ability to deliver on our strategy.
Continued simplification, innovation, and investment in technology are critical to delivering more consistent high
quality customer service, products and value at scale and maintaining operational resilience in a competitive
environment. Refer to Credit Risk and Strategic Risk (pages 182-187). 1. Not exhaustive. Refer to Risk
Management (pages 180-187) for full table of material risk categories.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 149 Our approach to sustainability At Westpac, sustainability is about creating
long-term value for our stakeholders. By identifying what matters most to them, we aim to ensure their priorities
and concerns are considered in our decision-making, helping to strengthen our long-term value. Our approach is
anchored in our Sustainability Strategy which aligns with our corporate strategy and refreshed purpose. It outlines
how we will embed sustainability across the strategic pillars and the focus areas of climate transition, housing
affordability and regional prosperity. The Chief Sustainability Officer (CSO) reports directly to the CEO and is
responsible for developing and overseeing the Sustainability Strategy and a suite of supporting policies, positions
and plans. Progress on how we manage, implement and deliver our strategy, frameworks and initiatives is
regularly reviewed through Board and executive-level governance forums. External engagement with our
stakeholders also plays an important role by bringing wider perspectives to inform our approach. This supports
our decision making and the annual materiality assessment. Our Sustainability Strategy is available on our
website. Sustainability-related disclosures Westpac’s sustainability reporting aims to provide stakeholders with
insights into performance over time and against key benchmarks. It covers progress on climate action, natural
capital, human rights and support for Indigenous Australians, providing details of our impact and connection with
global standards. This includes the Sustainability Report and Sustainability Index and Datasheet, available on our
website. Sustainability Report The 2025 Sustainability Report details Westpac’s strategy, targets, and approach
for managing climate-related risks and opportunities. The report also provides updates on our efforts to reduce
emissions, assist customers in their transition and improve climate resilience. Replacing Westpac’s previous
Climate Report, the document prepares us for mandatory climate reporting from next year. Climate Transition
Plan This year marked the end of the 2023-2025 Climate Change Position Statement and Action Plan. This has
been replaced by a Climate Transition Plan (CTP). Built on stakeholder feedback, the CTP outlines our targets
and approach to achieving our climate ambition of becoming a net-zero, climate resilient bank. Our sustainability
disclosures can be found on the website. Material sustainability topics Our method for determining material topics
is guided by the Global Reporting Initiative (GRI) Universal Standards. We report on material topics throughout
this report. For detailed information on how we engage with our stakeholders, identify and assess these topics,
please visit our website. Financial Performance Compliance and Regulation Technology Simplification (UNITE)
Refer to pages 152- 159 Vulnerable customers Data Privacy and Security Financial Inclusion Housing
affordability and security Fraud and scams Refer to pages 160-165 Employee engagement Health and safety
Diversity, equity and inclusion Communities Indigenous peoples Refer to pages 166-169 Human rights and
modern slavery Sustainable supply chain Tax transparency Refer to pages 170-173 Climate Change Natural
Capital Refer to pages 174-177 Artificial Intelligence, Cybersecurity and Data Refer to page 179 Ethics and
business conduct Refer to page 188 Anti-money laundering/ Counter-Terrorism Financing Refer to page 268
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HOW WE CREATE VALUE • 208-year heritage • Customer needs • Competition • Regulatory environment •
Technology and artificial intelligence (AI) • Geopolitical and climate risks • Financial strength • Customer
relationships • 35,000 motivated people • Proactive risk management • Digital and physical infrastructure •
Diverse partnerships Provide financial products and services to 13 million customers in our core markets of
Australia and New Zealand, focusing on five priorities: What shapes us What we do What we rely on Customer:
Customer obsessed People: Best team, trusted experts Transformation: Brilliant at delivery Risk: Safe and Strong
Performance: Execution Excellence Our purpose TAKING ACTION NOW TO CREATE A BETTER FUTURE 150
WESTPAC GROUP 2025 ANNUAL REPORT
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The value we create Shareholders Deliver sustainable returns and disciplined growth. Customers Support
customers and businesses to achieve their financial goals. Our People Develop engaged, empowered and
accountable people, working as a team. Community Foster financial inclusion and prosperity while advancing
human rights. Environment Support the energy transition, manage our climate risk and reduce our carbon
footprint. 29% Refer to pages 153 to 159 total shareholder return 13M Refer to pages 160 to 165 Customers 80
Refer to pages 166 to 169 OHI score $199M Refer to pages 170 to 173 in community investment1 37% Refer to
pages 174 to 177 increase in sustainable finance lending2 1. Figure includes commercial sponsorships and
foregone fee revenue. 2. Refer to 2025 Sustainability Report for definitions and detail. FINANCIAL REPORT
EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4 ADDITIONAL INFORMATION
151
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Jordan Mobile Lending Manager Broadbeach, QLD 152 WESTPAC GROUP 2025 ANNUAL REPORT
CREATING VALUE FOR SHAREHOLDERS By maintaining a strong balance sheet and focusing on service
excellence, we aim to strengthen our market position and deliver long-term value for shareholders. Related
material topics (refer to page 149) • Financial performance • Compliance and regulation • Technology
simplification (UNITE) Key highlights 153c FULL YEAR ORDINARY DIVIDENDS PER SHARE 29% TOTAL
SHAREHOLDER RETURN 201.9c BASIC EARNINGS PER SHARE 12.5% CET1 CAPITAL RATIO
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 153 Shareholder returns To create value for our 571,800 shareholders we aim to
sustainably improve returns. The modest decline in net profit resulted in an 11 basis point reduction in ROE to
9.7% and a 24 basis points decrease in ROTE, excluding Notable Items, to 11.0%. Basic earnings per ordinary
share were 201.9 cents, up 1 cent on 2024. Our total shareholder return (TSR) was 29%. ROE (%) 9.8 9.7 FY24
FY25 ROTE, EXCLUDING NOTABLE ITEMS(%) 11.2 11.0 FY24 FY25 Dividends This year, shareholders will
receive $5.2 billion through fully franked ordinary dividends. Ordinary dividends were up 2 cents per share, or
1%. This year’s payout ratio is 76% on a net profit basis and the adjusted dividend payout ratio was 75%.
Dividends per share increased to $1.53. In 2024, in addition to ordinary dividend we returned $0.5 billion of
capital through a 15 cent special dividend. ORDINARY DIVIDEND PER ORDINARY SHARE (CENTS) 142 151
153 70 75 76 72 76 77 Interim Final FY23 FY24 FY25 We are focused on building stronger customer
relationships while investing to improve our market position to deliver long term value for shareholders. Deeper
relationships With a large customer base and an extensive product and service offering, we have a significant
opportunity to deepen relationships with customers to meet the full breadth of their needs. To support this, we
have adopted a whole-of-bank approach to help deliver personalised, seamless and secure banking experiences.
We have also expanded our presence with more bankers and new regional service centres. Our banking apps,
extensive branch network, virtual teams and dedicated Customer Care reflect our commitment to meeting
customers where they prefer ‒ digitally, in-person and by phone. Stronger relationships will support more
customers choosing us as their main financial institution. Refer to Creating value for customers (pages 160-165)
for more. Investing for the future We are transforming the company through our ‘One Best Way’ philosophy,
driving simplification, consistency, efficiency and innovation to help make banking easier and more effective. Total
investment spend was $1.9 billion. The UNITE program accounted for 34%, growth and productivity initiatives
were 30% and 36% was directed towards risk and regulatory activities. The UNITE program aims to unlock long-
term value by addressing structural legacy issues that have hindered our progress for more than a decade. It is
focused on simplifying products, processes and systems to help deliver improved customer experience, make
work easier for our people and reduce operating costs. Other strategic imperatives that remain critical to our
transformation agenda include – WestpacOne and BizEdge. Refer to Transformation (page 178) for more. Unless
otherwise stated, all figures in the Creating value for shareholders section relate to the year ended 30 September
2025 with comparative period the year ended 30 September 2024. Certain amounts, measures and ratios are not
defined by Australian Accounting Standards (AAS). These non-AAS measures are identified and described in
Non-AAS financial measures (refer to pages 292- 298).
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154 WESTPAC GROUP 2025 ANNUAL REPORT Growth in our core markets Deposits and loans grew by 7%
and 6% respectively, reflecting solid deposit growth across all segments and momentum in Business and
Institutional lending. Australian household deposits growth of 1.0x APRA system demonstrates the health of our
franchise. Business deposits increased 6% primarily in transaction balances driven by new account openings and
retention. Growth in Australian housing loans, excluding RAMS1 , of 5%, or 0.8x APRA housing system, was
mainly in owner occupied mortgages. The proportion of investor lending increased over the year reflecting our
targeted strategy. Total Australian housing loans growth was 3%. In Business, lending was up 15%. This included
strong loan growth in our target sectors of agriculture, health and professional services performing well.
Institutional lending growth of 17% reflected activity in the infrastructure, resources, energy and property sectors.
New Zealand deposits grew by 2% with solid growth of 0.3x RBNZ system in household deposits partly offset by
a strategic decrease in Institutional term deposits which have a lower liquidity value compared to other sources of
funding. Loans increased by 4% due to growth in housing and business lending. CUSTOMER DEPOSITS ($BN)
673.6 723.0 Sep-24 Sep-25 GROSS LOANS ($BN) 811.3 856.4 Sep-24 Sep-25 1. RAMS was closed to new
business from August 2024.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 155 Solid financial results $6.9BN Statutory net profit, down 1% on FY24 $7.0BN
Net profit excluding Notable Items, down 2% on FY24 Net profit was delivered through disciplined management
of net interest margins and balance sheet growth across our businesses. The rise in operating income reflected
our strategy of balancing growth and returns. The increase in operating expenses included a restructuring charge
of $273 million in the Second Half of 2025 to support targeted productivity initiatives under our Fit for Growth
program. Excluding this charge, the growth in operating expenses was driven by the ramp up in UNITE
investment, wage growth and higher software amortisation. The low level of impairment charges reflected credit
quality improvements across all segments. Statutory net profit table $m Full Year 2025 Full Year 2024 Full Year
2023 % Mov't 2025-2024 Statutory net profit 6,916 6,990 7,195 (1) Net operating income 22,384 21,588 21,645 4
Operating expenses (11,916) (10,944) (10,692) 9 Pre-provision profit 10,468 10,644 10,953 (2) Impairment
charges/(benefits) to average loans 5 bps 7 bps 9 bps (2 bps) $m Full Year 2025 Full Year 2024 Full Year 2023 %
Mov't 2025-2024 Statutory net profit 6,916 6,990 7,195 (1) Notable Items (56) (123) (173) (54) Excluding Notable
Items: Net profit 6,972 7,113 7,368 (2) Net operating income 22,464 21,763 21,542 3 Operating expenses
(11,916) (10,944) (10,232) 9 Pre-provision profit 10,548 10,819 11,310 (3) Impairment charges/(benefits) to
average loans 5 bps 7 bps 9 bps (2 bps) Performance measures excluding the impact of Notable Items are non-
AAS measures used by management as they better reflect underlying performance. Pre-provision profit is also a
non-AAS measure which management consider useful as it provides a view of the operating performance of the
Group. The definitions and a reconciliation to the statutory equivalent are provided on pages 292- 298.
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156 WESTPAC GROUP 2025 ANNUAL REPORT Net operating income Net interest income increased 3%. Key
drivers included: • Higher core net interest income due to balance sheet growth; and • Notable Items reduced
income by $93 million compared to a reduction of $163 million in the prior year. The NIM was 1.93% and
comprised: • Core NIM of 1.81%, down 1 basis point, with slightly lower lending and deposit spreads more than
offsetting benefits from higher earnings on capital and hedged deposits; • Treasury and Markets, contribution of
13 basis points; and • Notable Items from hedging items including unrealised revaluations of economic hedges of
term funding detracted 1 basis point. Average interest-earning assets increased by 3% to $1,003 billion, including
growth of 11% in business and 2% in housing loans. $19.4bn Net interest income FY24 $18.8bn 1.93% Net
interest margin (NIM) FY24 1.93% Non-interest income increased by 6%. Key movements included: • Fee
income increased reflecting higher Institutional lending and cards fees. • Trading and other income increased
mainly due to higher foreign exchange income and favourable derivative value adjustments. Notable Items
increased income by $13 million compared to a reduction of $12 million in the prior year. • Net wealth
management income increased from higher funds under administration. $3.0bn Non-interest income FY24
$2.8bn The above commentary is on a statutory reporting basis.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 157 Net operating income excluding Notable Items Net interest income increased
3% driven by growth in average interest earning assets. The NIM was 1.94% and comprised: • Core NIM of
1.81%, down 1 basis point, with slightly lower lending and deposit spreads more than offsetting benefits from
higher earnings on capital and hedged deposits. • Treasury and Markets, contribution of 13 basis points. Average
interest-earning assets increased by 3% to $1,003 billion, including growth of 11% in business and 2% in housing
loans. Non-interest income increased by 5%. Key movements included: Fee income increased by 4% mainly
reflecting higher Institutional lending and cards fees. Trading and other income increased by 7% mainly due to
higher foreign exchange income and favourable derivative value adjustments. Net wealth management income
increased by 8% from higher funds under administration. $19.5bn Net interest income FY24 $18.9bn 1.94% Net
interest margin (NIM) FY24 1.95% $3.0bn Non-interest income FY24 $2.8bn Performance measures above
exclude the impact of Notable Items. These measures together with Core net interest income and Core NIM are
non-AAS measures used by management as they better reflect underlying performance. The definitions and a
reconciliation to the statutory equivalent are provided on pages 292- 298. Operating expenses Operating
expenses increased 9%. The increase included a restructuring charge of $273 million in the Second Half of 2025
to support targeted productivity initiatives under our Fit for Growth program. Excluding this cost, operating
expenses increased by 6%. Key movements included: Staff expenses increased by 7%a mainly due to wage
growth, UNITE and the investment in bankers. Average FTE increased by 1% with the increase to support UNITE
and the investment in bankers more than offsetting reductions from productivity initiatives. Occupancy expenses
decreased by 7% with further reductions in the Group's corporate and branch footprint. Technology expenses
were up 13% due to higher costs related to the UNITE program, an increase in software amortisation related to
projects completed in prior years and higher software maintenance and licensing costs. Other Expenses
decreased by 3%a due to lower professional and servicing costs and higher costs in the prior year from the
closure of RAMS, partly offset by higher litigation and remediation costs, and advertising spend. Fit for Growth
restructuring expenses to support targeted productivity initiatives were $273 million in the Second Half of 2025.
The expense to income ratio increased to 53.2% and excluding Notable Items the ratio increased to 53.0%.
$11.9bn Operating expenses FY24 $10.9bn 53.2% Expense to income ratio FY24 50.7% 53.0% Expense to
income ratio excluding Notable Items FY24 50.3% a. Excluding the impact of the Fit for Growth restructuring
expenses. There were no Notable Items impacting operating expenses in FY25 or FY24. The expense to Income
ratio excluding Notable Items is a non-AAS financial performance measures used by management as it better
reflects underlying performance. The definition of these items is provided on pages 292- 293.
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158 WESTPAC GROUP 2025 ANNUAL REPORT Credit quality sound, strong balance sheet Credit quality
improved and we maintained a strong financial position with capital, funding and liquidity all above regulatory
minimums. Credit quality Credit impairment charges represented 5 basis points of average gross loans compared
to 7 basis points in the prior year. The low level of impairment charges was driven by our prudent lending
practices and customer resilience across both households and businesses. The improvement in credit quality
metrics reflects a more favourable operating environment and the reduction in household cost of living pressures
as inflation has eased and interest rates have declined in both Australia and New Zealand. We remain
appropriately provisioned with credit impairment provisions of $4,987 million, $1.9 billion above the expected
losses of our base case economic scenario. Over the year provisions decreased by 2% with an overall
improvement in portfolio credit quality more than offsetting an increase in the downside scenario weight and
higher overlays. STRESSED EXPOSURES AS A % OF TCE 1.45 1.28 Sep-24 Sep-25 Capital The CET1 capital
ratio of 12.5% is above our target ratio of 11.25% in normal operating conditions. This equates to $3.1 billion of
capital above the target after payment of the second half 2025 dividend. The CET1 capital ratio increased 4 basis
points as net profit was largely offset by the payment of dividends and increases in Risk Weighted Assets (RWA).
CET1 CAPITAL RATIO 12.5 12.5 18.3 18.3 APRA basis Internationally comparable Sep-24 Sep-25 Funding and
liquidity The September quarterly average liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR)
were both above regulatory minimums. The deposit to loan ratio increased slightly, with deposit growth broadly
funding loan growth during the year. The Group raised $28 billion of new long term wholesale funding. Long term
wholesale funding needs in 2025 were lower compared to recent financial years, reflecting growth in household
deposits and lower wholesale funding maturities. The bank maintained stable short term wholesale funding
balances, with movement mainly driven by changes in FX rates. Long term wholesale funding where the residual
maturity is less than one year increased. LCR AND NSFR (%) 133 112 137 113 LCR NSFR 84.9% Deposit to
loan ratio, up 137bps on Sep-24
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ADDITIONAL INFORMATION 159 Segment performance Our operating segments including Group Businesses
contribute to Group performance. For descriptions of Consumer, Business & Wealth, Institutional and New
Zealand refer to page 147. Group Businesses includes Treasury, Enterprise services and other costs not directly
attributable to segments. In 2025, the composition of our segments was revised to improve operational
alignment. Prior year comparatives have not been restated. The key changes included: • The merchants services
business was transferred from Business & Wealth to Institutional given strategic alignment with management of
payments infrastructure; • The contribution from the auto finance portfolio which was sold in March 2025 was
transferred from Business & Wealth to Group Businesses; and • Centralisation of Finance and Human Resources
into Group Businesses. The impact of Notable Items on net profit, income and expenses have been excluded
from the Segment Performance section. These measures are used by Westpac for management reporting and is
consistent with the disclosure in Note 2. Consumer Net profit increased 4% to $2,282 million and pre-provision
profit increased 4% to $3,492 million. Segment composition changes had a minimal impact, with pre-provision
profit also rising 3%. Operating income rising 4% and operating expenses increasing 4%. The increase in
operating income reflected 3 basis points of net interest margin expansion with disciplined growth in mortgages
and strong deposit growth. Expense growth was driven by a step up in UNITE spend and inflationary pressures,
partly offset by benefits from productivity initiatives. Impairment charges to average loans were 4 basis points,
compared to 5 basis points in the prior year. The decrease reflects the improvement in credit quality metrics. 33%
Contribution to Group net profit Business & Wealth Net profit decreased 7% to $2,186 million and pre-provision
profit fell 4% to $3,383 million. Excluding the impact of segment composition changes, pre-provision profit fell 1%
with a 3% increase in operating income more than offset by a 10% increase in operating expenses. Operating
income reflected strong growth in lending balances, partly offset by a lower net interest margin, while operating
expenses increased due to the step up in UNITE spend and investment in front line bankers. Impairment charges
to average loans were 23 basis points, compared to 14 basis points in the prior year. The increase reflects an
increase in the downside scenario weight and higher overlays, while credit quality metrics improved. 31%
Contribution to Group net profit Institutional Net profit increased 15% to $1,575 million and pre-provision profit
increased 6% to $2,161 million. Excluding the impact of segment composition changes, pre-provision profit rose
2%, with a 5% rise in operating income more than offsetting an 11% increase in operating expenses. The growth
in operating income reflects lending growth and higher earnings on capital. The 11% increase in operating
expenses was driven by increased investment spend, including the step up of UNITE and higher software
amortisation, in addition to an increase in bankers to support growth. The impairment benefit of $1 million,
compared to a 13 basis point charge of $120 million in the prior year. The decrease reflects the improvement in
credit quality metrics. 23% Contribution to Group net profit New Zealand Net profit increased 13% to NZ$1,197
million and pre-provision profit increased 8% to NZ$1,618 million, reflecting an 8% increase in operating income
which more than offset a 7% increase in operating expenses. Operating income reflected growth in lending and a
higher net interest margin, while operating expenses were driven by higher staff expenses, third party vendor
costs, software amortisation and higher investment spend. The impairment benefit was 4 basis points of average
loans, compared to a charge of 3 basis points in the prior year. The decrease reflects the improvement in credit
quality metrics. 16% Contribution to Group net profit Group Businesses Net loss of $161 million compared to a
net profit of $227 million. Excluding the impact of segment composition changes pre-provision profit also
decreased 92%, reflecting an 11% decrease in operating income and a 34% increase in operating expenses. The
decrease in operating income reflects lower income on surplus capital, while operating expense growth reflects
the restructuring charge as part of the targeted productivity initiates through the Fit for Growth program.
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160 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR CUSTOMERS By adopting a whole-
of-bank approach, we are creating more personalised, seamless and secure banking experiences that build long-
term trust and value. Related material topics (refer to page 149) • Vulnerable customers • Data privacy and
security • Financial inclusion • Housing affordability and security • Fraud and scams Key highlights 13M
CUSTOMERS # 1 MOBILE BANKING APP1 21% AUSTRALIAN MORTGAGE MARKET SHARE2 #2
CONSUMER NPS3 RANKED EQUAL SECOND 1. The Forrester Digital Experience Review: Australian Mobile
Banking Apps, Q3 2025. 2. APRA Banking Statistics, September 2025. 3. Refer to the Glossary (pages 324-327)
for more information on NPS.
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ADDITIONAL INFORMATION 161 Australia’s best banking app Westpac’s banking app continues to set the
benchmark for digital banking in Australia, ranked #1 for a third consecutive year1 . To recognise and reward
customer loyalty, we launched a dedicated Westpac Rewards hub. This is designed to make it easy for
customers to find, track and redeem rewards across multiple channels. Customers received more than $159
million in rewards value across multiple loyalty channels, including our market first partnerships with ShopBack
and Woolworths Everyday Rewards. Westpac customers can access essential everyday banking features
alongside valuable money management tools, such as Cashflow and Smart Search, which support decision
making and financial goal setting. The Savings Finder feature analyses annual spending on subscriptions and
recurring expenses to identify potential savings opportunities, enhancing customer value and engagement.
Across all digital channels, an average of 1.1 million customers each month use money management tools to
budget, track spending and understand their financial position. To support safe digital banking, we expanded our
market-leading security features designed to protect customers from scams and fraud. Westpac SafeCall and
SafeBlock are our latest Australian-first innovations. Refer to Innovating to protect customers (page 163) for more
information on our suite of digital innovations. Enhancing financial literacy We are committed to improving the
financial wellbeing of customers and the community through free financial education initiatives. We have a long-
standing partnership with Year13, an online financial literacy platform designed for young Australians. The
program offers engaging and practical content to build lasting financial habits. We connect with this important
demographic through relatable examples and interactive content, such as videos, quizzes and self-paced
modules, delivered via the social channels they use most. We also invest in digital tools and youth engagement
programs. Our banking app’s Pocket Money and Chores feature supports parents in teaching children about
saving and spending in a fun, engaging way. An online Financial Literacy Hub offers tailored learning resources
for kids, teens and school leavers. In a new collaboration with an online influencer, we produced a 12-part series
called Financial Fresh Start, focused on building good financial habits and awareness, along with steps
customers can take with support from their bank. In New Zealand, 12,206 people participated in Managing Your
Money workshops, representing a 9% increase on the previous year. These were delivered alongside targeted
seminars through our partnerships with Chambers of Commerce. In the Pacific, we deliver culturally relevant
financial education in Fiji and Papua New Guinea, reaching thousands of people and small business owners
through webinars and workshops such as Financial Basics for My Business. 1. The Forrester Digital Experience
Review: Australian Mobile Banking Apps, Q3 2025. SECURE LIVE CHAT SUPPORT Customers now enjoy
secure conversations with bankers via the Westpac Live app, with the ability to access chat history for up to 30
days and receive push notifications. All conversations are encrypted through Westpac’s secure messaging
network. This enhancement, delivered under UNITE, involved consolidating two chat platforms into one and
migrating approximately 8 million customers to a single live person chat system. The initiative cost $7.3 million
and is expected to deliver $3.7 million in annual expense savings.
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162 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR CUSTOMERS Delivering service
excellence Exceptional customer experiences depend on many factors, including ensuring our people, systems
and processes work together seamlessly to deliver timely, consistent and personalised service. We are focusing
on connecting the full breadth of our capabilities, across every operating segment and customer touchpoint, to
bring the whole bank to customers. This integrated approach aims to remove customer pain points, strengthen
advocacy and build deeper relationships over time. Through mapping, measuring and improving more than 15
critical customer journeys across our Australian operations, we are helping teams to walk in customers’ shoes
and drive cross-functional collaboration. This also provides us with better insights to help customers achieve their
financial goals. While the program is a recent initiative, early feedback indicates customers are engaging with a
broader range of our products and services. In addition, we are extending the rollout of the single banker
platform, Digital Banker, to support approximately 20,000 employees across Consumer and Business. This portal
captures customer interactions and needs, providing better insights and experiences for customers and bankers.
Prioritising safety in products and services We were proud to develop Australia’s first Safety by Design Toolkit for
financial institutions, placing customer safety and rights at the centre of product and service design. In
collaboration with the Australian Banking Association, the toolkit includes customer vulnerability personas, lived
experience videos and mandatory eLearning for product managers. It has been shared with peer organisations to
help support more Australians, regardless of who they bank with. Westpac remains committed to sector-wide
reform, advocating for Safety by Design across banking and beyond, so customer safety is built-in from the start.
Providing support in tough times We understand that anyone can fall on tough times so our Assist team provide a
range of tailored solutions to help customers regain financial stability. This can include short-term options such as
payment pauses and reduced repayments, as well as longer-term assistance plans designed to support recovery.
We also connect customers with our wider network of external partners, extending support into wellbeing and
financial empowerment. By collaborating with respected organisations, we hope to help strengthen families and
communities, break cycles of disadvantage and build lasting financial confidence. We supported customers with
46,485 tailored hardship assistance and disaster relief packages, giving customers financial reprieve and the
chance to get back on track. At the end of the financial year, 10,870 accounts remained in hardship. Through
UNITE's collections migration, we are consolidating multiple legacy systems into a single platform to support
customers and reduce complexity. It includes new tools to help teams respond to customers in hardship with
greater consistency and care. Resolving complaints Complaints are a second chance for us to make things right
for customers. Our monthly average resolution time is stable, with 94% of complaints resolved without need for
escalation. Our Customer Advocate also provides advice, while recommending policy changes and supporting
vulnerable customers. Listening to feedback helps us to continuously improve our products and services.
Importantly, we are using complaints as a key input into the customer journeys initiative, ensuring we have a
genuine view of pain points and the end to end customer experience. For example, through UNITE, we
introduced the option for eligible Westpac home loan customers to set up multiple offset accounts with no
additional fee – providing more choice and control in how they manage their finances. More than 35,000 offset
accounts have been set up since February. Listening to customers We proactively and continuously seek
customer feedback, using insights from Net Promoter Score (NPS)1 surveys, complaints and direct feedback
which helps us to measure progress and identify areas for improvement. To be Australia’s best bank, we
recognise there is more work needed to lift customer and brand advocacy. In Consumer, NPS1 improved during
the year, despite intense competition. We are currently ranked equal second in Consumer NPS1 . In Business,
we hold an NPS1 score of minus one and have established clear leadership in the SME and Commercial sub-
segments. We are prioritising improvements in our service offering for small business customers, recognising the
importance of this segment to our Business & Wealth strategy. For our Institutional customers, we aim to be their
bank of choice, supporting all their banking needs through strong relationships and comprehensive solutions. Our
Relationship Strength Index (RSI2 ) rose by 19 points, marking our highest score in a decade. While we are
currently in equal third position, our focus on deepening relationships positions us well for continued growth in
this segment. 1. Refer to the Glossary (pages 324-327) for more information on NPS. 2. Coalition Greenwich
Voice of Client 2025 Australia Large Corporate Relationship Banking Study.
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ADDITIONAL INFORMATION 163 Innovating to protect customers We continue to play a critical role in
safeguarding customers from the growing risk of cyber threats and financial crime. Through digital innovation, AI
and a multi-layered security approach, we continuously enhance our real-time protections. We were the first
Australian bank to offer the benefits of SaferPay and more recently SafeCall, which verifies Westpac calls for
customers directly through the app. SafeBlock was also launched along with Confirmation of Payee, which builds
on our existing Verify technology and has been adopted industry-wide. Our suite of digital innovations helped to
further reduce reported customer losses by 21% and prevented $360 million in potential losses. This outcome
reflects our commitment to supporting customers’ financial wellbeing by helping them stay safe in a complex
digital environment. WESTPAC SAFECALL Customers receive calls via the banking app that are Westpac
branded, verified by Optus and show a reason for the call to remove uncertainty about who is contacting them.
WESTPAC SAFEBLOCK Allows customers to instantly lock their eligible accounts and cards, including blocking
outgoing payments, transfers, and purchases, if they suspect fraud or a scam, while allowing deposits and
scheduled payments to continue. CONFIRMATION OF PAYEE Alerts customers when there is a potential
account name mismatch by checking if the account name entered by a payer matches the details held by the
receiving bank, further reducing the risk of misdirected payments. Educating and empowering customers
Prevention and detection go hand in hand, which is why we work proactively to keep customers informed about
emerging threats. Our Cyber Response Playbook and Scam Spot video series inform customers and the
community on new tactics. To empower customers, our app offers additional security tools including the Security
Wellbeing Check, Westpac Protect SMS Code, Dynamic CVC and biometric authentication to help customers
safeguard their accounts. Providing timely support Fraud and scams can have devastating and widespread
impacts. While we make every effort to recover funds sent to scammers, this is unfortunately not always possible.
Our dedicated Fraud and Scams team, supported by AI and automation, detect suspicious patterns and risks to
support customers in critical moments. We launched a new feature in the app that enables customers to report
scams, fraud, or mistaken payments quickly and securely. Our Online Banking Security Guarantee 1 and Fraud
Money Back Guarantee 1 continue to offer peace of mind in certain situations. Advocating for change We
continue to advocate for a whole-of-ecosystem approach to scam prevention. We supported the development of
the new Scams Prevention Framework Act 2025, which requires all parties, including banks, telcos, and social
media platforms, to take preventative steps to protect consumers. We continue to work closely with industry
peers to inform policy and regulatory settings under this new legislation. SAFERPAY PROTECTS RETIREES
FROM INVESTMENT SCAM An elderly couple attempted to transfer $500,000 to what they believed was a
legitimate high-interest term deposit. The offer came from scammers posing as financial advisers, complete with
official-looking documentation. Their online transactions triggered real-time SaferPay prompts that exposed
inconsistencies. Our team intervened immediately, preventing any financial loss. The customers were incredibly
relieved that SaferPay had stepped in to protect them. 1. Refer to Online Banking Terms and Conditions and
relevant Card Terms and Conditions.
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164 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR CUSTOMERS Maintaining
community presence We recognise that many customers prefer face-to-face support, particularly when making
important financial decisions. We provide trusted support across 621 branches which includes 125 co-located
branches. This represents the second-largest branch network in Australia, with more than 37% of these located
in regional areas. We have the largest fee-free ATM network in the country. Complementing our branch network
is a Virtual Banking team, providing secure, expert support via phone, video, and chat. From early 2026,
customers will also have access to a new Book a Banker tool, facilitating appointments with lenders when it suits
them. Our long-standing partnership with Australia Post offers another face-to-face banking option through 3,300
Bank@Post outlets nationwide. Supporting Indigenous customers Westpac supports Indigenous customers
across multiple channels including a dedicated Indigenous Call Centre with translators to support Indigenous
languages. On-the-ground teams in remote areas of every State and Territory work in partnership with community
groups to help empower Indigenous customers and support their banking needs. Promoting regional prosperity
Regional Australia plays a vital role in the nation’s success and we believe unlocking its full potential is key to
driving sustainable economic growth. This is a focus of our refreshed sustainability strategy, which aims to
support regional business growth, local employment and positive community and environmental outcomes. In
response to the unique needs of regional communities, we listened to customer and community feedback by
reflecting on how we could improve our service offering. We have introduced a new regional banking model
through integrated service centres that bring retail and business banking under one roof. This model delivers a
more personalised and comprehensive banking experience, which helps to build trust and stronger, more
enduring relationships over time. We committed to three service centres in new locations, with more planned in
the future. This was bolstered by our growing business banking and agribusiness team with deep industry
expertise. Our pledge to keep regional branches open has been extended to mid-2027, providing greater
certainty for customers, employees and communities. Importantly, our focus isn’t limited to financial support and
services. A resilient and stronger future for regional and rural Australia also relies on unlocking potential through
innovation. Our agri-tech investments combined with agriculture-related sponsorships, scholarships and
partnerships are fostering the next generation of farmers, helping them to solve critical industry issues. Faster
lending decisions Following our operational improvements last year to reduce time to decision for home loan
customers, we’ve continued to simplify mortgages end-to-end by streamlining policies and processes and
accelerating automation. We have also improved our home loan same-day settlement performance, now ranked
number one among Australia’s major banks1 . This supports our strategic focus on improving service and
fostering deeper customer relationships. We halved documentation requirements for self-employed applicants
through the introduction of a one-year income assessment option. This is helping to make the home-buying
journey simpler for self-employed Australians. In addition, we commenced the roll-out of a simplified digital
experience for personal loans. The initiative aims to reduce manual processing and improve turnaround times for
both new and existing customers. ANNUAL MEDIAN HOME LOAN TIME TO DECISION (DAYS)a 5.6 5.2 4.6 9.7
5.8 5.0 1st Party 3rd Party FY23 FY24 FY25 a. Prior periods have been restated Driving efficiency for businesses
In March we launched BizEdge, a new digital platform that simplifies and accelerates loan decisions. This
streamlines the end-to-end lending process and reducing manual effort for bankers and customers alike. Since
launch, it has facilitated $4.8 billion in business lending applications. (Refer to page 178) We were the first
Australian bank to activate Mastercard’s mobile virtual card solution to simplify business payments for corporate
and government clients. This capability replaces manual processes with faster, safer payments, real-time visibility
and automated reconciliation. To support our ambition to restore Institutional to number one, we're investing in
our people and fostering enduring client relationships through expert, personalised service across all channels.
Our bankers and product specialists bring deep sector expertise and long-standing partnerships, helping clients
to navigate complexity and unlock opportunities. Meanwhile, our investment in Westpac One aims to bring
together real-time treasury management, foreign exchange, trade and lending with powerful data insights. (Refer
to Modernising technology on page 178) 1. According to Property Exchange Australia (PEXA) data as at
September 2025.
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ADDITIONAL INFORMATION 165 Inclusive and accessible banking Inclusive and accessible design is part of
how we serve and support customers. Our new Access & Inclusion Plan 2025-2028 outlines how we’ll continue to
enhance banking so every customer can engage in a way that suits their needs. We are committed to meeting
diverse accessibility needs by, for example: • Providing space for assisted devices and personal support in
branches; • Promoting awareness of assistive technologies such as screen readers, chatbots and text-to-speech
functionality; • Supporting customers who wear a Hidden Disabilities Sunflower accessory; • Offering multiple
communication options including interpreters, translation services, AUSLAN and the National Relay Service; •
Delivering cultural awareness training for staff; and • Providing training and resources to support non-binary and
gender-affirming customers. Responsible marketing and advertising We regularly review and enhance our
policies, procedures, and processes to ensure they consistently support positive customer outcomes. This
commitment also applies to how we market our products and services towards suitable customers, as detailed in
our Responsible Marketing and Advertising policy on our website. Safeguarding data and privacy Earning and
maintaining customer trust is essential to our long-term success. All employees complete mandatory annual
training on data privacy and cybersecurity. Our Privacy Statement outlines how we protect personal information,
while our Cybersecurity Statement details our alignment with global and ISO standards. We continue to invest in
secure-by-design policies and infrastructure to meet evolving expectations and requirements. Supporting female
entrepreneurs We have doubled our commitment to supporting women in business, increasing this to $1 billion to
help more women overcome the challenges of starting or growing a business. Since launching the initiative two
years ago, we have helped more than 1,800 women in a range of industries, including retail, healthcare, creative
services and hospitality. Assisting vulnerable customers We continue to strengthen protections for vulnerable
customers through specialist support teams and proactive monitoring of payment descriptions and power of
attorney accounts to identify potential misuse. We also offer self-serve product features such as gambling blocks
and parental controls. To respond to threats and improve safeguards, we work closely with community
organisations and law enforcement. Customers with eligible government concession cards can also open a basic
bank account, which has no monthly account keeping or overdrawn fees. Our teams are trained and equipped to
identify and support vulnerable customers, and to connect them with external partners where additional
assistance is needed. PRACTICAL PATHWAYS TO HOME OWNERSHIP Westpac is proud to be the founding
partner of Head Start Homes, supporting more Australians into safe and stable housing through practical
pathways to home ownership. This partnership supports First Nations and single-parents to become proud
homeowners through bespoke services such as savings plans and home-buying guidance. Head Start Homes
has supported more than 225 households to begin their journey to home ownership while helping to free up
social housing for other families in need. Learn more about Kamini (pictured) on the Head Start Homes website.
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Brittany Mobile Home Finance Manager Broadbeach, QLD 166 WESTPAC GROUP 2025 ANNUAL REPORT
CREATING VALUE FOR OUR PEOPLE We strive to be Australia’s best workplace, where people feel valued,
supported and inspired to deliver for customers and reach their potential. Related material topics (refer to page
149) • Employee engagement • Health and safety • Diversity, equity and inclusion Key highlights 80
ORGANISATIONAL HEALTH INDEX 49% WOMEN IN SENIOR LEADERSHIP1 $6.3BN PAID IN SALARIES
35,236 EMPLOYEES2 1. Senior Leadership includes Executive Team, General Managers and their direct reports
(excluding administrative or support roles). 2. Refers to Full-Time Equivalent as at 30 September 2025.
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ADDITIONAL INFORMATION 167 190,000 employee recognition moments AMPLIFY new employee listening
platform 3,600 employees participated in AI Shark Tank Creating a culture where people thrive To become
Australia’s best workplace, we are shaping a high-performance culture where people feel supported,
accountability is clear, positive behaviours are recognised and it is safe to speak up. Receiving the ‘Employer of
Choice’ award for large organisations at the Australian HR Awards recognises the progress we’ve made in
making Westpac a great place to work. We are building on this momentum under the guidance of a new Chief
People Officer, while executing UNITE to help make our working environment simpler and more rewarding for our
people. With a renewed Purpose, our values were updated in July to three clear, actionable commitments:
Always deliver, safely; Make an impact; and Own it. We are embedding these into processes to align
expectations and shape a service mindset. We’re actively supporting our leaders to help shape our culture. One
way we do this is by embedding skill boost sessions into weekly team rhythms. These activities encourage open
conversations around positive risk behaviours such as speaking up, admitting mistakes and taking initiative. In
June 2025, our final Voice+ survey including the Organisational Health Index (OHI) was completed. The score
remained at 80, reinforcing Westpac's position in the top quartile of organisations globally. This reflects our
progress in recent years to reset culture and strengthen risk practices through the CORE program, which is now
complete. For more detail, refer to page 181. Listening and acting on feedback Feedback is essential to building
a culture of trust and continuous improvement. It ensures people feel heard, empowered to act, and aligned to
our purpose. To capture more dynamic employee insights and drive further improvement, we’ve transitioned from
Voice+ to a new Amplify platform. Amplify enables leaders at all levels to act on team feedback, strengthening
engagement and risk management. Insights help leaders and teams agree on priorities and turn feedback into
measurable change, supporting our goal of becoming the best place to work. We also engaged with our people to
understand how they want to use AI to work more effectively and provide better service to customers. Our
inaugural CEO-sponsored AI Shark Tank program drew significant engagement, with 3,600 employees
participating and 1,200 ideas submitted. It highlighted a keen interest in embracing AI across the company. 10
standout opportunities were selected by Executives for implementation. We also responded to employee
feedback through our continuous improvement platform Ignite, which uncovered valuable ways to boost
productivity, improve customer experience and reduce risk. In addition, leaders have regular conversations with
their team members to provide performance and development feedback to engage and motivate our people.
RECOGNISING GREAT OUTCOMES The recognition of our people is embedded in our culture. We have formal
mechanisms in place to encourage and recognise high performance, including those linked to excellent risk
outcomes. The Great Employee Moments (GEM) platform captured 190,000 recognition moments, which
informed our award winners. The annual CEO Awards (pictured) at the end of each calendar year are the
pinnacle of our recognition framework, celebrating individuals and teams who exemplify excellence, leadership
and impact across the business. Each quarter, the Board directly recognise individuals who demonstrate positive
risk outcomes, exceptional courage, innovation or leadership beyond the expectations of their role.
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168 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR OUR PEOPLE Attracting and
retaining talent Attracting and retaining talent sparks innovation and builds a workforce that reflects the diversity
and capability needed to deliver great results. We are advancing this through several targeted strategies.
Onboarding and Orientation: We introduced a refreshed onboarding and orientation program for new talent,
featuring customer immersion sessions, hands-on activities and engagement with our Executive team. Graduate
Program: We rank in the top ten of Australian Financial Review 'Top Grad Employers for 2025’ for our award-
winning graduate program. We hired 135 graduates, comprising 58% female and 52% from a STEM background.
Licensed to recruit: A new Licenced to Recruit training program is strengthening the capability of People Leaders
making hiring decisions. To date, more than 1,500 leaders have completed face-to-face training across Australia.
Internal talent mobility: We saw a second consecutive year of improvement in internal talent mobility, which is up
5% from FY23. This was driven by the launch of a new Internal Careers site with enhanced employee tools and
the introduction of the Westpac Talent Community. We continue to support redeployed employees through job-
matching tools and reporting dashboards that help identify opportunities and track outcomes. Diverse hiring: We
maintained our commitment to diverse hiring, with 49% overall female representation, even as recruitment efforts
pivoted towards male dominated technology-focused roles. Notably, MobTech welcomed 11 new Indigenous
cadets. Our dedicated female talent initiative, EmPOWERUp, creates a pathway for women to reignite their
careers after an extended leave break. It continues to build a strong candidate pool across all levels and
disciplines, with approximately 1,300 women engaged to date. Developing leadership capability People leaders
are critical to our success. They shape our culture, drive performance and role model the behaviours that enable
teams to thrive. We have three signature leadership programs to develop leaders at all levels. The Horizon
program for executive leaders resumed with its fourth cohort. This is part of a broader leadership development
strategy aimed at strengthening executive capability and driving cultural transformation. To further align broader
leadership behaviours with performance outcomes, we launched the Westpac Leadership Qualities framework,
which will be reinforced in a new Executive Leadership Group1 Scorecard from FY26. We introduced two new
leadership programs designed to strengthen capability for more than 4,000 employees through to FY27. Elevate
supports our senior leadership cohort, while LEAD is tailored for mid-level and emerging leaders. These
programs focus on executive coaching and developing adaptive leadership, high-performance and an enterprise
mindset. We are committed to supporting the development and progression of women at Westpac. This includes
accelerating the impact of programs such as Illuminate, our female sponsorship initiative and Step-Up, a new
career development program. Refer to page 169 for more information. Investing in skills for the future Equipping
our people with future skills and capabilities is at the heart of our learning and talent strategy. It encompasses
both mandatory and optional training, leadership development as well as addressing capability gaps across the
organisation. Mandatory training is completed by all employees and covers compliance, privacy and data
protection, risk awareness, identifying hazards and conflicts of interest. We expanded optional learning in
emerging areas such as AI, sustainability and cybersecurity. More than 10,000 employees completed training in
generative AI through our Microsoft 365 Copilot rollout. See Data, Digital and AI on page 179 for more
information. In Business & Wealth, we relaunched The Business Performance Academy, offering targeted training
to 3,000 employees to build confidence and advance their careers. This is complemented by learning programs
designed to build confidence in discussing sustainability matters with customers. A new self-directed leadership
program, IMPROVE, was developed by the NeuroLeadership Institute and is designed to enhance feedback skills
for leaders using contemporary research. Our people also accessed degree programs and certification training,
supported by paid study leave. 1. Includes approximately 190 senior leaders, including Group Executive direct
reports (General Managers (GM) and Chief of Staffs) and key GM1 roles.
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ADDITIONAL INFORMATION 169 11,000+ employee advocacy group members 135 new graduates joined
Westpac 10,600 Microsoft 365 Copilot licences Strengthening diversity, equity and inclusion We are a proudly
inclusive employer, committed to fostering a workplace where our people feel valued, respected and safe. One
way we advance inclusion is through 10 employee advocacy groups, connecting more than 11,000 people who
champion diversity across areas such as gender, disability, LGBTQ+ communities and cultural backgrounds. We
also refreshed the Access and Inclusion Plan, marking a 25 year commitment. We have a zero-tolerance
approach to sexual harassment and related unlawful conduct, encouraging respectful behaviour and
accountability. We encourage our people to be upstanders and speak up against inappropriate behaviours. Our
policy includes training, dedicated reporting channels, a no-bystander rule and investigation and support
processes. We also delivered training to the Board and Executive Team on their positive duty obligations under
recent legislative reforms. We continue to champion gender diversity, with women holding 49% of senior
leadership roles. To build on this, we aim to achieve a 40:40:20 balance at all levels by FY30, with 40% women,
40% men and 20% of any gender. In a submission to the Workplace Gender Equality Agency (WGEA), we
reported an overall average gender pay difference of 2% based on similar roles or levels. The median gender pay
gap reduced by 1.2% to 28.1% and this figure is heavily influenced by the composition of our workforce, with
many women employed in contact centres, operations and branches. Our new gender diversity target is designed
to help address this. The Illuminate program supported 82 aspiring female leaders through GM sponsorship, with
more than 35% advancing to new or expanded roles. As the first bank to join Diversity Council Australia’s RISE
Project, we are supporting 20 women from diverse racial and cultural backgrounds to advance their leadership
careers. We are investing in specialised programs to recruit, retain and develop Aboriginal and Torres Strait
Islander people, supported by a dedicated First Nations Engagement Manager. Refer to page 173 for more
information. Prioritising health, safety and wellbeing We recognise health, safety and wellbeing play a vital role in
how our people show up at work. We are committed to fostering a safe, secure and supportive environment,
focused on protecting people from physical and psychological harm, supporting mental health and providing a
respectful and inclusive workplace. The mental health strategy is shaped by our Chief Mental Health Officer.
Reviews of each segment were conducted, which helped develop targeted action plans to address psycho-social
risks and better understand the factors influencing wellbeing at work. This was complemented by mental health
training in partnership with the Black Dog Institute. For our Retail bankers' safety, we delivered face to face de-
escalation training to 157 branches and psychological first aid training to 375 Consumer leaders. Wellbeing
remains a core part of our employee value proposition. We launched a new mobile Wellbeing App with
personalised content and holistic wellbeing assessments to encourage healthy living. This complements our
other health initiatives including fitness incentives, access to 24/7 counselling and free flu vaccinations. Flexible
working arrangements support a healthy work-life balance. In addition, our latest EVP introduced new leave
benefits including doubling Culture, Lifestyle and Wellbeing Leave to four days, increasing Compassionate Leave
from three to five days per occasion, as well as five days leave to support employees to attend appointments
related to fertility treatment, surrogacy, adoption and foster care. We also make superannuation payments during
unpaid parental leave, rather than waiting until employees return to work. We offer market-leading banking
benefits for employees, contractors and their families. Eligible employees receive a Salary Continuance
Insurance benefit, also known as Income Protection Insurance, in case of illness and injury. In addition, a
MyDiscounts employee portal continues to offer exclusive offers and discounts from leading brands. BUILDING
STRONGER CUSTOMER CONNECTIONS We believe it’s essential for our people to understand how their roles
contribute to better customer outcomes. We created opportunities for all teams, including business functions like
risk, legal and compliance, to connect with customer experiences supported by Customer Obsession Learning
and Service Mindset sessions attended by 1,000 people. Additionally, 2,500 people completed Immersion training
and 600 participated in Customer Journey Bootcamps. We're building a workplace where everyone feels
empowered to deliver great customer outcomes.
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170 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR THE COMMUNITY We are
determined to make a meaningful difference in the community by empowering our people and the organisations
we support. Related material topics (refer to page 149) • Communities • Indigenous peoples • Human rights and
modern slavery • Sustainable supply chain • Tax transparency Photo: Ngutu child Thelma with her educator
Melissa at Ngutu College, supported by BankSA Foundation. 100 SCHOLARSHIPS AWARDED EVERY YEAR1
65,538 HOURS VOLUNTEERED BY WESTPAC EMPLOYEES $199M IN COMMUNITY INVESTMENT2 $56.1M
SPENT WITH DIVERSE SUPPLIERS3 1. By Westpac Scholars Trust which is supported by Westpac Group but
operates independently as a non-profit organisation. 2. Figure includes commercial sponsorships and foregone
fee revenue. 3. Refer to the 2025 Sustainability Index and Datasheet for definition.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 171 Since establishing our first charity in 1879, we have remained committed to
building stronger, more inclusive communities. Our approach continues to evolve and is guided by where we can
deliver the greatest impact for customers and their communities. Westpac offers a range of community
investment initiatives that encourage employees to contribute their time, skills and experience to causes they are
passionate about. These initiatives also help to foster trust and deeper connections with the communities we
serve. Australian employees receive one day of paid volunteer leave each year. This offers valuable opportunities
for personal and professional development while delivering meaningful benefits to the community. Our people
contributed 65,538 hours to initiatives ranging from volunteer firefighting to mentoring social enterprises. In
addition, 140 people also participated in Jawun secondments, the Community Ambassador and Westpac Board
Observer programs. Through our workplace giving initiative, Westpac matched $1.6 million in employee
donations to 200 charities. New chapter, stronger commitment We spent time assessing how to maximise our
impact for current and future generations. To align with Australia’s national education and productivity goals, from
2026 the Westpac and Regional Foundations and our community initiatives will unite next year behind a single,
critical objective: improving literacy and numeracy outcomes for children facing disadvantage. We believe every
child should have the tools to unlock their potential, regardless of background or the challenges they face. Refer
to our 2025 Foundations Impact Report for more information. Westpac Foundation1 The Westpac Foundation
awarded $2.2 million to 8 new social enterprise partners to support job creation. It has positively impacted
hundreds of communities in the past 20 years by providing meaningful employment opportunities for people
facing barriers to work, achieving its ambitious goal to create 10,000 jobs by 2024. Regional Foundations1 The
Regional Foundations have helped to lay the groundwork for our focus on education, with 40% of grants since
2023 supporting inclusive education. They awarded $3.3 million this year to programs that boost educational and
wellbeing outcomes for young people facing disadvantage (refer to case study). Westpac Scholars Trust1 The
Trust's landmark pledge is to award 100 scholarships a year, forever. The Trust awarded $5.1 million to scholars
this year, bringing its collective impact to $50 million since 2015. Te Waiu O Aotearoa Trust2 The Trust awarded
$5,000 scholarships to eight Māori recipients across Aotearoa to support their tertiary studies in business,
banking and finance. Investing in local communities Since 2014, we have supported Little Wings, a children’s
charity providing free aeromedical transport for seriously ill children in regional and remote communities.
Operating from Bankstown, Cessnock and Brisbane airports, Little Wings completes more than 2,300 missions
annually. Our partnership, formalised in 2020, helps fund its Medical Wings program, which brings city-based
specialists to regional clinics each month. Building on the success of our existing partnership with National Rugby
League, we announced a new sponsorship with Cricket Australia. Our support directly contributes to initiatives
that elevate participation and visibility of both sports, from grassroots clubs to elite competition. This includes
pathway and development programs for schools, young females and First Nations talent to grow the next
generation of players and leaders. BUILDING BRIGHT FUTURES Country Education Foundation of Australia
(CEF) is a volunteer led organisation helping thousands of young people in regional, rural and remote
communities to pursue education and training after school. Operating through 49 local foundations across five
states and territories, CEF is powered by more than 400 dedicated volunteers who fundraise, award grants and
mentor students, ensuring that distance and disadvantage don’t stand in the way of opportunity. St.George
Foundation has awarded a three-year, $300,000 Inspire grant to CEF to help students like Piper (pictured)
continue their studies and build bright futures. 1. In FY25, Westpac Group provided support to the Westpac
Community Trust and the Westpac Buckland Fund (known as the Westpac Foundation), Westpac Scholars Trust
and the St George Foundation Trust (known as St George Foundation, BankSA Foundation and the Bank of
Melbourne Foundation). While Westpac was involved in establishing these foundations, they are non-profit
organisations that are separate to the Westpac Group. The trustee of St George Foundation Trust (St George
Foundation Limited) is a related body corporate of Westpac. 2. Westpac New Zealand provides administrative
support and skilled volunteering to Te Waiu O Aotearoa Trust, which is a charitable trust and not part of the
Westpac Group.
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172 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR THE COMMUNITY Respecting and
advancing human rights We recognise that our activities and relationships can affect the human rights of our
people, customers and communities. We are committed to respecting these rights and actively seek opportunities
to support and advance them. We have a long-standing commitment to social impact and human rights
leadership, having introduced our first Human Rights Position Statement and Action Plan a decade ago. We
continue to progress and update our approach where appropriate, to ensure it remains relevant, aligned to our
purpose and reflects expectations and standards. The current Human Rights Position Statement and Action Plan
sets out our stance on respecting and advancing human rights and the actions we are taking. We also support
the UN Guiding Principles on Business and Human Rights, which informs the way we identify, assess and
address human rights and modern slavery risks and impacts across our operations and supply chain. The
outcomes of customer and supplier assessments are published each year in the 2025 Sustainability Index and
Datasheet. More information on Westpac's approach to human rights due diligence, grievance mechanisms and
remedy can be found on the Human Rights section of our website and in the Modern Slavery Statement. We are
making good progress on the actions outlined in the Human Rights Position Statement and Action Plan, with
delivery expected by May 2026 across five strategic priorities. Strategic focus areas FY25 Progress Addressing
our salient human rights issues Completed the final phase of our Human Rights Risk Assessment (HRRA). This
identified eleven salient human rights issues that represent our most significant areas of human rights risk. Refer
to the 2025 Sustainability Index and Datasheet for detailed results. Strengthening grievance mechanisms and
approach to remedy Developed a grievance mechanism to respond to human rights concerns from people
impacted by our lending to large businesses, incorporating feedback from human rights experts, investors and
civil society. We expect to pilot the mechanism in FY26. Supporting and advancing human rights through a just
and inclusive transition Developed principles and three action areas to guide our approach to a just transition as
we support those more impacted by extreme weather events and the transition to a net-zero economy. Refer to
the Climate Transition Plan for more information. Strengthening a focus on child safeguarding Launched a Safety
by Design Toolkit for free use by the banking sector, in partnership with the Australian Banking Association. The
Toolkit provides guidance on designing products and services to better safeguard customers from financial harm,
including children and young people. Strengthening the foundations of our human rights approach Developed an
approach to deliver enterprise-wide human rights and modern slavery training and capability improvements. We
also finalised a monitoring framework to track and report on our salient human rights risks. SAFEGUARDING
CHILDREN Since 2020, Westpac’s Safer Children, Safer Communities (SCSC) Program has committed more
than $80 million to more than 50 organisations across Australia and Asia. While funding under the SCSC initiative
is now fully allocated, our commitment to child safeguarding continues through our participation in the On Us:
Australian Business Coalition for Safeguarding Children and associated Child Safeguarding Business Principles,
which guide businesses in recognising and managing their potential or actual risks on children’s safety and
wellbeing. The Principles align with national efforts led by the Australian Government to improve child safety
across industries and provide a clear, actionable framework for embedding child safety into business operations,
risk management and culture.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 173 Ensuring reliable access to cash Maintaining access to cash in communities
across Australia carries significant cost. We continue to balance these costs against our responsibility to ensure
financial inclusion, particularly for vulnerable customers and regional communities. Our total cost of supplying
cash services to Australians was approximately $350 million. This included our continued financial support for
Armaguard to help maintain the stability of the national cash distribution system. We are working with
government, regulators and industry partners to shape a long-term, sustainable solution for Australia's wholesale
cash supply. For information on the other ways we're supporting regional Australia, refer to page 164. Maintaining
a sustainable and diverse supply chain We aim to build a stronger, more inclusive society by supporting
businesses that create positive change. Through our Supplier Inclusion and Diversity program, we support
Indigenous-owned businesses, social enterprises, Australian Disability Enterprises, women-owned businesses
and B Corporations - companies certified for their high standards of social and environmental performance,
transparency and accountability. We spent $56.1 million with diverse suppliers1 , an increase of $18.2 million
from last year. Please refer to the table below for information on how we support Indigenous-owned businesses.
Supporting Reconciliation and Indigenous peoples Our vision for reconciliation is an Australia where Aboriginal
and Torres Strait Islander peoples have equitable opportunity for economic participation and financial wellbeing.
We seek to achieve this through a focus on creating impact for Indigenous customers, employees and
communities. The outcomes of the 2022-2025 RAP set out below demonstrate our ongoing commitment to
achieving our vision. Our new 2026-2028 Reconciliation Action Plan (RAP) signifies a sharper focus across five
priority areas, including Indigenous banking, supporting suppliers, home ownership, Westpac careers and Free,
Prior and Informed Consent (FPIC). RAP FOCUS AREA FY25 PROGRESSa Valuing culture: building
relationships based on trust and respect; valuing cultures and histories and recognising the importance of self-
determination. • Maintained cultural capability with 99.8% of employees completing mandatory learning. •
Celebrated and supported Indigenous culture by hosting more than 30 events internally and externally for
National Reconciliation Week and NAIDOC Week. • Platinum Sponsor of Garma, a major event celebrating
Indigenous culture. • 20 Westpac staff completed a Jawun secondment this year, bringing the total to 100
secondments since April 2022. Meaningful careers: investing in Indigenous careers through dedicated programs
to recruit, retain and develop Aboriginal and Torres Strait Islander people. • Aboriginal and Torres Strait Islander
workforce representation rose to 1.15% though retention challenges have slowed progress towards our 1.5%
target. To address this, we’ve appointed a First Nations Engagement Manager to develop and implement a
retention and development strategy for Indigenous employees. • We recruited 11 new cadets through MobTech,
all of whom secured permanent roles at Westpac. Better banking experiences: making it easier for Indigenous
customers to do business with us and improving financial inclusion and economic participation. • 18,008 unique
customers have been supported through our Indigenous call centre since April 2022. • Since 2022, we’ve
delivered 146 Remote Services. Backing Indigenous enterprise: helping more Aboriginal and Torres Strait
Islander people to grow their businesses as customers, suppliers and partners. • We spent $35.1 million with
Indigenous-owned suppliers this year, bringing the total since April 2022 to $67.9 million. This significantly
exceeds our RAP target to spend a cumulative $8 million with Indigenous-owned suppliers between 1 April 2022
and 30 September 2025. • Skilled Volunteer Network supported 26 First Nations-focused organisations, including
7 First Nations-led organisations. Respect for self-determination and a deeper understanding of FPIC: working
with customers, stakeholders, experts and communities to share knowledge and improve outcomes. • Guided by
First Nations perspectives, we developed a framework to support conversations about engagement with
customers and partnered with an Indigenous-led organisation to strengthen these principles. • Our 2022-2025
RAP leadership project supports FPIC implementation at Westpac. a. Refer to the 2025 Sustainability Index and
Datasheet for further information. 1. Refer to the 2025 Sustainability Index and Datasheet for further information.
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174 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR THE ENVIRONMENT We are taking
climate action by reducing our operational emissions, supporting customers to transition and providing
sustainable finance across Australia and New Zealand. Related material topics (refer to page 149) • Climate
change • Natural capital Photo: Aerial photo of Cooktown, Queensland. Key highlights1 89% REDUCTION IN
SCOPE 1 AND 2 EMISSIONS SINCE 2021 42% REDUCTION IN SCOPE 3 UPSTREAM EMISSIONS SINCE
2021 37% INCREASE IN SUSTAINABLE FINANCE LENDING 40% INCREASE IN SUSTAINABLE BOND
FACILITATION 1. Refer to 2025 Sustainability Report for definitions and detail.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 175 To support our purpose and climate ambition to become a net-zero, climate
resilient bank, we continue to actively support the transition to a lower-carbon economy and enhance Westpac's
climate resilience. This year we made good progress on our climate strategy. We further reduced operational
emissions, advanced towards Westpac's 2030 financed emissions sector targets and recorded solid growth in
sustainable finance and bond facilitation. We have also lifted our capability to analyse and assess climate-related
risks and opportunities, by improving scenario analysis, introducing a climate risk policy and expanding training.
This positions us well for the future by supporting our resilience and ability to meet new prudential standards and
legislative reporting requirements. Westpac's new Climate Transition Plan (CTP), shaped by stakeholder
feedback, outlines our targets and approach to supporting progress towards our climate ambition. The CTP
supersedes our 2023-2025 Climate Change Position Statement and Action Plan. Refer to the 2025 Sustainability
Report for more information. Reducing the direct impact of our operations We believe in leading through action,
demonstrated by our progress towards achieving our operational emissions reduction targets. In FY23, we met
our 2025 scope 1 and 2 operational emissions reduction target. In FY24, we delivered our 2030 operational
emission target six years ahead of plan. Despite this, we remain focused on further reducing our impact, with
scope 1 and 2 operational emissions declining a further 22%, largely from the transition of our fleet towards
hybrid or electric vehicles (pictured). The 89% reduction since 2021 places us comfortably ahead of our 2030
target of a 76% decline. We have continued to source the equivalent of 100% of electricity from renewable
sources. This has been supported by our long-term virtual power purchase agreements with the Bomen Solar
Farm in New South Wales, Ararat Wind Farm in Victoria, and Berri Solar Farm and Battery in South Australia.
Westpac’s operational emissions Upstream scope 3 emissions were down 2% in FY25 and 42% lower than the
2021 baseline year, putting us on track to achieve our target of a 50% reduction by 2030. FIGURE 1:
WESTPAC'S OPERATIONAL EMISSIONS (MARKET-BASED) (TONNES OF CO2 EQUIVALENT) 133,570
82,092 63,146 Scope 1, 2 and scope 3 Upstream emissionsb 2021a 2023 2025 a. The 2021 reported emissions
(above) differ from our 2021 baselines for scope 1, 2 and scope 3 upstream targets as the baseline was adjusted
for COVID pandemic and other factors. b. Refer to 2025 Sustainability Report for the scope 3 upstream
emissions categories included.
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176 WESTPAC GROUP 2025 ANNUAL REPORT CREATING VALUE FOR THE ENVIRONMENT Supporting the
customer transition With more than 99% of emissions linked to lending, reported as scope 3 financed emissions,
helping customers to transition is where we are focusing our efforts to drive meaningful change. Our aspiration is
to reduce Westpac's financed emissions in line with the goals of the Paris Agreement. It is complemented by 13
sector targets, including high-emitting industries. This year we reported improved progress for more than 70% of
our financed emissions sector targets. We report financed emissions one year in arrears, so the most recent
available data is from FY24. Westpac's total financed emissions were 40.7 MtCO2-e for FY241 , slightly higher
than in FY23. This was primarily due to: • Adoption of a higher-quality source for emissions factors used to
estimate customer emissions; and • A rise in the share of Business and Institutional lending for which we
estimate financed emissions. As a part of managing sustainability risks in our lending, we updated our Carbon-
Intensive Sector Requirements during the year. Existing customers in-scope of these requirements are now
subject to a Customer Climate Transition Plan (CTP) Evaluation when they seek new or renewed corporate
lending or bond facilitation. These requirements apply to customers operating in oil and gas, metallurgical coal
mining and coal-fired power generation sectors and outline how we engage and consider financing decisions.
The CTP Evaluation rates customers’ CTPs on a four-point scale of A to D and informs the actions we will take
depending on the rating. If a customer CTP is rated ‘D’ they would not currently be eligible for new or renewed
corporate lending or bond facilitation unless financing supported National or Energy Security2 . As we have
worked to implement these requirements, we conducted a preliminary analysis of existing in-scope customers’
CTPs. In that review, approximately 55% were rated ‘A’ while 9% were rated ‘D’. Further information can be found
in the 2025 Sustainability Report. We have delivered on our FY25 commitment to reduce corporate lending to
institutional thermal coal mining customers3 to zero. In FY25, we had in-depth engagements with more than 130
institutional and corporate customers in Australia and New Zealand on their climate transition plans. Of these,
83% had a public report outlining their climate transition strategy. With the introduction of mandatory climate
reporting, the maturity of our customers’ disclosures varies. To support our agriculture financed emissions sector
targets, we have continued engaging with customers, industry bodies, and at key events. This included
sponsoring Meat & Livestock Australia (MLA) Carbon EDGE workshops, which aim to help farmers reduce
emissions through best practices in productivity, animal welfare and environmental management. In 2023, as part
of setting 2030 Agriculture financed emissions sector targets for Dairy and for Beef and Sheep, we expressed a
commitment to no deforestation4 from 31 December 2025 for customers in scope of our targets, and to engage
with customers on this commitment. Since that release, we have engaged with rural research and development
corporations, members of the agricultural supply chain, peak industry bodies and with customers to understand
how this would affect the sector. Following our consultation, we have refined our approach, no longer requiring a
formal ‘no deforestation’ commitment, but continuing to develop practical ways to help customers manage
deforestation risk effectively. This includes supporting industry efforts that help farmers assess and verify
deforestation free status for supply chain reporting. For more detail, refer to the 2025 Sustainability Report.
Engaging with customers to better understand their decarbonisation approaches is critically important. By doing
this, we can identify where we can offer support and play a meaningful role in the broader climate transition.
Strengthening insights We took steps to broaden our scenario analysis by incorporating new data sources to
evaluate risks at the customer property level. We also used geospatial mapping to identify regions more
susceptible to climate-related impacts. This is improving our understanding of physical risks across our lending.
In turn, it enables us to provide more targeted support to customers to help strengthen their climate resilience.
Growing sustainable finance Sustainable finance and bond facilitation play a role in assisting customers as they
transition. Supported by our Sustainable Finance Framework, sustainable finance lending has reached $39 billion
and increased 37% during the year. Cumulative sustainable bond issuance has totalled $22 billion since the start
of FY22 and rose 40% in FY25. This progress underscores our support for customers' sustainability objectives. It
also helps to position us to achieve our 2030 targets of $55 billion in sustainable finance lending and $40 billion in
cumulative bond facilitation. 1. Total financed emissions for scope 1 and 2, and for certain sectors where we
estimate scope 3 emissions. 2. National or Energy Security – Circumstances where a government or regulator
determines that additional supply, or maintaining current supply is necessary for national or energy security and
Westpac’s funding is able to support such additional supply, in which case it may need to be escalated to an
appropriate committee. 3. At 30 September 2025. In line with our Sustainability Customer Requirements, we
have zero corporate lending and will no longer provide bond facilitation for Institutional customers with ≥15% of
their three-year rolling average revenue coming directly from thermal coal mining. 4. Refer to the 2025
Sustainability Report for the full definition of deforestation.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 177 Natural capital We continue to build capability and knowledge on nature-
related risks and opportunities, in alignment with our Natural Capital Position Statement. This has helped us
better understand our role in supporting customers and suppliers across our value chain on nature topics that are
most material to them. At 30 September 2025, 14.2% of lending is in sectors defined by the Taskforce on Nature-
related Financial Disclosures (TNFD)1 as having material nature-related dependencies and impacts. Further
information is available in the 2025 Sustainability Index and Datasheet. Understanding material nature topics
relevant to institutional customers We analysed nature-related disclosures of Australian institutional customers in
TNFD priority sectors to better understand their material nature topics1 and inform our ongoing customer
engagement. Of the customers reviewed, more than 35% identified at least one nature topic as a key
sustainability topic2 , with freshwater, land and biodiversity most commonly cited. This was most prevalent in the
food and beverage, paper and forest products, metals and mining, infrastructure and energy sectors. Progressing
our approach in agriculture Using the TNFD LEAP framework3 we piloted an approach to assess nature-related
dependencies for Australian agribusiness customers. The pilot used geospatial analysis to evaluate the potential
dependency on water, native forest and world heritage sites. It provided insights into how agribusiness customers
depend on nature and helps build understanding of potential risks and opportunities. We participated in the
Australian Sustainable Finance Institute (ASFI) Natural Capital Advisory Group and Agriculture and Land
Taxonomy Expansion Pilot Advisory Group, helping to shape draft criteria for the Integrating Nature into Finance
research paper. Sustainable financing We continue to offer sustainable finance that encourages improved land
use and biodiversity management. In FY25, Westpac: • Coordinated Arranger and Bookrunner for AirTrunk’s
SYD1 and SYD2 term loan financing, supporting biodiversity, conservation and disaster relief, delivered through
its social impact program; • Supported the structuring and issuance of an innovative nature-focused
Sustainability-Linked Bond for Auckland Council. Refer to case study; and • Provided Sustainable Farm Loans to
48% of total agribusiness term lending in New Zealand, totalling NZ$4.02 billion. Supplier engagement We work
with Westpac's Australian suppliers to understand their approach to circularity and nature. This has resulted in
positive outcomes such as a reduction in packaging of IT equipment, increased volumes of forestry certified
paper and the reuse of equipment and materials across our operations and value chain. Additionally, we
strengthened our responsible sourcing program by introducing new criteria to assess circularity, reduce
deforestation risks and impacts on critical habitats for medium and large suppliers. Environmental performance
We also continue to monitor the environmental performance of our operations. Further information is available in
the 2025 Sustainability Index and Datasheet. SUSTAINABILITY-LINKED BOND FOR AUCKLAND COUNCIL
Westpac supported the structuring and issuance of an innovative nature-focused Sustainability-Linked Bond for
Auckland Council. The NZ$250 million three-year wholesale bond is the first in Australasia to include a nature-
based target, with Auckland Council targeting to plant one million native ngahere (forest) stems across its
regional parks by the end of 2027. If the target is not achieved, Auckland Council will make a donation to
organisations supporting the restoration of native ngahere across the Auckland region. Typically, Sustainability-
Linked Bonds include additional payments to investors for missed targets. The structure of Auckland Council’s
Sustainability-Linked Bond ensures that the Auckland community benefits, irrespective of whether the planting
target is met. 1. Taskforce on Nature-related Financial Disclosures. (2024). Sector Guidance Additional Guidance
for Financial Institutions v2. 2. Nature is identified as a key sustainability topic if the customer identifies land,
freshwater, ocean, biodiversity or nature in general as a key sustainability topic or the customer has set a nature-
related target. 3. LEAP is short for Locate, Evaluate, Assess and Prepare.
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178 WESTPAC GROUP 2025 ANNUAL REPORT TRANSFORMATION Our transformation agenda is building a
more efficient technology environment to help deliver better outcomes for customers, employees and
shareholders. We have established a dedicated transformation office, led by a Chief Transformation Officer and
supported by a skilled team, to drive effective transformation across Westpac. UNITE, our business-led,
technology-enabled transformation program, is a cornerstone of this agenda. It aims to simplify operations and
enhance experiences by consolidating technology stacks, decommissioning legacy systems and streamlining our
product suite to make banking simpler for customers. To choose the best path for UNITE, we’ve adopted a 'one
best way' approach to deliver Westpac consistently across our channels, processes and products. UNITE
comprises four stages: Discovery, Simplify, Implement and Decommission. The Discovery stage is complete, with
51 initiatives underway and eight delivered. Modernising technology Complementing UNITE are two flagship
digital innovations, BizEdge and Westpac One. BizEdge, our new business lending origination platform, is
accelerating digital capabilities for bankers, with AI-powered tools that support faster, more confident decision-
making. Westpac One, our new Institutional platform, will integrate treasury, FX trade and lending with real-time
data insights to enhance customer experience and operational performance. These initiatives reflect our
commitment to making Westpac simpler, while modernising how we work to deliver better outcomes for
customers and our people. UNITE: ONE PRIVATE BANK We completed a successful transition of customers to a
single, Private Bank under the Westpac brand. This strategic initiative was designed to enable more customers to
benefit from Westpac's enhanced digital experience and improved service offering. Customers who transitioned
gave positive feedback, which reflected in a strong Brand NPS1 result for Private Bank. The initiative cost $5
million to complete and has cut related processes and systems by 50%, reducing duplication and streamlining
banker workflows. Additionally, it supports our aim to grow Private Bank's balance sheet and funds under
management. BIZEDGE WESTPAC ONE Fast, simple, digital business lending origination Leading banking
capability for large businesses Objectives • A single digital business lending origination platform that reduces
both customer input and banker processing time by 50% FY25 progress • $4.8bn in applications since launch in
March • Average time to decision reduced by 45% • Quick and easy log in • Automated company and Personal
property Securities Register searches • Built-in National Credit Code assessment • Real-time application tracking
Objectives • Progressive, three-year rollout of next generation transaction banking for large organisations •
Modern hyper-scalable core banking platform • Real-time corporate treasury management services • Digitised
servicing and virtual assistant support • Intelligent AI automation and data insights FY25 progress • Real-time
deposit ledger implemented • Connected to the domestic payment scheme (NPP) 1. Refer to the Glossary (pages
324-327) for more information on NPS.
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ADDITIONAL INFORMATION 179 DATA, DIGITAL AND AI 15,724 people using GenAI to support how they work
700 mortgage assessors using AI for faster processing #1 banking app in Australia, three years in a row Data
analytics, digital innovation, and AI are supporting our evolution into a smarter, safer and more productive bank.
As part of our transformation agenda, we are leveraging artificial intelligence and data insights to improve
decision-making, accelerate speed to market and enhance customer satisfaction. This investment in modernising
technology and data is essential to our AI readiness by improving the integrity, accessibility and usability of data.
To centralise and strengthen our efforts, we have appointed a new Group Executive for Data, Digital and AI to
support our strategic focus on improving experiences while embedding AI responsibly. We are also equipping our
people with the skills needed to gain benefits from these technologies. GenAI training uptake has been strong,
with 19,000 eLearning modules and educational sessions completed. More than 3,600 people engaged in the
CEO-sponsored AI Shark Tank, showcasing the energy and creativity of our people in applying AI to real-world
challenges. Refer to page 167 for more information. Responsible AI and governance We are committed to the
ethical, safe and transparent use of AI, supported by a robust governance framework and evolving risk reporting
mechanisms to ensure responsible development. We’re guided by Westpac’s Responsible AI Principles, along
with our AI Risk Management Standard (AIRMS) and Responsible AI Playbook. Together, they shape how we
use AI while ensuring we maintain an external lens that reflects both community expectations and regulatory
requirements. Our leadership in this space was recognised internationally, with Westpac shortlisted for the 2025
DataIQ Awards UK in the category of 'Best Responsible AI Program', highlighting our commitment to safe,
scalable and ethical AI innovation. Accelerating AI innovation We have been using AI in different forms for more
than a decade. Our focus today is on scaling proven generative AI solutions that have tangible benefits through
our AI Accelerator. It has delivered 33 solutions to date with a further 27 in delivery. Some of its benefits include: •
AI for customer safety: Our Fraud and Scams team are assisted on calls by 'JESS', our Joint Expert Scam
Spotter. This AI capability delivered real-time guidance during 20,000 customer calls, yielding unique insights and
helping to protect customers from scams and fraud. • AI for faster lending decisions: The Mortgage AI Assessor
introduced last year is now supporting 700 assessors to process mortgage applications, saving more than 12,000
hours of assessor time annually. • AI to empower our people: 15,724 employees are actively using Gen AI tools,
exceeding our FY25 target of 10,000. We've deployed 10,600 Microsoft 365 Copilot licenses, including access to
personal agents via Copilot Studio Lite, enabling staff to interact with data using natural language in a secure
environment. A pilot group is now live on Copilot Studio's advanced AI agent capabilities, expediting AI Shark
Tank opportunities. • AI for efficiency: Our use of Agentic AI in Data Products is transforming how we work,
enabling autonomous AI agents to deliver outcomes up to twelve times faster and helping scale GenAI solutions
across the organisation. In recognition of this innovation, we were proud to be named a finalist in the 2025
Finovate Awards in New York. FINANCIAL CRIME AI: SMARTER SURVEILLANCE AT SCALE Westpac has
developed an innovative AI-based system to improve its financial crime investigation capability. It can
automatically summarise analysis from large volumes of data, making it easier to identify risks and act quickly. By
cutting down on manual work, the system supports teams to make faster, more consistent decisions. This helps
us to focus on new threats while freeing up our teams to support more customers.
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180 WESTPAC GROUP 2025 ANNUAL REPORT RISK MANAGEMENT Proactive risk management and a
strong risk culture are essential to Westpac’s strength and resilience. They guide the organisation’s operations
and decision-making and support our ability to adapt to a changing environment. Westpac’s risk management
framework (Framework) outlines how the organisation manages its material risks and delivers better outcomes
for customers, communities, its people and other stakeholders. The Framework is centred around customers, a
strong risk culture and an effective Three Lines of Defence (3LOD) model. The Risk Management Strategy, which
incorporates the Framework, is approved by the Board. It is supported by risk class frameworks, risk appetite
statements and policies. These are all reviewed regularly to maintain the effectiveness of the Framework. For
further information on the risks we face, refer to 2025 Risk Factors. RISK MANAGEMENT FRAMEWORK
COMPONENTS CUSTOM ERS Governance and Management Control Business Strategy Risk Identification Risk
Appetite Stress and Scenarios Analysis People and Infrastructure Control Definition and Effectiveness Monitoring
and Reporting Actions and Response Risk Culture Three Lines of Defence CUSTOMERS
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ADDITIONAL INFORMATION 181 Strengthening risk management In December 2020, Westpac entered a Court
Enforceable Undertaking (CEU) with The Australian Prudential Regulation Authority (APRA). We committed to
remediating specific prudential weaknesses identified by APRA in our culture, governance and accountability, and
address the root causes of these issues. In response, Westpac established the Customer Outcomes and Risk
Excellence (CORE) Program and appointed an independent reviewer. Prior to this, APRA had imposed a $500
million operational risk capital overlay on Westpac in July 2019 and an additional $500 million operational risk
capital overlay in December 2019. In recognition of the progress and improvements in risk management under
CORE, in July 2024, APRA reduced its operational risk capital requirement by $500 million. In October 2025,
APRA removed the remaining $500 million risk capital overlay, satisfied that the CORE program is complete and
the specific prudential issues identified by APRA have been addressed. Promontory Australia, the independent
reviewer noted in their final report on the CORE program: “The depth of change to the organisation, both
structurally and culturally, means that Westpac is now a simpler, stronger bank." Three Lines of Defence (3LOD)
PRINCIPLES First Line owns and manages the risks they originate: − The First Line proactively identifies,
evaluates, owns, monitors, manages and controls the existing and emerging risks in their business. It manages
business activities within approved risk appetite and policies. − In managing its risk, the First Line establishes and
maintains appropriate governance structures, controls, resources and self-assessment processes, including
issue identification, recording and escalation procedures. The 3LOD work together to deliver effective risk
management outcomes to achieve the Group's Purpose. The 3LOD work together to make sound risk-based
decisions through: − strong and proactive engagement, communication, trust and collaboration − management
information that is reliable, coherent and transparent. There must also be alignment of activities across the 3LOD
to avoid unnecessary duplication, overlap, or gaps. Third Line provides independent and objective assurance: −
Group Audit is the Third Line assurance function that provides the Board and Senior Executive with independent
and objective evaluation of the adequacy and effectiveness of the Group’s governance, risk management and
internal controls. 3LOD IN WESTPAC Second Line provides insight, oversight and challenge of First Line
activities: − The Second Line is an independent function that develops risk management frameworks, defines
guardrails, provides objective review and challenge regarding the effectiveness of risk management within the
First Line business, and executes specific risk management activities where functional independence and/or
specific risk capability is required. − Its approach is risk-based and proportionate to First Line activities. THIRD
LINE Independent Assurance Audit Function SECOND LINE Insight, Oversight and Challenge Risk Function
FIRST LINE Own and manage risk All Divisions and Functions excluding Risk and Audit Functions
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182 WESTPAC GROUP 2025 ANNUAL REPORT RISK MANAGEMENT Material risk categories Westpac has
identified 11 material risk categories, among other potential risks, that could impact its business activities. 1
Capital Adequacy 2 Funding and Liquidity Risk 3 Credit Risk 4 Market Risk 5 Strategic Risk 6 Risk Culture 7
Operational Risk 8 Compliance and Conduct Risk 9 Financial Crime Risk 10 Cyber Risk 11 Reputational and
Sustainability Risk For each material risk category, the Board establishes a risk appetite which is articulated in the
Board Risk Appetite Statement (RAS). The RAS lists our material risks, along with the measures and tolerances
used to monitor each risk. Most of these measures are monitored by 'green', ‘amber’ and ‘red’ tolerances which
indicate when risks are close to, or over, the Board’s approved appetite. The following table provides more detail.
MATERIAL RISK CATEGORIES 1 Capital Adequacy Risk The risk that Westpac has an inadequate level or
composition of capital to support its normal business activities and to meet its regulatory capital requirements.
Risk Appetite and Mitigation We aim to maintain a strong balance sheet including under stressed scenarios. We
evaluate capital management through our Internal Capital Adequacy Assessment Process, features of which
include: • Capital management strategy; • Considering economic and regulatory requirements and stakeholder
perspectives; • Stress-testing considerations; and • Target operating range for key capital ratios. Areas of focus
include: • Continuous monitoring of capital forecasts; • Considerations of capital headwinds; and • Actively
monitoring the economic outlook and credit risk arising from higher interest rates and cost-of-living pressures.
Example of a Risk Appetite measure • CET1 capital ratio – a measure which indicates a bank’s capacity to
absorb losses.
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ADDITIONAL INFORMATION 183 2 Funding and Liquidity Risk The risk that Westpac cannot meet its payment
obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to
support its assets. Risk Appetite and Mitigation We aim to manage our balance sheet such that we: • Maintain a
diversified, stable and cost-effective funding base; • Can source funding as and when needed; • Have sufficient
securable assets to meet our funding and repurchase agreement requirements; and • Fund lending growth with
stable funding sources. Further information on funding and liquidity risk management is in Note 21 (page 73).
Areas of focus include: • Executing the wholesale funding plan to support balance sheet growth and refinance
maturing debt; and • Managing liquidity risk to meet regulatory requirements and Westpac’s liquidity needs in line
with market conditions. Examples of a Risk Appetite measure • Net Stable Funding Ratio (NFSR); and • Liquidity
Coverage Ratio (LCR). 3 Credit Risk The risk of financial loss where a customer or counterparty fails to meet
their financial obligations to Westpac. Risk Appetite and Mitigation We manage credit risk using: • Board
approved credit risk limits and approval authorities which are cascaded through the bank; • Clear boundaries to
guide appropriate credit risk strategic choices • Reviewing settings and appetite on a regular basis to adjust for
changes in the operating environment; and • A range of policies, processes and systems to support credit risk
monitoring and management. Further information on credit risk management and provisioning is in Note 10 (page
33) and Note 11 (page 43) to the financial statements and in the September 2025 Pillar 3 report. Areas of focus
include: • Responding to heightened credit risk from domestic and international factors including cost of living
pressure, higher interest rates, ongoing geopolitical risks, trade disruptions and a more uncertain economic
environment; • Stress testing our credit portfolio including for climate related change and the transition to net-zero
emissions; and • Assessing the impact of any external events, and provision modelled outcomes including
lending growth and conditions for specific customer groups (e.g. including by geography, industry etc.) the
adequacy of the overall expected credit loss provision. Example of a Risk Appetite measure • Top 10 exposures
to Corporates and Non-Bank Financial Institutions as a % of Total Committed Exposure.
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184 WESTPAC GROUP 2025 ANNUAL REPORT RISK MANAGEMENT 4 Market Risk The risk of an adverse
impact on Westpac’s earnings and economic value resulting from changes in the value of Westpac’s positions
due to a change in financial market factors, such as foreign exchange rates, commodity prices, equity prices,
credit spreads and interest rates. This includes earnings at risk – the risk to net interest income from interest rate
changes, and economic value sensitivity – the risk of variability in the Group’s banking book capital requirements.
Risk Appetite and Mitigation We have appetite for market risk in approved products within our limit framework.
We manage market risk through the employment of prudent risk management strategies and active monitoring of
Board-approved metrics that capture the potential risk of adverse movements in financial markets. The Board has
approved a risk appetite for traded and non-traded risks via the measurement of Value at Risk (VaR), Stressed
VaR (SVaR), Net Income at Risk (NaR) and risk sensitivities to interest rates for capital hedges and to credit
spreads for the liquid securities portfolio. The management of market risk is supported by the Market Risk
Management Framework and associated policies, limits, processes, systems and delegated authorities. Further
information on market risk management is in Note 21 (page 73). Areas of focus include: • Upgrading/replacing
market risk systems and supporting infrastructure; and • Implementing regulatory change related to prudential
market risk standards. Example of a Risk Appetite measure • Value at Risk (VaR), a statistic that quantifies the
extent of possible financial losses arising from the Bank’s Treasury and Financial Markets businesses. 5 Strategic
Risk The risk that Westpac makes inappropriate strategic choices, does not implement its strategies successfully,
or does not respond effectively to changes in the environment. Risk Appetite and Mitigation We aim to grow
through well-considered initiatives aligned to our strategy and risk appetite. We aim to manage the impact of
threats from changes in the environment, which could significantly impact our ability to implement our strategies.
We continually evaluate our performance and seek to adapt to changes in the external environment in a timely
manner. Areas of focus include: • Technology simplification and transformation; • Delivery of regulatory
commitments; and • Invest in digital and data, with the aim of improving the customer experience. Examples of a
Risk Appetite measure • Actual ROTE against the Target ROTE; and • Allocation of balance sheet to Australia
and New Zealand (% of book in terms of Exposure at Default).
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ADDITIONAL INFORMATION 185 6 Risk Culture The risk that our culture does not promote and reinforce
behavioural expectations and structures to identify, understand, discuss and act on risks. Risk Appetite and
Mitigation We promote a risk culture that supports our purpose, strategy and values and our ability to manage risk
effectively. We regularly assess our risk culture and undertake initiatives to continually improve. Areas of focus
include: • Leader led role modelling and training; • Continuing to review, monitor and improve our tools and
processes to support the management of risk culture; • Supporting improved capability across key behavioural
change areas, including speak up, decision making, ownership, challenge and maturing action planning to drive
behavioural change; and • Executing on an integrated culture plan to support driving change at all levels.
Example of a Risk Appetite measure • Internal survey results – score for respondents who feel free to speak up
without fear of negative consequences. 7 Operational Risk The risk of loss resulting from inadequate or failed
internal processes, people and systems or from external events. Risk Appetite and Mitigation We aim to be
resilient to operational risk and minimise risk through robust processes and controls. We aim to quickly and
effectively remediate material operational issues and incidents. Areas of focus include: • Strengthening the
control environment, including risk prevention and automation; and • Strengthening our operational resilience and
adopting read-across processes to fully understand underlying issues. Example of a Risk Appetite measure • %
of key controls assessed as ‘Unsatisfactory’. 8 Compliance and Conduct Risk The risk of failing to abide by
compliance obligations required of us, or otherwise failing to have behaviours and practices that deliver suitable,
fair and clear outcomes for customers and that support market integrity. Risk Appetite and Mitigation We
establish robust controls and systems to manage compliance and conduct risk. We aim to promptly own,
investigate and remediate incidents of non-compliance. We aim to prevent: • Breaches of regulatory
requirements; • Conduct that causes unsuitable, unfair or unclear customer outcomes or adversely impacts the
integrity of markets; and • Complicated systems or processes that could lead to systemic or material breaches of
regulatory requirements. Areas of focus include: • Strengthening the management of our conflicts of interest,
product governance, privacy risks and the oversight of regulatory reporting; and • Improving our tools and
processes to support alignment of our behaviours and business practices to fair customer outcomes and market
integrity. Example of a Risk Appetite measure • Average calendar days to complete all Compliance Assessments.
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186 WESTPAC GROUP 2025 ANNUAL REPORT RISK MANAGEMENT 9 Financial Crime Risk The risk that
Westpac fails to prevent products and services being used to facilitate financial crime, fails to protect customers
and Westpac from fraud and scam events or fails to comply with applicable global financial crime regulatory
obligations. Risk Appetite and Mitigation Westpac is committed to protecting the integrity of the Australian
financial system and importantly keeping our community safe. This aligns with our purpose of ‘Taking action now
to create a better future’. Westpac helps prevent financial crime by proactively identifying, assessing, mitigating
and reporting financial crime risks and complying with all applicable global and local financial crime regulatory
obligations. Westpac continues to invest significant resources to assist AUSTRAC, law enforcement and the
Australian Government (including through the Fintel Alliance) to detect, deter and disrupt financial crime. Areas of
focus include: • Simplification and embedding strategic capabilities, improving detection and surveillance
capabilities and expanding the use of network analytics; • Collaboration through involvement in Public and Private
sector partnerships and other intelligence bodies to disrupt financial crime; and • Uplifting of Know your Customer
(KYC) processes and enhancing customer lifecycle management through digital capabilities and automated
controls. Example of a Risk Appetite measure • Volume of High/Very High Financial Crime residual risk ratings
across Westpac's businesses. 10 Cyber Risk The risk that Westpac’s or its third parties’ data or technology are
inappropriately accessed, manipulated or damaged from cyber threats or vulnerabilities. Risk Appetite and
Mitigation We proactively manage our cyber risk exposure, to help ensure that we are resilient to cyber threats
and vulnerabilities. In managing our cyber risk, we aim to ensure that: • We manage our risks within the
appropriate regulatory frameworks; • We do not undermine our strategic, financial, reputational or regulatory
standing; and • We implement cyber controls commensurate to the cyber threats we respond to. We recognise
that cyber events may occur, however incidents must be managed timely and effectively to limit impact and future
likelihood. Areas of focus include: • Enhancing cybersecurity capability including data security controls,
application protection controls, identity and access management and strengthening our network perimeters; and •
Embedding a consistent cyber risk management framework. Examples of a Risk Appetite measure • Control
effectiveness against external cyber threats; and • Supplier security assessment outcomes.
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ADDITIONAL INFORMATION 187 11 Reputational and Sustainability Risk The risk of failing to recognise or
address environmental, social or governance (ESG) issues as well as the risk that an action, inaction,
transaction, investment or event will reduce trust in Westpac’s integrity and competence. Risk Appetite and
Mitigation We aim to maintain the confidence of all stakeholders, aiming to balance the commercial aspects of
decisions with stakeholder expectations. Our approach includes considering potential impacts on people,
communities and the environment. We recognise that ESG issues can involve interconnected and sometimes
competing considerations. Areas of focus include: • Continuing to improve assessment of customers and our
supply chain for reputation and sustainability risks through existing governance processes and tools; • Continuing
to embed the Climate Risk Policy, aligned with APRA’s CPG 229, including performing a Climate Risk Materiality
Assessment to understand the intersection of climate risk across our material risk categories; and • Expanding
our salient human rights assessment to include our role as a financial services provider, employer and supporter
of communities. Example of a Risk Appetite measure • Reputation ranking from external ranking agency (such as
RepTrak) which provides independent assessments of a company’s reputation, brand and ESG.
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188 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE OUR APPROACH TO
GOVERNANCE Corporate governance is the framework of systems, policies and processes by which we operate
and through which our people are both empowered and accountable for making decisions that affect our
business, operations, customers and stakeholders. The framework establishes the roles and responsibilities of
Westpac’s Board, management team, employees and suppliers. It also establishes the systems, policies and
processes for monitoring and evaluating Board and management performance, and the practices for corporate
reporting, disclosure, remuneration, risk management and engagement of security holders. Our approach to
corporate governance is based on a set of Commitments and Behaviours that underpin our day-to-day activities.
Our Commitments and Behaviours are designed to promote transparency, fair dealing, and the protection of
stakeholder interests, including our customers, our shareholders, our employees and our community. We aspire
to the highest standards of corporate governance, which Westpac sees as fundamental to the sustainability of our
business and our performance. As Westpac’s principal listing is on the Australian Securities Exchange (ASX), we
have followed the ASX Corporate Governance Principles and Recommendations (fourth edition) (ASXCGC
Recommendations) published by the ASX Limited’s Corporate Governance Council (ASXCGC) throughout the
year. Westpac’s ordinary shares are also quoted on the NZX Main Board, which is the main board equity security
market operated by NZX Limited. BOARD AREAS OF FOCUS IN FY25 This year the Board (including with
assistance from its Board Committees) has focused on overseeing: • our UNITE program which is focused on
making our processes, systems and technology simpler to enhance customer and employee satisfaction and
operational efficiency; • the appointment of Anthony Miller as Westpac's Chief Executive Officer (CEO), who
commenced on 16 December 2024; • initiatives to deliver five key priorities: – Customer – striving to be #1 in
customer service through a 'whole of bank to whole of customer' approach; – People – investing in our people
and fostering a culture of accountability and empowerment; – Risk – completing the Customer Outcomes and
Risk Excellence (CORE) program transition; – Transformation – simplifying technology and adopting a 'one best
way' approach; and – Performance – improving return on tangible equity and cost-to-income ratio while
strengthening our market position; • the introduction of Westpac's updated purpose – 'Taking action now to create
a better future' alongside behaviours aligned with three key commitments – Always Deliver, Safely; Make an
Impact; and Own it; • ongoing initiatives designed to deliver customer service excellence, including support for
customers experiencing hardship and protections against scams; • the Group’s financial and operating
performance, including progress in improving the Group’s financial performance relative to peers; • management
of current and emerging risks arising from the evolving economic, geopolitical, regulatory, and competitive
environment; • Westpac’s capital position and various capital management initiatives; • consideration and
assessment of the resilience of the Group’s systems and response to potential cyber incidents and data
breaches; • priorities outlined in our Sustainability Strategy and the approval of our updated Climate Change
Position and Climate Transition Plan; • ongoing consideration of Board and senior executive succession, as well
as Board and Board Committee composition; and • transition of the Westpac Group's external auditor from
PricewaterhouseCoopers to KPMG.
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ADDITIONAL INFORMATION 189 THE BOARD Board of Directors The Board is comprised of ten independent
Non-executive Directors and the Managing Director and CEO. A profile of each Director can be found on our
website at: www.westpac.com.au/about-westpac/ westpac-group/ board-of-directors/. STEVEN GREGG
Chairman and Independent Non-executive Director ANTHONY MILLER Managing Director and Chief Executive
Officer TIM BURROUGHS Independent Non-executive Director NERIDA CAESAR Independent Non-executive
Director DAVID COHEN Independent Non-executive Director PIP GREENWOOD Independent Non-executive
Director DEBRA HAZELTON Independent Non-executive Director ANDY MAGUIRE Independent Non-executive
Director PETER NASH Independent Non-executive Director MARGARET (MARGIE) SEALE Independent Non-
executive Director MICHAEL ULLMER Independent Non-executive Director
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190 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE ROLES AND
RESPONSIBILITIES The Board The role of the Board is to provide leadership and strategic guidance for
Westpac and its related bodies corporate, in addition to overseeing the sound and prudent management of the
Westpac Group. The Board Charter outlines the roles and responsibilities of the Board. Key responsibilities are: •
approving and overseeing management’s implementation of the strategic direction of the Westpac Group, its
business plan and significant corporate strategic initiatives; • appointing the CEO and Chief Financial Officer
(CFO), and approving the appointment of Group Executives, the Chief Audit Officer and any other person the
Board determines; • overseeing culture across the Group by setting the tone from the top, approving Westpac
Group’s Code of Conduct and Purpose, Commitments and Behaviours, and receiving reporting on the Group’s
culture; • assessing and reviewing the performance of the Board, its Board Committees, the CEO and the Group
Executives; • oversight of the Group’s technology strategy and the implementation of key technology initiatives; •
approving the Westpac Director Appointment & Renewal Policy and determining Board size and composition; •
approving the Group Remuneration Policy; • approving, in accordance with the Group Remuneration Policy,
remuneration arrangements, variable remuneration outcomes and adjustments to variable remuneration where
appropriate for Group Executives, other employees who are accountable persons under the Financial
Accountability Regime (FAR) (Accountable Person), any person performing a role specified by the Australian
Prudential Regulation Authority (APRA) and any other person the Board determines; • approving the annual
financial targets and financial statements, and monitoring financial performance against forecast and prior
periods; • reviewing and approving capital management initiatives, including determining our dividend policy and
the amount, nature and timing of dividends to be paid; • approving the Internal Capital Adequacy Assessment
Process, including reviewing Group stress testing outcomes/scenarios, and approving recovery and resolution
plans; • considering and approving our overall risk management framework for managing financial and non-
financial risks; • approving the Risk Management Strategy and the Board Risk Appetite Statement and monitoring
the effectiveness of risk management by the Group; • forming a view of our risk culture and overseeing the
identification of, and steps taken to address any desirable changes to risk culture; • considering the social, ethical
and environmental impact of our activities, setting standards and monitoring compliance with our sustainability
policies and practices, and approving the Westpac Group's sustainability strategy and its position on material
sustainability matters; • overseeing and monitoring workplace health and safety (WHS) issues in the Group and
considering appropriate WHS reports and information; and • meeting with representatives from our principal
regulators on a regular basis. The Board Charter is available on our website at: www.westpac.com.au/about-
westpac/westpac-group/ corporate-governance/constitution-board/. WESTPAC’S BOARD AND BOARD
COMMITTEE STRUCTURE BOARD COMMITTEES Provide relevant periodic assurances and reports (as
appropriate) Provide assurance on the remuneration disclosures in the Remuneration Report Provide assurance
on risk components of the annual report and interim financial results announcement Delegation Assurance,
Oversight through Reporting Accountability Accountability Delegation Delegation Board Committees will refer
matters to the Board or other Board Committees where appropriate. Specific reporting as shown above BOARD
Independent Assurance and Advice External Auditors Group Audit Independent Assurance and External Advice
Chief Executive Officer Group Executives Remuneration Audit Nominations & Governance Risk
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ADDITIONAL INFORMATION 191 The Board has delegated to the CEO, and through the CEO to the Executive
Team, responsibility for the day-to-day management of Westpac’s business. These delegations are subject to the
limitations and restrictions contained in the delegation instruments. The Board is assisted in meeting its roles and
responsibilities by its four standing Board Committees. Further information about each of the Board Committees
is set out in the section titled ‘Role of the Board Committees’. Chairman The Board elects one of the independent
Non-executive Directors as Chairman. Our Chairman is Steven Gregg. His role includes: • providing effective
leadership to the Board in relation to all Board matters; • guiding the agenda and conducting all Board meetings
to facilitate discussions, challenge and decision-making; • in conjunction with the Company Secretary, arranging
regular Board meetings throughout the year and confirming that minutes of meetings accurately record decisions
taken and, as required, the views of individual Directors; • overseeing the process for appraising Directors and
the Board as a whole; • overseeing Board succession, including in relation to the Board Chair and Board
Committee Chair roles; • acting as a conduit between management and the Board, and being the primary point of
communication between the Board and CEO; • representing the views of the Board to the public; and • taking a
leading role in creating and maintaining an effective corporate governance system. CEO Our Managing Director
and CEO is Anthony Miller. His role includes: • leadership of the Executive Team and, with the Board, overseeing
succession planning for the Executive Team; • developing strategic objectives for the business and achievement
of the planned results; and • the day-to-day management of the Westpac Group’s operations, subject to the
specified delegations of authority approved by the Board.
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192 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE Board skills, experience and
attributes Westpac seeks to maintain a Board of Directors with a broad range of relevant financial and other skills,
knowledge, and experience necessary to guide the business of the Group. The Board uses a skills matrix to
illustrate the key skills and experience the Westpac Board is seeking to achieve in its membership collectively
and the number of Directors with each skill and experience. The skills matrix also assists to identify focus areas
for the continuing education and professional development of Directors. For example, in FY25 these focus areas
included technology developments and key environmental, social and governance topics (amongst others), which
were facilitated through a combination of structured workshops, targeted deep dives, and site visits aligned with
strategic priorities. The skills matrix also assists to identify areas where it may be desirable for specialist external
expertise to be retained to supplement the Board’s skills and experience. The skills matrix is set out in Figure 1.
FIGURE 1 – BOARD SKILLS, EXPERIENCE AND ATTRIBUTES AS AT 30 SEPTEMBER 2025 SKILLS AND
EXPERIENCE DESCRIPTION NUMBER OF DIRECTORS Customer focus Experience in developing and
overseeing a strong customer-focused culture in large and complex organisations, and a demonstrable
commitment to achieving customer outcomes Strategy An ability to define strategic objectives, constructively
question business plans, oversee the implementation of strategy using commercial judgement and bring a global
perspective to bear Financial services Experience working in, or advising, the banking and financial services
industry with strong knowledge of its economic drivers and global business perspectives Financial acumen Highly
proficient in accounting or related financial management and reporting for businesses of significant size Risk
management Experience in anticipating, recognising and managing risks, including financial, non-financial and
emerging risks, and monitoring risk management frameworks and controls Technology, digital and data
Experience in overseeing the application of technology in large and complex organisations, including in areas
such as innovation, disruptive technologies, data, cyber-security, digital transformation and customer experience
Governance Experience as a Director of a listed entity, with detailed knowledge of governance, including legal,
compliance, regulatory and public policy issues applicable to listed entities and highly regulated industries
Environment and social Experience in understanding and identifying potential risks and opportunities arising from
environmental and social issues People and culture Experience in people matters including workplace health and
safety, cultures, morale, inclusion and diversity, management development, succession, remuneration and talent
retention initiatives Executive leadership Having held a CEO or a similar senior leadership role in a large complex
organisation, and having experience in managing the business through periods of significant change and
delivering desired business outcomes Deep experience and knowledge General working experience and
knowledge Limited working experience and knowledge In addition to the skills outlined above, the Westpac Board
seeks to ensure that it operates as a cohesive team, bringing together a range of perspectives to guide the Group
and oversee management. The Westpac Board also expects its members to be committed to supporting our
Purpose and upholding our Commitments and Behaviours.
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ADDITIONAL INFORMATION 193 Board diversity A diverse group of skilled Directors helps us be a stronger
organisation that makes better decisions. In relation to gender diversity, for 2025, the Board Nominations &
Governance Committee confirmed its objective of 40% women, 40% men and 20% any gender for the
composition of the Westpac Board. In FY25, this objective included the Managing Director and CEO. From FY26,
the Managing Director and CEO will be included within the Executive Team objective, with the Board objective
applying only to Non-executive Directors1 . As at 30 September 2025, the gender composition of the Board was
64% male and 36% female. Independence All Non-executive Directors satisfy our criteria for independence,
which aligns with the guidance provided in the ASXCGC Recommendations. The Board assesses the
independence of our Non-executive Directors on appointment and annually. Each Non-executive Director
provides an annual attestation of their interests and independence. Directors are considered to be independent if
they are independent of management and free from any business or other relationship that could materially
interfere with, or could reasonably be perceived to materially interfere with: • the exercise of their unfettered and
independent judgement; and • their ability to act in the best interests of Westpac as a whole rather than the
interests of another party. Materiality is assessed on a case-by-case basis by reference to each Non-executive
Director’s individual circumstances rather than by applying general materiality thresholds. Each Non-executive
Director is required to disclose any business or other relationship that they have directly, or as a partner,
shareholder or officer of a company or other entity that has an interest or a business or other relationship with
Westpac or a Group entity. The Board considers information about any such interests or relationships, including
any related financial or other details, when it assesses the Non-executive Director’s independence.
APPOINTMENT OF DIRECTORS The Board Nominations & Governance Committee considers and makes
recommendations to the Board on candidates for appointment as Directors. Such recommendations pay
particular attention to: • the mix of skills, experience, expertise, diversity, independence, and other qualities of
existing Directors; and • how the candidate’s attributes will balance and complement those skills and qualities,
and address any potential skills gaps in relation to the current and future composition of the Board. Subject to the
Constitution and ASX Listing Rules, the Board may appoint a Director, either to fill a casual vacancy or as an
addition to the existing Directors. Except for the CEO, a Director appointed by the Board holds office only until the
close of the next annual general meeting (AGM) but is eligible for election by shareholders at that meeting. Our
Constitution states that a Director (except for the CEO) must not hold office (without re-election) past the third
AGM following their appointment or last election, or for more than three years, whichever is longer. Retiring
Directors hold office until the conclusion of the meeting at which they retire but are eligible for re-election at that
meeting. Our Constitution also provides that at least one Director must stand for election or re-election at each
AGM. This requirement could be satisfied by a person standing for election as a new Director; a Director who has
been appointed to fill a casual vacancy seeking election; or a Director seeking re-election because of the tenure
limitation (referred to in the paragraph above). If there are no such Directors required to stand for election or re-
election at the AGM, and no Director volunteers to stand for re-election, the Director who has served the longest
in office since their last election or re-election must retire and stand for re-election. The CEO is not required to
stand for re-election. Prior to a Director’s appointment or consideration for election or re-election by shareholders,
the Board conducts due diligence and considers the results of the Board performance evaluation conducted
during the year. Where a Director is seeking election or re-election, Westpac provides shareholders with all
material information relevant to a decision on whether or not to elect or re-elect a Director. New Directors receive
an induction pack and letter of appointment setting out the expectations of the role, and conditions of
appointment including the expected term of appointment and remuneration. This letter aligns to the ASXCGC
Recommendations. All new Directors participate in an induction program to familiarise themselves with our
business and strategy, culture, commitments and 1. The Westpac Director Appointment & Renewal Policy
outlines considerations for the appointment of candidates, including gender diversity for the appointment of Non-
executive Directors to the Westpac Board. The Managing Director and CEO is appointed to the Westpac Board
due to their executive position.
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194 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE behaviours and any current
issues before the Board/ Board Committees. The induction program includes an opportunity to review key
documents and meet with a range of representatives from the organisation, including the Chairman, the CEO, the
Board Committee Chairs and each Group Executive. The Westpac Director Appointment & Renewal Policy limits
the tenure of office that any Non-executive Directors other than the Chairman may serve to 9 years, from the date
of first election by shareholders. The maximum tenure for the Chairman is 12 years (which includes any term
served as a Director prior to being elected as Chairman), from the date of first election by shareholders. The
Board, on an exceptional basis, may extend the maximum terms specified above where it considers the
extension would benefit the Group. The Board may exercise this discretion on an annual basis, and the Director
concerned will be required to stand for re-election annually. The average Board tenure as at 30 September 2025
is set out below. The length of service of each Director is set out in the Directors’ report in our 2025 Annual
Report. Conflicts of interest All Directors are required to disclose to the Board any actual, potential or apparent
conflicts of interest upon appointment and are required to keep these disclosures up to date. Any Director with a
material personal interest in a matter being considered by the Board must declare their interest and may not be
present during any related boardroom discussions nor vote on the matter unless the Board resolves otherwise.
Continuing education Directors undertake continuing education and training to develop and maintain the skills
and knowledge needed to perform their role effectively, including by participating in workshops held throughout
the year, attending relevant site visits, and undertaking relevant external education. These activities are planned
each year and are included in the Board’s/Board Committees’ calendars. In addition, the Board and Board
Committees consider whether additional education and professional development opportunities should be offered
as part of the annual Board Effectiveness Review. Access to information All Directors have unrestricted access to
company records and information required to perform their duties, and receive regular detailed financial and
operational reports from senior management. Each Director also enters into an access and indemnity agreement,
which among other things, provides for access to documents for up to seven years after their retirement as a
Director. The Chairman and other Non-executive Directors regularly consult with the CEO, CFO and other senior
executives, and may consult with, and request additional information from, any of our employees. Access to
advice All Directors have access to advice from senior internal legal advisers including the Group General
Counsel. The Board collectively, and all Directors individually, can also seek independent professional advice, at
Westpac's expense, to help them carry out their responsibilities. While the Chairman’s prior approval is needed, it
may not be unreasonably withheld. Remuneration framework Information about our remuneration framework,
including policies and practices regarding the remuneration of Non-executive Directors, the CEO and other senior
executives, is included in the Remuneration Report in the Directors’ report (which is located in our 2025 Annual
Report). Westpac does not provide performance-based remuneration or retirement benefits (other than
superannuation) to Non-executive Directors. The Remuneration Report also includes details of Westpac’s
hedging policy, which prohibits participants in equity plans from entering into transactions that mitigate the risk
associated with the equity award.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 195 PERFORMANCE REVIEWS Board, Board Committees and Directors The
Board undertakes ongoing self-assessment as well as an annual performance review, which is periodically
conducted by an independent consultant. The review process includes an assessment of the performance of the
Board, the Board Committees and each Director, with outputs collected, analysed and presented to the Board.
The Board will discuss the results and agree follow-up actions. Directors meet individually with the Chairman to
discuss performance feedback (and in the case of the Chairman, performance is discussed with another Board
Committee Chair). At the time of this Corporate Governance Statement, the 2025 financial year evaluation has
been completed, the Board discussed the results and agreed follow up action on matters relating to Board
composition, process, priorities and continuing education. Board assessment of management performance The
Board, in conjunction with its Board Remuneration Committee, is responsible for: • selecting, appointing, and
determining terms of appointment of, the CEO and the CFO; • determining the CEO’s goals and objectives, and
evaluating the CEO’s performance in light of these objectives; • approving the appointment of Group Executives,
the Chief Audit Officer, and any other person the Board determines; and • approving individual remuneration
arrangements, and adjustments to variable remuneration where appropriate for Group Executives and certain
other senior employees, including in light of relevant matters brought to the attention of the Board Remuneration
Committee from the CEO, Chief Risk Officer, Chief People Officer, Chief Audit Officer, and Chairs of the Board
Risk Committee and Board Audit Committee. All new senior executives receive an employment contract setting
out the terms and conditions of their employment, and those that are Accountable Persons also receive an
Accountability Statement for their respective role. Briefing sessions are scheduled to discuss our strategies and
operations, and the respective roles and responsibilities of the Board and senior management. Under Westpac’s
executive remuneration framework, the performance of senior executives is assessed annually. Management
performance evaluations for the financial year ended 30 September 2025 were conducted following the end of
the financial year. The process for reviewing the performance of senior executives, as well as further information
on Westpac’s executive remuneration framework, FY25 performance objectives and performance achieved, is
contained in the Remuneration Report in the Directors’ report (which is located in our 2025 Annual Report).
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196 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE ROLE OF THE BOARD
COMMITTEES The Board is assisted by its four standing Board Committees and the key roles, responsibilities,
and composition requirements of each of the Board Committees are outlined in their respective Charter
summarised in the table below. The Board Committee Charters are available on our website at
www.westpac.com.au/about-westpac/westpac-group/ corporate-governance/constitution-board/. All of the Board
Committees are required to: • have at least three independent Non-executive Directors; • comprise a majority of
independent Directors; and • with the exception of the Board Nominations & Governance Committee1 , have an
independent Non-executive Director as the Committee Chair, who is not the Board Chair. In addition, the Board
Risk Committee must have at least one member of the Board Audit Committee and Board Remuneration
Committee as members. At present all of the Board Committees are comprised of Non-executive Directors. Board
Committee members are chosen for the skills and experience they can contribute to the respective Board
Committees and their qualifications are set out in the Directors’ report, in our 2025 Annual Report. COMMITTEE
KEY RESPONSIBILITIES Board Risk Committee (BRiskC) • Michael Ullmer (Chairman) • Tim Burroughs • Nerida
Caesar • David Cohen • Peter Nash To assist the Board by: • providing oversight of the implementation and
operation of the Group's risk management framework; • forming a view of the risk culture within the Group; •
reviewing and recommending for approval the Risk Management Strategy, and the Board Risk Appetite
Statement; • reviewing and approving individual risk management frameworks and policies and reviewing the
monitoring of performance under those frameworks and policies (as appropriate); • reviewing and approving limits
and conditions that apply to delegated credit risk and market risk approval authorities; • reviewing and
recommending for approval the Internal Capital Adequacy Assessment Process, including target capital ranges,
and reviewing and monitoring capital levels for consistency with the Board Risk Appetite Statement; • reviewing
stress testing results, and with the Board, providing feedback on future scenarios; • reviewing and recommending
Westpac's Recovery and Exit Plan and Westpac's Group-wide resolvability assessments and pre-positioning
plans to the Board for approval; • reviewing and assisting the Board to form a view on the sufficiency of recovery
capacity to restore financial resilience in periods of stress and oversee the execution of any recovery and exit
actions; • reviewing Group cyber risk and cybersecurity reporting, including oversight of the Group’s cyber risk
management and controls; • providing oversight of risks associated with the Group’s approach to customer
remediation activities, management of customer complaints and hardship; • providing oversight of the Group’s
management of other financial and non-financial risks including financial crime risk, reputation and sustainability
risks including climate risk; and • monitoring changes anticipated for the economic, geopolitical and business
environment, including considering emerging risks. 1. The Board Chair is the Chair of the Board Nominations &
Governance Committee.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 197 COMMITTEE KEY RESPONSIBILITIES Board Audit Committee (BAC) • Peter
Nash (Chairman) • Nerida Caesar • Michael Ullmer To assist the Board by: • overseeing the integrity of financial
statements and financial reporting systems of Westpac and its related bodies corporate; • maintaining oversight
of the external audit engagement, and overseeing the external auditor’s qualifications, performance,
independence and fees; • overseeing the performance of the internal audit function; • overseeing the integrity of
the Group’s corporate reporting including the Group‘s financial and sustainability reporting, and compliance with
prudential regulatory reporting and professional accounting requirements; • reviewing and discussing with
management and the external auditor the half and full year financial statements, Annual Report disclosures, and
the Sustainability Report and recommending their approval to the Board; and • reviewing and discussing the
process by which management assures the integrity of information on earnings and key sustainability metrics.
Board Remuneration Committee (BRemC) • Margaret Seale (Chair) • Tim Burroughs • Debra Hazelton • Andy
Maguire To assist the Board by reviewing and making recommendations in relation to: • the Group’s remuneration
framework (as articulated in the Group Remuneration Policy), as well as assessing its compliance with laws,
regulations and prudential standards; • individual remuneration arrangements and variable remuneration
outcomes for the CEO, Group Executives, other Accountable Persons, and any other person the Board
determines; • the remuneration framework, policies, and fee levels (including superannuation) for Non-executive
Directors on the Board and subsidiary Boards; • remuneration arrangements on a cohort basis (including variable
remuneration outcomes) for certain employees; and • in conjunction with the Board Chair, review and make
recommendations on the performance of the CEO, including their goals and objectives as assessed against the
Group Performance Review. Board Nominations & Governance Committee (BNGC) • Steven Gregg (Chairman) •
Peter Nash • Margaret Seale To assist the Board, including by: • recommending candidates for appointment as
Non-executive Directors to the Board and the Boards of significant subsidiaries; • reviewing the process for the
induction and continuing education of Directors; • considering succession planning for Non-executive Directors; •
assessing the overall skills, experience, expertise and diversity of the Board; • reviewing annually diversity
generally within the Group, including approving measurable objectives for achieving diversity and the Group’s
progress in achieving such objectives; • reviewing annually the time required to be committed to Westpac
business by Non-executive Directors on the Board; and • reviewing and, where required, approving the Group’s
corporate governance policies. Information about Board Committee composition changes in FY25 can be found
in the Directors' meetings section of the Directors’ report, in our 2025 Annual Report. From time to time, the
Board may form other Committees or request Directors to undertake specific extra duties. In addition, the Board
may participate (either directly or through representatives) in due diligence committees in relation to strategic
decisions and capital and funding activities. For example, in FY24 the Directors UNITE Oversight Group was
established to provide oversight of the ongoing UNITE program. Each Board Committee: • will refer to the Board
or other Board Committee any matter that comes to their attention that is relevant for the Board or respective
Board Committee; and • is entitled to the resources and information it requires and has direct access to our
employees and advisers.
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198 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE Board and Board Committee
meetings The number of meetings of the Board and Board Committees for the financial year ended 30
September 2025, and each Director’s attendance is reported in the Directors' meetings section of the Directors’
report, in our 2025 Annual Report. Scheduled meetings of the Board Committees occur at least quarterly, with the
Board Risk Committee meeting at least five times annually. All Board Committees can meet more frequently as
necessary. Non-executive Directors regularly meet without management present, so they can discuss issues
appropriate to such a forum. Senior executives and other selected employees are invited, where considered
appropriate, to participate in Board and Board Committee meetings. They are also available to be contacted by
Directors between meetings. All Directors can receive all Board Committee papers and can attend any Board
Committee meeting, provided there is no conflict of interest. The CEO attends all Board Committee meetings,
except where they have a material personal interest in a matter being considered. Board Audit Committee
financial knowledge All Board Audit Committee members have appropriate financial experience, an
understanding of the financial services industry and satisfy the independence requirements under the ASXCGC
Recommendations, Securities Exchange Act of 1934 (US) (as amended) and its related rules. The Board has
determined that Mr Nash is an ‘audit committee financial expert’ and independent in accordance with US
securities law. The designation of Mr Nash as an audit committee financial expert does not impose duties,
obligations or liability on him that are greater than those imposed on him as a Board Audit Committee member,
and does not affect the duties, obligations or liability of any other Board Audit Committee member or Board
member. Audit committee financial experts are not deemed as an ‘expert’ for any other purpose. Meeting with
Regulators The Directors met with representatives from the Australian Securities and Investments Commission
(ASIC), APRA, Australian Financial Complaints Authority (AFCA), and Australian Transaction Reports and
Analysis Centre (AUSTRAC) during the course of the year. Role of the Company Secretary Westpac’s Company
Secretary attends Board and Board Committee meetings and is responsible for the operation of the Secretariat
function, including advising the Board on governance and, in conjunction with management, giving practical effect
to the Board’s decisions. The Company Secretary is accountable to the Board, through the Chairman, on all
matters to do with the proper functioning of the Board. A profile for the Company Secretary can be found in the
Directors’ report, in our 2025 Annual Report.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 199 DIVERSITY At Westpac we’re focused on building a workplace that fosters a
diverse and inclusive workforce where our people feel valued, respected and safe. We seek to embrace
everything that makes people unique in their identity like age, cultural background, disability, ethnicity, sex,
gender identity, marital or family status, religious belief, sexual orientation or socio-economic background. Our
Diversity, Equity & Inclusion Strategy and Policy aims to put people at the heart of everything we do and sets out
our objective to encourage a more inclusive workplace for our people to support our customers. We are focused
on hiring, developing and retaining diverse talent in a culture that embraces and celebrates differences, and
allows people to feel safe at work. Our Diversity, Equity, and Inclusion priorities Our Executive Team oversees the
Group-wide Diversity, Equity, and Inclusion Strategy and Policy and reviews progress at least annually. We are
committed to creating an inclusive environment for all employees by focusing on: • growing leaders who reflect
the diversity of our customers and workforce and providing fair and equitable access to career and development
opportunities; • incorporating diversity, equity and inclusion considerations into decision-making processes to
create accountability for our Diversity, Equity and Inclusion commitments throughout the organisation; and •
fostering a safe workplace where inclusive leadership behaviours are consistently demonstrated. Making
Inclusion happen We expect all employees to foster a culture which values diversity and includes everybody. The
Board Nominations & Governance Committee annually reviews diversity within the Group, including approving
diversity and inclusion objectives and overseeing progress in achieving these objectives. Westpac is a signatory
to the 40:40 Vision, and the Board Nominations & Governance Committee confirmed the Group’s measurable
objectives (which were in place for this reporting period) for achieving gender diversity in the composition of the
Board, Executive Team, General Managers, and workforce generally as follows: • achieve 40:40:20 on the
Westpac Board; • achieve 40:40:20 in our Executive Team1 ; • achieve 40% (+/- 2%) women in our General
Manager population; • achieve 50% (+/- 2%) women in our Senior Leadership2 ; and • maintain at least 50%
women in our workforce generally. More information is set out in the table below. % FEMALES SEP-24 SEP-25
TARGET TARGET MET Westpac Board 40 36 40:40:20a Not met Executive Team 50 50 40:40:20a Met General
Managers 40 37 40 +/- 2% Not met Senior Leadership 49 49 50 +/- 2% Met Westpac workforce 54 54 50 Met a.
40% women, 40% men and 20% of any gender 1. Includes the full Executive Team other than the CEO. 2. Senior
Leadership refers to the proportion of women (permanent and maximum term) in senior leadership roles across
the Group. It includes the Executive Team, General Managers, and direct reports to General Managers, excluding
administrative or support roles.
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200 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE The Board approved a change
to measurable objectives for gender diversity from FY26 to enhance our focus on achieving gender diversity
throughout the organisation. Our aim is to achieve gender diversity of 40:40:20 at all role levels by FY30, with
40% women, 40% men and 20% of any gender. This new objective allows us to be inclusive of all gender
identities and applied at all levels is key to improving our gender pay gap. We are committed to achieving pay
equity. We undertake like-for-like and by-level analysis to identify potential gender-based pay equity issues and
take action when needed. As part of our commitment to foster a diverse and inclusive place to work, we do not
tolerate discrimination, bullying or harassment, including sexual harassment. Our Discrimination, Harassment,
Bullying, and Related Conduct and Sexual Harassment policies are available at the following link
www.westpac.com.au/ about-westpac/inclusion-and-diversity/. Our ‘Upstander’ initiative aims to grow employee
confidence and capability to speak up and take action against behaviours and activities that negatively impact
others. We have made progress against our commitments in our fifth Reconciliation Action Plan. Aboriginal and
Torres Strait Islander workforce representation rose to 1.15%, though retention challenges have slowed progress
towards our 1.5% target. We have implemented measures to support our Indigenous employees, including our
Echo leadership and mentoring programs that are designed to support emerging leaders by building leadership
capability and career progression. We have also appointed a First Nations Engagement Manager to further
develop and implement retention and development strategies for Indigenous employees. We provide mandatory
online Indigenous cultural learning to our employees, with an enhanced learning option also available. Our next
Reconciliation Action Plan will launch in FY26. Our ten Employee Advocacy Groups help us strengthen an
inclusive culture by building trusted communities that celebrate and advocate for gender, LGBTQIA+, young and
mature-age employees, cultural diversity in leadership, accessibility, Indigenous employees, veterans, skilled
volunteering and supporting victims of domestic and family violence. Westpac offers workplace flexibility and
provides employees with a variety of leave options such as parental leave (including support for those who
experience pregnancy loss), leave to undergo fertility treatment or arrange adoption of foster care, carers’ leave,
culture, wellbeing and lifestyle leave, career breaks, purchased leave, uncapped domestic and family violence
support leave, gender affirmation leave, Sorry Business and Sad News leave, volunteer leave, defence reserves
and emergency services leave. Further information on our inclusion and diversity programs and performance, as
well as a copy of our Diversity, Equity & Inclusion Policy and Westpac’s Workplace Gender Equality Agency
(WGEA) report, can be found on our website at www.westpac.com.au/about-westpac/inclusion-and-diversity/.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 201 ETHICAL DECISION MAKING Ethical and responsible decision making is
critical to decision-making at Westpac. Our Purpose, Commitments and Behaviours, together with our Code of
Conduct and related policies and frameworks, are focused on instilling and reinforcing an ethical and responsible
decision-making culture across the Group. What we stand for Westpac’s Purpose is: Taking action now to create
a better future. In working to fulfil our Purpose, we are guided by our Commitments and Behaviours. Together,
our Purpose, Commitments and Behaviours define what we stand for. They set the direction for our culture by
being practical, and actionable, providing clarity about what is valued most and what our people need to do. Our
Commitments are the promises we make to each other, our customers, our communities, and stakeholders.
Underpinning our three Commitments are our Behaviours which describe how we show up to deliver on those
promises clearly, consistently, and with impact. They address important themes such as speaking up, ownership,
collaboration and empowerment. We embed our Purpose, Commitments and Behaviours through employee and
leadership initiatives and align them with the systems, processes and policies that clarify what we expect from
each other, and how we work together, every day. Code of Conduct The Westpac Code of Conduct (Code) sets
out a consistent standard and establishes the expectations of our people to do what is right. The Code goes
beyond an obligation to comply with laws and policies and is a key aspect of improving conduct to seek to ensure
fair outcomes for customers, communities and each other. The Code requires us to apply the ‘Should We?’ Test
when making decisions and encourages our people to speak up when our standards are not being met. We take
non-compliance with the Code seriously. Material breaches of the Code are reported to the Board Risk
Committee. Supporting the Code are numerous frameworks and policies outlining our commitment to sustainable
business practices and behaviours. These include our Purpose, Commitments and Behaviours, policies and
position statements addressing sustainability themes such as human rights, climate change and other
environmental and social impacts. The Code is available on our website at www.westpac.com.au/about-
westpac/westpac-group/ corporate-governance/principles-policies/. OUR PURPOSE TAKING ACTION NOW TO
CREATE A BETTER FUTURE OUR COMMITMENTS ALWAYS DELIVER, SAFELY MAKE AN IMPACT OWN IT
We love to tackle the tough stuff. We're tenacious and committed to finding solutions for customers that keep
them safe and manage our risk. We aim to make a real, sustainable difference. We create authentic and lasting
value for our customers and the communities we serve. We take accountability and do what we say we will.
We're focused on what our customers need from us and we won't give up until we've delivered for them. OUR
BEHAVIOURS ASK 'SHOULD WE?' Take thoughtful risks we understand and can manage STOP BUSY WORK
Deliver great results for our customers, focusing on outcomes not just tasks DON'T PASS THE BUCK Lean in
and collaborate with others to solve problems CUT THROUGH COMPLEXITY Clear obstacles that are in the way
of progress BE CURIOUS Seek feedback and data to continuously adapt, innovate, and grow SPEAK UP Speak
up if something doesn't feel right IDENTIFY, FIX, SHARE Identify and own mistakes, fix them properly, and share
what you learned RESPECTFULLY CHALLENGE IF YOU DISAGREE Value diverse views to find new paths
forward TAKE THE LEAD Reimagine what's broken and improve what isn't THE OUTCOMES WE EXPECT
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202 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE KEY POLICIES We have a
number of key policies that seek to manage our regulatory compliance and human resource requirements. We
are also subject to a range of external industry codes, such as the Banking Code of Practice and the ePayments
Code. Code of Ethics for Senior Finance Officers Our Code of Accounting Practice and Financial Reporting
(COAPFR) complements our Code of Conduct. It is designed to assist our CEO, CFO and other principal
financial officers to apply the highest ethical standards to their duties and responsibilities with respect to
accounting and financial reporting. The COAPFR requires those officers to: • act honestly and ethically, including
in the handling of actual or apparent conflicts of interest between personal and professional relationships; •
provide full, fair, accurate, timely and understandable disclosure in reporting and other communications; • comply
with applicable laws, rules and regulations; • promptly report violations of the COAPFR; and • be accountable for
adherence to the COAPFR. The COAPFR is available on our website at www.westpac.com.au/about-
westpac/westpac-group/ corporate- governance/principles-policies/. Delegated authority The Delegated Authority
Policy outlines key principles (and forms part of a framework) governing decision-making within the Westpac
Group, including channels of escalation and reporting to the Board. The scope of, and limitations to, authority
delegated by the Board to the CEO and through the CEO to other Group Executives, is articulated in delegation
instruments and covers areas such as expenditure, funding and securitisation, and lending. These delegations
help provide clarity on roles, authorities and responsibilities within the Group, and act as an internal tool of
empowerment, control and risk management. Any matters or transactions outside the delegations of authority
given to management are required to be referred to the Board or relevant Board Committee for approval.
Securities trading Westpac’s Group Securities Trading Policy prohibits Directors, employees, secondees and
contractors from trading in any securities and other financial products that they possess inside information on.
Additionally, individuals are strictly prohibited from disclosing inside information to others who may use it to trade,
or from encouraging or procuring others to trade on such information. The policy requirements also extend to
associate accounts. In addition, Directors and any employees, secondees or contractors who, by virtue of their
seniority or role, may have access to material non-public information about Westpac (known as Key Prescribed
Employees and/or Prescribed Employees) are subject to additional trading restrictions. These include blackout
periods, prohibiting trading prior to and immediately after release of the annual and half year results. These
additional restrictions also apply to their associates. The Westpac Group Securities Trading Policy is available in
the Corporate Governance section of our website at www.westpac.com.au/about-westpac/westpac-
group/corporate-governance/principles-policies/. Concern reporting and whistleblower protection The Westpac
Group Speaking Up Policy encourages all eligible persons to raise any concerns about our activities or
behaviours that may be unlawful or unethical. Our senior management are committed to supporting those who
speak up. Westpac does not tolerate detrimental conduct related to a Speaking Up report. A person can raise a
concern using our whistleblowing channels, including our reporting system ‘Concern Online’ and our
Whistleblower Hotline. Both channels enable anonymous reporting. Westpac’s Whistleblower Protection Officers
are responsible for providing protections to whistleblowers who are concerned about potentially experiencing
detrimental conduct because of speaking up. They also engage directly with whistleblowers to address risks of
reprisal. Whistleblowers may raise a concern directly with a Whistleblower Protection Officer. The Westpac Group
Speaking Up Policy requires that we investigate concerns in a confidential, fair and objective manner. If the
investigation shows that wrongdoing occurred, we are committed to taking action, such as changing our
processes and imposing consequences on those involved in wrongdoing. Outcomes may also involve reporting
the matter to relevant authorities and regulators. The Board Audit Committee, in conjunction with the Board Risk
Committee, oversees Westpac’s Whistleblower Program. Material whistleblower matters raised under the
Westpac Group Speaking Up Policy are reported to the Board Risk Committee and may be escalated to the
Board Audit Committee as appropriate. The Board Risk Committee also receives regular reporting on
whistleblowing, including key metrics, measures and themes that provide insights into the performance of the
Whistleblower Program. The Westpac Group Speaking Up Policy is available on our website at
www.westpac.com.au/about-westpac/westpac-group/corporate-governance/principles-policies/. Anti-Bribery and
Corruption The Westpac Group has an Anti-Bribery and Corruption (ABC) Policy and related bribery and
corruption prevention standards, procedures and systems. Material breaches of the ABC Policy are reported to
the Board Risk Committee. The ABC Policy is available on our website at www.westpac.com.au/ about-
westpac/westpac-group/corporate-governance/ anti-bribery-corruption-policy-procedures/.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 203 Westpac has no tolerance for any form of bribery or corruption. This includes a
ban on facilitation payments and offering or soliciting secret commissions. Westpac is committed to preventing,
detecting and deterring bribery and corruption by managing its bribery and corruption risk and complying with
relevant ABC legislation in all jurisdictions in which it operates or has dealings. This includes the Australian
Criminal Code Act 1995 (Cth), the Bribery Act 2010 (UK) and the Foreign Corrupt Practices Act 1977 (US). Under
the ABC Policy, Westpac expects that its officers, Directors, employees, agents, contractors, service providers,
subsidiaries and third parties acting for or on behalf of Westpac will comply with all applicable ABC laws and will
not offer, provide, authorise, request or receive a bribe or anything which may be viewed as a bribe. Fit and
Proper Person assessments Westpac’s Board-approved Group Fit and Proper Policy (F&P Policy) outlines how
we assess the fitness and propriety of our Directors, Accountable Persons, and other individuals in key positions
of responsibility. The F&P Policy supports Westpac in complying with APRA Prudential Standards CPS 520 and
SPS 520, the Banking Act 1959 (Cth), Financial Accountability Regime Act 2023 (Cth), Superannuation Industry
(Supervision) Act 1993 (Cth), relevant ASIC licensing requirements (Australian Financial Services Licence and
Australian Credit Licence) and equivalent offshore regulations as applicable. The Chairman of the Board is
responsible for assessing the fitness and propriety of our CEO and Non-executive Directors. The Board (as a
collective) is responsible for assessing the fitness and propriety of the Chairman. A Fit and Proper Committee is
responsible under delegated authority from the Board for undertaking a fit and proper assessment of all other
individuals in key positions of responsibility. In all cases, a fit and proper assessment will be undertaken prior to
their initial appointment and they will be re-assessed annually. This involves the relevant individual providing a
declaration and background checks (including police and bankruptcy checks) being undertaken as appropriate.
Conflicts of interest Westpac’s conflicts of interest framework is designed to identify and manage actual, potential
and perceived conflicts of interest. The conflicts of interest framework includes the Group Conflicts of Interest
Policy, along with supporting policies, standards and procedures. Under our conflicts of interest framework, any
person who acts on behalf of the Westpac Group must: • promptly identify, declare, assess, manage and record
conflicts of interest appropriately; • discharge their duties concerning conflicts of interest with integrity, fairness,
honesty and due skill, care and diligence; • avoid a conflict of interest where it cannot be effectively managed;
and • not solicit, accept or offer money, gifts, favours or entertainment that might influence, or might be seen to
influence, their professional judgement. Modern Slavery Under the Australian Modern Slavery Act 2018 (Cth) and
Modern Slavery Act 2015 (UK), Westpac is required to prepare an annual statement describing the risks of
modern slavery across our operations and supply chain, and the actions taken to address the risks. Westpac
published a joint statement for FY24 on behalf of itself and certain reporting entities within the Group that
addresses the requirements of both Acts. The Westpac Group’s 2024 Modern Slavery Statement was published
in March 2025 and can be located at www. westpac.com.au/
content/dam/public/wbc/documents/pdf/aw/sustainability/ wbc-2024-modern-slavery- statement.pdf. Customer
Advocate Westpac’s Customer Advocate provides advice and guidance to our complaints team regarding
complaints raised by customers in relation to personal banking and small business matters. In addition, the
Customer Advocate recommends changes to policies, procedures and processes, arising from the complaints
made by customers, and in particular focuses on how we can best support our vulnerable customers.
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204 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE SUSTAINABILITY We view
sustainable and responsible business practices as important for our business and our stakeholders. Sustainability
is about managing environmental and social risks and opportunities across our business in a way that seeks to
balance the needs of our stakeholders – our customers, employees, suppliers, investors and the communities in
which we operate. We aim to address the matters we believe are the most material for our business and our
stakeholders, now and in the future. Environmental and social risks and opportunities continue to evolve so we
seek to monitor these developments while aiming to embed sustainability into our business practices. We
participate in a number of voluntary initiatives including the Global Reporting Initiative (GRI), the UN Global
Compact and the International Sustainability Standards Board (ISSB) standards. We report on the most material
sustainability topics, identified in our annual materiality assessment and aligned with the GRI standards, in our
Annual Report and on our website. We are also focused on aligning our reporting with the new Australian
Accounting Standards Board requirements for climate-related disclosure (AASB S2), which become mandatory
for Westpac from our FY26 reporting year, as well as the Aotearoa New Zealand Climate Standards that have
applied to our New Zealand operations since FY24. Sustainability governance and risk management disclosures
are included in our Annual Report and our Sustainability Report, which are available on our website at
www.westpac.com.au/about-westpac/investor-centre/annual-report/. Material exposure to sustainability risks and
other categories of risks Westpac is exposed to environmental and social risks such as climate change risk. We
seek to manage our material exposures to these risks, as well as other material risks we face, in accordance with
our risk management strategy and frameworks. Further details about the risks we face, and how we seek to
manage them, are in our 2025 Annual Report (see sections on 'Creating Value for the Community', 'Creating
Value for the Environment' and 'Risk Management') and our 2025 Risk Factors. In addition, our Sustainability
Report, our Human Rights Position Statement and Action Plan, and our Modern Slavery Statement are available
on our website at www.westpac.com.au/about-westpac/sustainability/. RISK MANAGEMENT Westpac’s risk
management framework comprises systems, structures, policies, processes and people that identify, measure,
evaluate, monitor, report and control or mitigate sources of material risks. The Risk Management Strategy
outlines this framework, Westpac’s material risks, and how they are managed. The Board, with the Board Risk
Committee’s assistance, reviews the Risk Management Strategy and Board Risk Appetite Statement annually to
satisfy itself that the risk management framework continues to be sound and that Westpac is operating within the
risk appetite set by the Board. These reviews were conducted in the 2025 financial year. The Strategic review in
the 2025 Annual Report provides more details on the risk management framework, including its structure based
on the Three Lines of Defence model; management and the Board Risk Committee; actions taken to enhance
risk management during the year; and emerging risks for Westpac. Risk Culture Westpac considers that a strong
risk culture is essential for the Group’s risk management framework to operate effectively. Building and
maintaining a strong risk culture is a continuing focus of the Board and will help support our ambition to be our
customers' number one bank and partner through life. Westpac has embedded processes and tools to continue
to improve risk culture, and track progress towards our goal of a risk culture that proactively identifies, manages
and mitigates risks, learns from risk events and continuously anticipates new risks and opportunities. An ongoing
Group-wide learning program provides an opportunity for employees to spend time on the specifics of risk
management. Further information about this work is available in the Strategic review in our 2025 Annual Report.
Three Lines of Defence (3LOD) We have adopted and continue to embed a 3LOD model which is designed to
enable all our people to understand their own role and responsibilities in the active management of risk. Further
information on the 3LOD model is available in the Strategic review section in our 2025 Annual Report.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 205 FINANCIAL REPORTING AND AUDIT Approach to financial reporting Our
approach to financial reporting reflects three core principles: • that our financial reports present a true and fair
view of our financial position and performance; • that our accounting methods comply with applicable accounting
standards and policies; and • that our external auditor is independent and serves security holders’ interests. The
Board, through the Board Audit Committee, has regard to Australian and international developments relevant to
these principles when reviewing our practices. The Board delegates oversight responsibility for the integrity of
financial statements and financial reporting systems to the Board Audit Committee. The Board Risk Committee
provides relevant periodic assurances and reports (as appropriate) to the Board Audit Committee. Similarly, the
Board delegates oversight responsibility for the preparation of remuneration reports and disclosures to the Board
Remuneration Committee, which recommends remuneration reports and related disclosures, and provides
relevant assurances, through the Board Audit Committee to the Board for approval. CEO and CFO assurance
The Board receives regular reports from management about our financial condition and operational results.
Before the Board approves the half year and full year financial statements, the CEO and the CFO declare to the
Board that in all material respects: • Westpac’s financial records: – correctly record and explain its transactions,
and financial position and performance; – enable true and fair financial statements to be prepared and audited;
and – are retained for seven years after the transactions covered by the records are completed; • the financial
statements and notes comply with applicable accounting standards; • the financial statements and notes give a
true and fair view of Westpac’s financial position and performance; • (in relation to full year financial statements),
the consolidated entity disclosure statement is true and correct; • any other matters that are prescribed by the
Corporations Act 2001 (Cth) and regulations as they relate to the financial statements and notes are satisfied;
and • the declarations above have been formed on the basis of a sound system of risk management and internal
control, and that the system is operating effectively in all material respects in relation to financial reporting risks.
The CEO and CFO have provided such statements for the financial year ended 30 September 2025. External
auditor Our external auditor (for the 2025 financial year) is KPMG, appointed by shareholders at the 2024 AGM.
Our KPMG lead audit partner is Ms Kim Lawry. The external auditor receives all Board Audit Committee and
Board Risk Committee papers, attends all meetings of these committees and is available to Committee members
at any time. The external auditor also attends the AGM to answer questions from shareholders regarding the
conduct of its audit, the audit report and financial statements and its independence. The external auditor is
required to confirm its independence and compliance with specified independence standards at our half and full
financial year, however in practice it confirms its independence on a quarterly basis. We strictly govern our
relationship with the external auditor, including restrictions on employment, business relationships, financial
interests and use of our financial products by the external auditor. Periodically, the Board Audit Committee
consults with the external auditor without the presence of management about internal controls over financial
information, reporting and disclosure and the fullness and accuracy of the Group’s financial statements. The
Board Audit Committee also meets with the Chief Audit Officer without other members of management being
present. Engagement of the external auditor To avoid possible independence or conflict issues, our ‘Pre-approval
of engagement of external auditor for audit and non-audit services’ policy (NAS Policy) prohibits the external
auditor from carrying out certain types of non-audit services for Westpac. The NAS Policy also limits the extent to
which the external auditor can perform other non-audit services. Use of the external auditor for any non-audit
services must be assessed and approved in accordance with the pre-approval process set out in the NAS Policy.
Group Audit (internal audit) Group Audit is the Third Line assurance function that provides the Board and
management with independent and objective evaluation of the adequacy and effectiveness of the Group’s
governance, risk management and internal controls. Group Audit is governed by a charter approved by the Board
Audit Committee that sets out its purpose, role, scope and responsibilities. Group Audit’s activities conform with
the Global Internal Audit Standards (GIAS), including the principles of Ethics and Professionalism. To safeguard
the independence and standing of Group Audit, the Chief Audit Officer has a direct (functional) reporting line into
the Board Audit Committee, through
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206 WESTPAC GROUP 2025 ANNUAL REPORT CORPORATE GOVERNANCE the Chairman of the Board
Audit Committee and, for administrative purposes only, to a member of the Senior Executive team, currently the
CFO. Group Audit has full, free and unrestricted access to all the Group’s operations, records, data, assets,
personnel and physical properties, including outsourced operations pertinent to carrying out internal audit
responsibilities. This includes access to the CEO and Senior Executive team, the Board Chairman and Chairman
of the Board Audit Committee, other Board members where relevant and external regulators. Board Audit
Committee dialogue with management, external audit and Group audit The Board Audit Committee maintains an
ongoing dialogue with management, the external auditor and Group Audit, including regarding those matters that
are likely to be designated as Key Audit Matters in the external auditor’s report. Key Audit Matters are those
matters which, in the opinion of the external auditor, are of the most significance in their audit of the financial
report. As part of its oversight responsibilities, the Board Audit Committee also conducts discussions with a wide
range of internal and external stakeholders including: • the external auditor, about our major financial reporting
risk exposures and the steps management has taken to monitor and control such exposures; • Group Audit and
the external auditor concerning their reports regarding significant findings in the conduct of their audits, and
overseeing that any issues identified are rectified by management in an appropriate and timely way or reported to
the Board Risk Committee (with the Board Risk Committee overseeing management's response to rectifying
those issues); • management and the external auditor concerning the half year and full year financial statements;
• management and the external auditor regarding any correspondence with regulators or government agencies,
and any published reports which raise material issues or could impact on matters regarding the Westpac Group’s
financial statements or accounting policies; and • the Group General Counsel regarding any legal matters that
may have a material impact on, or require disclosure in, the financial statements. MARKET DISCLOSURE AND
SHAREHOLDER COMMUNICATION Verification of periodic corporate reports For periodic corporate reports
released to the market which are not required to be audited or reviewed by our external auditor, we have
verification and approval processes to support the integrity of the information disclosed. The process varies
depending on the report and generally involves the individuals with responsibility for the information confirming to
the best of their knowledge that the information is accurate and not misleading. The process may also involve
review by internal subject matter experts (and as appropriate, our external advisers); and review by and
confirmation from the individual responsible for the corporate report that it is appropriate for release. Such
periodic corporate reports may also be required to be approved by the Disclosure Committee or the Disclosure
Officer (or delegate) or the Board under our Market Disclosure Policy – as described below. Market disclosure
We seek to provide our investors with equal, timely, accurate and balanced disclosure. Our Market Disclosure
Policy is available on our website at www.westpac.com.au/about-westpac/westpac-group/ corporate-
governance/principles-policies/. The policy provides a framework for how we manage our disclosure obligations
and satisfy the disclosure requirements of the ASX, NZX, and other relevant offshore securities exchanges, as
well as relevant securities and corporations legislation. Under our policy, and in accordance with our obligations,
information that a reasonable person would expect to have a material effect on the price or value of our securities
must immediately be disclosed via the ASX unless an exception applies under regulatory requirements. Certain
disclosure decisions are the responsibility of the Board (for example, relating to matters of fundamental
importance to the Group such as material transactions or material changes in strategic direction). For other
decisions concerning potentially market sensitive information, our Disclosure Committee is responsible for
determining whether matters should be disclosed publicly under the policy, and for assisting employees in
understanding what information may require disclosure to the market on the basis that it is market sensitive. The
Disclosure Committee is comprised of the Disclosure Officer (who is the CFO), the Group General Counsel and
at least one of the following: the CEO, the Chief Risk Officer, the Group Executive, Customer & Corporate
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 207 Services, the Company Secretary of Westpac and the General Manager,
Investor Relations. The Disclosure Officer is ultimately responsible for all disclosure-related communication with
relevant securities exchanges. The Company Secretary or their delegate is authorised to lodge ASX
announcements once they have been approved. A copy of announcements on material issues will also be
provided to the Board promptly after release to the ASX, unless previously provided. Before Westpac gives a new
and substantive investor or analyst presentation, we will release a copy of that presentation to the market. Once
relevant information is disclosed to the market and available to investors, it may also be published on our
website. This includes investor discussion packs and presentations on our financial results. Our website also
contains Annual Reports, results announcements, speeches and support material given at investor conferences
or presentations, notices of meetings and key media releases. Shareholder communication and participation We
are committed to keeping shareholders fully informed about Westpac in compliance with our obligations – from
our strategy, operations and performance, to our governance and sustainability approach. As part of our investor
relations program – and consistent with our Market Disclosure Policy – we carry out a range of activities to
facilitate two-way communication with shareholders, including: • providing relevant company information online
via our Investor Centre on our website; • giving shareholders the option to receive information and
communications electronically or via hard copy; • responding to shareholder queries directly via phone, email and
mail; and • enabling shareholders to view major market briefings and maintaining that information in our Investor
Centre. Our financial calendar in our Investor Centre lists all major market briefings and shareholder meetings.
Announcements on these events may also be made on the ASX. Westpac seeks to facilitate shareholder
participation at general meetings. We aim to choose a time and location that is convenient for shareholders. We
provide explanatory notes in the Notice of Meeting to shareholders, and the AGM is also webcast live with a
replay available for viewing in our Investor Centre. Westpac engages with shareholders and shareholder groups
throughout the year to gather feedback and allow them to ask questions. This feedback assists the Group’s
decision making and allows us to address any key themes in our reporting and/or at our meeting. Westpac
intends to hold an in-person meeting this year. Shareholders unable to attend in person may view the meeting via
a live webcast and ask questions online during the meeting. In addition, shareholders will also have the
opportunity, prior to the AGM, to submit questions, lodge a direct vote or appoint a proxy, corporate
representative or attorney to vote on a shareholder’s behalf at the AGM. Consistent with our practice for voting at
meetings of shareholders, voting on all resolutions is conducted by a poll.
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208 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Our Directors present this report
together with the financial statements of the Group for the financial year ended 30 September 2025.1 Board
Committee Member Key Chair of each Committee is noted with a red icon. Board Audit Board Remuneration
Board Nominations & Governance Board Risk Board of Directors Steven Gregg BCom Age: 64 CHAIRMAN AND
INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 7 November 2023 and Chairman since
14 December 2023. Board Committees: Chair of the Board Nominations & Governance Committee. Experience:
Steven has more than 36 years' experience in global financial services, strategy consulting and professional
services across Australia, Asia, Europe and the US. He has extensive experience in global investment banking,
including through senior roles with ABN Amro, Chase Manhattan, Lehman Brothers and AMP Morgan Grenfell.
His most recent executive role was as a partner at McKinsey & Company where he advised clients in Financial
Services and other sectors, primarily in Australia and Asia. Steven has served as Chairman and Director for
companies across various sectors and is currently Chairman of Ampol Limited and the Lorna Hodgkinson
Foundation (and a Director of Unisson Disability Limited). Steven is also a Director of William Inglis & Son
Limited. Steven was formerly the Chairman of The Lottery Corporation, Tabcorp Holdings Limited, Goodman
Fielder Limited and Austock Group Limited and formerly a Non-executive Director at Challenger Limited.
Directorships of listed entities over the past three years: Ampol Limited (since October 2015, Chairman since
August 2017), The Lottery Corporation Limited (May 2022 to March 2024) and Challenger Limited (October 2012
to October 2023). Other principal directorships and interests: Chairman of the Lorna Hodgkinson Foundation (and
a Director of Unisson Disability Limited). Board Committees: Anthony Miller LLB (Hons), BA Age: 55 MANAGING
DIRECTOR AND CHIEF EXECUTIVE OFFICER Appointed: Director since 16 December 2024. Board
Committees: Nil. Experience: Anthony was appointed Westpac Group Chief Executive Officer in December 2024.
Since joining the Westpac Group in 2020, Anthony has also held the roles of Chief Executive, Business and
Wealth and Chief Executive, Westpac Institutional Bank. Before joining Westpac Group, Anthony was CEO of
Australia & New Zealand and Co-Head of Investment Bank, Asia Pacific at Deutsche Bank from 2017. Prior to
Deutsche Bank, Anthony was a partner at Goldman Sachs based in Hong Kong within the investment banking
division and previously held several roles at Goldman Sachs in Australia and New Zealand having joined the
organisation in 2001. Before joining Goldman Sachs, Anthony worked at Credit Suisse. Anthony holds a Bachelor
of Law (Honours) from Queensland University of Technology, and Bachelor of Arts (Japanese Language, Modern
Asian Studies) from Griffith University. Directorships of listed entities over the past three years: Nil. Other
principal directorships and interests: Director of Australian Banking Association, Director of the Institute of
International Finance and Director of Financial Markets Foundation for Children. Board Committees: Nil 1.
Particulars of the skills, experience, expertise and responsibilities of the Directors at the date of this report,
including all directorships of other listed companies held by a Director at any time in the three years’ immediately
before 30 September 2025, and the period for which each directorship has been held, are set out in the following
pages.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 209 Tim Burroughs MA (Hons), B Psy (Hons), FCA, FAICD Age: 71
INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 10 March 2023. Board Committees:
Member of the Board Remuneration and the Board Risk Committees. Experience: Tim has over 41 years'
experience in finance, international banking and mergers and acquisitions. Tim was formerly Chairman of
Investment Banking at Goldman Sachs Australia, where he worked for 11 years. Prior to this, Tim held senior
positions at Merrill Lynch including Chairman of Mergers and Acquisitions. From 1993 to 1997, Tim was Principal
at Centaurus Corporate Finance, a leading independent advisory firm. Over the course of his career, Tim has
specialised in providing strategic financial advice to major corporations and their boards. He has advised on
capital restructures, capital raisings and more than 100 public company acquisitions. Tim has an engineering
degree from Cambridge University and is a Fellow of the Institute of Chartered Accountants. Tim has also studied
and taught Psychology at Macquarie University. Directorships of listed entities over the past three years: Nil.
Other principal directorships and interests: Panel member of Adara Partners (Australia) Pty Ltd. Board
Committees: Nerida Caesar BCom, MBA, GAICD Age: 61 INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed: Director since 1 September 2017. Board Committees: Member of the Board Audit and the Board Risk
Committees. Experience: Nerida has over 39 years' of broad ranging commercial and business management
experience, with particular depth in technology-led businesses. Nerida was Group Managing Director and Chief
Executive Officer, Australia and New Zealand, of Equifax (formerly the ASX listed Veda Group Limited) and was
also a former director of Genome One Pty Ltd and Stone and Chalk Limited. Before joining Equifax, Nerida held
several senior management roles at Telstra, including Group Managing Director, Enterprise and Government and
Group Managing Director, Wholesale. Nerida also held several executive and senior management positions with
IBM within Australia and internationally, including as Vice President of IBM’s Intel Server Division for the Asia
Pacific region. Directorships of listed entities over the past three years: Nil. Other principal directorships and
interests: Co-Chair of Good2Give and its subsidiaries Workplace Giving Australia, Good2Give Research &
Technology Fund and ShareGift. Director of NBN Co Ltd, Director of CreditorWatch and Director of O’Connell
Street Associates Pty Ltd. Advisor to startups in the technology sector. Board Committees: David Cohen BA LLB,
FAPI Age: 65 INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 1 April 2025. Board
Committees: Member of the Board Risk Committee. Experience: David has over 21 years’ experience in financial
services and was Deputy Chief Executive Officer of Commonwealth Bank of Australia (CBA) from November
2018 to December 2023. As Deputy CEO, David oversaw business divestments, facilitated mergers and
acquisitions, and improved handling of customer complaints. Prior to this role, David was Group General
Counsel, Group Executive Human Resources, Group Executive Corporate Affairs and Chief Risk Officer at CBA.
During his 16 years at CBA, he also led the bank through the Hayne Royal Commission into the financial services
sector. David’s roles prior to joining CBA include General Counsel at AMP and a Partner at Allens Arthur
Robinson. David is Chairman of TAL Life Limited and a Panel Member of Adara Partners (Australia) Pty Ltd. He
was previously a director of ASB Bank Limited (NZX). Directorships of listed entities over the past three years:
ASB Bank Limited (NZX) (February 2019 to February 2025). Other principal directorships and interests: TAL Life
Limited (Director since April 2025 and Chairman since May 2025), TAL Life Insurance Services Limited (Director
since April 2025) and Panel Member of Adara Partners (Australia) Pty Ltd. Board Committees:
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210 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Pip Greenwood LLB Age: 59
INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 1 August 2025. Board Committees: Nil.
Experience: Pip has more than 25 years' of experience in financial services, capital markets, mergers and
acquisitions, and governance, and was one of New Zealand’s leading commercial lawyers and a partner at
Russell McVeagh, where she advised on many high-profile New Zealand corporate transactions. Pip also
previously served as Board Chair and interim CEO of Russell McVeagh and was a member of the New Zealand
Takeovers Panel from 2007 to 2011. Pip is the current Chair of Westpac New Zealand Limited (WNZL) and Chair
of The a2 Milk Company Limited. Directorships of listed entities over the past three years: The a2 Milk Company
Limited (Director since July 2019 and Chair since 16 November 2023), Fisher & Paykel Healthcare Corporation
Limited (June 2017 to September 2025) and Vulcan Steel Limited (August 2019 to October 2022). Other principal
directorships and interests: Chair of WNZL. Board Committees: Nil Debra Hazelton BA (Hons), MCom, GAICD
Age: 72 INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 4 March 2025. Board
Committees: Member of the Board Remuneration Committee. Experience: Debra has over 30 years' experience
in global financial services, with a particular focus on Australia and Japan. Her executive experience includes
national CEO roles in Japan (CBA) and Australia (Mizuho Bank) as well as treasury, corporate/project finance,
and human resources/organisational culture. Debra is an experienced Chair and Non-executive Director currently
serving as Chair of Export Finance Australia, Vice President of the Australia-Japan Business Co-operation
Committee, and a Director of the boards of Persol Holdings Co., Ltd (Tokyo Stock Exchange) and Australia Post.
Debra was previously Chair of AMP Ltd and AMP Bank. Debra holds graduate and postgraduate degrees in
Economics and Finance as well as Philosophy and Japanese and studied at University of Sydney, UNSW, and
Keio University (Tokyo) and was recently awarded the Japanese Minister of Foreign Affairs Commendation for
2024. Directorships of listed entities over the past three years: Persol Holdings Co., Ltd (Tokyo Stock Exchange)
(since June 2023) and AMP Limited (June 2019 to April 2024). Other principal directorships and interests: Chair
of Export Finance Australia, Vice President of the Australia Japan Business Co-operation Committee and Director
of Australia Post. Board Committees: Andy Maguire BA, BAI Age: 59 INDEPENDENT NON-EXECUTIVE
DIRECTOR Appointed: Director since 15 July 2024. Board Committees: Member of the Board Remuneration
Committee. Experience: Andy has over 36 years’ experience in financial services, and began his career in
banking at Lloyds Banking Group. From 2014 to 2020, he served as Group Chief Operating Officer at HSBC
Holdings plc, with responsibility for operations, technology, real estate, change and transformation and
operational resilience. Previously, he spent 16 years with the Boston Consulting Group, where he became
Managing Partner of the London office covering the UK and Ireland, and a member of the firm's global executive
committee, as well as formerly serving as Global Head of Retail Banking. Andy is currently Chair of UK banking
software fintech Thought Machine Group. He is also an independent Non-executive Director of AIB Group plc, a
financial services group operating predominantly in the Republic of Ireland and the UK. Andy previously held
Chair positions with RegTech compliance company Napier AI and IT service management provider CX Holdings
(Cennox Group). Directorships of listed entities over the past three years: AIB Group p.l.c. (since March 2021).
Other principal directorships and interests: Chair of Thought Machine Group. Board Committees:
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 211 Peter Nash BCom, FCA, F Fin Age: 63 INDEPENDENT NON-EXECUTIVE
DIRECTOR Appointed: Director since 7 March 2018. Board Committees: Chair of the Board Audit Committee.
Member of the Board Risk and Board Nominations & Governance Committees. Experience: Peter was formerly a
Senior Partner with KPMG until September 2017, having been admitted to the Australian partnership in 1993. He
served as the National Chairman of KPMG Australia and served on KPMG’s Global and Regional Boards. His
previous positions with KPMG included Regional Head of Audit for Asia Pacific, National Managing Partner for
Audit in Australia and head of KPMG Financial Services. Peter has worked in geographically diverse and
complex operating environments providing advice on a range of topics including business strategy, risk
management, internal controls, business processes and regulatory change. He has also provided financial and
commercial advice to many State and Federal Government businesses. Peter is a former member of the
Business Council of Australia and its Economic and Regulatory Committee. Directorships of listed entities over
the past three years: Johns Lyng Group Limited (October 2017 to October 2025), Mirvac Group (since November
2018) and ASX Limited (June 2019 to September 2025). Other principal directorships and interests: Director of
the General Sir John Monash Foundation. Board Committees: Margaret (Margie) Seale BA, FAICD Age: 65
INDEPENDENT NON-EXECUTIVE DIRECTOR Appointed: Director since 1 March 2019. Board Committees:
Chair of the Board Remuneration Committee. Member of Board Nominations & Governance Committee.
Experience: Margie has more than 26 years' experience in senior executive roles in Australia and overseas,
including in consumer goods, global publishing, sales and marketing and the successful transition of traditional
business models to digital environments. Prior to her non-executive career, Margie was the Managing Director of
Random House Australia and New Zealand and President, Asia Development for Random House Inc. Margie
was a Director and then Chair of Penguin Random House Australia Pty Limited, and a Director of Telstra
Corporation Limited, Ramsay Health Care Limited, Bank of Queensland Limited and the Australian Publishers’
Association. She also served on the Boards of Chief Executive Women (chairing its Scholarship Committee), the
Powerhouse Museum, and the Sydney Writers' Festival. Directorships of listed entities over the past three years:
Scentre Group Limited (since February 2016). Other principal directorships and interests: Director of Westpac
Scholars Limited, Seaborn Broughton & Walford Pty Limited, Pinchgut Opera Limited and Jana Investment
Advisers Pty Ltd. Board Committees: Michael Ullmer AO BSc, FAICD, FCA, SF Fin Age: 74 INDEPENDENT
NON-EXECUTIVE DIRECTOR Appointed: Director since 3 April 2023. Board Committees: Chair of the Board
Risk Committee. Member of the Board Audit Committee. Experience: Michael has more than 41 years'
experience in international banking, finance and professional services. Michael was formerly the Deputy Group
Chief Executive Officer of NAB from 2007 until he retired from the Bank in August 2011. He joined NAB in 2004
as Finance Director and held a number of key positions including Chair of the subsidiaries Great Western Bank
(US) and JB Were. Prior to NAB, Michael was at CBA, initially as Group Chief Financial Officer and then Group
Executive with responsibility for Institutional and Business Banking. Before that, he was a Partner at accounting
firms KPMG (1982 to 1992) and Coopers & Lybrand (1992 to 1997). From a philanthropic perspective, throughout
his career Michael has been heavily involved in supporting the Arts and Education sectors. Directorships of listed
entities over the past three years: Lendlease Corporation Limited (Director from December 2011 to November
2024 and Chairman from November 2018 to November 2024). Other principal directorships and interests:
Member of the National Gallery of Victoria Foundation Board. Board Committees:
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212 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Retired Directors Peter King was
appointed a Director on 2 December 2019 and retired as CEO and Managing Director on 15 December 2024,
Nora Scheinkestel was appointed as a Director on 1 March 2021 and retired as a Director on 6 November 2024
and Audette Exel was appointed as a Director on 1 September 2021 and retired as a Director on 13 December
2024. Executive Team as at 30 September 2025 Anthony Miller LLB (Hons), BA Age: 55 MANAGING DIRECTOR
AND CHIEF EXECUTIVE OFFICER, WESTPAC GROUP Anthony was appointed Westpac Group Chief
Executive Officer on 16 December 2024. Since joining the Westpac Group in 2020, Anthony has also held the
roles of Chief Executive, Business and Wealth and Chief Executive, Westpac Institutional Bank. Before joining
Westpac Group, Anthony was CEO of Australia & New Zealand and Co-Head of Investment Bank, Asia Pacific at
Deutsche Bank from 2017. Prior to Deutsche Bank, Anthony was a partner at Goldman Sachs based in Hong
Kong within the investment banking division and previously held several roles at Goldman Sachs in Australia and
New Zealand having joined the organisation in 2001. Before joining Goldman Sachs, Anthony worked at Credit
Suisse. Anthony holds a Bachelor of Law (Honours) from Queensland University of Technology, and Bachelor of
Arts (Japanese Language, Modern Asian Studies) from Griffith University. Scott Collary BA, Humanities Age: 61
GROUP CHIEF INFORMATION OFFICER, TECHNOLOGY Scott was appointed as the Group’s Chief
Information Officer in August 2023. Prior to this, he held the role of Group Executive, Customer Services &
Technology after joining Westpac as Chief Operating Officer in November 2020. Scott has over 35 years' global
banking experience, with a breadth of expertise across technology, operations, risk mitigation and commercial
functions. Before joining Westpac, Scott was Chief Information & Operations Officer for North America Consumer
Businesses at Bank of Montreal, Canada. Prior to that, Scott held senior executive positions at a number of
multinational financial institutions including ANZ, Citibank, Fifth Third Bank and Bank of America. Scott holds a
Bachelor’s Degree from the University of Maryland in the United States. Kate Dee FCIPD, BA Age: 47 CHIEF
PEOPLE OFFICER Kate was appointed Chief People Officer in August 2025, joining Westpac with more than 25
years’ experience across a range of industries. Prior to joining Westpac, Kate was the Chief People Officer at
Bupa Asia Pacific, a role she held since 2018. Prior to that, she was the General Manager of Talent at National
Australia Bank from 2015 to 2018 after returning from Europe where she oversaw Global Organisational
Development as an Executive Director for Time Warner in London. Kate holds Bachelors degrees from Victoria
University of Wellington New Zealand. She is a Fellow of both the Chartered Institute of Personnel and
Development UK and the Australian Human Resource Institute as well as a member of Chief Executive Women.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 213 Shannon Finch BA (Hons), LLB (Hons), MAICD, FGIA Age: 55 GROUP
GENERAL COUNSEL Shannon joined Westpac in November 2021 and leads Westpac’s legal function globally.
Shannon has nearly 30 years' legal experience including with the Commonwealth Attorney General’s Department
Corporations Law Simplification Unit, Mallesons Stephen Jaques (now King & Wood Mallesons) in Canberra,
London and Sydney, including as head of the Sydney office, and as a senior partner of global corporate law firm
Jones Day. Shannon is a member of the Business Law Executive of the Law Council of Australia, the AICD Law
Committee and was formerly on the Advisory Committee to the Australian Law Reform Commission’s Review of
the Legislative Framework for Corporations and Financial Services Regulation. Shannon has experience as a
Non-executive Director of Bell Shakespeare (in the Not-for-profit sector), is a member of the AICD and Chief
Executive Women, and is a Fellow of the Governance Institute of Australia. Shannon has a Bachelor of Arts
(Hons) and Bachelor of Laws (Hons) from the Australian National University. Paul Fowler LLB, BCom (Hons,
Finance) Age: 46 CHIEF EXECUTIVE, BUSINESS & WEALTH Paul was appointed Chief Executive, Business
and Wealth in May 2025. He oversees banking services for small, medium and commercial sized businesses,
Westpac’s wealth businesses including Private Wealth and BT, and Pacific Banking. Prior to joining Westpac,
Paul spent 10 years at Commonwealth Bank of Australia where he held various roles, including Executive
General Manager of Regional and Agribusiness Banking, Chief Financial Officer of Institutional Banking and
Markets, and Executive General Manager, Group Mergers and Acquisitions. Paul spent the first 13 years of his
career in investment banking, holding positions at Goldman Sachs and Citigroup in Australia and offshore, where
he advised financial services firms on mergers and acquisitions, divestments, and capital management. He holds
a Bachelor of Laws and a Bachelor of Commerce (Hons) from the University of New South Wales. Peter Herbert
Age: 43 CHIEF TRANSFORMATION OFFICER Peter was appointed Chief Transformation Officer in March 2025
and has responsibility for transformation across the Group, including working across divisions and technology on
the delivery of the business-led simplification program, UNITE. Prior to this, Peter was the Acting Chief
Executive, Business & Wealth responsible for providing a range of banking and wealth services for customers
across Business Lending, Merchant Services, Private Wealth, Westpac’s Pacific banking business and BT. Peter
is a seasoned banking executive who joined Westpac in 2020 as the Chief Transformation Officer for Consumer
and Business Banking, and the Chief Operating Officer, Business & Wealth. Before joining Westpac, he had an
extensive career at HSBC most recently as Chief Operating Officer, Asia Pacific, Retail Banking & Wealth
Management. Carolyn Hoy BA (Hons), LLB (Hons) Age: 49 ACTING GROUP EXECUTIVE, CUSTOMER &
CORPORATE SERVICES Carolyn was appointed the Acting Group Executive, Customer & Corporate Services in
May 2025. She is responsible for operations, customer solutions, fraud prevention, property, procurement and
resilience, corporate affairs, and HR and finance services. Carolyn has 25 years’ experience and a background in
legal and risk. She has held a range of roles throughout her almost 20-year Westpac tenure, including Head of
Group Corporate Legal, Chief of Staff to the CEO, Chief Risk and Compliance Officer for BT, and General
Manager Property, Procurement and Resilience. Carolyn holds a Bachelor of Arts (First Class Honours) and
Bachelor of Laws (First Class Honours) from the Australian National University and is also a Fellow of the
Governance Institute of Australia.
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214 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Nell Hutton BCom (Hons), MPhil,
GAICD Age: 49 CHIEF EXECUTIVE, WESTPAC INSTITUTIONAL BANK Nell was appointed Chief Executive,
Westpac Institutional Bank in October 2023. The Institutional Bank provides a range of banking services to
Commercial, Corporate, Institutional and Public Sector customers with connections to Australia, New Zealand,
Asia, Europe and US markets. Nell first joined Westpac in February 2021 as Managing Director, Financial
Markets, after 21 years at Goldman Sachs in London and Australia, most recently as Head of the Global Markets
division in Australia and New Zealand. She holds a Master of Philosophy in Finance and Economics from
Cambridge University and a Bachelor of Commerce (First Class Honours) from the University of Sydney. Nell is a
member of the AICD and Chief Executive Women. Carolyn McCann BBus (Com), BA, GradDipAppFin, GAICD
Age: 53 CHIEF EXECUTIVE, CONSUMER Carolyn started at Westpac in 2013 and joined the Group Executive
team in 2018. She is currently Chief Executive, Consumer. The Consumer bank provides banking products and
services including mortgages, credit cards, personal loans and deposits to customers in Australia. Previously,
Carolyn was Group Executive, Customer & Corporate Services, responsible for operations, customer solutions,
scams and fraud prevention, property, procurement and resilience, corporate affairs, and HR and finance
services. Before joining Westpac, Carolyn spent 13 years at Insurance Australia Group in several senior roles,
including Group General Manager, Corporate Affairs & Investor Relations. With more than 27 years’ experience
in financial services, Carolyn holds a Bachelor of Arts from The University of Queensland, a Bachelor of Business
from Queensland University of Technology, and a Graduate Diploma of Applied Finance and Investment from the
Securities Institute of Australia. She is a member of the AICD and Chief Executive Women. Catherine McGrath
LLB/BCom Age: 54 CHIEF EXECUTIVE OFFICER, WESTPAC NEW ZEALAND Catherine was appointed Chief
Executive Officer of Westpac New Zealand in November 2021. She has more than 25 years' experience working
in financial services, spanning business, operational and people leadership roles to which she has driven
significant people, structural, technology and strategic change. Prior to joining Westpac, Catherine led large-scale
transformations at some of the world’s best known banks including Barclays Group and Lloyds TSB in the UK.
This included various positions such as Head of Channels, Managing Director of Transaction Products and
Payments, and Transaction Banking Director. Earlier in her career she worked at BNZ, ASB and the Prudential
Group. Catherine was raised in New Zealand. She graduated from Canterbury University with a Bachelor of Law
and a Bachelor of Commerce. Dr Andrew McMullan PhD (Statistics) Age: 48 CHIEF DATA, DIGITAL AND AI
OFFICER Dr Andrew McMullan joined Westpac in September 2025 to lead the transformation of the bank’s data,
digital and artificial intelligence capabilities. He plays a key role in driving innovation, improving customer and
employee experiences, and supporting Westpac’s strategic program, UNITE. Andrew joined Westpac from CBA,
where he was Chief Data and Analytics Officer. He previously served as Chief Analytics Officer, helping scale
platforms that enhanced decision-making and customer outcomes. With a career spanning global financial
institutions, Andrew is a recognised thought leader in responsible AI and data strategy. He brings deep expertise
in delivering secure, scalable and customer-centric solutions that enable innovation, operational efficiency, and
trust. Andrew holds a PhD in Statistics from the University of Glasgow.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 215 Michael Rowland B.Comm, FCA Age: 64 CHIEF FINANCIAL OFFICER
Michael joined Westpac Group as Chief Financial Officer (CFO) in September 2020a . He is responsible for
Westpac’s Finance, Group Audit, Investor Relations, Tax, Treasury, Group Business Controls and Management
and Corporate and Business Development functions. Before joining Westpac, Michael was a Partner in
Management Consulting at KPMG. Before that he held a number of executive positions at ANZ from 1999 to
2013. These included CFO Institutional Banking, CFO Wealth, CFO New Zealand, CFO Personal Financial
Services, CEO Pacific, Managing Director Mortgages and General Manager, Transformation. Michael
commenced his career at KPMG, where he was promoted to Tax Partner in 1993. Michael holds a Bachelor of
Commerce from the University of Melbourne and a Graduate Diploma of Taxation Law from Monash University.
He is a Fellow of the Institute of Chartered Accountants in Australia and New Zealand. Fiona Wild PhD
(Chemistry) Age: 53 CHIEF SUSTAINABILITY OFFICER Fiona was appointed Westpac’s Chief Sustainability
Officer in March 2025, leading the bank's work on climate, nature, social policy, human rights and Indigenous
strategy and engagement. Fiona has more than 25 years of experience working in sustainability. Before joining
Westpac, Fiona was the Group Sustainability and Social Value Officer at BHP, accountable for all climate and
sustainability-related public policy issues. She joined BHP in 2010 and held a range of senior roles including Vice
President Environment, Vice President Climate Change, and Group Climate and Sustainability Officer. In
December 2015, Fiona was appointed a permanent member of the Financial Stability Board’s Task Force on
Climate-related Financial Disclosures, reporting to the G20. She has also held several Board positions, including
Deputy Chair of the Global Carbon Capture and Storage Institute (GCCSI). Fiona holds a PhD in Chemistry from
the University of Edinburgh. Ryan Zanin CFA Age: 63 CHIEF RISK OFFICER Ryan was appointed Chief Risk
Officer in April 2022. Ryan is responsible for risk management across the Group, which includes credit risk,
operational risk, financial crime, compliance and conduct. Ryan has over 40 years' experience in financial
services specialising in risk management. Prior to joining Westpac Group, Ryan was Executive Vice President
and Chief Risk Officer at Fannie Mae overseeing the company’s governance and strategy for global risk
management. Prior to Fannie Mae, Ryan held senior positions at GE Capital, Wells Fargo & Company and
Deutsche Bank. Ryan has also been on the Board of Fannie Mae and General Electric Capital Corporation. A
Canadian, Ryan began his career at the Bank of Montreal before taking on various roles across Citibank and
Bankers Trust Company. Ryan is a Chartered Financial Analyst. Tim Hartin LLB (Hons.), FGIA Age: 50
COMPANY SECRETARY Tim was appointed Company Secretary in November 2011. Previously Tim was Head
of Legal – Risk Management & Workouts, Counsel & Secretariat and prior to that, he was Counsel, Corporate
Core. Before joining Westpac in 2006, Tim was a Consultant with Gilbert + Tobin, where he provided corporate
advisory services to ASX-listed companies. Tim was previously a lawyer at Henderson Boyd Jackson W.S. in
Scotland and in London in Herbert Smith’s corporate and corporate finance division. Tim holds a LLB Law (Hons)
with options in French from the University of Aberdeen, is a fellow of the Governance Institute of Australia and a
member of the Law Advisory Board of the University of Technology, Sydney. Tim is an international lawyer - being
a qualified solicitor in Scotland, England + Wales and Australia. a. Michael Rowland retired as CFO and Nathan
Goonan commenced as CFO effective 8 October 2025.
For personal use only
216 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Operating and financial review
Principal activities The principal activities of the Group during the financial year ended 30 September 2025 were
the provision of financial services including lending, deposit taking, payments services, investment platforms,
leasing finance, general finance, interest rate risk management and foreign exchange services. There have been
no significant changes in the nature of the principal activities of the Group during 2025. Operations and financial
performance Net profit for 2025 was $6,916 million, a decrease of 1% compared to 2024. The decrease in net
profit reflects an increase in operating expenses partly offset by higher income and lower credit impairment
charges. Basic earnings per share remained stable at 201.9 cents. The following is a summary of the movements
in major line items in net profit for 2025 compared to 2024. Net interest income increased by $627 million or 3%
driven by growth in average interest earning assets of 3% and stable net interest margin. Key movements in net
interest income included: • Improved interest income from growth in average interest earning assets; and •
Disciplined management of deposit funding costs in response to falling asset yields. Non-interest income was
$169 million or 6% higher. The key movements included: • Favourable market movements on the value of
financial instruments measured at fair value in 2025 of $38 million, compared to a loss of $24 million in 2024; •
Higher wealth management income mainly due to volume growth of funds under administration; and •
Improvements in transaction fee income, mainly resulting from higher line and guarantee fees. Operating
expenses were $972 million or 9% higher. The key movements included: • Higher employee costs of $686 million
mainly from restructuring costs and additional staffing attached to our UNITE program; and • A $181 million
increase in technology services expenses from inflationary pressure and the impact of our UNITE program; and •
A $110 million increase in amortisation and impairment of software assets from projects completed. Credit
impairment charges of $424 million represented 5 basis points of average gross loans compared to 7 basis points
in 2024. The decrease primarily reflected higher write-back and recoveries partly offset by higher charges from
collective assessed exposures. The effective tax rate of 30.97% in 2025 was slightly higher than the Australian
corporate tax rate of 30%, mainly due to non tax deductible hybrid instrument distributions. A review of the
operations of the Group and its segments and their results for the financial year ended 30 September 2025 is set
out in the Creating value for shareholders (pages 152- 159) section which form part of this Directors' report.
Further information about our financial position and financial results is included in the Financial Report which
forms part of this Directors' report. Dividends Westpac has announced a final ordinary dividend of 77 cents per
Westpac ordinary share, totalling $2.6 billion. The dividend will be fully franked and will be paid on 19 December
2025. In 2025, an interim ordinary dividend of 76 cents per Westpac ordinary share totalling $2.6 billion was paid
as a fully franked dividend on 27 June 2025 (2024: ordinary dividend of 75 cents and a special dividend of 15
cents per share totalling to $3.1 billion). For the year ended 30 September 2024, a fully franked final dividend of
76 cents per ordinary share totalling $2.6 billion was paid on 19 December 2024.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 217 Significant changes in state of affairs and events during and since the end of
the 2025 financial year Significant changes in the state of affairs of the Group during the financial year ended 30
September 2025, or that have occurred since that date, were: • On 16 December 2024, Anthony Miller
commenced as CEO and Managing Director. • Following approval by Westpac’s shareholders at the 2024 AGM
on 13 December 2024, KPMG commenced as Westpac’s external auditor for the 2025 financial year. • Following
completion of the Integrated Plan (IP) in December 2023 (required under the enforceable undertaking entered
into with APRA in December 2020 in relation to our risk governance remediation), Westpac continued to focus on
the sustainability and effectiveness of the IP uplifts via a transition phase. On 31 December 2024, we completed
the transition phase, as confirmed by Promontory Australia (as Independent Reviewer) in February 2025. • On 15
October 2025, APRA announced its decision to lift the CEU and remove Westpac's remaining $500 million
operational risk capital overlay. The removal of the $500 million capital overlay will mean Westpac’s Common
Equity Tier 1 (CET1) capital ratio will increase by approximately 17 basis points, reflecting a reduction in risk
weighted assets of $6,250 million. This change applied with immediate effect. For a discussion of these changes
and other significant developments, please refer to Significant developments (pages 268-269) which forms part of
this Directors' report. The Directors are not aware of any other matter or circumstance that has occurred since 30
September 2025 that has significantly affected or may significantly affect the operations of the Group, the results
of these operations or the state of affairs of the Group in subsequent financial years. Business strategies,
developments and expected results Our business strategies, prospects and likely major developments in the
Group’s operations in future financial years and the expected results of those operations are discussed in the
Strategic Review (pages 144- 272) and in Significant developments (pages 268-269) which form part of this
Directors' report. Further information on our business strategies and prospects for future financial years and likely
developments in our operations and the expected results of operations have not been included in this report
because the Directors believe it would be likely to result in unreasonable prejudice to the Group. Risks to our
financial performance, position and our operations Our financial position, our future financial results, our
operations and the success of our strategy are subject to a range of risks. These risks are set out and discussed
in the Risk Management section (pages 180-187) which forms part of the Directors' report. For additional
information on risks relating to Westpac, refer to 2025 Risk Factors as disclosed on the ASX on the same date as
this report.
For personal use only
218 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Directors’ interests Directors’ interests
in securities The following particulars for each Director are set out in the Remuneration Report (pages 222-252)
of the Directors’ report for the year ended 30 September 2025 and/or in the table below: • Their relevant interests
in our shares or the shares of any of our related bodies corporate; • Their relevant interests in debentures of, or
interests in, a registered scheme made available by us or any of our related bodies corporate; • Their rights or
options over shares in, debentures of, or interests in, any registered scheme made available by us or any of our
related bodies corporate; and • Any contracts: – To which the Director is a party or under which they are entitled
to a benefit; and – That confer a right to call for or deliver shares in, debentures of, or interests in, a registered
scheme made available by us or any of our related bodies corporate. Directors’ interests in Westpac and related
bodies corporate as at 2 November 2025 Number of Relevant Interests in Westpac Ordinary Shares Number of
Westpac Share Rights Westpac Banking Corporation Current Directors Steven Gregg 75,208 - Anthony Miller
261,171a 368,811b Tim Burroughs 67,302 - Nerida Caesar 13,583 - David Cohen 1,253 - Pip Greenwood - -
Debra Hazeltonc 1,350 - Andy Maguire 6,615 - Peter Nash 15,260 - Margaret Sealed 10,438 - Michael Ullmere
12,570 - Former Directors Peter Kingf 385,807 448,117 Audette Exelg 11,952 Nora Scheinkestelh 17,225 a.
Anthony Miller's interest in Westpac ordinary shares includes 14,662 restricted shares held under the Equity
Incentive Plan. b. Share rights issued under the Long Term Variable Plan and Equity Incentive Plan. c. Debra
Hazelton and her related bodies corporate also hold relevant interests in 10 Westpac Capital Notes 7
(ASX:WBCPJ), 16 Westpac Capital Notes 9 (ASX:WBCPL) and 2 Westpac Capital Notes 10 (ASX:WBCPM). d.
Margaret Seale and her related bodies corporate also hold relevant interests in 100 Westpac Capital Notes 7
(ASX:WBCPJ). e. Michael Ullmer and his related bodies corporate also hold relevant interests in 300 Westpac
Capital Notes 9 (ASX:WBCPL) and 1,000 Westpac Subordinated Notes. f. Peter King's interest in Westpac
ordinary shares includes 54,310 restricted shares held under the Equity Incentive Plan. Figure displayed as at
Peter King's retirement date of 15 December 2024. g. Figure displayed as at Audette Exel's retirement date of 13
December 2024. h. Figure displayed as at Nora Scheinkestel's retirement date of 6 November 2024. Note:
Certain subsidiaries of Westpac offer a range of registered schemes. The Directors may from time to time invest
in these schemes and are required to provide a statement to the ASX when any of their interests in these
schemes change. ASIC has exempted each Director from the obligation to notify the ASX of a relevant interest in
a security that is an interest in BT Cash Management Trust (ARSN 087 531 539), BT Premium Cash Fund
(ARSN 089 299 730) or BT Investor Choice Cash Management Trust (formerly Westpac Cash Management
Trust) (ARSN 088 187 928).
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 219 Indemnities and insurance Under the Westpac Constitution, unless it is
forbidden or would be made void by statute, we indemnify any person who is or has been a Director or Company
Secretary of Westpac and of each of our related bodies corporate (except related bodies corporate listed on a
recognised stock exchange), any person who is or has been an employee of Westpac or our subsidiaries (except
subsidiaries listed on a recognised stock exchange), and any person who is or has been acting as a responsible
manager under the terms of an Australian Financial Services Licence of any of Westpac’s wholly-owned
subsidiaries against every liability (other than a liability for legal costs) incurred by each such person in their
capacity as director, company secretary, employee or responsible manager, as the case may be; and all legal
costs incurred in defending or resisting (or otherwise in connection with) proceedings, whether civil or criminal or
of an administrative or investigatory nature, in which the person becomes involved because of that capacity. Each
of the Directors named in this Directors’ report and the Company Secretary of Westpac has the benefit of this
indemnity. Consistent with shareholder approval at the 2000 Annual General Meeting, Westpac has entered into
a Deed of Access and Indemnity with each of the Directors, which includes indemnification in identical terms to
that provided in the Westpac Constitution. Westpac also executed a deed poll in September 2009 providing
indemnification equivalent to that provided under the Westpac Constitution to individuals who are or have been
acting as: • statutory officers (other than as a director) of Westpac; • directors and other statutory officers of
wholly-owned subsidiaries of Westpac; and • directors and statutory officers of other nominated companies as
approved by Westpac in accordance with the terms of the deed poll and Westpac’s Contractual Indemnity Policy.
Some employees of Westpac’s related bodies corporate and responsible managers of Westpac and its related
bodies corporate are also currently covered by a deed poll that was executed in November 2004, which is on
similar terms to the September 2009 deed poll. The Westpac Constitution also permits us, to the extent permitted
by law, to pay or agree to pay premiums for contracts insuring any person who is or has been a Director or
Company Secretary of Westpac or any of its related bodies corporate against liability incurred by that person in
that capacity, including a liability for legal costs, unless: • we are forbidden by statute to pay or agree to pay the
premium; or • the contract would, if we paid the premium, be made void by statute. Under the September 2009
deed poll, Westpac also agrees to provide directors’ and officers’ liability insurance to Directors of Westpac and
Directors of Westpac’s wholly-owned subsidiaries (except wholly-owned subsidiaries listed on a recognised stock
exchange). For the year ended 30 September 2025, the Group has insurance cover which, in certain
circumstances, will provide reimbursement for amounts which we have to pay under the indemnities set out
above. That cover is subject to the terms and conditions of the relevant insurance, including but not limited to the
limit of indemnity provided by the insurance. The insurance policies prohibit disclosure of the premium payable
and the nature of the liabilities covered. Share rights outstanding As at the date of this report there are 4,376,980
share rights outstanding in relation to Westpac ordinary shares, held by 111 holders. The latest dates for exercise
of the share rights range between 1 October 2026 and 2 December 2039. Holders of outstanding share rights in
relation to Westpac ordinary shares do not have any rights under the share rights to participate in any share issue
or interest of Westpac or any other body corporate. Proceedings on behalf of Westpac No application has been
made and no proceedings have been brought or intervened in, on behalf of Westpac under section 237 of the
Corporations Act.
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220 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Environmental disclosure The
Westpac Group’s environmental disclosure is summarised in this Annual Report (pages 174-177) and detailed in
our 2025 Sustainability Report and our 2025 Sustainability Index and Datasheet which are available on our
website. Additional environmental disclosure is in our Climate Transition Plan which outlines how we are working
to achieve our ambition to be a net-zero climate resilient bank and our Natural Capital Position Statement, which
looks at how we assess the risks and opportunities associated with nature. This year, our Sustainability Report
works towards aligning with Australia’s new Australian Sustainability Reporting Standard AASB S2. Westpac will
need to fully comply with the new climate-related disclosure standard, AASB S2 in FY26. Westpac is also a
climate reporting entity under the Financial Markets Conduct Act 2013 (NZ) and our 2025 Sustainability Report
complies with the Aotearoa New Zealand Climate Standards (NZCS). In Australia we also report our scope 1 and
2 greenhouse gas emissions, energy consumption and production under the National Greenhouse and Energy
Reporting (NGER) scheme for the period 1 July through 30 June each year. We are not aware of the Group
incurring any material liability (including for rectification costs) under any environmental legislation. Human rights
disclosure Our Human Rights Position Statement and Action Plan sets out Westpac Group's commitments and
approach to respecting and advancing human rights. It outlines our approach to respecting human rights across
our roles as a financial services provider, lender, purchaser of goods and services, employer, and supporter of
communities, and integrates our position on child safeguarding. More information on our approach and the
Group’s salient human rights issues can be found on the Human Rights section of our website and 2025
Sustainability Index and Datasheet. Under the Modern Slavery Act 2018 (Cth) and Modern Slavery Act 2015
(UK), Westpac is required to prepare an annual statement describing the risks of modern slavery across our
operations and supply chain, and the actions taken to address the risks. Westpac published a joint statement for
FY24 on behalf of itself and certain reporting entities that addressed the requirements of both Acts. For more
information, see the Westpac Group’s 2024 Modern Slavery Statement, published in March 2025. We will release
the Group’s FY25 Modern Slavery Statement in March 2026. Rounding of amounts Westpac is an entity to which
ASIC Corporations Instrument 2016/191 dated 24 March 2016, relating to the rounding of amounts in directors’
reports and financial reports, applies. Pursuant to this Instrument, amounts in this Directors’ report and the
accompanying financial report have been rounded to the nearest million dollars, unless indicated to the contrary.
Political engagement In line with Westpac policy, no cash donations were made to political parties during the
financial year ended 30 September 2025. Westpac does participate in political engagement activities assessed
as directly relevant to the bank and or the banking industry. Such activities include business observer programs
attached to annual party conferences, policy dialogue forums and other political engagement activities, such as
speeches and events with industry participants. Westpac attends these events to put forward its position on
policy matters of importance to customers, suppliers, shareholders and employees. Political expenditure on these
events in Australia for the financial year ended 30 September 2025 was $182,406.87. This included expenditure
of $120,730.65 with the Australian Labor Party, $59,176.22 with the Liberal Party of Australia, and $2,500 with
the National Party of Australia, across Australian state and federal government jurisdictions. In New Zealand,
political expenditure for the financial year ended 30 September 2025 was NZ$5,874.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 221 Directors’ meetings The Westpac Banking Corporation Board met 9 times
during the financial year ended 30 September 2025. In addition, Directors attended Board strategy sessions and
special purpose committee meetings during the financial year. The following table includes: • Names of the
Directors that held office at any time during, or since the end of, the financial year. • The number of Board and
Board Committee meetings held during the financial year that each Director, as a member of the Board or Board
Committee, was eligible to attend, and the number of meetings attended by each Director. The table excludes the
attendance of those Directors who attended meetings of Board Committees of which they are not a member.
Board Committees Scheduled meetingsa Risk Audit Remuneration Nominations & Governance Heldb Attendedc
Heldb Attendedc Heldb Attendedc Heldb Attendedc Heldb Attendedc Director Steven Greggd 9 9 n/a n/a n/a n/a
n/a n/a 4 4 Anthony Millere 6 6 n/a n/a n/a n/a n/a n/a n/a n/a Tim Burroughsf 9 9 8 8 n/a n/a 8 8 n/a n/a Nerida
Caesarg 9 9 5 5 4 4 n/a n/a n/a n/a David Cohenh 4 4 4 4 n/a n/a n/a n/a n/a n/a Pip Greenwoodi 2 2 n/a n/a n/a
n/a n/a n/a n/a n/a Debra Hazeltonj 5 5 n/a n/a n/a n/a 5 5 n/a n/a Andy Maguirek 9 9 n/a n/a n/a n/a 6 6 n/a n/a
Peter Nashl 9 9 8 8 4 4 n/a n/a 4 4 Margaret Sealem 9 9 n/a n/a n/a n/a 8 8 4 4 Michael Ullmern 9 9 8 8 4 4 n/a
n/a n/a n/a Former Director Peter Kingo 4 4 n/a n/a n/a n/a n/a n/a n/a n/a Audette Exelp 3 3 3 3 1 1 n/a n/a n/a
n/a Nora Scheinkestelq 2 2 2 2 n/a n/a 2 2 n/a n/a a. There were no out of cycle Board meetings called. b. The
number of meetings held during the time the Director was a member of the Board or Board Committee and that
the Director was eligible to attend as a member. c. The number of Board or Board Committee meetings that the
Director attended as a member. d. Chairman of the Board and Chair of the Board Nominations & Governance
Committee. e. Appointed as a Director on 16 December 2024. f. Member of the Board Risk Committee and Board
Remuneration Committee. g. Member of the Board Audit Committee. Appointed as a member of the Board Risk
Committee with the appointment taking effect on 13 December 2024. h. Appointed as a Director and a member of
the Board Risk Committee on 1 April 2025. i. Appointed as a Director on 1 August 2025. j. Appointed as a
Director and a member of the Board Remuneration Committee on 4 March 2025. k. Appointed as a member of
the Board Remuneration Committee with the appointment taking effect on 6 November 2024. l. Chair of the
Board Audit Committee and member of the Board Risk Committee and Board Nominations & Governance
Committee. m. Member of the Board Nominations & Governance Committee and Board Remuneration
Committee. Appointed Chair of the Board Remuneration Committee with the appointment taking effect on 6
November 2024 n. Member of the Board Audit Committee and the Board Risk Committee. Appointed Chair of the
Board Risk Committee with the appointment taking effect on 13 December 2024 o. Retired as a Director on 15
December 2024. p. Retired as a Director on 13 December 2024. q. Retired as a Director on 6 November 2024.
For personal use only
222 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Remuneration Report LETTER FROM
THE CHAIR of the Board Remuneration Committee 2025 was a year of renewal, marked by refreshed leadership
and a focus on positioning Westpac for long term growth. Dear shareholders, On behalf of the Board, I am
pleased to present the 2025 Remuneration Report. Group performance We invested for the future while
delivering sound financial results. Excluding Notable Items, NPAT achieved our target while ROTE was narrowly
below target. Our costs were higher than planned, reflecting decisions made for the long term. Cost management
will continue to be a priority. We gained market share in business lending while mortgages growth in Australia
was at target. Overall, we delivered a total shareholder return of 29% for the financial year. We completed the
CORE transition phase, resulting in APRA announcing the release of the remaining $500 million operational risk
capital overlay, and made progress on the Group's transformation agenda. We delivered 88% of the 2025 UNITE
priorities and delivered the first phases of the Westpac One and the BizEdge platforms. We have completed
UNITE program discovery and made the decision to consolidate to a single deposit ledger. Overall, our customer
experience needs to improve. Consumer NPS improved, with performance at target, but we have more work to
do on Business NPS. Pleasingly, Westpac's relationship banking RSI was the highest in 10 years. Our people
remain engaged and advocate for Westpac. Our Organisational Health Index score was 80 despite significant
restructuring, exceeding our target of 77 and within the top quartile of workplaces globally. We have more to do to
improve the representation of women in senior leadership. Executive performance and remuneration outcomes
2025 short term variable reward (STVR) The 2025 Group STVR Scorecard included four key priorities: Financial
performance, Strategic execution, Serving customers, and People. This year we increased the weighting of
financial performance from 45% to 50% and increased the weighting of the strategic execution category from
15% to 30%, including risk management which was a separate category in 2024. These changes recognise both
feedback from investors and our completion of the CORE program. The Board assessed the CEO's STVR
outcome at 85% of target. The CEO’s outcome was impacted by below threshold performance on the Group cost
base measure. For Group Executives, STVR outcomes ranged from 92% to 102% of target, reflecting the
differentiation of performance outcomes for their respective divisions and individual performance. 2022 long term
variable reward (LTVR) The 2022 LTVR award was tested against a relative total shareholder return measure.
Westpac delivered a total shareholder return of 77% over the four year performance period, resulting in a 62.5th
percentile ranking relative to the financial services comparator group. As a result, the CEO and eligible Group
Executives received 75% of their 2022 LTVR. It is pleasing that improved performance has led to a partial vesting
of the LTVR. This demonstrates the alignment of our remuneration framework with the experience of
shareholders. 2025 total target remuneration As foreshadowed in last year’s report, we increased the total target
remuneration for four Group Executives. The increases recognised market comparisons and role accountabilities
and were implemented for Carolyn McCann (10%), Catherine McGrath (6%), Michael Rowland (2%) and Ryan
Zanin (4%). Carolyn McCann has since been appointed Chief Executive, Consumer and received a further 9%
increase.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 223 CEO transition and executive leadership team renewal In December 2024,
Anthony Miller (previously Chief Executive, Business & Wealth) succeeded Peter King as Westpac’s CEO. In his
first year, Anthony has led the renewal of the Executive Team, advanced the implementation of the UNITE
program and continued to reorient the organisation to be more customer focused. The new executive leadership
team includes both internal and external appointments and the Board is confident we have the team to deliver on
the strategy. Total target remuneration for new appointments So that the remuneration of our executives is
appropriately positioned, each year we review internal and external benchmarks. Most of our new executive
appointments, except for one, have been appointed on packages lower than their predecessors. Further details
are included in the Summary of appointment and exit arrangements (page 224). Buy out awards for remuneration
foregone In order to secure the talent required, we follow common market practice and provide buy out awards
where necessary. When determining buy outs, our key principle is that the candidate should be no better or
worse off and only compensated for remuneration foregone. Further details are included in the Summary of
appointment and exit arrangements (page 224). Executive notice periods Following a market review we
implemented changes to our executive employment agreement. We reduced the notice period required when an
executive leaves Westpac from twelve months to six months. This is effective for all new executives that
commenced from January 2025. Remuneration for our people Home finance manager pay framework In 2025,
we increased the maximum variable reward opportunity for home finance manager roles from 50% to 80% of
fixed pay. We made this change to remain competitive, attract talent and reward outperformance. We have made,
and continue to make, refinements to the home finance manager pay framework so we remain tightly focused on
risk and conduct management. Gender pay We are determined to pay our people fairly and equitably. We have
pay equity for like-for-like roles and have reduced our median gender pay gap for total remuneration from 29.3%
to 28.1% for the 2024-25 reporting year. There are a range of programs in place to improve gender diversity
across levels, including our sponsorship and career development programs for women. There is more to do to
ensure the gap continues to reduce. Refer to Creating value for our people (pages 166-169) for further
information. Looking ahead 2026 short term variable reward The Board has set the 2026 Group STVR Scorecard
to support the delivery of our priorities. We will maintain a 50% weighting to financial performance, with the
remaining weightings of the Group STVR Scorecard focused on UNITE, customer, people, risk, and sustainability.
In addition, we have added a leadership behaviours modifier in the Group Executive Scorecards aligned to our
objectives to 'always deliver, safely', 'make an impact' and 'own it'. 2026 total target remuneration After reviewing
market relativities, the Board determined that Catherine McGrath would receive an increase of 6% to her 2026
total target remuneration. There were no other increases as part of the annual remuneration review. CEO
minimum shareholding requirement To strengthen the CEO's alignment with shareholders, the Board increased
the CEO's minimum shareholding requirement from 200% to 300% of fixed remuneration. This change is
effective from 1 October 2025 and Anthony will have a five year accumulation period from the date he was
appointed as CEO. We are pleased that Anthony is well progressed in achieving the increased requirement. We
hope you find the report informative and always welcome your feedback. Margaret Seale CHAIR BOARD
REMUNERATION COMMITTEE CONTENTS 1. Snapshot of remuneration for 2025 225 5. Further detail on
executive remuneration arrangements 237 2. Key management personnel 227 6. Non-executive Director
remuneration 242 3. 2025 remuneration outcomes and alignment to performance 228 7. Statutory remuneration
details 243 4. Remuneration governance 235
For personal use only
224 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT SUMMARY OF APPOINTMENT AND
EXIT ARRANGEMENTS During the year, the Board appointed new executives to lead Westpac’s next phase of
transformation and growth. The appointments include a mix of internal executives, reflecting the depth of talent
and capability at Westpac, as well as external executives. Biographies of our executives are outlined in the
Executive Team section of the Annual Report. A summary of executive appointment and exit arrangements is
outlined below, with further details included throughout the report. KMP APPOINTMENT ARRANGEMENT
Anthony Miller Managing Director & Chief Executive Officer • Total target remuneration of $7,875,000 in line with
the previous CEO. • Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR. Kate Dee Chief People
Officer • Total target remuneration of $2,600,000. • Buy out award comprising cash and equity components
totalling $2,240,820. • Not eligible for 2025 LTVR or STVR. Paul Fowler Chief Executive, Business & Wealth •
Total target remuneration of $3,550,000. • Buy out award comprising cash and equity components totalling
$2,882,409. • Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR. Nathan Goonana Chief Financial
Officer • Total target remuneration of $3,900,000. • Buy out award comprising cash and equity components
estimated at $7,830,093. Peter Herbert Chief Transformation Officer • Total target remuneration of $2,700,000 as
Chief Transformation Officer. • Total target remuneration of $2,100,000 as Acting Chief Executive, Business &
Wealth. • Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR. Carolyn Hoy Acting Group Executive,
Customer & Corporate Services • Total target remuneration of $1,700,000. • Pro rata 2025 LTVR grant and
eligible for pro rata 2025 STVR. Carolyn McCann Chief Executive, Consumer • Total target remuneration of
$4,028,000 as Chief Executive, Consumer. • Total target remuneration of $3,925,000 as Acting Chief Executive,
Consumer. • Pro rata 2025 LTVR grant and eligible for pro rata 2025 STVR. Megan Rutter Acting Group
Executive, Human Resources • Total target remuneration of $1,525,000. • Pro rata 2025 LTVR grant and eligible
for pro rata 2025 STVR. • Ceased as an Acting Group Executive on 4 August 2025. a. Nathan Goonan
commenced on 22 September 2025 as an Enterprise Executive and was not considered a KMP for 2025. For the
period 22 to 30 September 2025, Nathan received fixed remuneration of $33,244. Nathan was not eligible for any
variable remuneration while in the Enterprise Executive role. Nathan commenced as Chief Financial Officer on 8
October 2025. The total value of Nathan's buy out is subject to confirmation prior to being awarded. Further
details will be disclosed in the 2026 Remuneration Report. FORMER KMP EXIT ARRANGEMENT Peter King
Former Managing Director & Chief Executive Officer • Notice period in line with contractual requirements. •
Eligible for pro rata 2025 STVR. • Not eligible for 2025 LTVR. • Unvested equity remains on foot. Christine Parker
Former Group Executive, Human Resources • Notice period in line with contractual requirements. • Eligible for
pro rata 2025 STVR. • Unvested equity remains on foot. Michael Rowlanda Former Chief Financial Officer •
Notice period in line with contractual requirements. • Eligible for pro rata 2026 STVR. • Not eligible for 2026
LTVR. • Unvested equity remains on foot. Jason Yetton Former Chief Executive, Consumer • Notice period in line
with contractual requirements. • Eligible for pro rata 2025 STVR. • Unvested equity remains on foot. a. Michael
Rowland is due to leave Westpac on 12 December 2025 and is included as a KMP for the full year in the 2025
Remuneration Report.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 225 1. Snapshot of remuneration for 2025 OUR REMUNERATION STRATEGY
AND PRINCIPLES Our remuneration strategy is to attract and retain talented employees. We reward them for
achieving high performance and delivering superior long term results for our customers and shareholders.
Promote our purpose, values and behaviours Align with our strategy and create sustainable shareholder value
Offer market competitive and equitable pay Reward financial and non-financial performance including customer
outcomes and risk excellence Reinforce our risk and conduct expectations OUR EXECUTIVE REMUNERATION
FRAMEWORK Our executive remuneration framework is designed to align with our strategy, market practice,
investor expectations and compliance with Prudential Standard CPS 511 Remuneration (CPS 511). The minimum
shareholding requirement is equivalent to two times fixed remuneration for the CEO and one times fixed
remuneration for the Group Executives. The minimum shareholding requirement for the CEO will increase to
three times fixed remuneration from 1 October 2025. Refer to Section 5.6 for further details. REMUNERATION
MIX The remuneration mix is designed with a significant proportion of total remuneration at risk and based on
performance. The graphic below sets out the maximum remuneration mix1 showing the relative proportion of
each component in the executive remuneration framework as a percentage of total maximum opportunity. Refer
to Section 5 for further details of executive remuneration arrangements. 1. The mix shown in the graphic above
applies to all individuals in KMP roles with the exception of the Chief Financial Officer (Michael Rowland) and the
Chief Risk Officer (Ryan Zanin). Their maximum remuneration mix is comprised of 33% fixed remuneration, 31%
maximum STVR, 18% LTVR restricted rights and 18% LTVR performance rights. These roles will transition to the
above remuneration mix over time.
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226 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT PERFORMANCE SNAPSHOT
Financial performance $6,972m NPAT excluding Notable Items 10.97% ROTE excluding Notable Items Strategic
execution 88% UNITE 2025 priorities delivered $500m operational risk capital release Serving customers +1 in
Consumer NPS -5 in Business NPS relative to major bank average change 21% reduction in losses from scams
People 80 Organisational Health Index score 48.6% women in senior leadership Performance achieved Target
Further detail on performance against all measures of the Group STVR Scorecard is set out in Section 3.3.
REMUNERATION OUTCOMES 85% CEO's 2025 STVR outcome as a % of target, or 68% as a % of maximum.
92% to 102% Group Executive STVR outcomes range of STVR outcomes as a % of target, or 74% to 82% as %
of maximum. 75% LTVR vesting outcome 2022 LTVR vesting outcome. Reflects a TSR of 77% over the four year
performance period.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 227 2. Key management personnel (KMP) The remuneration of KMP for 2025 is
disclosed in this report. KMP are defined as those persons that have the authority and responsibility for planning,
directing and controlling the activities of an entity, directly or indirectly, including any Director (whether executive
or otherwise) of that entity. Name Position Term as KMP Managing Director & Chief Executive Officer Anthony
Millera Managing Director & Chief Executive Officer Full year Group Executives Scott Collary Chief Information
Officer Full year Kate Dee Chief People Officer Commenced on 5 August 2025 Paul Fowler Chief Executive,
Business & Wealth Commenced on 12 May 2025 Peter Herbertb Chief Transformation Officer Commenced on 5
November 2024 Carolyn Hoy Acting Group Executive, Customer & Corporate Services Commenced on 12 May
2025 Nell Hutton Chief Executive, Westpac Institutional Bank Full year Carolyn McCannc Chief Executive,
Consumer Full year Catherine McGrath Chief Executive Officer, Westpac New Zealand Full year Michael
Rowland Chief Financial Officer Full year Ryan Zanin Chief Risk Officer Full year Former Executives Peter King
Managing Director & Chief Executive Officer Ceased on 15 December 2024 Christine Parker Group Executive,
Human Resources Ceased on 1 June 2025 Megan Rutter Acting Group Executive, Human Resources
Commenced on 2 June 2025 and ceased on 4 August 2025 Jason Yetton Chief Executive, Consumer Ceased on
11 May 2025 Current Non-executive Directors Steven Gregg Chair Full year Tim Burroughs Director Full year
Nerida Caesar Director Full year David Cohen Director Commenced on 1 April 2025 Pip Greenwood Director
Commenced on 1 August 2025 Debra Hazelton Director Commenced on 4 March 2025 Andy Maguire Director
Full year Peter Nash Director Full year Margaret Seale Director Full year Michael Ullmer AO Director Full year
Former Non-executive Directors Nora Scheinkestel Director Retired on 6 November 2024 Audette Exel AO
Director Retired on 13 December 2024 a. Anthony Miller was the Chief Executive, Business & Wealth until 4
November 2024 after which he was appointed as the Chief Executive Officer Designate on 5 November 2024
while remaining on the same remuneration arrangements. Anthony Miller was then appointed as the Managing
Director & Chief Executive Officer effective 16 December 2024. Anthony's remuneration for all three roles is
aggregated and disclosed together for the year. b. Peter Herbert was appointed the Acting Chief Executive,
Business & Wealth on 5 November 2024. On 3 March 2025, Peter Herbert was appointed the Chief
Transformation Officer whilst continuing as the Acting Chief Executive, Business & Wealth until Paul Fowler
commenced. c. Carolyn McCann was the Group Executive, Customer & Corporate Services until she was
appointed as the Acting Chief Executive, Consumer on 12 May 2025. Carolyn was appointed Chief Executive,
Consumer on 12 August 2025.
For personal use only
228 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 3. 2025 remuneration outcomes and
alignment to performance 3.1. Group performance The table below summarises variable reward outcomes and
Group performance over the last five years. Years ended 30 September 2025 2024 2023 2022 2021 CEO STVR
outcome (% of maximum)a 68% 83% 60% 52% 47% CEO STVR outcome (% of target)b 85% 104% 90% 78%
70% Average Group Executive STVR outcome (% of maximum)a 75% 82% 60% 53% 48% Average Group
Executive STVR outcome (% of target)b 94% 102% 89% 79% 73% LTVR outcome (% vested) 75% 50% 0% 0%
0% Net profit after tax attributable to owners of WBC ($m) 6,916 6,990 7,195 5,694 5,458 Net profit after tax
(excluding Notable Items) ($m)c 6,972 7,113 7,368 6,568 6,953 Return on tangible equity (ROTE) (statutory
basis) 10.89% 11.01% 11.39% 9.17% 8.82% Return on tangible equity (ROTE) (excluding Notable Items)c
10.97% 11.21% 11.67% 10.58% 11.23% TSR – four years 77.11% 113.10% (9.27%) (11.15%) (1.95%) TSR – five
years 168.98% 34.24% (4.05%) (13.82%) 10.34% Total ordinary dividend (cents per share) 153 151 142 125 118
Special dividend (cents per share) 0 15 0 0 0 Share price – close $38.97 $31.72 $21.15 $20.64 $26.00 a. From
2024, maximum STVR opportunity was reduced from 150% to 125% of target STVR. b. From 2024, target STVR
opportunity was reduced from approximately 100% to 75% of fixed remuneration for business roles, and
maintained at 75% for functional roles. c. For additional information refer to the Non-AAS financial measures
section of the Annual Report for a reconciliation of these measures. 3.2. 2022 LTVR vesting outcome We tested
the 2022 LTVR on 1 October 2025. Our TSR for the four year performance period was 77% resulting in a 62.5th
percentile ranking relative to the comparator group. This resulted in 75% of the 2022 LTVR award vesting.
Performance hurdle Performance start date Test date Performance range Outcome % Vested % Threshold
Maximum Lapsed Relative TSR (100% of award) 1 October 2021 1 October 2025 Percentile ranking is at the
median Percentile ranking is at the 75th percentile or higher 62.5th percentile ranking relative to the comparator
group 75% 25% NPAT (EXCLUDING NOTABLE ITEMS) AND CEO STVR OUTCOME NPAT (excluding Notable
Items)($m) CEO STVR (%) NPAT (excluding Notable Items)($m) CEO STVR outcome (% of target) CEO STVR
outcome (% of maximum) 2021 2022 2023 2024 2025 0 2,000 4,000 6,000 8,000 40 60 80 100 120 ROTE
(EXCLUDING NOTABLE ITEMS) AND CEO STVR OUTCOME ROTE (excluding Notable Items)(%) CEO STVR
(%) ROTE (excluding Notable Items)(%) CEO STVR outcome (% of target) CEO STVR outcome (% of maximum)
2021 2022 2023 2024 2025 0 4 8 12 40 60 80 100 120 TSR (Four year period ending 30 September 2025) TSR
(%) WBC Peer 1 Peer 2 Peer 3 2022 2023 2024 2025 -40 0 40 80 120 TSR AND LTVR VESTING OUTCOME
(Percentile rank over the prior four year period) TSR over 4 years (percentile rank) LTVR award (% vested) TSR
over four years (percentile rank) LTVR award (% vested) 2021 2022 2023 2024 2025 0 40 80 20 60 100 0 40 80
20 60 100
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 229 3.3. 2025 Group STVR Scorecard The Group’s priorities are set out in the
Group STVR Scorecard, which forms part of the CEO’s Scorecard. Common elements appear in Group
Executive Scorecards together with individual objectives reflecting divisional measures. For 2025, we increased
the financial performance weighting from 45% to 50% to emphasise our focus on delivering value. Risk measures
were included within the ‘Strategic execution’ category, which was weighted at 30%. A summary of the
performance assessment is provided below and is designed to be read over two pages. Where appropriate,
individual measures have been assessed against a Threshold, Target and Stretch rating scale as outlined in the
key. Each priority has also been assessed in totality using the same key. Key priority Measure Outcome Outcome
commentary Key: Threshold 50-99% Stretch 101-125% Target 100% Performance assessment Financial
performance (50%) Deliver current year financial performance (excluding Notable Items): • Net profit after tax
-5% $6,971m +5% $6,972m result was at target. We delivered sound financial results against our targets. NPAT
(excluding Notable Items) was at target and ROTE (excluding Notable Items) was narrowly below target,
supported by a lower credit impairment charge and a higher than targeted net interest margin. Pre-provision profit
was below target and our cost base was below threshold. We made decisions in the long term interest of
Westpac which necessitated a period of elevated expense growth, including restructuring costs and an increase
in UNITE investment spend. As a result, expenses were 3% adverse to target. We have a long-term focus on
balance sheet strength with key metrics including the Common Equity Tier 1 capital ratio, Net Stable Funding
Ratio, and Liquidity Coverage Ratio all above target operating ranges. Our strong balance sheet position
provided us the capacity for dividends to be at the top end of the payout range. We have gained momentum in
Australian business lending which increased to 1.37x of ADI financial system growth, which was at stretch. We
maintained pricing disciplines and provided consistent service delivery in Australian mortgages with growth at
0.84x of ADI financial system, which was at target. We assessed Financial performance at below target. • Pre-
provision profit -5% $10,901m +5% $10,548m result was below target. • Return on tangible equity -5% 11.05%
+5% 10.97% result was below target. • Cost base +2% $11,618 -2% $11,916m result was below threshold. Grow
market share in key segments compared to system growth <0.8x 0.8x >1x Growth in Australian mortgages was
0.84x of ADI financial system growth, which was at target. 0.8x 1.0x 1.2x Growth in Australian business lending
was 1.37x of ADI financial system growth, which was at stretch. Strategic execution (30%) Demonstrate
sustainability and effectiveness of the CORE outcomes through the transition phase - Target - On target
completion of transition phase as assessed by Promontory, and APRA announced the release of the remaining
operational risk capital overlay. Our people have embraced excellence in risk management, demonstrated by our
improved risk culture, governance and accountability through the CORE program. We successfully completed the
transition phase and APRA announced the release of the remaining $500 million operational risk capital overlay.
We made progress with the Group’s transformation agenda, and we are focused on executing UNITE, delivering
88% of 2025 UNITE priorities. The program scope is now finalised and we have embedded a new operating
model under the Chief Transformation Officer. This included repointing and co-locating key UNITE resources to
support delivery, efficiency, and clear accountability. On broader strategic transformation, we made demonstrable
progress in improving our capabilities including the Westpac One transaction banking platform and our BizEdge
platform. We have reduced customer losses from scams and the number of days to refund customers for fraud
events, both achieving stretch performance. On demonstrating our sustainability and climate strategy, we
increased our sustainable lending (total committed exposures and balances) to $39.4bn while we facilitated
$6.3bn in bonds in 2025 aligned to our sustainable finance framework. We have engaged 109 institutional
customers and 158 commercial customers to support their decarbonisation plans. We assessed Strategic
execution at above target. Deliver the 2025 UNITE program priorities and change initiatives to transform the bank
- Target - Significant delivery of 2025 UNITE priorities and the BizEdge and Westpac One platforms. Progress our
sustainability and climate strategies - Target - Customer losses from scams reduced by 21% and days to refund
fraud reduced to <5 days, which was at stretch. $39.4bn of lending at 30 September 2025 and $6.3bn bond
facilitation over 2025 for sustainable finance. Serving customers (10%) Improve customer advocacy of Westpac
(measured in points relative to major bank average change) 0 +1 +2 Consumer NPS was +1 relative to the major
bank average change, which was at target. We want to be our customers' number one bank and took significant
steps this year to deliver on our strategy. Australian Consumer NPS increased +1 more than the major bank
average change, achieving target. Business NPS although up year on year, disappointingly was behind the major
bank average change. Westpac New Zealand Consumer NPS improved +9 (+5 compared to the major bank
average change). Our mobile banking app was #1 for the third year in a row as rated by Forrester. Both branch
experience and mobile banking maintained their position in major bank NPS rankings (source: Mozart Proprietary
Market Study) however were assessed as below target. We have more to do to improve our customers' channel
experience across branches and our mobile banking app. Westpac's relationship banking RSI (source: Coalition
Greenwich Voice of Client 2025 Large Corporate Relationship Banking Study) was the highest in 10 years and
achieved stretch performance. We have mobilised our customer journeys multi year program resulting in time
savings for our customers and our people. We assessed Serving customers at below target. +1 +2 +3 Business
NPS was -5 relative to the major bank average change, which was below threshold. Improve customer
experience of our products, service and channel propositions (measured against major banks) - Target - Westpac
branch NPS was #1 relative to other major banks. Westpac mobile app NPS was equal #2 relative to other major
banks. People (10%) Maintain top quartile organisation health through Organisational Health Index (OHI) - 77 80
Westpac Group OHI was 80 maintaining our position in the top quartile resulting in stretch performance. We want
to be the #1 place to work and we are refreshing our employee value proposition focused on learning and
development, employee banking, and health and wellbeing. We set ourselves a high benchmark and achieved
top quartile for organisational health with an OHI score of 80, demonstrating that our people remain engaged and
our employees are advocates for Westpac. Women in senior leadership was at 48.6% at the end of 2025, which
was marginally below the threshold of 48.8%. We continue to invest in building a pipeline of leaders through our
development programs for women. We assessed People at below target. Improve representation of women in
senior leadership 48.8% 50% >51% Women in senior leadership was 48.6% resulting in below threshold
performance. OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT 85% OF TARGET 68%
OF MAXIMUM The Group STVR Scorecard has a modifier that allows the Board to take into account risk and
reputation, people risk management and any other matters as determined by the Board. Refer to Section 3.5 for
further detail on individual outcomes.
For personal use only
230 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT Overview of how STVR outcomes are
determined Target STVR × Scorecard assessment ± Scorecard modifier = Final STVR outcome 75% of fixed
remuneration Performance against Westpac and divisional measures Accounts for any aspect of performance not
reflected in the Scorecard 50% delivered as deferred equity for shareholder alignment The Board has discretion
to adjust all variable reward downwards, including to zero. Significant risk, compliance or conduct matters are
assessed against our guidelines, independent of the STVR assessment. Key priority Measure Outcome Outcome
commentary Key: Threshold 50-99% Stretch 101-125% Target 100% Performance assessment Financial
performance (50%) Deliver current year financial performance (excluding Notable Items): • Net profit after tax
-5% $6,971m +5% $6,972m result was at target. We delivered sound financial results against our targets. NPAT
(excluding Notable Items) was at target and ROTE (excluding Notable Items) was narrowly below target,
supported by a lower credit impairment charge and a higher than targeted net interest margin. Pre-provision profit
was below target and our cost base was below threshold. We made decisions in the long term interest of
Westpac which necessitated a period of elevated expense growth, including restructuring costs and an increase
in UNITE investment spend. As a result, expenses were 3% adverse to target. We have a long-term focus on
balance sheet strength with key metrics including the Common Equity Tier 1 capital ratio, Net Stable Funding
Ratio, and Liquidity Coverage Ratio all above target operating ranges. Our strong balance sheet position
provided us the capacity for dividends to be at the top end of the payout range. We have gained momentum in
Australian business lending which increased to 1.37x of ADI financial system growth, which was at stretch. We
maintained pricing disciplines and provided consistent service delivery in Australian mortgages with growth at
0.84x of ADI financial system, which was at target. We assessed Financial performance at below target. • Pre-
provision profit -5% $10,901m +5% $10,548m result was below target. • Return on tangible equity -5% 11.05%
+5% 10.97% result was below target. • Cost base +2% $11,618 -2% $11,916m result was below threshold. Grow
market share in key segments compared to system growth <0.8x 0.8x >1x Growth in Australian mortgages was
0.84x of ADI financial system growth, which was at target. 0.8x 1.0x 1.2x Growth in Australian business lending
was 1.37x of ADI financial system growth, which was at stretch. Strategic execution (30%) Demonstrate
sustainability and effectiveness of the CORE outcomes through the transition phase - Target - On target
completion of transition phase as assessed by Promontory, and APRA announced the release of the remaining
operational risk capital overlay. Our people have embraced excellence in risk management, demonstrated by our
improved risk culture, governance and accountability through the CORE program. We successfully completed the
transition phase and APRA announced the release of the remaining $500 million operational risk capital overlay.
We made progress with the Group’s transformation agenda, and we are focused on executing UNITE, delivering
88% of 2025 UNITE priorities. The program scope is now finalised and we have embedded a new operating
model under the Chief Transformation Officer. This included repointing and co-locating key UNITE resources to
support delivery, efficiency, and clear accountability. On broader strategic transformation, we made demonstrable
progress in improving our capabilities including the Westpac One transaction banking platform and our BizEdge
platform. We have reduced customer losses from scams and the number of days to refund customers for fraud
events, both achieving stretch performance. On demonstrating our sustainability and climate strategy, we
increased our sustainable lending (total committed exposures and balances) to $39.4bn while we facilitated
$6.3bn in bonds in 2025 aligned to our sustainable finance framework. We have engaged 109 institutional
customers and 158 commercial customers to support their decarbonisation plans. We assessed Strategic
execution at above target. Deliver the 2025 UNITE program priorities and change initiatives to transform the bank
- Target - Significant delivery of 2025 UNITE priorities and the BizEdge and Westpac One platforms. Progress our
sustainability and climate strategies - Target - Customer losses from scams reduced by 21% and days to refund
fraud reduced to <5 days, which was at stretch. $39.4bn of lending at 30 September 2025 and $6.3bn bond
facilitation over 2025 for sustainable finance. Serving customers (10%) Improve customer advocacy of Westpac
(measured in points relative to major bank average change) 0 +1 +2 Consumer NPS was +1 relative to the major
bank average change, which was at target. We want to be our customers' number one bank and took significant
steps this year to deliver on our strategy. Australian Consumer NPS increased +1 more than the major bank
average change, achieving target. Business NPS although up year on year, disappointingly was behind the major
bank average change. Westpac New Zealand Consumer NPS improved +9 (+5 compared to the major bank
average change). Our mobile banking app was #1 for the third year in a row as rated by Forrester. Both branch
experience and mobile banking maintained their position in major bank NPS rankings (source: Mozart Proprietary
Market Study) however were assessed as below target. We have more to do to improve our customers' channel
experience across branches and our mobile banking app. Westpac's relationship banking RSI (source: Coalition
Greenwich Voice of Client 2025 Large Corporate Relationship Banking Study) was the highest in 10 years and
achieved stretch performance. We have mobilised our customer journeys multi year program resulting in time
savings for our customers and our people. We assessed Serving customers at below target. +1 +2 +3 Business
NPS was -5 relative to the major bank average change, which was below threshold. Improve customer
experience of our products, service and channel propositions (measured against major banks) - Target - Westpac
branch NPS was #1 relative to other major banks. Westpac mobile app NPS was equal #2 relative to other major
banks. People (10%) Maintain top quartile organisation health through Organisational Health Index (OHI) - 77 80
Westpac Group OHI was 80 maintaining our position in the top quartile resulting in stretch performance. We want
to be the #1 place to work and we are refreshing our employee value proposition focused on learning and
development, employee banking, and health and wellbeing. We set ourselves a high benchmark and achieved
top quartile for organisational health with an OHI score of 80, demonstrating that our people remain engaged and
our employees are advocates for Westpac. Women in senior leadership was at 48.6% at the end of 2025, which
was marginally below the threshold of 48.8%. We continue to invest in building a pipeline of leaders through our
development programs for women. We assessed People at below target. Improve representation of women in
senior leadership 48.8% 50% >51% Women in senior leadership was 48.6% resulting in below threshold
performance. OVERALL GROUP STVR SCORECARD PERFORMANCE ASSESSMENT 85% OF TARGET 68%
OF MAXIMUM The Group STVR Scorecard has a modifier that allows the Board to take into account risk and
reputation, people risk management and any other matters as determined by the Board. Refer to Section 3.5 for
further detail on individual outcomes.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 231
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232 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 3.4. Total realised remuneration –
Chief Executive Officer and Group Executives The table below details the actual remuneration paid and equity1
that vested or lapsed for KMP roles in relation to 2025 and 2024. For 2025, this includes the 2022 LTVR award
and for 2024, this includes the 2021 LTVR award. Termination payments and buy out awards are not included.
This table is not prepared in accordance with Australian Accounting Standards which differs from the disclosure
in Section 7. Fixed remuneration Cash STVR payments Vesting of prior year deferred STVR awards Vesting of
prior year LTVR awards Total realised remuneration Prior year LTVR lapsed Name $ $ $ $ $ $ Managing Director
& Chief Executive Officer Anthony Miller, Managing Director & Chief Executive Officera 2025 2,250,412 718,500
792,896 2,434,849 6,196,657 811,616 2024 1,277,944 478,000 706,795 1,925,462 4,388,201 1,925,462 Group
Executives Scott Collary, Chief Information Officer 2025 1,300,279 445,500 725,293 2,548,098 5,019,170
849,366 2024 1,293,976 508,500 706,444 1,927,412 4,436,332 1,927,412 Kate Dee, Chief People Officer 2025
129,809 - - - 129,809 - 2024 --------------------- Not a KMP in 2024 --------------------- Paul Fowler, Chief Executive,
Business & Wealtha 2025 442,256 151,500 - - 593,756 - 2024 --------------------- Not a KMP in 2024 -------------------
-- Peter Herbert, Chief Transformation Officer 2025 775,066 300,400 - - 1,075,466 - 2024 --------------------- Not a
KMP in 2024 --------------------- Carolyn Hoy, Acting Group Executive, Customer & Corporate Services 2025
323,561 112,800 - - 436,361 - 2024 --------------------- Not a KMP in 2024 --------------------- Nell Hutton, Chief
Executive, Westpac Institutional Bank 2025 1,283,715 464,000 296,565 - 2,044,280 - 2024 1,278,338 502,000 - -
1,780,338 - Carolyn McCann, Chief Executive, Consumer 2025 1,206,295 438,000 575,951 1,512,103 3,732,349
504,034 2024 1,062,447 437,500 484,098 1,149,441 3,133,486 1,269,346 Catherine McGrath, Chief Executive
Officer, Westpac New Zealand 2025 1,032,402 345,588 522,100 1,625,544 3,525,634 541,822 2024 981,129
311,189 502,028 - 1,794,346 - Michael Rowland, Chief Financial Officer 2025 1,303,016 448,500 668,746
1,970,529 4,390,791 656,843 2024 1,274,390 500,500 577,773 1,588,668 3,941,331 1,588,636 Ryan Zanin,
Chief Risk Officera 2025 1,774,107 677,000 818,858 1,182,603 4,452,568 394,175 2024 1,699,186 674,000
504,105 - 2,877,291 - Former Executives Peter King, Managing Director & Chief Executive Officer 2025 517,836
132,800 1,515,993 3,680,625 5,847,254 1,226,862 2024 2,502,920 975,000 1,442,898 2,990,401 7,911,219
3,314,178 Christine Parker, Group Executive, Human Resources 2025 696,615 239,500 573,871 1,768,954
3,278,940 589,626 2024 1,041,206 417,000 513,821 1,459,709 3,431,736 1,459,677 Megan Rutter, Acting
Group Executive, Human Resources 2025 134,374 40,800 - - 175,174 - 2024 --------------------- Not a KMP in 2024
--------------------- Jason Yetton, Chief Executive, Consumer 2025 781,121 268,500 772,210 2,434,849 4,256,680
811,616 2024 1,277,944 443,000 782,285 2,009,165 4,512,394 3,432,493 a. In addition, some individuals
received remuneration in relation to a buy out award: Anthony Miller received a deferred cash payment of
$181,250 in March 2025 and had 9,676 restricted shares vest in March 2025; Paul Fowler received a deferred
cash payment of $258,904 in September 2025 and had 22,700 restricted shares vest in September 2025; and
Ryan Zanin received deferred cash payments of $64,623 in October 2024 and $64,623 in January 2025. 1. The
value of deferred STVR is based on the number of restricted shares or share rights multiplied by the five day
volume weighted average price (VWAP) up to and including the scheduled date of vesting for 2024 figures, and
up to 1 October 2025 for the 2025 figures. The value of LTVR is based on the number of share rights multiplied
by the five day VWAP up to and including the scheduled date of testing. Ryan Zanin’s 2022 LTVR award vesting
outcome was 75% and the deferral period ends in February 2026.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 233 3.5. Variable reward awarded for 2025 The table below shows the variable
reward awarded1 to the CEO and Group Executives for 2025, including: • STVR outcomes for 2025 (including the
cash and deferred equity components); and • equity granted in relation to 2025 LTVR awards. The 2025 LTVR
grants are shown at face value in the table below and will be tested on 1 October 2028. 2025 STVR award 2025
LTVR award Name Target STVR opportunity ($) Maximum STVR opportunity ($) STVR outcome (% of target)
STVR outcome (% of maximum) STVR outcome ($) Maximum STVR foregone ($) Restricted rights ($)a,b
Performance rights ($)a Managing Director & Chief Executive Officer Anthony Miller 1,683,699 2,104,624 85%
68% 1,437,000 667,624 1,571,452 1,571,452 Group Executives Chief Information Officer Scott Collary 968,600
1,210,750 92% 74% 891,000 319,750 904,000 904,000 Chief People Officer Kate Deec n/a n/a n/a n/a n/a n/a
n/a n/a Chief Executive, Business & Wealth Paul Fowlerc 328,832 411,040 92% 74% 303,000 108,040 306,910
306,910 Chief Transformation Officer Peter Herbertc 606,153 757,691 92% 74% 558,000 199,691 521,288
348,493 Acting Group Executive, Customer & Corporate Services Carolyn Hoyc 204,247 255,309 92% 74%
188,000 67,309 136,164 n/a Chief Executive, Westpac Institutional Bank Nell Hutton 956,250 1,195,313 97%
78% 928,000 267,313 892,500 892,500 Chief Executive, Consumer Carolyn McCann 903,044 1,128,805 97%
78% 876,000 252,805 842,841 842,841 Chief Executive Officer, Westpac New Zealand Catherine McGrath
751,279 939,098 92% 74% 691,176 247,922 701,193 701,193 Chief Financial Officer Michael Rowland 975,000
1,218,750 92% 74% 897,000 321,750 715,000 715,000 Chief Risk Officer Ryan Zanin 1,327,500 1,659,375
102% 82% 1,354,000 305,375 973,500 973,500 Former Executives Managing Director & Chief Executive Officer
Peter Kingc,d 390,411 488,014 85% 68% 332,000 156,014 n/a n/a Group Executive, Human Resources Christine
Parkerc 520,957 651,196 92% 74% 479,000 172,196 571,500 571,500 Acting Group Executive, Human
Resources Megan Rutterc 73,775 92,219 92% 74% 68,000 24,219 60,361 n/a Chief Executive, Consumer Jason
Yettonc 584,229 730,286 92% 74% 537,000 193,286 892,500 892,500 Average Group Executive STVR outcome
94% 75% a. The face value is calculated by multiplying the number of rights by the five day VWAP up to the
commencement of the performance period. The five day VWAP was $32.23 for awards made in January 2025. b.
Includes LTVR awarded as restricted shares for individuals in Acting Group Executive roles (Carolyn Hoy, Peter
Herbert and Megan Rutter) at a face value of $32.60 per share. Carolyn McCann's LTVR in respect of her Acting
Group Executive role was delivered in line with the standard Group Executive LTVR, not as restricted shares. c.
The information relates to the period the individual was a KMP. Refer to Section 2 for further details. d. Peter King
was eligible for 2025 STVR on a pro rata basis. 60% of the outcome is delivered as deferred equity in the form of
share rights, vesting after four, five and six years (from 1 October 2024) to meet CPS 511 deferral requirements.
The remaining 40% is delivered as cash. 1. The final value of equity received will depend on the share price at
the time of vesting and the number of restricted shares or share rights that vest subject to performance conditions
(where applicable), service conditions and remuneration adjustments. The value of equity differs from the
disclosure in Section 7 which provides the annualised accounting value for unvested equity awards prepared in
accordance with Australian Accounting Standards.
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234 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 2025 LTVR restricted rights pre-grant
assessment We awarded the 2025 LTVR restricted rights, outlined in Section 3.5 above, following the pre-grant
assessment which was completed in October 2024. The Board determined that the award be granted in full.
Further details are available in the 2024 Remuneration Report. 2026 LTVR restricted rights pre-grant assessment
The pre-grant assessment for the 2026 LTVR restricted rights was completed in October 2025. The Board
determined that the 2026 LTVR restricted rights will be granted in full. The prudential soundness gate was
satisfied by reviewing the key capital and liquidity ratios (CET1, LCR and NSFR). The ratios are all above
minimum prudential requirements. Group risk culture maturity was assessed as Maintained. The Board had
regard to the Group level risk-culture rating which was stable at ‘Systematic’ as well as improving results and
positive momentum underlying the risk culture assessment. Other evidence points informing the CPS 220 Risk
Management declaration included risk management framework maturity, root cause analyses, prudential
attestations, audit and assurance findings and regulatory reviews. There were no significant risk outcomes or
serious misconduct issues that arose that were not sufficiently addressed elsewhere. The LTVR restricted rights
remain subject to the pre-vest assessment after the four year performance period ending 30 September 2029.
The restricted rights also remain subject to remuneration adjustments during and after this period. Pre-grant
assessment Outcome Step 1: Assessment Prudential soundness gate: Has Westpac remained safe and secure,
taking into account capital position and liquidity? Met Group risk culture: Has Group risk culture maturity been
maintained or improved, considering both executive actions or inactions? Maintained Significant risk outcomes:
Have risk outcomes arisen that have a significant and material impact on the Group, not sufficiently addressed
elsewhere? No adjustment Serious misconduct: Has Westpac suffered from a serious misconduct issue, not
sufficiently addressed elsewhere? No adjustment Step 2: Consider Board discretion No adjustment Overall pre-
grant assessment Grant in full
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 235 4. Remuneration governance 4.1. Group remuneration policy The Group
remuneration policy sets out information in relation to remuneration design, arrangements and outcomes across
Westpac. The policy is supported by an established governance structure, plans and frameworks. The policy
supports our compliance with legal and regulatory requirements. Remuneration strategy Our remuneration
strategy is to attract and retain talented employees. We reward them for achieving high performance and
delivering superior long term results for our customers and shareholders. Remuneration principles • Promote our
purpose, values and behaviours; • Align with our strategy and create sustainable shareholder value; • Offer
market competitive and equitable pay; • Reward financial and non-financial performance, including customer
outcomes and risk excellence; and • Reinforce our risk and conduct expectations. 4.2. Group remuneration
governance Board The Board has overall accountability for the Remuneration Framework and its application. As
set out in the Board Charter (and as supported by the Board Remuneration Committee Charter), without limiting
its role the Board approves (following recommendation from the Board Remuneration Committee): the Group
remuneration policy; the size of the annual Group variable reward pool; performance objectives and remuneration
outcomes for the CEO; remuneration arrangements and outcomes for Accountable Persons, specified roles and
any other person the Board determines; and equity-based plans. The Board has the absolute discretion to
withdraw, defer or adjust aggregate and individual variable reward. Further detail is contained in the Board and
Committee Charters which are available on Westpac’s website: https://www.westpac.com.au/about-
westpac/westpac-group/corporate-governance/constitution-board/ Board Remuneration Committee The Board
Remuneration Committee assists the Board to discharge its responsibility by overseeing the design, operation
and monitoring of the Remuneration Framework. Members of the Board Remuneration Committee are
independent Non-executive Directors. The Board and the Board Remuneration Committee have free and
unfettered access to internal and external personnel in carrying out their respective duties. Further detail is
contained in the Board Remuneration Committee Charter which is available on Westpac’s website:
https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/constitution-board/
Management remuneration oversight Other Board Committees The Board and the Board Remuneration
Committee receive support from internal groups and committees including, but not limited to, the Group
Remuneration Oversight Committee and business-specific remuneration oversight committees. The Board
Remuneration Committee seeks feedback from and considers matters raised by the CEO, Chief Risk Officer, the
Board Audit Committee Chair and the Board Risk Committee Chair (as appropriate) with respect to remuneration
outcomes, adjustments to remuneration in light of relevant matters and the alignment of remuneration with the
risk management framework. Cross membership of the Board Remuneration Committee and the Board Risk
Committee also supports alignment between risk and remuneration. Independent input is received from the Chief
Risk Officer on risk, compliance and conduct matters that may need to be considered in remuneration outcomes.
Remuneration advisor The Board or the Board Remuneration Committee may engage an independent
remuneration advisor to directly provide specialist information on remuneration for key management personnel.
Use of remuneration advisors: In 2025, the Board engaged EY to provide market benchmarking information on
Group Executive remuneration and to conduct an independent effectiveness review of the remuneration
framework as required by CPS 511. EY did not provide any remuneration recommendations as prescribed under
the Corporations Act 2001 (Cth) (Corporations Act) in 2025.
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236 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 4.3. Our approach to remuneration
adjustments Remuneration adjustment is one of the ways we reinforce our risk, compliance and conduct
expectations. This includes downward adjustments for adverse outcomes, as well as upward adjustments to
reward positive risk behaviours. An upward adjustment in variable reward may be considered for exceptional risk
performance not already reflected in the delivery of agreed performance objectives. We have guidelines in place
to support the consistent application of proportionate adjustments for significant risk, compliance or conduct
matters. The graphic below provides an overview of our remuneration adjustment process and how it may
potentially impact individual remuneration outcomes. Remuneration adjustment process BOARD DISCRETION
Individual variable remuneration outcomes Reflects Westpac, divisional and individual performance outcomes
(including risk and customer outcomes). May be adjusted downward (including to zero) for significant risk,
compliance and conduct matters. Board discretion ¹ In year adjustments can include adjustments made through
the STVR scorecard modifier and the LTVR pre-grant and pre-vest assessment. An assessment of severity of
impact and individual accountability informs whether we trigger an adjustment. We apply judgement to consider
whether the size of the adjustment is proportionate and fair. We take into consideration various facts specific to
the matter including (but not limited to) the individual’s contribution and proximity to the direct and root causes of
the matter, time in role, relative level of influence, findings of previous reviews and previous adjustments for
related matters. The quantum of the remuneration adjustment increases with the severity of impact and individual
accountability and influences the adjustment tool(s) used. Severity of impact based on: Customer People
Reputation Regulation Financial Accountability Action or inaction of the individual Criteria We consider
remuneration adjustments when there are significant adverse outcomes for the Group or its customers,
beneficiaries, shareholders, counterparties or people related to: The criteria can be applied at an individual or
collective level. Risk management Regulatory obligations Conduct Error or misstatement Unexpected events
Adjustment tools In year¹ Malus Clawback Indicative order of downward adjustments: 1. Current year STVR 2.
Unvested deferred STVR (malus) 3. Unvested LTVR (malus) 4. Unvested retention awards (malus) 5. Unvested
buy out awards (malus) 6. Vested or paid VR (clawback) 1 2 3 4 5 6 Adjustment and consequence outcomes
Senior leadersa that received downward remuneration adjustments 2 Senior leadersa that received upward
remuneration adjustments 4 Employees identified as not having met all risk expectations during performance
assessments 1,225 Employees that received downward remuneration adjustmentsb 99 Employees leaving due
to consequence outcomes 240 Actions to recognise positive risk management and risk behaviours through our
recognition platform 98,051 Employees that received an additional variable reward for achieving great risk
outcomesb 1,558 a. These employees are the most senior leaders of Westpac, defined as the Chief Executive
Officer, Group Executives and General Managers. b. Data for these measures reflect 2024 outcomes as 2025
outcomes are not yet available.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 237 5. Further detail on executive remuneration arrangements 5.1. Fixed
remuneration The table below sets out the key design features of fixed remuneration. Fixed remuneration
Purpose Provide market competitive remuneration reflecting role scope and accountabilities. Opportunity and
benchmarking Set with reference to market benchmarks in the financial services industry and large corporates in
Australia as appropriate. We also consider the size, responsibilities and complexity of the role, and the skills and
experience of the executive. 5.2. Short term variable reward The table below sets out the key design features of
the 2025 STVR. Short term variable reward Purpose Reward executives for delivering financial and non-financial
annual objectives. Structure and delivery 50% of STVR is awarded in cash and 50% is deferred into equity in the
form of restricted shares (or unhurdled share rights for the Group Executive based outside of Australia). One
restricted share provides the holder with one Westpac ordinary share at no cost subject to trading restrictions
until the time of vesting. One unhurdled share right entitles the holder to one ordinary share at the time of vesting
with no exercise cost. Dividends are paid on restricted shares from the grant date. Target and maximum
opportunity The target opportunity for the CEO and Group Executives is expressed as a percentage of fixed
remuneration and is set at 75% of fixed remuneration (inclusive of superannuation). The target opportunity is set
considering a range of factors including market competitiveness. Target STVR: awarded for the delivery of agreed
targets for financial and non-financial measures. A reduced outcome can be determined for threshold
performance. Maximum STVR: up to 125% of target STVR, awarded in circumstances where outcomes are
achieved over and above target. Performance measures STVR awards are determined based on meeting
minimum behaviour and risk and compliance gate openers, and performance against a scorecard designed to
align with shareholder interests. The STVR Scorecard comprises three components: • Values and behaviours
assessment: Demonstration of behaviours in line with Westpac's values of Helpful, Ethical, Leading change,
Performing and Simple; • Focus areas: Performance is assessed against a balance of financial and non-financial
measures that support the effective execution of Westpac’s strategy; and • Modifier: The modifier allows
adjustment upwards or downwards (including to zero), for risk and reputation and people risk management
considerations and any other matters as determined by the Board. Further information on the 2025 Group STVR
Scorecard is provided in Section 3.3. Deferral period 50% of STVR is deferred into equity for a period of up to two
years, which aligns executive remuneration with shareholder interests and acts as a retention mechanism.
Deferred STVR vests in equal portions after one and two years, subject to service conditions and adjustment.
Delayed vesting Refer to Section 5.4 for further information. Treatment of awards on cessation of employment
Refer to Section 5.4 for further information. Remuneration adjustments Refer to Section 5.4 for further
information.
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238 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 5.3. Long term variable reward LTVR
is comprised of two components, which are equally weighted, comprising LTVR restricted rights and LTVR
performance rights. The tables below set out the key design features of the 2025 LTVR award, as determined by
the Board in October 2024. 5.3.1. Long term variable reward restricted rights for 2025 Long term variable reward
restricted rights Purpose Reward executives for sustainable risk culture and for creating shareholder value over
the long term. Structure and delivery 50% of the LTVR is awarded in restricted share rights (known as restricted
rights). For the CEO, 50% vest after four years and 50% vest after five years. For Group Executives, 100% vest
after four years. One restricted right provides the holder with one Westpac ordinary share at the time of vesting
with no exercise cost. Executives receive dividend equivalent payments as outlined below. Award opportunity The
value of LTVR restricted rights awarded to the CEO and Group Executives is expressed as a percentage of fixed
remuneration. The value of LTVR restricted rights is set considering a range of factors including market
competitiveness. The face value of the 2025 LTVR restricted rights opportunity for the CEO and Group
Executives is 70% of fixed remuneration (inclusive of superannuation). Allocation methodology The number of
restricted rights each executive receives will be determined by dividing the dollar value of the LTVR restricted
rights award by the face value of a restricted right. The face value of a restricted right is the five day VWAP of
Westpac shares up to the commencement of the performance period (which is 1 October 2024 for the 2025 LTVR
grant). Performance condition The restricted rights are subject to performance conditions which are assessed
prior to the grant and prior to vesting. These assessments are known as the pre-grant assessment and the pre-
vest assessment. The assessment is focused on maintaining or improving Group risk culture. The assessment
will be primarily based on the assessment of collective Group risk culture as part of the Board’s annual attestation
to APRA required under Prudential Standard CPS 220 Risk Management, which is a multi factorial, evidence
based process. A prudential soundness gate applies. The Board will also consider if there have been any
significant risk outcomes or any serious misconduct that have not been sufficiently addressed through
performance management or STVR outcomes. Step 1: Assessment of risk factors 1. Prudential soundness gate:
Has Westpac remained safe and secure, taking into account capital position and liquidity? Prudential soundness
is measured through the common equity tier 1 capital ratio, liquidity coverage ratio and the net stable funding
ratio. 2. Group risk culture: Has Group risk culture maturity been maintained or improved, considering both
executive actions or inactions? The risk culture assessment involves a series of inputs, a review process and a
Board assessment of Group risk culture. 3. Significant risk outcomes: Have risk outcomes arisen that have a
significant and material impact on the Group, not sufficiently addressed elsewhere? 4. Serious misconduct: Has
Westpac suffered from a serious misconduct issue, not sufficiently addressed elsewhere? Step 2: Consider
Board discretion Considerations to guide the application of discretion and the overall assessment include: • The
materiality of the adverse impact on Westpac’s financial position, or reputation, or customers, or shareholders, or
employees or regulatory standing. • Whether the outcome was specific to Westpac, the banking industry or the
broader market. • The extent to which performance and reward outcomes are already impacted (e.g. through
remuneration adjustments), at a collective or individual level. • Whether any adjustment should be made on a
collective or individual basis. Given the focus on maintaining or improving Group risk culture over the
performance period, adjustments are unlikely at the pre-grant assessment and any potential adjustment is more
likely at the pre-vest assessment. Assessment of performance outcomes LTVR restricted rights are assessed
against risk culture at grant and following a four year performance period. The assessment of performance
includes an assessment of risk factors and considers Board discretion. Dividend equivalent payments Dividend
equivalent payments are payable to the extent that LTVR vests. For LTVR restricted rights, these are accrued for
the performance period and the further deferral period after the performance period (if applicable), and paid at the
end of the deferral period. Dividend equivalent payments are calculated by multiplying the number of LTVR
restricted rights eligible to vest by the declared dividend price on each respective record date during the
applicable period. The calculation excludes franking credits. Exercise period Vested rights may be exercised up
to a maximum of two years from the vesting date of the award and will be auto-exercised if not exercised within
the period. The exercise price for the rights is zero. No re-testing There is no re-testing. Awards that have not
vested after the performance period are lapsed. Early vesting Unvested awards may vest (unless prevented by
law) before the performance test date in the event of a change of control in Westpac as determined at the
discretion of the Board or where employment ceases due to death or disability. Delayed vesting Refer to Section
5.4 for further information. Treatment of awards on cessation of employment Refer to Section 5.4 for further
information. Remuneration adjustments Refer to Section 5.4 for further information.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 239 5.3.2. Long term variable reward performance rights for 2025 Long term
variable reward performance rights Purpose Reward executives for creating shareholder value over the long
term. Structure and delivery 50% of the LTVR is awarded in performance share rights (known as performance
rights) which vest after six years for the CEO and after five years for Group Executives. One performance right
provides the holder with one Westpac ordinary share at the time of vesting with no exercise cost. Executives
receive dividend equivalent payments as outlined below. Award opportunity The value of LTVR performance
rights awarded to the CEO and Group Executives is expressed as a percentage of fixed remuneration. The value
of LTVR performance rights is set considering a range of factors including market competitiveness. The face
value of the 2025 LTVR performance rights opportunity for the CEO and Group Executives is 70% of fixed
remuneration (inclusive of superannuation). Allocation methodology The number of performance rights each
executive receives will be determined by dividing the dollar value of the LTVR performance rights award by the
face value of a performance right. The face value of a performance right is the five day VWAP of Westpac shares
up to the commencement of the performance period (which is 1 October 2024 for the 2025 LTVR grant).
Performance condition LTVR performance rights are subject to an assessment of relative TSR against two
comparator groups. The two comparator groups are equally weighted and tested independently against a
percentile ranking vesting schedule as outlined below. The Board retains discretion to amend the comparator
groups and determine the overall vesting outcome as appropriate. Relative TSR is a measure of the total return
delivered to shareholders over the performance period assuming dividends are reinvested, relative to that of
peers. The LTVR performance rights conditions aim to achieve long term growth in shareholder value and
support alignment between executive reward and shareholder interests. Westpac’s TSR performance Indicative
vesting percentage At the 75th percentile or higher 100% Between the median and the 75th percentile Pro-rata
vesting between 50% and 100% At the median 50% Below the median 0% The banking comparator group of
companies comprises ANZ Group Holdings Limited, Bank of Queensland Limited, Bendigo and Adelaide Bank
Limited, Commonwealth Bank of Australia and National Australia Bank Limited. The general ASX comparator
group comprises the 20 largest companies on the ASX by market capitalisation, excluding resource companies.
The 20 companies are determined at the start of the performance period on 1 October 2024. The general ASX
comparator group of companies comprises ANZ Group Holdings Limited, Aristocrat Leisure Limited, Brambles
Limited, Coles Group Limited, Commonwealth Bank of Australia, CSL Limited, Goodman Group, James Hardie
Industries PLC, Macquarie Group Limited, National Australia Bank Limited, QBE Insurance Group Limited, REA
Group Ltd, ResMed Inc, Suncorp Group Limited, Telstra Group Limited, Transurban Group, Wesfarmers Limited,
WiseTech Global Limited, Woolworths Group Limited and Xero Limited. In the event of a merger, acquisition or
de-listing of any of the 20 companies, that company will be removed from the comparator group. Assessment of
performance outcomes LTVR performance rights are subject to relative TSR performance following a four year
performance period. The relative TSR result is calculated independently for external objectivity before being
provided to the Board to determine the vesting outcome. The Board may exercise discretion in determining the
final vesting outcome. Dividend equivalent payments Dividend equivalent payments are payable to the extent that
LTVR vests. For LTVR performance rights, these are only accrued for the further deferral period after the
performance period and paid at the end of the deferral period. Dividend equivalent payments are calculated by
multiplying the number of LTVR performance rights eligible to vest by the declared dividend price on each
respective record date during the applicable period. The calculation excludes franking credits. Exercise period
Vested rights may be exercised up to a maximum of two years from the vesting date of the award and will be
auto-exercised if not exercised within the period. The exercise price for the rights is zero. No re-testing There is
no re-testing. Awards that have not vested after the performance period are lapsed. Early vesting Unvested
awards may vest (unless prevented by law) before the performance test date in the event of a change of control
in Westpac as determined at the discretion of the Board or where employment ceases due to death or disability.
Delayed vesting Refer to Section 5.4 for further information. Treatment of awards on cessation of employment
Refer to Section 5.4 for further information. Remuneration adjustments Refer to Section 5.4 for further
information.
For personal use only
240 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 5.4. Common design features for
variable reward Delayed vesting The Board has discretion (subject to law) to delay vesting of variable reward if
the individual is under investigation for adverse risk or conduct events including misconduct, is the subject of or
implicated in legal or regulatory proceedings, if the Board considers it reasonable to delay vesting, or if delayed
vesting is otherwise required by law. Treatment of awards on cessation of employment Unvested variable reward
is forfeited or lapsed where the CEO or a Group Executive resigns or otherwise leaves the Group (except for the
reasons listed below) before vesting occurs unless the Board determines that some or all of the unvested
variable reward should remain on foot. If the CEO or a Group Executive ceases employment because of death or
total and permanent disability, all unvested variable reward immediately vests or becomes exercisable unless
prevented by law. If the CEO or a Group Executive ceases employment because they retire, are retrenched or
cease employment by agreed separation, unvested variable reward stays on foot subject to applicable
performance conditions and subject to any adjustment determined by the Board. Remuneration adjustments The
Board has discretion to adjust variable reward (including current year STVR) downwards, including to zero, in
specified circumstances including serious misconduct, if serious circumstances or new information come to light
which mean that in the Board’s view all or part of the award was not appropriate, or where required by law or
prudential standards. The Board will typically apply the adjustment to unvested deferred STVR where an
adjustment to current year STVR is considered insufficient or unavailable, followed by an adjustment to unvested
LTVR where an adjustment to current and deferred STVR is considered insufficient or unavailable. Clawback may
also apply to vested variable reward, to the extent legally permissible and practicable. Refer to Section 4.3 for
further information on our approach to remuneration adjustments. 5.5. Acting Group Executive arrangements
Carolyn Hoy, Megan Rutter and Peter Herbert (whilst in the Acting Chief Executive, Business & Wealth role) were
appointed on differing remuneration arrangements due to the acting nature of their roles. STVR is delivered as
60% cash and 40% as deferred equity in the form of restricted shares vesting in equal portions after one and two
years. Maximum STVR opportunity is 125% of target STVR. STVR awards are determined based on meeting
minimum behaviour and risk and compliance gate openers, and performance is assessed against a scorecard
designed to align with shareholder interests. LTVR is service based with a pre-grant risk assessment. LTVR is
awarded in restricted shares vesting over four and five years to satisfy CPS 511 deferral requirements. STVR and
LTVR are subject to service conditions and remuneration adjustments. Carolyn McCann commenced the year as
Group Executive, Customer & Corporate Services. During the year, Carolyn was appointed to the role of Acting
Chief Executive, Consumer and was then appointed permanently to the role of Chief Executive, Consumer.
Carolyn remained on Group Executive remuneration arrangements throughout all of these roles.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 241 5.6. Executive minimum shareholding requirements and current compliance
The CEO and Group Executives are required to build and maintain a significant Westpac shareholding to
strengthen alignment with shareholder interests. LTVR restricted rights and LTVR performance rights are not
included in the calculation of shareholdings until performance conditions are met. At 30 September 2025, the
CEO and Group Executives comply with or are on track to meet the requirements. Aspect of the requirements
Description Requirement level CEO: Two times fixed remuneration including superannuationa . Group
Executives: One times fixed remuneration including superannuation. Sale restrictions Executives are restricted
from selling vested equity, other than for the purpose of meeting tax obligations, as follows: • For LTVR awards
granted from 1 October 2021 onwards, until the required shareholding level is met; and • For STVR awards,
where the required shareholding level is not met at the end of the accumulation period. Accumulation period
Within five years of 1 October 2022 (i.e. by 1 October 2027), or appointment to their role, whichever is later. The
Board Remuneration Committee retains discretion to make adjustments in exceptional circumstances.
Calculation of shareholdings Unvested LTVR (including restricted rights and performance rights) is not included in
the calculation of shareholdings until performance conditions are met. Other shareholdings are recognised. This
includes: • Shares held in an employee share plan (including deferred STVR); • Shares held outright in the
individual’s name either solely or jointly with another person; and • Shares held in a family trust or a self-managed
superannuation fund. a. The minimum shareholding requirement for the CEO will increase to three times fixed
remuneration from 1 October 2025. 5.7. Hedging policy Participants in Westpac’s equity plans are prohibited from
entering, either directly or indirectly, into hedging arrangements for unvested awards and vested awards subject
to a holding lock. No financial products may be used to mitigate the risk associated with these awards. Any
attempt to hedge awards will result in forfeiture and the Board may consider other disciplinary action. These
restrictions satisfy the requirements of the Corporations Act which prohibits hedging of unvested awards. 5.8.
Employment agreements The remuneration and other terms of employment for the CEO and Group Executives
are formalised in their employment agreements. Each agreement provides for the payment of fixed remuneration
(including superannuation contributions), variable reward and other benefits such as death and disablement
insurance cover. The table below details the key terms including termination provisions of the employment
agreements for the CEO and Group Executives. Term Conditions Duration of agreement Ongoing until notice
given by either party. Notice (by the executive or the Group) to terminate employment Twelve months for
Executives that commenced before January 2025. Six months for new Executives that commenced from January
2025.a In the event of redundancy, the greater of the relevant notice period or Westpac's general notice and
severance entitlements applies. Termination payments on termination without causeb Deferred STVR (which may
be awarded on a pro rata basis for the part year served) and unvested LTVR will be treated in accordance with
the applicable equity plan rules, and will remain subject to remuneration adjustments if the award is retained.
Termination for cause Occurs immediately for misconduct. Deferred STVR and LTVR is forfeited, noting the
Board has discretion to determine otherwise. Post-employment restraints CEO: Twelve months non-compete and
non-solicitation restraints. Group Executives: Six months non-compete and twelve months non-solicitation
restraints. a. Payment in lieu of notice may in certain circumstances be approved by the Board for some or all of
the notice period. b. The maximum aggregate liability for termination benefits in respect of notice periods for the
CEO and Group Executives at 30 September 2025 was $11.2 million (2024: $12.5 million).
For personal use only
242 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 6. Non-executive Director
remuneration 6.1. Structure and policy Non-executive Director fees are not related to Westpac’s results. Fees are
paid in cash and no discretionary payments are made for performance. Non-executive Directors are required to
build and maintain a minimum shareholding from their own funds to align their interests with those of
shareholders (refer to Section 6.3 for further details). The table below sets out the components of Non-executive
Director remuneration. Non-executive Director remuneration Base fees Relate to service on the Westpac Banking
Corporation Board. The base fee for the Chair covers all responsibilities, including for Board Committees.
Committee fees Additional fees are paid to Non-executive Directors (other than the Board Chair) for chairing or
being a member of Board Committees, other than the Board Nominations & Governance Committee. Employer
superannuation contributions Reflects statutory superannuation contributions which are capped at the
superannuation maximum contributions base as prescribed under the superannuation guarantee legislation. 6.2.
Non-executive Director remuneration in 2025 The table below sets out the annual Board and standing Committee
fees (exclusive of superannuation). Changes in Board and Committee composition during the year are set out in
the Directors' meetings section in the Directors' report. For 2025, $3.4 million (75%) of the fee pool was used.
The fee pool of $4.5 million per annum was approved by shareholders at the 2008 Annual General Meeting and
includes employer superannuation contributions. The members of the Nominations & Governance Committee do
not receive any additional fees for their roles on the Committee. Base and Committee fees Annual fee $
(exclusive of superannuation) Base fees Chair 823,000 Other Non-executive Directors 215,000 Committee Chair
fees Board Audit Committee 69,000 Board Risk Committee 69,000 Board Remuneration Committee 69,000
Committee membership fees Board Audit Committee 34,000 Board Risk Committee 34,000 Board Remuneration
Committee 34,000 Other fees UNITE oversight group 34,000 Additional duties Committee Chair fee (per meeting)
4,000 Additional duties Committee fee (per meeting) 2,000 6.3. Non-executive Director minimum shareholding
requirement Non-executive Directors are required to build and maintain a holding in Westpac ordinary shares
with a value not less than the Board base fee (and in case of the Chair, the Chair's fee), within five years of
appointment to the Board. At 30 September 2025, all Non-executive Directors comply with or are on track to meet
the requirement.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 243 7. Statutory remuneration details 7.1. Details of Non-executive Director
remuneration The table below details Non-executive Director remuneration. Short-term benefits Post-employment
benefits Westpac Banking Corporation Board feesa Non-monetary benefitsb Superannuation Total Name $ $ $ $
Non-executive Directors Steven Gregg, Chair 2025 826,165 11,786 30,440 868,391 2024 680,727 5,893 30,017
716,637 Tim Burroughs 2025 285,337 - 30,137 315,474 2024 269,410 - 28,054 297,464 Nerida Caesar 2025
312,585 - 30,250 342,835 2024 258,208 - 27,674 285,882 David Cohenc 2025 125,458 - 14,753 140,211 2024 --
------------------- Not a KMP in 2024 --------------------- Pip Greenwoodc 2025 35,558 1,540 4,267 41,365 2024 --------
------------- Not a KMP in 2024 --------------------- Debra Hazeltonc 2025 144,611 - 16,730 161,341 2024 ---------------
------ Not a KMP in 2024 --------------------- Andy Maguire 2025 282,009 23,409 30,223 335,641 2024 53,631 -
6,168 59,798 Peter Nash 2025 354,650 - 30,166 384,816 2024 339,478 - 28,316 367,795 Margaret Seale 2025
282,865 - 30,240 313,105 2024 263,977 - 26,459 290,436 Michael Ullmer AO 2025 313,361 - 30,260 343,621
2024 300,846 - 8,214 309,060 Former Non-executive Directors Audette Exel AOc 2025 66,022 - 6,505 72,527
2024 316,232 - 28,211 344,443 Nora Scheinkestelc 2025 36,337 - - 36,337 2024 340,346 - - 340,346 Total fees
2025 3,064,958 36,735 253,971 3,355,664 2024d 3,050,685 7,649 194,029 3,252,364 a. Includes base fees,
Committee fees and any other fees. b. Non-monetary benefits are determined on the basis of the cost to the
Group including associated fringe benefits tax (FBT) where applicable and includes bank funded car parking and
relocation costs. c. The information relates to the period the individual was a KMP. Refer to Section 2 for further
details. d. Total fees for 2024 shown as reported in the 2024 Annual Report. The total fees for 2024 include
individuals that are not KMP in 2025 and therefore their individual remuneration is not included in the above
table.
For personal use only
244 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 7.2. Statutory remuneration details –
Chief Executive Officer and Group Executives The table below details remuneration for the CEO and Group
Executives prepared and audited in accordance with Australian Accounting Standards. Short term benefits Post-
employment benefits Other long term benefits Share-based payments Fixed remunerationa Cash STVR awardb
Non-monetary benefitsc Other paymentsd Superannuation benefitse Long service leave Restricted sharesf
Restricted rightsg Performance rightsg Totalh $ $ $ $ $ $ $ $ $ $ Managing Director & Chief Executive Officer
Anthony Miller, Managing Director & Chief Executive Officer 2025 2,293,520 718,500 5,039 17,386 42,556
107,886 593,423 538,282 636,411 4,953,003 2024 1,279,390 478,000 3,315 166,277 37,898 19,056 684,787
238,441 717,728 3,624,892 Group Executives Scott Collary, Chief Information Officer 2025 1,230,253 445,500
5,894 - 35,894 19,190 463,192 463,401 632,523 3,295,847 2024 1,300,753 508,500 8,333 - 34,739 21,537
563,784 241,512 740,674 3,419,832 Kate Dee, Chief People Officeri 2025 128,485 - 504 175,334 10,470 1,979
176,404 14,220 14,220 521,616 2024 ------------------------------------------------------- Not a KMP in 2024 -----------------
-------------------------------------- Paul Fowler, Chief Executive, Business & Wealthi 2025 440,166 151,500 1,266
100,724 20,797 6,591 768,571 30,943 9,841 1,530,399 2024 ------------------------------------------------------- Not a
KMP in 2024 ------------------------------------------------------- Peter Herbert, Chief Transformation Officeri 2025
718,273 300,400 5,042 - 29,501 20,816 390,850 53,579 30,832 1,549,293 2024 -------------------------------------------
------------ Not a KMP in 2024 ------------------------------------------------------- Carolyn Hoy, Acting Group Executive,
Customer & Corporate Servicesi 2025 306,243 112,800 1,266 - 36,093 48,639 123,751 - - 628,792 2024 -----------
-------------------------------------------- Not a KMP in 2024 ------------------------------------------------------- Nell Hutton, Chief
Executive, Westpac Institutional Bank 2025 1,271,484 464,000 4,606 - 37,030 18,946 1,168,985 457,506
175,213 3,597,770 2024 1,230,101 502,000 5,359 - 35,046 17,352 1,132,285 238,441 105,932 3,266,516
Carolyn McCann, Chief Executive, Consumer 2025 1,334,025 438,000 5,894 - 39,024 54,728 410,402 401,849
433,132 3,117,054 2024 1,038,679 437,500 5,359 - 36,479 15,727 398,684 198,233 482,393 2,613,054
Catherine McGrath, Chief Executive Officer, Westpac New Zealand 2025 877,583 345,588 10,613 - 127,886 - -
674,684 442,664 2,479,018 2024 857,768 311,189 8,386 - 119,894 - - 523,182 388,367 2,208,786 Michael
Rowland, Chief Financial Officer 2025 1,260,305 448,500 8,987 - 35,892 20,840 296,066 867,559 689,837
3,627,986 2024 1,249,398 500,500 3,315 - 34,007 18,870 465,327 186,823 579,245 3,037,485 Ryan Zanin,
Chief Risk Officer 2025 1,795,959 677,000 88,792 5,964 2,027 28,630 857,798 488,077 608,097 4,552,344 2024
1,663,065 674,000 151,817 116,682 2,097 25,268 730,310 249,101 541,063 4,153,403
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 245 Short term benefits Post-employment benefits Other long term benefits Share-
based payments Fixed remunerationa Cash STVR awardb Non-monetary benefitsc Other paymentsd
Superannuation benefitse Long service leave Restricted sharesf Restricted rightsg Performance rightsg Totalh $
$ $ $ $ $ $ $ $ $ Former Executives Peter King, Managing Director & Chief Executive Officeri,j 2025 542,944
132,800 5,388 2,500,000 5,301 7,998 617,464 1,395,939 1,645,019 6,852,853 2024 2,418,943 975,000 20,823 -
48,249 22,024 1,198,595 728,328 1,521,487 6,933,449 Christine Parker, Group Executive, Human Resourcesi,j,k
2025 650,691 239,500 3,531 936,073 22,533 9,767 318,968 1,296,357 1,064,385 4,541,805 2024 1,045,623
417,000 3,315 - 32,976 16,896 401,268 152,684 524,412 2,594,174 Megan Rutter, Acting Group Executive,
Human Resourcesi 2025 130,840 40,800 286 - 8,051 2,379 76,539 - - 258,895 2024 -------------------------------------
------------------ Not a KMP in 2024 ------------------------------------------------------- Jason Yetton, Chief Executive,
Consumeri,j,l 2025 741,396 268,500 5,060 1,082,559 24,710 13,927 371,703 1,918,994 1,559,134 5,985,983
2024 1,200,082 443,000 3,315 - 38,009 19,050 539,012 238,441 770,574 3,251,483 a. Fixed remuneration is the
total cost of cash salary, salary sacrificed benefits and an accrual for annual leave. Superannuation in excess of
the maximum contribution base that is paid as cash is also included. b. The cash STVR award is typically paid in
December following the end of the financial year. c. Non-monetary benefits are determined on the basis of the
cost to the Group (including associated FBT, where applicable) and may include annual health checks, provision
of taxation advice, bank funded car parking, executive life insurance as well as relocation costs and travel
allowances. d. Includes payments on termination or other contracted amounts for current KMP. The cash portion
of buy out arrangements is recognised as an expense from commencement date as a KMP to the end of the
deferral period. For Kate Dee and Paul Fowler, the cash buy out is recognised as an expense over 12 months
from their commencement date to reflect a minimum service period. For Anthony Miller, the cash buy out
arrangement was agreed on 25 March 2021 and the remaining 5% of the cash portion of the buy out was paid in
2025. For Kate Dee, the cash buy out arrangement was agreed on 5 September 2025 and is due to be paid in
March 2026. For Paul Fowler, the cash buy out arrangement was agreed on 30 June 2025 and 100% of the cash
portion of the buy out was paid in September 2025. For Ryan Zanin, the cash buy out arrangement was agreed
on 30 August 2022 and the remaining 12% of this award was paid in 2025. e. Includes Group life and salary
continuance insurance cover provided at no cost to the individual. Superannuation benefits have been calculated
consistent with AASB 119 Employee Benefits. f. Restricted shares are amortised from the start of the
performance period when the award was earned through to the end of the relevant service period. A portion of
the restricted shares held by Anthony Miller, Kate Dee and Paul Fowler represents an allocation made to
compensate them for remuneration foregone from their previous employer on resignation to join Westpac. For
Paul Fowler, the allocation that vested during the year is being recognised as an expense over 12 months from
Paul's commencement date to reflect a minimum service period. g. Share rights are amortised over the
performance and the relevant service period. They are calculated based on the fair value at the grant date (being
the invitation opt out date) of hurdled and unhurdled share rights granted during the financial year up to 30
September 2025. Fair value is calculated using an external valuation based on the invitation opt out date. The
2025 value for Catherine McGrath includes 29% attributed to deferred STVR awards. h. The table includes
remuneration details of individuals that are KMP for 2025, whereas the totals presented in Note 34 to the financial
statements includes former KMP who ceased as KMP in 2024. The percentage of total remuneration which is
performance related (i.e. cash STVR plus relevant share-based payments) was: Anthony Miller 50%, Scott
Collary 61%, Kate Dee 5%, Paul Fowler 15%, Peter Herbert 38%, Carolyn Hoy 24%, Nell Hutton 53%, Carolyn
McCann 54%, Catherine McGrath 59%, Michael Rowland 63%, Ryan Zanin 53%, Peter King 55%, Christine
Parker 64%, Megan Rutter 30% and Jason Yetton 69%. The percentage of total remuneration delivered in the
form of share rights was: Anthony Miller 24%, Scott Collary 33%, Kate Dee 5%, Paul Fowler 3%, Peter Herbert
5%, Carolyn Hoy 0%, Nell Hutton 18%, Carolyn McCann 27%, Catherine McGrath 45%, Michael Rowland 43%,
Ryan Zanin 24%, Peter King 44%, Christine Parker 52%, Megan Rutter 0% and Jason Yetton 58%. i. The
information relates to the period the individual was a KMP. Refer to Section 2 for further details. j. The share-
based payment values reflect the accruals for unvested equity up to the end of each relevant service period.
Whilst the full value is being accrued in 2025 for all unvested equity, the awards may or may not vest subject to
the relevant performance conditions. k. Christine Parker commenced as an Enterprise Executive on 2 June 2025
and provided transition support to the Group until ceasing as an Executive on 1 July 2025. For the period from 2
June 2025 to 1 July 2025, Christine received remuneration of $147,096. This amount has been excluded from the
table above as Christine was not a KMP during this period. l. Jason Yetton commenced as an Enterprise
Executive on 12 May 2025 and provided transition support to the Group until commencing a period of leave on 14
June 2025. Jason ceased as an Executive on 1 July 2025. For the period from 12 May 2025 to 1 July 2025,
Jason received remuneration of $304,792. This amount has been excluded from the table above as Jason was
not a KMP during this period.
For personal use only
246 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 7.3. Movement in equity-settled
instruments during the year The table below shows the movements in the number and value of equity instruments
for the CEO and Group Executives during 2025. Name Type of equity-based instrument Number granteda
Number vestedb Number exercisedc Value granted $ d Value exercised $ e Value forfeited or lapsed $ e
Managing Director & Chief Executive Officer Anthony Miller Restricted shares 14,662 31,791 - 478,861 - -
Restricted rights 48,756 - - 1,592,947 - - Performance rights 48,758 60,246 60,246 679,192 1,943,536 1,934,499
Group Executives Scott Collary Restricted shares 15,598 22,104 - 509,431 - - Restricted rights 28,048 - -
918,852 - - Performance rights 28,048 60,307 60,307 361,398 1,945,504 1,936,458 Kate Deef Restricted shares
19,351 - - 744,626 - - Restricted rights - - - - - - Performance rights - - - - - - Paul Fowlerf Restricted shares 83,979
22,700 - 2,811,617 - - Restricted rights 9,522 - - 318,797 - - Performance rights 9,522 - - 126,690 - - Peter
Herbertf Restricted shares 22,726 - - 742,231 - 298,856 Restricted rights 10,812 - - 342,200 - - Performance
rights 10,813 - - 156,680 - 706,660 Carolyn Hoyf Restricted shares 4,176 - - 150,503 - 90,037 Restricted rights - -
- - - - Performance rights - - - - - - Nell Hutton Restricted shares 15,398 26,474 - 502,899 - - Restricted rights
27,691 - - 907,157 - - Performance rights 27,692 - - 356,811 - - Carolyn McCann Restricted shares 13,420 15,147
- 438,297 - - Restricted rights 26,150 - - 857,661 - - Performance rights 26,150 35,965 35,965 338,059 1,133,257
1,154,804 Catherine McGrath Unhurdled share rights 10,277 15,708 - 313,623 - - Restricted rights 22,035 - -
721,867 - - Performance rights 22,035 - - 283,919 - - Michael Rowland Restricted shares 15,352 18,078 -
501,396 - - Restricted rights 22,184 - - 726,748 - - Performance rights 22,184 49,708 49,708 285,841 1,603,580
1,596,092 Ryan Zanin Restricted shares 20,674 15,773 - 675,213 - - Restricted rights 30,204 - - 989,483 - -
Performance rights 30,205 - - 389,190 - -
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 247 Name Type of equity-based instrument Number granteda Number vestedb
Number exercisedc Value granted $ d Value exercised $ e Value forfeited or lapsed $ e Former Executives Peter
Kingf Restricted shares 29,907 45,147 - 955,828 - - Restricted rights - - - - - - Performance rights - 93,567 93,567
- 3,018,471 3,004,436 Christine Parkerf Restricted shares 12,791 16,077 - 417,754 - - Restricted rights 17,731 - -
580,868 - - Performance rights 17,732 45,673 45,673 228,477 1,473,411 1,466,528 Megan Rutterf Restricted
shares - - - - - - Restricted rights - - - - - - Performance rights - - - - - - Jason Yettonf Restricted shares 13,588
24,477 - 443,784 - - Restricted rights 27,691 - - 907,157 - - Performance rights 27,692 62,865 62,865 356,811
2,028,025 2,018,595 a. Restricted rights and performance rights granted to the CEO are approved by
shareholders at the Annual General Meeting each year. We do not grant options. We award deferred STVR in the
form of restricted shares (or unhurdled share rights for KMP in New Zealand). 2024 deferred STVR was awarded
on 27 December 2024 (based on the invitation opt out date) for the CEO and Group Executives. The deferral
period commenced on 1 October 2024. 50% of the award will vest on 15 November 2025 and 50% will vest on 15
November 2026 (subject to service conditions and remuneration adjustments). b. 50% of the performance rights
granted in 2021 vested in October 2024 when assessed against the relative TSR performance condition. 100% of
the deferred STVR due to vest in 2024 vested at the end of the deferral period. For Anthony Miller, 9,676 of the
31,791 restricted shares that vested were in relation to a buy out award representing the remaining 8% of the
total number of shares allocated for that award. For Paul Fowler, 22,700 of the 22,700 restricted shares that
vested were in relation to a buy out award representing 27% of the total number of shares allocated for that
award and the remaining portions of the award are due to vest through to May 2030. c. Vested share rights
granted prior to September 2023 may be exercised up to a maximum of 15 years from their commencement date.
Vested share rights granted after September 2023 may be exercised up to two years following the vesting date,
otherwise the share rights will be auto-exercised at the end of the term. d. For performance rights and unhurdled
share rights, the value granted represents the number of securities granted multiplied by the fair value per
instrument as set out in the table in the sub-section titled ‘Overview of unvested equity awards’. For restricted
shares and restricted rights, the value granted represents the number of shares or rights granted multiplied by the
closing price of a Westpac ordinary share on the date the awards were granted. These values, which represent
the full value of the equity-based awards made to the CEO and Group Executives in 2025, do not reconcile with
the amount shown in the table in Section 7.2 which shows the amount amortised in the current year. The
minimum total value of the grants for future financial years is zero and an estimate of the maximum possible total
value in future financial years is the fair value, as shown above. e. The value of each share right exercised,
forfeited or lapsed is calculated based on the closing price of a Westpac ordinary share on the date of exercise
(or forfeiture or lapse). The overall values reflect forfeitures or lapses as a result of a failure to meet service or
performance conditions. f. The information relates to the period the individual was a KMP. Refer to Section 2 for
further details.
For personal use only
248 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 7.4. Overview of unvested equity
awards The table below outlines key details of unvested equity awards as at 30 September 2025 awarded to the
CEO and Group Executives for KMP roles. All awards are subject to service conditions, performance conditions
(where applicable), deferral periods and remuneration adjustments. Further details of the awards can be located
in prior Annual Reports. Fair values Fair values are determined in accordance with the requirements of AASB 2
Share-based Payment. For STVR and LTVR restricted rights, the fair value is calculated using the closing price of
the grant date, which for accounting purposes is the invitation opt out date. For LTVR performance rights and
unhurdled share rights, fair values are independently calculated by PFS Consulting at the grant date (which is the
invitation opt out date). For the LTVR performance rights, a Monte Carlo simulation pricing model is used.
Allocation values The value granted to executives for remuneration purposes differs from the fair value used for
accounting purposes. For STVR grants prior to 2024, the allocation is determined by dividing the dollar value of
the STVR award by the five day VWAP up to the grant date. For STVR grants from 2024 onwards, the allocation
is determined by dividing the dollar value of the STVR award by the five day VWAP up to Westpac's variable
reward payment date each year which is typically in December each year. Refer to Section 5.2 for further details
of STVR. For LTVR grants, the allocation is determined by dividing the dollar value of the LTVR awards by the
face value of a share right. The face value of a share right is the five day VWAP up to the commencement of the
performance period. Refer to Section 5.3 for further details of LTVR. Award name Accounting grant date
Performance period start date Performance period end date Deferral period end date Expiry Fair value
Performance conditions 2024 STVRa 27 Dec 2024 1 Oct 2023 30 Sep 2024 15 Nov 2025 (tranche one) and 15
Nov 2026 (tranche two) N/A $32.66 Service (noting STVR Scorecard assessment was completed) 2023 STVR 19
Jan 2024 1 Oct 2022 30 Sep 2023 1 Oct 2025 (tranche two) N/A $23.20b Service (noting STVR Scorecard
assessment was completed) 2025 LTVR performance rights CEO: 27 Dec 2024 Group Executives: 6 Dec 2024 1
Oct 2024 30 Sep 2028 CEO: 15 Nov 2030 Group Executives: 15 Nov 2029 CEO: 15 Nov 2032 Group
Executives: 15 Nov 2031 CEO: $12.98 (Banking), $15.16 (General ASX) Group Executives: $11.17 (Banking),
$14.60 (General ASX) Two equal tranches: Relative TSR - Banking comparators Relative TSR - General ASX
comparators 2025 LTVR performance rights - part year KMP or additional award Paul Fowler: 7 Jul 2025 Peter
Herbert: 27 Mar 2025 Carolyn McCann: 7 Jul 2025 and 5 Sep 2025 1 Oct 2024 30 Sep 2028 Paul Fowler: 13
May 2030 Peter Herbert: 15 Nov 2029 Carolyn McCann: 15 Nov 2029 Paul Fowler: 13 May 2032 Peter Herbert:
15 Nov 2031 Carolyn McCann: 15 Nov 2031 Paul Fowler: $11.47 (Banking), $15.14 (General ASX) Peter
Herbert: $14.02 (Banking), $14.96 (General ASX) Carolyn McCann: $11.47 (Banking), $15.14 (General ASX) and
$20.93 (Banking), $22.35 (General ASX) Two equal tranches: Relative TSR - Banking comparators Relative TSR
- General ASX comparators 2025 LTVR restricted rights CEO: 27 Dec 2024 Group Executives: 6 Dec 2024 1 Oct
2024 30 Sep 2028 CEO: 50% on 15 Nov 2028 (tranche one) and 50% on 15 Nov 2029 (tranche two) Group
Executives: 15 Nov 2028 CEO: 15 Nov 2030 (tranche one) and 15 Nov 2031 (tranche two) Group Executives: 15
Nov 2030 CEO: $32.66 Group Executives: $32.76 Pre-vest assessment of risk culture (noting a pre-grant
assessment was completed) 2025 LTVR restricted rights - part year KMP or additional award Paul Fowler: 7 Jul
2025 Peter Herbert: 27 Mar 2025 Carolyn McCann: 7 Jul 2025 and 5 Sep 2025 1 Oct 2024 30 Sep 2028 Paul
Fowler: 13 May 2029 Peter Herbert: 15 Nov 2028 Carolyn McCann: 15 Nov 2028 Paul Fowler: 13 May 2031
Peter Herbert: 15 Nov 2030 Carolyn McCann: 15 Nov 2030 Paul Fowler: $33.48 Peter Herbert: $31.65 Carolyn
McCann: $33.48 and $38.17 Pre-vest assessment of risk culture (noting a pre-grant assessment was completed)
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 249 Award name Accounting grant date Performance period start date
Performance period end date Deferral period end date Expiry Fair value Performance conditions 2024 LTVR
performance rights 19 Jan 2024 1 Oct 2023 30 Sep 2027 CEO: 15 Nov 2029 Group Executives: 15 Nov 2028
CEO: 15 Nov 2031 Group Executives: 15 Nov 2030 $12.81 Relative TSR 2024 LTVR restricted rights 19 Jan
2024 1 Oct 2023 30 Sep 2027 CEO: 50% on 15 Nov 2027 (tranche one) and 50% on 15 Nov 2028 (tranche two)
Group Executives: 15 Nov 2027 CEO: 15 Nov 2029 (tranche one) and 15 Nov 2030 (tranche two) Group
Executives: 15 Nov 2029 $23.20 Pre-vest assessment of risk culture (noting a pre-grant assessment was
completed) 2023 LTVR performance rights 15 Dec 2022 1 Oct 2022 30 Sep 2026 25 Oct 2026 1 Oct 2037 $11.90
Relative TSR 2022 LTVR performance rightsc CEO: 16 Dec 2021 Group Executives: 15 Dec 2021 1 Oct 2021 30
Sep 2025 1 Nov 2025 1 Oct 2036 CEO: $5.81 Group Executives: $5.82 Relative TSR Acting Group Executive
awards 2025 LTVR restricted shares Peter Herbert: 27 Dec 2024 Carolyn Hoy: 14 Aug 2025 Megan Rutter: 14
Aug 2025 1 Oct 2024 30 Sep 2028 Peter Herbert: 15 Nov 2028 (tranche one) and 15 Nov 2029 (tranche two)
Carolyn Hoy: 13 May 2029 (tranche one) and 13 May 2030 (tranche two) Megan Rutter: 3 Jun 2029 (tranche
one) and 3 Jun 2030 (tranche two) N/A Peter Herbert: $32.66 Carolyn Hoy: $36.04 Megan Rutter: $36.04 Service
with a pre-grant risk assessment Other awards 2025 Buy out restricted shares - Kate Deed 12 Sep 2025 N/A N/A
1 Mar 2027 (tranche one), 1 Mar 2028 (tranche two), 6 Aug 2029 (tranche three and four), 6 Aug 2030 (tranche
five and six) N/A $38.48 Service to 1 Jan 2026 (tranche four and six), 1 Mar 2027 (tranche one, two, three and
five) 2025 Buy out restricted shares - Paul Fowlerd 7 Jul 2025 N/A N/A 1 Sep 2026 (tranche two), 13 May 2029
(tranche three to five), 13 May 2030 (tranche six to eight) N/A $33.48 Service to 1 Sep 2026 (tranche two, three
and six), 1 Sep 2027 (tranche four and seven), 1 Sep 2028 (tranche five and eight) 2024 UNITE share rights -
Peter Herbert 31 Oct 2024 1 Oct 2024 30 Sep 2028 15 Nov 2029 15 Nov 2031 $25.12 UNITE program
deliverables and performance metrics 2023 restricted shares - Ryan Zanin 19 Jan 2024 N/A N/A 24 Jan 2026
(tranche one), 24 Jan 2028 (tranche two) and 24 Jan 2029 (tranche three) N/A $23.20 Service to 22 Jan 2026 a.
The 2024 STVR award for Peter King was granted on 12 December 2024 with a fair value of $31.96. STVR for
Catherine McGrath was granted as share rights with a fair value of $31.28 for tranche one and $29.79 for tranche
two. b. For Catherine McGrath, STVR was granted with a fair value of $21.18. c. We tested the 2022 LTVR
performance rights on 1 October 2025. Our TSR for the four year performance period was 77% resulting in a
62.5th percentile ranking relative to the comparator group. This resulted in 75% of the 2022 LTVR award vesting.
Carolyn McCann was granted an additional 2022 LTVR award on 4 March 2022 to recognise an expanded role at
a fair value of $8.05. Ryan Zanin's pro rata 2022 LTVR award was granted after his commencement on 17 May
2022 at a fair value of $9.32 and is due to vest on 4 February 2026. d. Buy out awards are subject to
remuneration adjustments. Restricted shares granted as part of buy out awards are eligible to receive dividends.
For personal use only
250 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 7.5. Details of Westpac equity
holdings of Non-executive Directors The table below sets out details of relevant interests in Westpac ordinary
shares held by Non-executive Directors (including their related parties) during the year ended 30 September
20251 . Number held at start of the year Changes during the year Number held at end of the year Non-executive
Directors Steven Gregg 75,208 - 75,208 Tim Burroughs 67,302 - 67,302 Nerida Caesar 13,583 - 13,583 David
Cohena n/a - 1,253 Pip Greenwooda n/a - - Debra Hazeltona,b n/a 1,150 1,350 Andy Maguire - 6,615 6,615
Peter Nash 15,360 - 15,360 Margaret Sealec 26,158 - 26,158 Michael Ullmer AOd 12,570 - 12,570 Former Non-
executive Directors Audette Exel AOa 11,952 - n/a Nora Scheinkestela 17,225 - n/a a. The information relates to
the period the individual was a KMP. Refer to Section 2 for further details. b. In addition to holding ordinary
shares, Debra Hazelton and her related parties held interests in 10 Westpac Capital Notes 7 (ASX:WBCPJ), 16
Westpac Capital Notes 9 (ASX:WBCPL) and 2 Westpac Capital Notes 10 (ASX:WBCPM) at year end. c. In
addition to holding ordinary shares, Margaret Seale and her related parties held interests in 100 Westpac Capital
Notes 7 (ASX:WBCPJ) at year end. d. In addition to holding ordinary shares, Michael Ullmer AO and his related
parties held interests in 300 Westpac Capital Notes 9 (ASX:WBCPL) and 1,000 Westpac Subordinated Notes at
year end. 1. Other than as disclosed above, no share interests include non-beneficially held shares.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 251 7.6. Details of Westpac equity holdings of executive Key Management
Personnel The table below details Westpac equity held and movement in that equity by the CEO and Group
Executives (including their related parties) for the year ended 30 September 20251 . Name Type of equity-based
instrument Number held at start of the year Number granted during the year as remuneration Received on
exercise and/or exercised during the year Number forfeited or lapsed during the year Other changes during the
year Number held at end of the year Number vested and exercisable at end of the year Managing Director &
Chief Executive Officer Anthony Miller Ordinary shares 186,263 14,662 60,246 - - 261,171 - Restricted rights
42,318 48,756 - - - 91,074 - Performance rights 349,471 48,758 (60,246) (60,246) - 277,737 - Group Executives
Scott Collary Ordinary shares 140,543 15,598 60,307 - - 216,448 - Restricted rights 42,863 28,048 - - - 70,911 -
Performance rights 358,820 28,048 (60,307) (60,307) - 266,254 - Kate Deea Ordinary shares n/a 19,351 - - -
19,351 - Restricted rights n/a - - - - - - Performance rights n/a - - - - - - Paul Fowlera Ordinary shares n/a 83,979 -
- - 83,979 - Restricted rights n/a 9,522 - - - 9,522 - Performance rights n/a 9,522 - - - 9,522 - Peter Herberta
Ordinary shares n/a 22,726 - (9,398) (11,000) 66,204 - Restricted rights n/a 10,812 - - - 10,812 - Performance
rights n/a 10,813 - (22,222) - 13,412 - Carolyn Hoya Ordinary shares n/a 4,176 - (2,446) - 70,937 - Restricted
rights n/a - - - - - - Performance rights n/a - - - - - - Nell Hutton Ordinary shares 165,060 15,398 - - (26,474)
153,984 - Restricted rights 42,318 27,691 - - - 70,009 - Performance rights 42,319 27,692 - - - 70,011 - Carolyn
McCann Ordinary shares 111,091 13,420 35,965 - - 160,476 - Restricted rights 35,182 26,150 - - - 61,332 -
Performance rights 225,642 26,150 (35,965) (35,964) - 179,863 - Catherine McGrath Ordinary shares - - - - - - -
Unhurdled share rights 31,471 10,277 - - - 41,748 22,931 Restricted rights 31,670 22,035 - - - 53,705 -
Performance rights 165,153 22,035 - - - 187,188 - Michael Rowland Ordinary shares 55,516 15,352 49,708 -
(49,708) 70,868 - Restricted rights 33,157 22,184 - - - 55,341 - Performance rights 283,638 22,184 (49,708)
(49,707) - 206,407 - Ryan Zanin Ordinary shares 53,236 20,674 - - - 73,910 - Restricted rights 44,210 30,204 - - -
74,414 - Performance rights 195,145 30,205 - - - 225,350 - Former Executives Peter Kinga Ordinary shares
262,333 29,907 93,567 - - n/a n/a Restricted rights 82,977 - - - - n/a n/a Performance rights 552,274 - (93,567)
(93,567) - n/a n/a Christine Parkera Ordinary shares 70,407 12,791 45,673 - (45,637) n/a n/a Restricted rights
27,098 17,731 - - - n/a n/a Performance rights 254,053 17,732 (45,673) (45,672) - n/a n/a Megan Ruttera
Ordinary shares n/a - - - - n/a n/a Restricted rights n/a - - - - n/a n/a Performance rights n/a - - - - n/a n/a Jason
Yettona Ordinary shares 78,446 13,588 62,865 - - n/a n/a Restricted rights 42,318 27,691 - - - n/a n/a
Performance rights 354,709 27,692 (62,865) (62,865) - n/a n/a a. The information relates to the period the
individual was a KMP. Refer to Section 2 for further details. 1. The highest number of shares held by an individual
in the table is 0.0076% of total Westpac ordinary shares outstanding as at 30 September 2025.
For personal use only
252 WESTPAC GROUP 2025 ANNUAL REPORT DIRECTORS' REPORT 7.7. Loans to Non-executive Directors
and executive Key Management Personnel Financial instrument transactions are provided in the ordinary course
of business. These transactions are at arm's-length on terms and conditions as they apply to all employees. The
table below details loans to Non-executive Directors, the CEO and Group Executives (including their related
parties) of the Group. Balance at start of the year $ Interest paid and payable for the year $ a Interest not
charged during the year $ Balance at end of the year $ Number in Group at end of the year Non-executive
Directors 3,012,367 219,801 - 5,164,496 3 CEO and Group Executives 29,051,817 783,342 - 10,650,782 8 Total
32,064,184 1,003,143 - 15,815,278 11 a. Interest paid considers the impact of offset accounts. The table below
details KMP (including their related parties) with aggregate loans above $100,000 during 2025. Balance at start
of the year $ Interest paid and payable for the year $ a Interest not charged during the year $ Balance at end of
the year $ Highest indebtedness during the year $ Non-executive Directors Pip Greenwoodb n/a 18,824 -
1,810,489 1,810,489 Peter Nash 2,498,978 174,905 - 2,901,009 3,651,731 Margaret Seale 413,389 26,072 -
452,998 464,906 CEO and Group Executives Anthony Miller 1,389,164 233 - 1,255,659 1,389,164 Scott Collary
2,166,513 37,935 - 1,926,836 2,179,191 Kate Deeb n/a 18,958 - 2,397,798 2,400,949 Paul Fowlerb n/a 1,602 -
3,330,621 3,330,621 Nell Hutton 14,432,940 456,000 - - 14,439,811 Carolyn McCann 3,250,672 117,003 -
1,717,986 3,254,146 Former Executives Peter Kingb 1,158,000 - - n/a 1,158,000 Christine Parkerb 5,396,236
91,899 - n/a 5,396,236 Megan Rutterb n/a 6,160 - n/a 684,947 Jason Yettonb 1,258,292 53,407 - n/a 1,477,283
a. Interest paid considers the impact of offset accounts. b. The information relates to the period the individual was
a KMP. Refer to Section 2 for further details. Other transactions relating to KMP Accrual for dividend equivalent
payments The non-current liability owing as a result of dividend equivalent payments that have been accrued for
the 2024 LTVR restricted rights and the 2025 LTVR restricted rights was $821,065 as at 30 September 2025.
Details of the LTVR restricted rights can be found in Section 5.3.1. Other financial instrument transactions Other
financial instrument transactions relating to personal banking activities occur from time to time in the ordinary
course of business with KMP and their relevant related parties. These transactions principally involve personal
banking and deposit transactions, and financial and investment services. These transactions are on normal
commercial terms and conditions no more favourable than those provided to other employees and customers.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 253 Auditor Non-audit services We engage KPMG on assignments additional to
their statutory audit duties where their expertise or experience with Westpac or a controlled entity is important.
Details of the non-audit service amounts paid or payable for non-audit services provided by KPMG during the
2025 financial year and PricewaterhouseCoopers (PwC) during the 2024 financial year are set out in Note 33
(page 119) to the financial statements. KPMG also provides audit and non-audit services to non-consolidated
entities, non-consolidated trusts of which a Westpac Group entity is trustee, manager or responsible entity and
non-consolidated superannuation funds or pension funds. The fees in respect of these services were
approximately $0.2 million in total to KPMG and $6.4 million to PwC (2024: $6.6 million to PwC). KPMG may also
provide audit and non-audit services to other entities in which Westpac holds a minority interest and which are
not consolidated. Westpac is not aware of the amount of any fees paid to KPMG by those entities. Westpac has a
policy on engaging KPMG for audit and non-audit services, details of which are set out in its 2025 Corporate
Governance Statement in the section ‘Engagement of the external auditor’. The Board has considered the
position and, in accordance with the advice received from the Board Audit Committee, is satisfied that the
provision of the non-audit services during 2025 by KPMG is compatible with the general standard of
independence for auditors imposed by the Corporations Act. The Directors are satisfied, in accordance with
advice received from the Board Audit Committee, that the provision of non-audit services by KPMG, as set out
above, did not compromise the auditor independence requirements of the Corporations Act for the following
reasons: • all non-audit services provided by KPMG for the year have been reviewed by the Board Audit
Committee, which is of the view that they do not impact the impartiality and objectivity of KPMG; and • based on
quarterly independence declarations made by KPMG to the Board Audit Committee during the year, none of the
services undermine the general principles relating to auditor independence including reviewing or auditing
KPMG’s own work, acting in a management or a decision-making capacity for the company, acting as advocate
for the company or jointly sharing economic risk and rewards. The Directors’ Report is signed in accordance with
a resolution of the Board of Directors. Steven Gregg Chairman 2 November 2025 Anthony Miller Managing
Director & Chief Executive Officer 2 November 2025
For personal use only
254 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS Our business is subject to risks that can
adversely impact our financial performance, financial condition and future performance. The 2025 Annual Report
Annual Report sets out our approach to managing risks, major risk categories that could impact our business, as
well as key focus areas. The 2025 Risk Factors provides investors and potential investors with further information
in relation to our current and emerging risks, as well as potential consequences if those risks materialise. The
content of the 2025 Risk Factors is current as of the publication date, but its relevance may be impacted by
subsequent developments. Risks and risk management strategies are inherently dynamic, evolving alongside
changes in the external environment, market conditions and organisational priorities. The risks and uncertainties
described below are not exhaustive and can emerge together or in quick succession, uncorrelated with the below
order. Additional risks and uncertainties that we are currently unaware of or deem immaterial, may also become
important factors that affect us. If any of the following risks materialise, our business, prospects, reputation,
financial performance or financial condition could be materially adversely affected, which may subsequently
cause the price of our securities or the level of dividends to decline and, as a security holder, you could lose all,
or part, of your investment. You should carefully consider the risks described (individually and in combination)
and the other information in the 2025 Risk Factors and in the 2025 Annual Report and subsequent disclosures
before investing in, or continuing to own, our securities. Risks relating to our business1 We have experienced,
and could in the future experience, information security risks, including cyberattacks - Cyber risk - Cyber attacks -
Operational risk - Information security risks - Data breaches - Third party risk Our operations depend on the
secure processing, storage and transmission of information on our systems and those of external suppliers.
Despite protective measures, including to protect the confidentiality, availability and integrity of our information,
our information assets may face security breaches, unauthorised access, malware, social engineering, denial of
service attacks, ransomware, destructive attacks, employee misconduct, human error or other external and
internal threats. These could adversely impact our and others’ confidential information and system availability.
Information security risks are heightened by factors such as new technologies, increased digitisation, larger
volumes of sensitive data, sophisticated cyber crime, supply chain disruptions, remote and hybrid working,
targeting of critical infrastructure providers, geopolitical tensions, terrorism, state sponsored attacks, and AI-
enhanced cyberattacks (which can increase the speed, breadth, complexity and effectiveness of cyberattacks).
These factors could compromise our information assets and disrupt operations for us, our customers, suppliers
and counterparties. Adverse events such as data breaches, cyberattacks, espionage and errors (including
human-related), are increasing in frequency and impact, potentially causing financial instability, reputational
damage, service disruption, contagion risk, in addition to economic and non-economic losses to us, our
customers, shareholders, suppliers, counterparties and others. Our protective systems and processes have not
always been, and may not always be, effective and human error can occur. Westpac, our customers and other
stakeholders could suffer losses from cyberattacks, information security breaches or ineffective cyber resilience.
Consequences could be severe if customer data is being held in breach of legal or regulatory obligations and that
data is compromised as part of an information security incident. We may not always predict, prevent or effectively
respond to such incidents, or effectively respond to and/or rectify the resulting damage. Our suppliers,
counterparties, and other parties involved in or who facilitate our activities, financial platforms and infrastructure
as well as our customers’ suppliers and counterparties are also at risk, which could impact us. As cyberattacks
increase globally, so does the likelihood of regulatory enforcement and legal actions, including class actions
related to information security failures, misleading disclosures, or deficient responses to incidents. Consequences
of attacks could include damage to technology infrastructure (including data centres), government intervention,
service disruptions, loss of customers and market share, data loss, cyber extortion, customer remediation and/or
compensation, breaches of the law or other obligations, vulnerability to fraud or scams, litigation, fines, and
increased regulatory scrutiny or other enforcement action. 1. A reference to "customer" in this document includes
a "member", as appropriate.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 255 Such outcomes could negatively affect our business, prospects, reputation,
financial performance or financial condition. As cyber threats evolve, we may need to allocate significant
resources and incur additional costs to enhance our systems, address vulnerabilities or incidents and respond to
regulatory changes. We could suffer losses due to geopolitical events - Geopolitical risks - Conflicts - Operational
risk - Credit risk We, our customers and our suppliers operate businesses, engage in trade with and hold assets
in different geographic locations. Significant risks subsist including from geopolitical instability, conflicts, trade
tensions, tariffs, sanctions, social disruption, civil unrest, war, terrorist activity, acts of international hostility, and
complicity with or inaction regarding certain types of crimes. Such events or the uncertainty related to the
potential for such events are and could continue to directly and indirectly impact our and our customers’
operations, affect domestic and international economic stability and/or impact consumer and investor confidence,
which in turn could disrupt industries, businesses, service providers and supply chains and ultimately adversely
impact economic activity. Potential outcomes include material labour shortages, higher energy costs and
commodity prices, volatility in markets, damage to property and disruptions where essential services, logistics
and infrastructure are materially impacted. Such impacts could affect asset values and impact customers’
repayment ability, and our ability to recover amounts owing. All of these impacts could adversely affect our
business, prospects, financial performance or financial condition. The current global landscape, marked by
significant and prolonged conflicts, increasing protectionist policies (and uncertainties surrounding such policies)
and heightened tensions, risks further intensifying these impacts . We could be adversely affected by legal or
regulatory change - Compliance and conduct risk - Regulators' expectations - Legal and regulatory change -
Fines, penalties, other costs and capital overlays We operate in a highly regulated industry with an environment
of sustained legal and regulatory change and ongoing scrutiny of financial services providers. Our business,
prospects, reputation, financial performance and financial condition have been, and could in the future be,
adversely affected by domestic and international changes to laws, regulations, policies, supervisory activities,
regulator expectations, and industry codes such as the Banking Code of Practice. Such changes may affect how
we operate and have altered, and may in the future alter, the way we provide our products and services,
sometimes requiring us to change, suspend or discontinue our offerings. Industry-wide reviews and inquiries
could further reshape laws, regulations, policy or regulatory expectations. Past and potential effects of such
reviews include limiting our flexibility, requiring us to incur substantial costs (e.g. system changes, incurring
Compensation Scheme of Last Resort levies, liabilities related to scams, fraud or operational costs relating to
scam management or other industry wide issues), absorbing specialist resources, impacting profitability and
requiring us to retain additional capital, which impacts our ability to pursue strategic initiatives or implement other
changes, resulting in us being unable to increase or maintain market share and/or creating pressure on margins
and fees. A failure to manage legal or regulatory changes effectively and in the timeframes required has resulted,
and could in the future result, in the Group not meeting its compliance obligations. It could also result in
enforcement actions, penalties, fines, civil litigation, capital impacts, and ultimately loss of or variations to
business licences. Frequent and large volumes of regulatory change also contribute to execution risk, as
technology, systems and process updates may not always be successful in keeping pace and there is heightened
risk of flaws, human error or unintended consequences. Managing these changes may require significant
management attention, costs and resources, including the availability of skilled personnel, which may be limited.
There is additional information on certain aspects of regulatory changes affecting the Group in the Significant
Developments section and in the sections titled ‘Critical accounting assumptions and estimates’ and ‘Future
developments’ in Note 1 to the financial statements in the 2025 Annual Report.
For personal use only
256 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS We have been and could be adversely
affected by failing to comply with laws, regulations or regulatory policy - Compliance and conduct risk -
Regulators' expectations - Legal and regulatory - Industry codes - Fines, penalties and capital overlays We are
responsible for complying with all applicable legal and regulatory requirements and industry codes of practice in
the jurisdictions where we operate or obtain funding. Our compliance and conduct risks are exacerbated by the
complexity and volume of regulation, as well as ongoing regulatory change. These risks increase when there is
ambiguity or multiple ways of interpreting our obligations and rights, conflicting laws between jurisdictions or
regimes, or where there is limited industry consultation or a lack of regulatory guidance, particularly with respect
to new or untested regulations. Our compliance and conduct management system, which is designed to mitigate
these risks, has not always been, and may not always be, effective. Breakdowns have occurred, and may in the
future occur due to factors such as poor judgement, flaws in the design or implementation of controls or
processes, or the implementation of new measures. Such issues can lead to non-compliance (including failures
to meet expectations or obligations to appropriately report or provide information to regulators or customers),
potentially resulting in adverse outcomes for Westpac, our customers or other stakeholders. Ongoing reviews and
change programs continue to identify compliance issues. Compliance and conduct risk has occurred, and could
continue to occur, through the provision of products and services (including through our platforms) that may not
meet legal or regulatory requirements, third party needs or expectations (including those of our customers,
regulators or the market), especially for vulnerable customers, customers in hardship and indigenous customers.
This risk has occurred, and could continue to occur, from deliberate, reckless, negligent, accidental or
unintentional conduct of our employees, officers, contractors, agents, authorised representatives, credit
representatives, trustees (including of our platforms) and/or external service providers, resulting in circumvention
of, or inadequate implementation of, controls, processes (including monitoring), policies or procedures. This could
occur through a failure to meet professional obligations (including fiduciary, suitability and responsible lending
requirements), human error or weaknesses in risk culture, corporate governance or organisational culture or poor
product design and implementation (including failing to adequately code or connect our systems with products,
failing in whole or in part to consider customer needs or selling products and services outside of target markets).
Inadequate supervision and oversight of our distribution channels can heighten these risks. Non-compliance by
our people may negatively impact other employees, leading to outcomes including litigation and reputational
damage. Additionally, third party conduct (e.g. where customers misrepresent their position on product
applications and we have failed to identify it) may limit our recourse and regulatory outcomes may not be
mitigated by third party culpability. These factors have resulted, and could continue to result, in poor customer
outcomes (including for vulnerable customers and customers in hardship) such as inappropriate charging, failure
to meet contractual, or compliance obligations (or to promptly detect, report and/or remedy non-compliance), and
other outcomes including impacts which may compromise the integrity of the markets in which we operate or data
we report, reputational damage, increased regulatory surveillance or investigation and employment disputes. We
are currently subject to a number of investigations, reviews and industry inquiries by, and have and continue to
respond to a number of requests from, domestic and international regulators including APRA, ASIC, the ATO, the
ACCC, AUSTRAC, BCCC, ACMA, FINRA, AFCA, the OAIC, RBNZ, New Zealand Financial Markets Authority,
New Zealand Commerce Commission, the Fair Work Ombudsman, the SEC, BaFin and BPNG’s Financial
Analysis and Supervision Unit, involving significant resources and costs, potentially diverting specialist resources
from other work. Regulatory reviews and investigations have, and may in the future, result in a regulator taking
administrative or enforcement action against us and/or our representatives. Regulators have broad powers and
may issue directions (e.g. for product design and distribution and remedial action), pursue civil or criminal
proceedings, seek substantial fines and penalties, and other compliance or enforcement outcomes. These risks
are heightened (and penalties have been and may be higher) where contraventions are not promptly detected or
addressed, where we fail to meet our obligations (or the expectations of regulators), where there are patterns of
behaviour indicating systemic conduct or where there has been an awareness of contraventions, especially in
areas of heightened regulatory focus, such as vulnerable customers, customers in hardship and indigenous
customers. Additionally, regulatory investigations may lead to adverse findings against directors and
management, including potential disqualification. The resources allocated to these reviews and investigations can
impede other activities, including change and remediation programs. APRA can require, and has required, us to
hold additional capital either through a capital overlay or higher risk weighted assets (including in response to a
failure to comply with prudential standards and/or expectations in relation to, for example, stress testing and
liquidity management). Capital overlays could have an adverse impact on our financial performance.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 257 The evolving political and regulatory landscape has seen (and may continue to
see) expansion of regulators’ powers, materially increased civil penalties and fines and increased criminal
prosecutions against institutions and/or their employees and representatives (including where there is no fault
element). This could also result in reputational damage and impact the willingness of customers, investors and
other stakeholders to deal with us. Given our size and scale of activities, a failure by us may result in multiple
contraventions, which could lead to significant penalties, remedial action and other consequences (e.g. regulatory
damage). Regulatory investigations or actions commenced against the Group have exposed, and may in the
future expose, the Group to an increased risk of litigation brought by third parties (including through class action
proceedings), which may require us to pay (sometimes substantial) compensation to third parties and/or to
undertake further remediation activities. Market developments suggest there is an expanding scope for potential
claims, including in relation to cyber incidents, financial crime and ESG issues. We have incurred significant
remediation costs on a number of occasions (including compensation payments and costs of correcting issues)
and new issues may arise requiring remediation. We have faced, and may continue to face, challenges in
effectively and reliably scoping, quantifying and implementing remediation activities (whether or not such
activities are prompted by a regulator), including determining how to compensate impacted parties properly, fairly
and in a timely way. Investigation of the underlying issue may be impeded due to the passage of time, technical
system constraints, or inadequacy of records. Delays in remediation may occur due to factors such as the
number of affected parties and their responsiveness, ongoing investigations or litigation, and regulatory
requirements. Remediation programs may not prevent regulatory action or investigations, litigation or other
proceedings from being pursued, or sanctions being imposed. Regulatory investigations, inquiries, litigation,
fines, penalties, infringement notices, disclosures, revocation, suspension or variation of conditions of regulatory
licences or other enforcement or administrative action or agreements (such as enforceable undertakings) have
and could, either individually or in aggregate with other regulatory action, adversely affect our business,
prospects, reputation, financial performance or financial condition and increase class action risk. There is
additional information on certain regulatory and other matters that may affect the Group in the Significant
Developments section and in Note 25 to the financial statements in the 2025 Annual Report. We have suffered,
and in the future could suffer, losses and be adversely affected by the failure to implement effective risk
management - Risk management - Controls and processes - Risk culture - Risk governance - Fines, penalties
Our risk management framework has not always been, and may not in the future be, fully effective. Resources
allocated to identifying, measuring, evaluating, monitoring, reporting, controlling or mitigating material risks may
sometimes be inadequate. This may arise due to inadequacies in the design of the framework or key risk
management policies, controls and processes, the design or operation of our remuneration structures and
consequence management processes, technology failures, our corporate structure, incomplete implementation or
embedment, or failure by our people (including contractors, agents, authorised representatives and credit
representatives) to comply with or properly implement our policies and processes. The potential for these types of
failings is heightened if we lack sufficiently skilled, trained or qualified personnel or capacity, including people,
processes and technology, to appropriately manage risks. Although we periodically review our risk management
framework to determine if it remains appropriate, all risk management frameworks have inherent limitations (and
may also be ineffective because of weaknesses in risk culture or governance), and some risks may exist or
emerge that we have not anticipated or identified. For example, where there is a lack of awareness of our
policies, controls and processes or where they are not adequately complied with, monitored, audited or enforced.
This may result in poor decision-making or risk and control weaknesses not being identified, escalated or acted
upon. Risks are measured and monitored against our risk appetite, and when outside of appetite, we aim to take
steps to bring such risks back into appetite, including framework and policy design improvements. However,
bringing risks back within appetite may be delayed or ineffective, due to factors including complexity, information
technology system enhancement delays, staffing constraints (including where staff are occupied by other
regulatory change or remediation projects), operational failures or external factors beyond our control, resulting in
certain risks remaining outside of appetite for periods of time. If any of our governance or risk management
processes and procedures prove ineffective or inadequate or are not appropriately implemented or we fail to
bring risks into appetite, we may face sustained or increased regulatory scrutiny and action. While a stronger risk
culture fosters early self-identification and remediation, it may also highlight concerns that trigger further
regulatory action. This may result in financial losses, additional capital requirements, compliance breaches, fines,
reputational damage, and/or significant remediation, which could adversely affect our business, prospects,
financial performance or financial condition.
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258 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS We could suffer losses due to technology
failures - Operational risk - Information and technology - Change management - Technology failure - UNITE
program - Outages Maintaining the reliability, availability, integrity, confidentiality, security and resilience of our
information and technology is crucial to our business. Despite existing processes to preserve, monitor and
facilitate the availability of and recovery of, our systems, there is a risk that our information and technology
systems may be inadequate, could be compromised, fail to operate properly or result in outages, including from
events wholly or partially beyond our control. A technology deficiency or failure could lead to failures to meet
contractual, legal or compliance obligations (such as a requirement to issue communications, retain records
and/or data for a certain period, or to destroy records and/or data after a certain period, or other risk
management, privacy, business continuity management or outsourcing obligations). Our stakeholders, including
employees and customers may be adversely affected, including by being unable to access or be covered by our
or a third party’s products or services (or being inappropriately charged for them), as a result of systems failures,
privacy breaches, or the loss of personal data. This could result in business disruption, reputational damage,
financial loss, remediation costs, regulatory investigations and/or action, or others commencing litigation.
Technology issues in the financial sector can also affect multiple institutions, meaning we could impact, or be
impacted by, other institutions. The use of legacy systems, as well as work underway to uplift our technological
capabilities, may heighten transfer risks, the risk of a technology failure, change management issues and the risk
of non-compliance with our regulatory obligations or poor customer outcomes. Projects aimed at
simplifying/streamlining our systems (including our UNITE program) will require significant resources (including
specialist expertise) and incur costs. These risks may be heightened while those projects are being undertaken,
or post-implementation where there are unanticipated outcomes or impacts. These projects may also not be
completed on time, may not deliver the expected benefits or may require further resources or funding than
anticipated. The success of such projects relies in part on having robust governance arrangements and
appropriate oversight at Board and senior executive level. Shortcomings in these areas could elevate the risk of
regulatory non-compliance, poor customer outcomes, delays, increased costs or demand on resources. Failure to
regularly renew and enhance our technology to deliver new products and services, comply with regulatory
obligations and ongoing regulatory changes, improve automation of systems and controls, meet our customers’
and regulators’ expectations, or to effectively implement new technology projects, could result in cost and time
overruns, technology failures (including due to human error in implementation), reduced productivity, outages,
operational failures or instability, compliance failures, reputational damage and/or loss of market share. Climate
change and other sustainability factors such as human rights and natural capital may have adverse effects on our
business - Climate and nature risks - Physical and transition risks - Social and human rights risks - Credit risk -
Operational risk - Reputational and sustainability risk - Compliance and conduct risks Climate and other
sustainability-related risks have had and are likely to have adverse effects on us, our customers, external
suppliers, and the communities in which we operate. Managing these risks is challenging given significant
uncertainties in modelling and impact assessment. Climate related risks may manifest as physical risks, transition
risks or liability risks. Physical risks include direct risks to us, our customers, suppliers and other stakeholders.
These risks could arise from increases and variability in temperatures, precipitation changes, rising sea levels,
loss of natural capital or biodiversity loss, and more severe and frequent climatic events, including fires, storms,
floods and droughts. Such events could also increase human rights risk and/or increase customer vulnerability.
Impacts may arise through damage, disruption or changes to business activities, operations, asset values and
insurability of assets (or insurance availability/affordability), resulting in higher costs and/or reduced revenues to
ourselves or customers. In turn, impacts on customers could lead to higher impairment charges in our lending
portfolio. Transition risks may arise through the transition to a lower carbon economy, which in turn could impact
Westpac through changes such as in consumer behaviour and market sentiment. These risks may emerge
gradually and orderly, or abruptly and disorderly, or a combination of both. Impacts could result from climate
change mitigation
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 259 efforts, the obsolescence of certain businesses due to the energy transition,
changes in investor appetite, shifting customer preferences, technology developments and regulatory changes.
Such risks could also emerge through lending to customers facing reduced revenues, asset devaluation and
rising costs, thereby increasing our credit risk. Additionally, Westpac may be impacted by transition risks, and
from adverse effects to the broader economy including as they relate to interest rates, inflation and growth (or
lack thereof). Our ambition to become a net-zero, climate resilient bank, has led and will continue to lead to
changes in policies and processes which may pose execution risk. Our ability to meet our ambition and targets
depends partly on the broader economy’s orderly transition to net-zero, which may be impacted by external
factors including (but not limited to) government policies, investment levels, electricity grid capacity, and
constraints in the development and supply of technology, infrastructure and skilled labour. Our transition efforts,
including to meet our targets and commitments, may also be impacted by the challenges faced by customers in
executing their transition plans. Natural capital loss, referring to the depletion of renewable and non-renewable
natural resources that combine to yield a flow of benefits to people, poses a risk to us. This risk emerges
primarily through our exposure to customers that are materially dependent on or may impact natural resources.
This loss can contribute to, and be accelerated by, climate change. Increasing recognition and response to this
risk also create heightened regulatory and stakeholder expectations on Westpac. We may be exposed to social
and human rights risks through our products and services, operations and supply chain. Failure to identify and
manage these risks may cause, contribute to, or be directly linked to adverse social and human rights impacts.
This includes the risk that we provide services to, or rely on services provided by, parties involved in human rights
abuses or criminal activity. There is also the potential exploitation of our platforms and products for illicit
purposes. Our ability to identify, assess, and mitigate these risks may be constrained by a range of factors
including the increasing sophistication of perpetrators. Data used to assess and manage climate, and other
sustainability-related risks continues to mature. Reliance on third party data (which may not be sufficiently
available or reliable), may affect our decision making, target setting and reporting, and affect our ability to meet
our targets and commitments. Associated risks may increase where disclosure of additional data is required by
mandatory reporting. Actual or perceived failure to adapt our strategy, governance, procedures, systems and/or
controls to manage or disclose climate and other sustainability-related risks and opportunities (including, for
example, perceived misstatement of, or failure to adequately implement or meet, sustainability claims,
commitments and/or targets) may give rise to business, reputational, legal and regulatory risks. This includes
financial and credit risks that may impact our profitability and outlook, and the risk of regulatory action or litigation
(including class actions) against us and/or our customers. We may also be subject, from time to time, to legal and
business challenges due to actions instituted by activist or other groups. For example, our financing of
businesses that are perceived to be more correlated with climate-related risks and/or that are considered not to
be managing these issues responsibly have received feedback from some stakeholders and attracted scrutiny
from activists. Scrutiny from regulators, shareholders, activists and other stakeholders on climate-related risk
management practices, lending policies, targets and commitments, and other sustainability products, claims and
marketing practices will likely remain high. Applicable legal and regulatory regimes, policies, and reporting and
other standards are also evolving. For example, in Australia and New Zealand, mandatory climate reporting has
been introduced, and there is an increased compliance and enforcement focus by ASIC and the ACCC on a
range of issues related to sustainability and sustainable finance, along with the monitoring/investigation of related
claims. All of this increases compliance, legal and regulatory risks, and costs. For further detail on the
identification, assessment and management of these risks, please refer to the 2025 Sustainability Report, and the
Creating Value for the Community, Creating Value for the Environment and Risk Management sections of the
2025 Annual Report. The failure to comply with financial crime obligations has had, and could have further,
adverse effects on our business and reputation - Financial crime risk - Bribery and corruption - Tax evasion -
Money laundering and terrorism financing - Economic and trade sanctions The Group is subject to a range of
financial crime laws across its jurisdictions, including anti-money laundering and counter-terrorism financing
(AML/CTF), anti-bribery and corruption, economic and trade sanctions and tax transparency (collectively,
Financial Crime Laws). Financial Crime Laws are complex and impose a diverse range of obligations elevating
regulatory, operational and compliance risks. In certain jurisdictions (e.g. the Pacific region), financial crime risks
are elevated beyond the Group’s risk appetite requiring an appropriate action plan to reduce risk, and to return
within appetite.
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260 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS The Group must comply with a range of
reporting obligations under the Financial Crime Laws, including international funds transfer instructions, threshold
transaction reports, suspicious matter reports, Foreign Account Tax Compliance Act (FATCA) and Common
Reporting Standard (CRS) reports. The Group must also ensure that we know who our customers are and that
we have appropriate ongoing customer due diligence in place. The failure to comply with Financial Crime Laws
has had, and in the future could potentially have, adverse impacts for the Group. The Group operates in a
constantly evolving landscape, particularly with ongoing legislative reform impacting Financial Crime Laws,
emergence of new payment technologies, increased regulatory focus on digital assets, and increasing use of
economic and trade sanctions to manage issues of international concern. These developments may require
updates to the Group’s systems, policies, processes and controls to manage emerging financial crime risks for
the Group, including scams, fraud and technology-enabled crime. The Australian AML/CTF reforms, due to their
scale and complexity, will require a multi-year implementation program involving complex technology, policy and
control framework updates. The Group is actively engaging with AUSTRAC and is progressing the development
of a phased implementation plan. However, implementation risk remains elevated due to the breadth of change
and complexity involved. The industry (including Westpac) has challenges meeting the legislation’s effective date
of 31 March 2026. Notwithstanding AUSTRAC’s acknowledgement of this and its published regulatory
expectations noting that AUSTRAC does not expect immediate compliance, there is a risk that our
implementation program or timeframes will not be adequate. Compliance with financial crime obligations remains
a regulatory priority. Regulators globally continue to investigate and take enforcement actions for identified non-
compliance, often seeking significant penalties. Given the scale and complexity of the Group’s operations,
undetected failures or ineffective implementation, monitoring or remediation of a system, policy, process or
control (including a regulatory reporting obligation) has resulted, and could in the future result, in a significant
number of breaches of AML/CTF or other Financial Crime Laws, which could lead to significant financial penalties
and other adverse impacts for the Group, such as reputational damage and litigation risk. While the Group has
systems, policies, processes and controls in place designed to manage its financial crime obligations (including
reporting obligations), these have not always been, and may not in the future always be, effective, due to reasons
such as control deficiencies, technology failures or changes in financial crime risks or typologies. Our analysis,
reviews and regulatory feedback, have highlighted that our systems, policies, processes and controls are not
always operating satisfactorily in a number of respects and require improvement. The Group continues to have
an increased focus on financial crime risk management and, as such, further issues requiring attention have been
identified and may continue to emerge. Although the Group provides updates to various regulators on its
remediation and other program activities, there is no assurance that those or other regulators will agree that its
remediation and program update activities will be adequate or effectively enhance the Group’s compliance
programs. Failure to comply with financial crime obligations has resulted, and could in the future result, in
significant regulatory enforcement actions, reputational risks and other consequences as detailed in other
sections of the 2025 Risk Factors. There is additional information on financial crime matters in the Significant
Developments section in the 2025 Annual Report. Reputational damage has harmed, and could in the future
harm, our business and prospects - Reputational and sustainability risk - Negative customer outcomes We face
reputational risk where our plans, processes, performance and behaviours differ from the expectations, beliefs
and perceptions of our stakeholders. Our actions, inactions or associations (or those of our customers,
employees, suppliers, contractors, agents, authorised representatives, credit representatives, joint-venture
partners, strategic partners or other counterparties) could result in reputational damage when they cause, or are
perceived to cause, a negative outcome for customers, shareholders, the community or other stakeholders. This
could arise from, for example, failure or perceived failure to adequately monitor, prevent or respond to community,
environmental, social and ethical issues or expectations or failure to comply with regulatory requirements or
expectations. We are also exposed to contagion risk from incidents in (or affecting) other financial institutions
and/or the financial sector more broadly (e.g. issues affecting the cash-in-transit industry and the potential for
disruption to the availability of cash, as well as flow on consequences including runs on cash) as well as from
others whom we may have relationships with. Failure, or perceived failure, to address issues that could or do give
rise to reputational risk, has created, and could in the future create, additional legal risk, including regulatory
investigations, regulatory enforcement actions, fines and penalties or litigation or other actions brought by third
parties (including class actions), and the requirement to remediate and compensate customers, including
prospective customers, investors and the market. It could also result in losing customers or restricting our ability
to efficiently access capital markets. This could adversely affect our business, prospects, financial performance or
financial condition.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 261 We have and could suffer losses due to litigation - Compliance and conduct
risk - Enforcement action - Litigation - Class actions - Substantial fines and penalties Litigation has been, and
could in the future be, commenced against us by a range of plaintiffs, such as customers, shareholders,
employees, suppliers, counterparties, activists, receivers and regulators and may, either individually or in
aggregate, adversely affect the Group’s business, operations, prospects, reputation or financial condition. There
could be a range of reasons for litigation, including allegations relating to failure to comply with contractual, legal
or regulatory requirements. Recently, there has been an increase in class action proceedings in the broader
market, many of which have resulted in significant monetary settlements. The risk of class actions has been
heightened by a number of factors, including regulatory enforcement actions and willingness by regulators to
commence proceedings, increased regulatory investigations and inquiries, media scrutiny, increased prospect of
regulatory reforms (including those that may eliminate any actual or perceived barriers to such litigation), and the
growth of third party litigation funding. Class actions commenced against competitors could also lead to similar
proceedings against us and may also impact attitudes of counterparties to Westpac proceedings or Westpac’s
standing more broadly. There has also been an increase in proceedings related to third party scams and fraud
activity, and the bank has been and may be joined to such proceedings, and an increase in shareholder
derivative actions. Activism strategies directed at financial institutions, particularly related to climate change,
sustainability, diversity equity and inclusion initiatives and energy transition, have also increased globally in recent
years. These strategies may involve litigation to highlight issues, enforce legal or regulatory standards, or
influence the target’s operations and activities. We are currently, and may continue to be, exposed to such
litigation and/or activist strategies. Litigation is subject to many uncertainties, and the outcome may not be
predicted accurately. Furthermore, the Group’s ability to respond to and defend litigation may be adversely
affected by inadequate record keeping. The Group’s ability to settle litigation on reasonable terms will be affected
by attitudes of counterparties. Costs will be incurred associated with managing, responding to and/or defending
litigation. Depending on the outcome of any litigation, the Group has been, and may in the future be, required to
comply with broad court orders, including compliance orders, adverse publicity orders, enforcement orders or
otherwise pay significant damages, fines, penalties or legal costs. The actual amount paid following a settlement
or determination by a Court for any legal proceedings may be materially higher or lower than any relevant
provision (where applicable) or that any contingent liability may be larger than anticipated. There is also a risk
that additional litigation or contingent liabilities arise, all of which could adversely affect our business, prospects,
reputation, financial performance or financial condition. There is additional information on certain legal
proceedings that may affect the Group in Note 25 to the financial statements in the 2025 Annual Report. We are
exposed to adverse funding market conditions - Market risk - Volatility and disruption - Funding and liquidity risk -
Credit risk We rely on deposits and global funding markets to fund our business and source liquidity. Our funding
costs are subject to funding market and general economic and geopolitical conditions, in addition to our credit
profile. Funding market conditions, and the behaviour of market participants, can shift significantly over very short
periods of time, resulting in extreme volatility, disruption and decreased liquidity. The main risks we face relate to
reduced market confidence, market access, appetite for exposure to Westpac; increased cost of funding; and
impacts from deterioration in macroeconomic conditions. Additionally, shifts in investment preferences could
result in deposit withdrawals, increasing our reliance on other funding sources. These other sources may offer
lower levels of liquidity at higher costs. If market conditions deteriorate due to economic, political, regulatory, or
other reasons (including those idiosyncratic to Westpac), there may be a loss of confidence in bank deposits,
leading to unexpected withdrawals. These events can transpire quickly and be exacerbated by information
transmission on social media. This could increase funding costs, constrain our liquidity, funding and lending
activities and threaten our financial solvency. In such events, even robust levels of capital may not be sufficient to
safeguard Westpac against detrimental loss of funding. If our current sources of funding become insufficient, we
may need to seek alternatives, subject to market conditions, our credit ratings, reputation and confidence issues,
and market capacity. These alternatives may be more expensive
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262 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS or on unfavourable terms. If we are unable to
source appropriate funding, we may be forced to reduce or suspend business activities (e.g. lending) or operate
with smaller liquidity buffers. If we are unable to source funding or generate liquidity for an extended period, we
may not be able to pay our debts as and when they fall due or meet other contractual obligations. These
outcomes may adversely affect our financial performance, liquidity, capital resources or financial condition. We
also enter into collateralised derivative obligations, which may require us to post additional collateral based on
market movements. This has the potential to adversely affect our liquidity or ability to use derivatives to hedge
interest rate, currency and other financial risks. We could be adversely affected by the risk of inadequate capital
levels - Capital adequacy - Capital risk - Regulatory capital requirements The Group is subject to the risk of an
inadequate level or composition of capital to support business activities, meet regulatory capital requirements
under normal or stressed conditions, and to maintain our solvency. Even robust levels of capital may not be
sufficient to ensure our ongoing sustainability in the event of a bank run, where depositors quickly withdraw funds
because of concerns about bank failure. Our capital levels are determined by regulation and risk appetite and
informed by stress testing. We establish buffers on regulatory requirements to maintain capital adequacy during
stressed periods by considering factors such as our balance sheet, forecasts, portfolio mix, potential capital
headwinds (including real estate valuations, inflation and rising interest rates) and stressed outcomes. Stress
testing models and assumptions may or may not accurately predict the nature and magnitude of particular stress
events. The macroeconomic environment, stressed conditions and/or regulatory framework could result in a
material increase to risk weighted assets, impact our capital adequacy, trigger capital distribution constraints,
threaten our financial viability and/or require a highly dilutive capital raise. Capital distribution constraints apply
when an ADI’s CET1 Capital ratio is within the prudential capital buffer range (consisting of the Capital
Conservation Buffer plus any Countercyclical Capital Buffer). Such constraints could impact future dividends and
distributions on Additional Tier 1 (AT1) capital instruments, noting APRA’s intention to phase out AT1 capital
instruments effective 1 January 2027. Should AT1 and Tier 2 capital securities that we have issued be converted
into ordinary shares (for example where our CET1 ratio falls below a certain level or APRA determines we would
become non-viable without conversion of capital instruments or equivalent support), this could significantly dilute
the value of existing ordinary shares. See further discussion in the Significant Developments section in the 2025
Annual Report. Our business is substantially dependent on the Australian and New Zealand economies, and
could be adversely affected by a material downturn or shock to these economies or other financial systems -
Strategic risk - Macroeconomic risks - Market disruption - Domestic and international economic conditions -
Geopolitical risks - Credit risk Our revenues and earnings are dependent on domestic and international economic
activity, business conditions and the level of financial services our customers require. Most of our business is
conducted in Australia and New Zealand so our performance is influenced by the level and cyclical nature of
activity in these countries. The financial services industry and capital markets have been, and may continue to
be, adversely affected by volatility, global economic conditions (including inflation and rising interest rates),
external events, geopolitical instability, political developments, cyberattacks or a major systemic shock. Market
and economic disruptions (or the possibility of interest rates remaining higher for longer than anticipated) could
cause consumer and business spending to decrease, unemployment to rise, demand for our products and
services to decline and credit losses to increase, thereby reducing our earnings. These events could undermine
confidence in the financial system, reduce liquidity, impair access to funding and adversely affect our customers
and counterparties. Conversely, an environment with falling interest rates could reduce margins and impact
earnings. Given Australia’s reliance on exports, a slowdown in economic growth or change in policy settings of
Australia’s major trading partners, which may be caused by their foreign policies (including the adoption of
protectionist trade measures such as tariffs or sanctions) could negatively impact the Australian economy. This
could result in reduced demand for our products and services and affect supply chains, the level of economic
activity and the ability of our borrowers to repay their loans. The nature and consequences of any such events
are difficult to predict but each of these factors could adversely affect our business, prospects, financial
performance or financial condition.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 263 Declines in asset markets could adversely affect our operations or profitability
and an increase in impairments and provisioning could adversely affect our financial performance or financial
condition - Market risk - Decline in asset values - Impairments - Credit risk Declines in asset markets, including
equity, bond, interest rates, foreign exchange, commodities and property markets, have adversely affected, and
could in the future adversely affect, our operations and profitability. Declining asset prices including as a result of
changes in fiscal or monetary policies or changes in legislation, could also impact customers and counterparties
and the value of security (including residential and commercial property) we hold. This may impact our ability to
recover amounts owing to us if customers or counterparties default. It may also affect our impairment charges
and provisions, in turn impacting our financial performance, financial condition and capital levels. Declining asset
prices could also impact our wealth management business as its earnings partly depend on fees based on the
value of securities and/or assets held or managed. Credit risk may arise from foreign exchange restrictions or
nationalisation of borrowers, which could impair asset values or repayment capacity in offshore jurisdictions.
Credit risk also arises from potential counterparty default in derivative, clearing and settlement contracts we enter
into. Such risk may also arise from our dealings in, and holdings of, debt securities issued by other institutions,
government agencies or sovereigns, the financial conditions of which may be affected to varying degrees by
economic conditions in global financial markets. We establish provisions for credit impairment based on
accounting and regulatory standards using current information and our expectations. If economic conditions
deteriorate beyond our expectations, some customers and/or counterparties could experience higher financial
stress, leading to an increase in impairments, defaults and write-offs, and higher provisioning beyond current
modelled outcomes. Changes in regulatory expectations or requirements in relation to the treatment of
customers, for example in hardship, could lead to increased impairments and/or higher provisioning. Such events
could adversely affect our liquidity, capital resources, financial performance or financial condition. We could be
adversely affected by the failure to maintain our credit ratings - Availability of funding - Cost of funding -
Downgrade Credit ratings are independent opinions on our creditworthiness. Our credit ratings can affect the cost
and availability of our funding and may be important to investors, certain institutional customers and
counterparties when evaluating their investments in the Group, our products and services. A rating downgrade
could be driven by a downgrade of Australia’s sovereign credit rating, a material weakening in our financial
performance, or one or more of the risks identified in the 2025 Risk Factors or by other events including
regulatory changes or changes to the methodologies rating agencies use to determine credit ratings. A credit
rating or rating outlook could be downgraded or revised where credit rating agencies believe there is a very high
level of uncertainty on the impact to key rating factors from a significant event. A downgrade to our credit ratings
could adversely affect our cost of funds, collateral requirements, liquidity, competitive position, our access to
capital markets and our financial stability. The extent and nature of these impacts would depend on various
factors, including the extent of any rating change, differences across agencies (split ratings) and whether
competitors or the sector are also impacted. We face intense competition in all aspects of our business - Margins
- Regulatory scrutiny - Strategic risk - New entrants The financial services industry is highly competitive, with a
range of firms, including retail and commercial banks, investment banks, other financial service companies,
fintech companies and businesses in other industries with financial services aspirations (including those who are
not subject to the same capital and regulatory requirements or who derive substantial revenue from other
markets, which may allow them to operate more flexibly and with lower costs of funds). Emerging competitors are
also increasingly altering the competitive environment by adopting new business models or seeking to use new
technologies to disrupt existing business models.
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264 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS Increased scrutiny by regulators in the sector
and other legislative reforms may also change the competitive environment by stimulating competition and
improving customer choice. It may also prompt increased competition from new and existing firms. Competition in
the various markets we operate in has led, and may continue to lead, to a decline in our margins or market share.
Deposits fund a significant portion of our balance sheet and have been a relatively stable source of funding. If we
fail to successfully compete for deposits, we may face increased funding costs, leading us to seek access to
other types of funding, or result in reduced lending. Our ability to compete depends on our ability to offer products
and services that attract and retain customers and meet their evolving preferences and expectations. Failure to
adapt could result in lost customers, which could negatively impact our business, prospects, financial
performance or financial condition. For more detail refer to the Operating Environment section in the 2025 Annual
Report. We have suffered, and could continue to suffer, losses due to operational risk - Operational risk - Change
execution - Records management - Ineffective processes and controls - Fraud and scams - Third parties - AI -
UNITE program Operational risk is the risk of loss resulting from inadequate or failed internal processes, people
and systems or from external events. It includes, among other things, model, data, operations, change execution
and third party risks. While we have policies, processes and controls to manage these risks, they have not
always been, or may not be, effective. Ineffective processes and controls (including those of contractors, agents,
authorised representatives, credit representatives, customers, trustees, brokers, independent financial advisors
and other third parties, or inadequate monitoring, supervision and oversight of their activities or of our employees’
activities) have resulted in, and could continue to result in, adverse outcomes (including financial or otherwise) for
Westpac, our customers, trustees, employees or other third parties. Operational breakdowns can occur if
measures are implemented too quickly (including without sufficient validation), or not quickly enough, in response
to external events, potentially leading to financial losses, customer remediation, regulatory scrutiny and
intervention, fines, penalties and capital overlays and, depending on the nature of the failure, litigation, including
class action proceedings. Examples of operational risks include: • Fraud and scams. We have incurred, and
could in the future incur, losses from fraud and scams, including fraudulent applications for loans, products or
services (including misrepresentations by customers (or their representatives) or brokers), incorrect or fraudulent
payments or (mis)conduct (including through the use of platforms, funds, portfolios or accounts to commit
investment scams or frauds, whether or not as a result of unauthorised access to our systems or our customer
accounts), and misuse of accounts by money mules. Our representatives, such as our employees, may be
involved including knowingly or unknowingly. Such losses, including the potential for additional customer or other
third party compensation, increased levies and financial penalties (including for non-compliance), could increase
significantly due to regulatory change. This includes if the Group does not adhere to obligations set out in or
further to the Scams Prevention Framework within the Competition and Consumer Act 2010 (Cth), which was
introduced by the Scams Prevention Framework Act 2025 (Cth). Fraudulent conduct can also arise where
identification records are compromised due to third party cybersecurity events. Our risks are heightened by real-
time transaction capability, and we are also exposed to contagion risk from incidents affecting other
organisations. If systems, procedures and protocols for preventing and managing fraud, scams or improper
access (including for improper or non-compliant purposes) to our systems and customer accounts fail, or are
inadequate or ineffective, they could lead to losses which could adversely affect Westpac, our customers,
business, prospects, reputation, financial performance or financial condition. Regulatory and compliance
requirements can impede the ability to swiftly identify or respond to a fraud or scam, or to communicate with
affected parties. • Records management. A failure to adequately implement and monitor effective records
management policies and processes could impact our ability to safeguard information, locate records, respond to
regulatory notices, conduct remediation, and meet record retention, protection and destruction obligations. Where
there are inadequacies in implementation of the records management lifecycle in our systems or embedding
records management across the Group, these risks are further heightened. Where records are not adequately
protected or retained for longer than required this could increase the impacts of cyber and privacy incidents such
as data breaches.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 265 • Artificial Intelligence (AI). As AI adoption to support our customers and
business increases, we may become more exposed to risks associated with the use of this technology, such as
lack of transparency, over-reliance on a limited number of vendors, inaccurate data input, unintentional bias,
breaches of confidentiality and privacy obligations, inaccurate or opaque outputs and unexplainable decisions,
amplifications of biases or other unintended consequences that are inconsistent with our policies or values. In
addition, failure or delays in adopting AI could lead to competitive disadvantages or otherwise not leveraging
capability that could support management of risk or improve customer outcomes. Leveraging AI could have
financial, regulatory, conduct, reputational and customer impacts. • Third party. We rely on third parties, both in
Australia and overseas, to provide services to us and our customers. Failures by these third parties, including our
authorised representatives and credit representatives, to deliver services as required and in accordance with law,
regulation and regulatory expectations could disrupt our ability to provide products and services and adversely
impact our customers, operations, financial performance or reputation. For example, we rely on third parties to
provide cash transport, handling and storage services. Reduced demand for cash, disruptions or other issues
(including legal or regulatory changes, litigation, claims, industrial action or the viability or solvency of providers)
impacting the cash-in-transit (CIT) industry, exposes us to operational risk including loss of (or delays in
accessing) significant amounts of cash held by CIT providers on our behalf (this risk is exacerbated for us as we
currently provide commercial cash distribution for the industry under an arrangement with one key industry
participant which terminates in July 2026), reduced availability of cash in the system generally (which could lead
to a run on cash), potential increased costs (for example, to enable us/third party providers to meet legal or
regulatory requirements), and related consequences where we or our customers suffer loss or damage due to
disruptions to CIT services. • Change execution. We face risks in delivering technology and other change
programs (such as our UNITE program), including that a change program fails to deliver the desired outcomes, or
fails to reduce, pre-empt, mitigate and manage the challenges associated with transformation delivery. If our
technology systems or financial infrastructure do not operate correctly, this may also cause loss or damage to us
or our customers. This can also arise from complexities in our systems, and the interaction between those
systems. This could include, for example, where systems issues result in incorrect fees or charges being applied
to customers, or other poor customer outcomes. All these issues could potentially lead to transfer risks, cost and
time overruns, business disruptions and delays, product governance failures, technology challenges, financial
losses, customer remediation and retention issues, regulatory scrutiny and intervention, capital overlays and
litigation. • Insurance coverage. There is a risk that we will not be able to obtain and/or have not obtained
appropriate insurance coverage for the risks that we may be exposed to. This could be due to lack of available or
adequate insurance, an increase in the cost of insurance, or failure of the insurance underwriter. If an insurance
policy is not available or does not respond to a loss, we will not have the ability to recover such loss from an
insurance policy. We could suffer losses due to market volatility - Market risk - Geopolitical risks - Volatility and
disruption - Credit risk Market risk is the risk of an adverse impact on the Group’s financial performance, financial
position, capital and liquidity, resulting from changes in market factors, such as foreign exchange rates,
commodity prices, credit spreads and interest rates. Market risk is present in both banking book and trading
book. We are exposed to market risk due to our financial markets businesses, asset and liability management,
our holdings in liquid asset securities, dependence on accessing capital markets and our defined benefit plan.
Changes in market factors could be driven by a variety of developments including economic disruption,
geopolitical events, trade tensions, market liquidity or concerns relating to major market participants or sectors.
The resulting market volatility could potentially lead to losses and may adversely affect our financial performance
and capital position. As a financial intermediary, we underwrite listed and unlisted debt securities. We could suffer
losses if we fail to syndicate or sell down this risk to others. This risk is more pronounced in times of heightened
market volatility. Poor data quality could adversely affect our business and operations - Operational risk - Data
quality - Poor customer and risk outcomes Having accurate, complete and reliable data, supported by appropriate
data controls, retention and, destruction methods and access to internal frameworks and processes, is critical to
the effective operation of our businesses.
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266 WESTPAC GROUP 2025 ANNUAL REPORT RISK FACTORS Data plays a key role in determining how we
provide products and services to customers, the effectiveness of our systems and risk management frameworks,
strategic planning and our ability to make effective decisions. Some of our businesses are, and may continue to
be, affected by poor data quality and/or limited data availability due to a number of factors, including
inadequacies across systems, processes and policies, or ineffectively implemented data management
frameworks. This could lead to poor customer service outcomes, adverse risk management outcomes, deficient
system outputs and processes. This is because data quality inadequacies render such data unreliable to assist in
making informed business decisions. Deficiencies with internal systems and processes could negatively impact
our decision-making in areas such as the provision of credit to a customer, and the terms on which a credit facility
is provided. The production of accurate data is also critical for other functions across the Group, such as financial
and other reporting (internal and external). Poor data quality and availability impacts our ability to effectively
monitor and manage operations across the Group, comply with production notices, respond to regulatory notices,
defend and respond to litigation and conduct remediation activities. Conflicting data retention or destruction
obligations may increase such risks. Poor data and/or poor data retention/destruction methods and deficient
controls that result in control gaps and weaknesses could negatively impact our ability to meet compliance
obligations (including regulatory reporting obligations). Previously, this has led to regulatory investigations or
adverse findings and actions against the Group, and such risks remain if we fail to maintain an acceptable level
of data quality and effective oversight practices. Our data related frameworks and processes must be
continuously reviewed, and improved where required, to ensure our data quality and data management practices
remain relevant, fit for purpose and sustainable. This is because outdated or unsustainable practices may lead to
inefficient data management practices and/or poor quality data. Potential consequences from holding poor quality
data and/or having poor data oversight and controls include adverse impacts to the Group’s ability to effectively
operate our existing businesses, securing prospective business from third parties, and our reputation, financial
performance and financial condition. Certain strategic decisions may have adverse effects on our business -
Strategic risk - Warranties and indemnities - Divestments and acquisitions - Implementation risk We evaluate and
implement strategic decisions, priorities and objectives including opportunities to simplify or streamline, diversify
or innovate our business or products. These activities can be complex, costly and may not proceed as planned.
For example, we may experience difficulties completing certain transactions, separating or integrating businesses
in the scheduled timeframe or at all, disruptions to operations, diversion of management resources or higher than
expected transaction costs, impacts on third parties, and there may be differing market views about a strategic
choice, which may cause reputational damage. Any failure to successfully divest businesses may expose us to
higher operating costs and higher inherent risks in those businesses. Decisions to retain businesses may also
expose us to the higher inherent risks in those businesses. For example, our Pacific businesses face several
risks including heightened operational, sovereign, financial crime and exchange control risks which could
adversely affect our customers, business, prospects, reputation, financial performance or financial condition. In
divesting businesses, we have given (and could in future divestments give) warranties and indemnities in favour
of counterparties relating to certain pre-completion matters and certain other commitments, including in relation to
transitional services. These could result in a liability to make significant payments to these counterparties while
these obligations remain on foot. To manage risks related to conduct and customer redress associated with
divestments, we hold additional operational risk capital pursuant to APRA’s published guidance. These contingent
liabilities are described in Note 25 to the financial statements in the 2025 Annual Report. Acquiring and investing
in businesses also carries risks and costs, including underperformance, assumption of unknown and
unaccounted for liabilities, regulatory risks or overvaluation of a target business. Operational, cultural,
governance, compliance and risk appetite differences between us and an acquired business may lead to longer
and costlier integration. Internal factors, for example, inadequate funding, resourcing, business capabilities or
operating model, or failing to identify, understand or respond effectively to changes in the external business
environment, including economic, geopolitical, regulatory, consumer sentiment, technological, environmental,
social and competitive factors, may hinder successful strategy implementation. This could adversely affect us,
including our ability to increase or maintain market share or resulting pressure on margins and fees.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 267 These risks could negatively impact our business, growth prospects,
reputation, engagement with regulators, financial performance or financial condition. Other risks • Failure to
recruit and retain key executives, employees and Directors with appropriate skills and qualifications may have an
adverse effect on our business, prospects, reputation, financial performance or financial condition. Macro-
environmental factors including unemployment rates, migration levels and the level of competition in the talent
market may also have an adverse impact on attracting specialist skills for the Group. In particular, attracting and
retaining employees with skills and experience in technology related fields – such as cyber security and artificial
intelligence – is critical in the coming years. • Changes to the critical accounting assumptions and estimates
(outlined in Note 1 to the financial statements in the 2025 Annual Report) could expose the Group to losses
greater than those anticipated or recognised, which could adversely affect our financial performance, financial
condition and reputation.
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268 WESTPAC GROUP 2025 ANNUAL REPORT INFORMATION ON WESTPAC Significant developments
Westpac significant developments – Australia Changes to Board of Directors and Executive Team On 1 August
2025, Pip Greenwood commenced as an Independent Non-executive Director of the Board. On 12 May 2025,
Paul Fowler commenced as the Chief Executive of Business & Wealth. On 5 August 2025, Kate Dee commenced
as the new Chief People Officer, following the retirement of Christine Parker. On 12 August 2025, Westpac
announced the appointment of Carolyn McCann as the new Chief Executive, Consumer, effective immediately.
Carolyn McCann had been acting in that role since 12 May 2025. Carolyn Hoy commenced as the Acting Group
Executive of Customer & Corporate Services on 12 May 2025. On 1 September 2025, Dr Andrew McMullan
commenced in the new executive role of Chief Data, Digital and AI Officer. On 8 October 2025, Nathan Goonan
commenced as the Chief Financial Officer, following the retirement of Michael Rowland. Increase in the CET1
capital operating target The Board has determined a target post dividend CET1 capital ratio of above 11.25% in
normal operating conditions. This target includes consideration of APRA's increase in the minimum CET1 ratio of
0.25% to 10.50% effective 1 January 2027 and replaces the previous CET1 capital operating range of between
11.00% and 11.50%. On market buyback As at 30 September 2025, Westpac had completed $2.5 billion of the
$3.5 billion on market share buyback previously announced, with 88.7 million Westpac ordinary shares
purchased at an average price of $28.00. The ordinary shares bought back were subsequently cancelled. The
timing and actual number of shares purchased under the buyback will depend on market conditions and other
considerations. Westpac reserves the right to vary, suspend or terminate the buyback at any time. Regulatory
and risk developments Financial crime Westpac continues to improve its financial crime risk management with
significant ongoing work focusing on AML/CTF, Sanctions, Anti-Bribery and Corruption, the US Foreign Account
Tax Compliance Act (FATCA) and Common Reporting Standard (CRS). Through this work, we continue to
undertake activities to strengthen and remediate our Financial Crime Program, and to improve regulatory
reporting, including in relation to International Funds Transfer Instructions, Threshold Transaction Reports,
Suspicious Matter Reports, FATCA and CRS reporting and equivalent reports in jurisdictions outside Australia.
With ongoing regulatory focus on financial crime, further areas of potential non-compliance have been, and may
continue to be identified, and we continue to liaise with the Australian Transaction Reports and Analysis Centre
(AUSTRAC), the Australian Taxation Office (ATO) and local regulators in jurisdictions outside Australia, including
to remediate findings and adopt recommendations from regulators. In 2024, the Australian Parliament enacted
the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), introducing major
reforms to the AML/CTF regime. A substantial number of reforms will take effect from 31 March 2026, including
provisions that apply to our permanent offshore establishments. In response, we are updating our policies,
procedures, systems and controls. Full implementation will require a multi-year implementation program,
including complex technology upgrades to customer due diligence and reporting infrastructure. Timing challenges
are an industry wide issue. AUSTRAC has acknowledged this and published its regulatory expectations, noting
that AUSTRAC does not expect immediate compliance. AUSTRAC does expect reporting entities to continue to
implement current money laundering controls and show sustained effort and progress against implementation
plans. We will continue to engage with AUSTRAC to support a phased implementation approach. Details about
the consequences of failing to comply with financial crime obligations are set out in the 2025 Risk Factors. New
climate reporting standards New mandatory climate-related reporting standards were approved in September
2024 by the Australian Accounting Standards Board and legislation requiring compliance has been passed by the
Australian Parliament. These new requirements will apply to Westpac from its financial year ending 30
September 2026. APRA capital requirements Operational risk capital overlays In 2019, APRA applied $1 billion of
additional capital overlays to our operational risk capital requirement. These overlays were applied through an
increase in risk weighted assets (RWA). On 19 July 2024, APRA announced its decision to reduce Westpac’s
total operational risk capital overlay from $1 billion to $500 million. On 15 October 2025, APRA announced its
decision to lift the CEU and remove Westpac’s remaining $500 million operational risk capital overlay. The
removal of the $500 million capital overlay will mean Westpac’s Common Equity Tier 1 (CET1) capital ratio will
increase by approximately 17 basis points, reflecting a reduction in risk weighted assets of $6,250 million. This
change applied with immediate effect. Further details are set out in Strengthening Risk Management (page 181).
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 269 APRA announcement to phase out AT1 capital as eligible bank capital On 8
July 2025 APRA released a consultation paper on implementing the phase out of AT1 capital instruments. This
included changes to APRA's prudential and reporting frameworks resulting from the removal of AT1 capital
instruments. Under the revisions, large internationally active banks such as Westpac will replace 1.5% of AT1
capital with 1.25% of Tier 2 capital and 0.25% of CET1 capital. The total CET1 requirement, including regulatory
buffers, will increase from 10.25% to 10.50%. There is no overall increase in total capital requirements for banks.
APRA has also proposed changes to the leverage ratio, which will see the leverage ratio calculation based on
CET1 capital rather than Tier 1 capital. Should the changes be implemented as proposed, this will result in a
reduction in the reported leverage ratio. The minimum leverage ratio of 3.5% is proposed to remain unchanged.
APRA intends to finalise changes to the relevant prudential standards in 2025, with the updated framework
coming into effect from 1 January 2027. In addition, from this date, existing AT1 capital instruments would be
eligible to be included as Tier 2 capital, until their first scheduled call date. Existing Westpac AT1 capital
instruments would reach their first scheduled optional redemption dates by 2031 at the latest. Westpac significant
developments – New Zealand RBNZ review of overseas bank branches On 21 August 2024, the RBNZ released
the proposed Branch Standard under the Deposit Takers Act 2023 (NZ). The proposed Branch Standard will
require that overseas bank branches only conduct business with wholesale clients; the total size of an overseas
bank’s branch cannot exceed NZ$15 billion in total assets; and dual-operating branches (such as Westpac’s New
Zealand Branch) only conduct business with “large corporate and institutional clients” (LCIC). Policy decisions
released by the RBNZ on 17 July 2025 propose that LCIC means those with consolidated annual turnover of over
NZ$50 million, total assets of over NZ$75 million or total assets under management of over NZ$250million (for
funds management entities only). The implementation date is expected to be 1 December 2028. Westpac’s New
Zealand Branch currently provides financial markets, trade finance and international payment products and
services to customers referred by WNZL. We expect the RBNZ’s Branch Standard will require changes to the
activities Westpac’s New Zealand Branch undertakes, and as a result, WNZL may also make changes to the
scope of the activities it undertakes. RBNZ review of capital settings for deposit takers On 31 March 2025, the
RBNZ announced a review of the key capital settings for deposit takers. On 25 August 2025, it released a
consultation paper. For Group 1 deposit takers (including WNZL) the key proposals include: • Removal of AT1
instruments from the capital stack. • Two options for capital ratio requirements: – Option 1: A total CET1 capital
ratio requirement of 14%, with a total capital ratio requirement of 17% (including a prudential capital buffer (‘PCB’)
ratio of 8%). – Option 2: A total CET1 capital ratio requirement of 12%, with a total capital ratio requirement of
15% (including a PCB ratio of 6%) and an additional Loss Absorbing Capacity (LAC) requirement of 6%. Tier 2
capital and LAC instruments would be required to be issued internally (for example to WBC) and LAC would take
a form similar to Tier 2 capital. • More granular standardised risk weights, including lower risk weights in some
areas. • Setting the long-run level for the counter-cyclical capital buffer component of the PCB at 1%. The RBNZ
is expected to make its final decisions in December 2025 with the implementation timeline to be announced in the
first quarter of the 2026 calendar year. The outcome of the review remains uncertain. General regulatory changes
affecting our businesses RBA review of merchant card payment costs and surcharging On 15 July 2025, the RBA
released a consultation paper as part of its review of merchant card payment costs and surcharging. Relevantly,
the RBA proposes to remove surcharges on debit and credit cards, lower the cap on interchange fees paid by
merchant acquirers to card issuers (including Westpac) and improve transparency on card payment fees. The
RBA intends to complete its review in March 2026. We are considering the impact of the proposed changes,
including on our products, systems and financial outcomes. Legal proceedings Our entities are parties to legal
proceedings from time to time arising from the conduct of our business. Certain litigation and class actions are
further described as required in Note 25 to the financial statements (page 96) in this Annual Report. Supervision
and regulation Australia Within Australia, we are subject to supervision and regulation by seven principal
agencies and bodies: the Australian Prudential Regulation Authority (APRA); the Reserve Bank of Australia
(RBA); the Australian Securities and Investments Commission (ASIC); Australian Securities Exchange Limited
(ASX); the Australian Competition and Consumer Commission (ACCC); the Australian Transaction Reports and
Analysis Centre (AUSTRAC) and the Office of the Australian Information Commissioner (OAIC). APRA is the
prudential regulator of the Australian financial services industry. As an Authorised Deposit-taking Institution (ADI),
we report prudential information to APRA, including information in relation to capital adequacy, large exposures,
credit quality and liquidity. The RBA is responsible for monetary policy, maintaining financial system stability and
promoting the safety and efficiency of the payments system. The RBA is an active participant in the financial
markets, manages Australia’s
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270 WESTPAC GROUP 2025 ANNUAL REPORT INFORMATION ON WESTPAC foreign reserves, issues
Australian currency notes and provides certain banking services to the Australian Government and its agencies.
It also manages Australia's gold and foreign exchange reserves. ASIC is Australia’s corporate, markets, financial
services and consumer credit regulator. It is responsible for the regulation of Australian companies and consumer
protection within the financial sector. ASIC is an independent Australian government body and was established
under the Australian Securities and Investments Commission Act 2001 (Cth). It carries out most of its regulatory
functions and supervision under the Corporations Act 2001 (Cth) (Corporations Act). ASX acts as a market
operator, clearing house and payments system facilitator for Australia’s primary national market for trading of
securities issued by listed companies. Some of our securities (including our ordinary shares) are listed on the
ASX and we therefore have obligations to comply with the ASX Listing Rules, which have statutory backing under
the Corporations Act. The ACCC promotes competition in markets. It is the federal regulator responsible for
monitoring compliance with Australia's competition and consumer protection laws, in particular the Competition
and Consumer Act 2010 (Cth). AUSTRAC is Australia’s financial intelligence unit and anti-money laundering and
counter-terrorism financing regulator. It oversees the compliance of Australian reporting entities (including
Westpac) with the requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006
(Cth) and related instruments. These requirements include: • implementing programs for identifying and
monitoring customers, and for managing the risks of money laundering and terrorism financing; • reporting
suspicious matters, threshold transactions and international funds transfer instructions; and • submitting an
annual compliance report. The OAIC's primary responsibilities are privacy, freedom of information and
government information policy, including under the Privacy Act 1988 (Cth) (Privacy Act). Its functions include
handling complaints about the handling of personal information, conducting investigations and undertaking
enforcement actions in relation to potential breaches of the Privacy Act. New Zealand The Reserve Bank of New
Zealand (RBNZ) is responsible for supervising New Zealand registered banks and protects the financial stability
of New Zealand through the application of minimum prudential obligations. The New Zealand prudential
supervision regime requires that registered banks publish disclosure statements, which contain information on
financial performance and risk positions as well as attestations by the directors about the bank’s compliance with
its conditions of registration and certain other matters. The Financial Markets Authority (FMA) and the New
Zealand Commerce Commission (NZCC) are the two primary conduct and enforcement regulators. The FMA and
NZCC are responsible for ensuring that markets are fair and transparent and are supported by confident and
informed investors and consumers. Regulation of markets and their participants is undertaken through a
combination of market supervision, corporate governance and licensing approvals. In New Zealand, other
relevant regulator mandates include those relating to taxation, privacy and foreign affairs and trade. Banks in
New Zealand are also subject to a number of self-regulatory regimes. Examples include Payments NZ, the New
Zealand Bankers’ Association (NZBA) and the Financial Services Council (FSC). Examples of industry agreed
codes include the NZBA’s Code of Banking Practice and FSC’s Code of Conduct. United States Our New York
branch is a US federally licensed branch and therefore is subject to supervision, examination and regulation by
the US Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System (the
US Federal Reserve) under the US International Banking Act of 1978 (IBA) and related regulations. A US federal
branch must maintain, with a US Federal Reserve member bank, a capital equivalency deposit as prescribed by
the US Comptroller of the Currency, which is at least equal to 5% of its total liabilities (including acceptances, but
excluding accrued expenses, and amounts due and other liabilities to other branches, agencies and subsidiaries
of the foreign bank). In addition, a US federal branch is subject to periodic onsite examination by the US
Comptroller of the Currency. Such examination may address risk management, operations, asset quality,
compliance with the record keeping and reporting, and any additional requirements prescribed by the US
Comptroller of the Currency from time to time. A US federal branch of a foreign bank is, by virtue of the IBA,
subject to the receivership powers exercisable by the US Comptroller of the Currency. As of 22 June 2016, we
elected to be treated as a financial holding company in the US pursuant to the Bank Holding Company Act of
1956 and Federal Reserve Board Regulation Y. Our election will remain effective so long as we meet certain
capital and management standards prescribed by the US Federal Reserve. Westpac and some of its affiliates are
engaged in various activities that are subject to regulation by other US federal regulatory agencies, including the
US Securities and Exchange Commission, US Financial Industry Regulatory Authority, the US Commodity
Futures Trading Commission and the National Futures Association. Section 219 of the Iran Threat Reduction and
Syria Human Rights Act of 2012 added Section 13(r) to the U.S. Securities Exchange Act of 1934, as amended,
requiring each SEC reporting issuer to disclose in its annual and, if applicable, quarterly reports whether it or any
of its affiliates have knowingly engaged in specified activities, transactions or dealings relating to Iran or with the
Government of Iran or certain designated persons or entities involved in terrorism or the proliferation of
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 271 weapons of mass destruction during the period covered by the report. Section
219 requires disclosure even of certain activities not prohibited by U.S. or other law and even if such activities
were conducted outside the United States by non-U.S. affiliates in compliance with local law. Westpac and WNZL
have engaged in activity that is relevant for this purpose. Westpac and WNZL (as a wholly owned subsidiary)
maintain compliance policies and procedures to comply with all applicable economic sanctions laws and
regulations. In that context, and only after confirming that such transactions did not involve prohibited or
sanctionable activity under U.S. or other economic sanctions, the above Westpac Group entities outside the
United States engaged in a limited number of activities reportable under Section 219 during the period covered
by this annual report, as described below. No U.S. persons or entities, or entities owned or controlled by U.S.
persons were involved in these activities. There are two matters requiring disclosure for this reporting period 1
October 2024 to 30 September 2025: 1. Payments to the Embassy of Iran in Australia. During 1 October 2024 to
30 September 2025, retail and business customers of Westpac remitted AUD payments to accounts held for the
Embassy of Iran in Australia with an unaffiliated bank in Australia. It was observed that the purpose of these
transactions related to consular purposes of the Embassy, such as obtaining a driver’s license or passport fees
and services. Westpac is not a U.S. person or owned or controlled by U.S. persons and therefore its transactions
that do not include any U.S. jurisdictional elements are not subject to the Iranian Transactions and Sanctions
Regulations (ITSR) at Part 560 of title 31, Code of Federal Regulations, issued by the U.S. Department of the
Treasury’s Office of Foreign Assets Control. In addition, transactions that are “ordinarily incident to travel to” Iran
are exempt from the ITSR (at 31 Code of Federal Regulations Section 560.210(d). All payments were facilitated
through the NPP domestic payments platform. This activity contributed an insignificant amount of gross revenues
and net profit to the Group. 2. Payments to the Embassy of Iran in New Zealand. During 1 October 2024 to 30
September 2025, New Zealand based customers of WNZL remitted domestic NZD payments from their accounts
at WNZL to accounts held for the Embassy of Iran with an unaffiliated bank in New Zealand. It was observed that
the purpose of these transactions related to diplomatic and consular duties of the Embassy. All payments were
facilitated through WNZL's domestic NZD payments platform. This activity contributed an insignificant amount of
gross revenues and net profit to the Group. WNZL is not a U.S. person or owned or controlled by U.S. persons
and therefore its transactions that do not include any U.S. jurisdictional elements are not subject to the ITSR at
Part 560 of title 31, Code of Federal Regulations, issued by the U.S. Department of the Treasury's Office of
Foreign Assets Control. In addition, transactions that are "ordinarily incident to travel to" Iran are exempt from the
ITSR (at 31 Code of Federal Regulations Section 560.210(d)). Westpac and WNZL intend to continue to process
payments to the Embassies of Iran in Australia and New Zealand but only under limited circumstances where the
Group believes the funds transfers conform to its compliance policies, procedures and all applicable sanctions
laws and regulations. Anti-money laundering regulation and related requirements Australia Westpac has a Group-
wide program to manage its obligations under the Anti-Money Laundering and Counter- Terrorism Financing Act
2006 (Cth). We continue to actively engage with the regulator, AUSTRAC, on our activities. Our Anti-Money
Laundering and Counter-Terrorism Financing Policy (AML/CTF Policy) sets out how the Westpac Group complies
with its legislative obligations. The AML/CTF Policy applies to all business segments and employees (permanent,
temporary and third party providers) working in Australia, New Zealand and overseas. United States The USA
PATRIOT Act of 2001 requires US financial institutions, including the US branches of foreign banks, to take
certain steps to prevent, detect and report individuals and entities involved in international money laundering and
the financing of terrorism. The required actions include verifying the identity of financial institutions and other
customers and counterparties, terminating correspondent accounts for foreign ‘shell banks’ and obtaining
information about the owners of foreign bank clients and the identity of the foreign bank’s agent for service of
process in the US. The anti-money laundering compliance requirements of the USA PATRIOT Act include
requirements to appoint a qualified BSA Officer, adopt and implement an effective anti-money laundering
program, report suspicious transactions or activities, and implement due diligence procedures for correspondent
and other customer accounts in line with the CDD rule. Westpac’s New York Branch and Westpac Capital
Markets LLC maintain an anti-money laundering compliance program designed to address US legal
requirements. US economic and trade sanctions, as administered by the Office of Foreign Assets Control
(OFAC), prohibit or significantly restrict US financial institutions, including the US branches and operations of
foreign banks, and other US persons from doing business with certain persons, entities and jurisdictions.
Westpac’s New York Branch and Westpac Capital Markets LLC maintain compliance programs designed to
comply with OFAC sanctions programs, and Westpac has a Group-wide program to ensure adequate
compliance. Legal proceedings Our entities are parties from time to time in legal proceedings arising from the
conduct of our business. Material legal proceedings, if any, are described in Note
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272 WESTPAC GROUP 2025 ANNUAL REPORT INFORMATION ON WESTPAC 25 to the financial statements
and/or under the Significant developments section above. Where appropriate as required by the accounting
standards, a provision has been raised in respect of these proceedings and disclosed in the financial statements.
Cybersecurity management and governance The Group Chief Information Security Officer (CISO) reports to the
Chief Information Officer, a member of the Executive Team. The CISO is a member of key cybersecurity
governance forums and is responsible for leading and managing the cybersecurity function, setting the
cybersecurity strategy and direction, and overseeing the implementation, operation and execution of the
cybersecurity policies, standards, controls, and capabilities, including for third parties who are engaged to
manage Westpac’s information assets. We have implemented a range of cybersecurity processes, technologies,
and controls to facilitate our efforts to assess, identify, and manage such risks, including regular network and
endpoint monitoring, access controls, vulnerability assessments, penetration testing, annual information security
training for employees, and tabletop cybersecurity incident response exercises. We have an Incident Response
Plan which guides the actions we are to take in the event of a suspected or confirmed cybersecurity incident. The
plan includes processes to triage, investigate, contain, and remediate the incident. The plan is designed to
contain and minimise the impact of a cybersecurity incident on our customers. We also maintain a Business
Continuity Plan, which provides procedures for maintaining the continuity of critical business processes in the
event of business interruption, including any that involve cybersecurity incidents which may significantly impact
our operations. Our cybersecurity team is informed about and monitors the prevention, mitigation, detection and
remediation of cybersecurity threats through their management of, and participation in, the strategy processes.
The CISO and the cybersecurity team have relevant expertise and experience in various aspects of
cybersecurity, such as strategy, governance, risk management, threat intelligence, incident response, security
operations, architecture, engineering, testing and awareness. The CISO has extensive experience in information
technology and cybersecurity. The cybersecurity team consists of qualified and competent professionals who
have diverse backgrounds and skills in cybersecurity. The cybersecurity team regularly participates in training,
education, and development programs to enhance their knowledge and skills to keep up with the evolving
cybersecurity landscape. As part of its cybersecurity risk management, Westpac engages with third parties for
independent reviews and assessments of its cybersecurity policies, standards, controls, and capabilities. These
third parties include external auditors, industry bodies, consultants, and specialists. The purpose of these
engagements is to obtain assurance, validation, benchmarking and improvement recommendations on Westpac's
cybersecurity posture and maturity. Westpac holds ISO27001, PCI-DSS and SOC 2 Type 2 certifications for
areas of the Group. The CISO escalates key cybersecurity risk and control issues, as appropriate, to the
Technology Risk Committee (TRC) or to the appropriate Line of Business and Divisional Committees. The TRC, a
senior management committee, oversees the technology function and technology risk management. The TRC
reports to the Group Executive Risk Committee (GRISKCO), the executive management committee responsible
for overseeing the group's strategy, performance, and risk management. The Board of Directors receives periodic
updates from the CIO and the CISO regarding cybersecurity matters. The Board is ultimately responsible for the
oversight of the cybersecurity risk management. The Board delegates some of its oversight responsibilities to the
Board Risk Committee, which assists the Board in the oversight of cybersecurity risk management. During the
period covered by this 2025 Annual Report, we have not experienced any cybersecurity incidents which have
materially affected or are reasonably likely to materially affect our business strategy, results of operations, or
financial condition. However, institutions like ours, as well as our employees, service providers and other third
parties have experienced a significant increase in information security and cybersecurity risk in recent years and
will likely continue to be the target of increasing sophisticated cyber-related attacks.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 273 PERFORMANCE REVIEW GROUP PERFORMANCE Full Year 2025 results
overview Review of earnings Credit quality SEGMENT REPORTING Consumer Business & Wealth Institutional
New Zealand Group Businesses REVIEW OF EARNINGS: 2024 - 2023 Group performance Segment
performance FINANCIAL STATEMENTS
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274 WESTPAC GROUP 2025 ANNUAL REPORT GROUP PERFORMANCE Full Year 2025 results overview
Group performance Full Year 2025 results overview Our financial performance reflected our strategy of balancing
growth and return while investing for the future. We maintained a strong financial position with capital, funding
and liquidity all above regulatory minimums. Fully franked ordinary dividends increased to 153 cents per share,
including a final dividend of 77 cents per share. That equates to a full year ordinary dividend payout ratio of 76%
of net profit, towards the upper end of our preferred payout range. Net profit was delivered through disciplined
management of net interest margins and balance sheet growth across our businesses. The rise in operating
income reflected our strategy of balancing growth and returns. Growth in operating expenses reflected higher
staff and technology costs, while the low level of impairment charges reflected credit quality improvements across
all segments. The balance sheet recorded solid growth with deposits and loans rising by 7% and 6% respectively.
Consumer deposits increased 10%, deposits in Business rose 6% and Institutional deposits climbed 10%.
Business lending was up 15% with strong growth in our target sectors. In Institutional, deeper client relationships
and improved service supported loan growth of 17%. Housing loans, excluding RAMS, rose 5%. We are focused
on building stronger customer relationships while investing to improve our market position to deliver long term
value for shareholders. Customer service excellence is essential to our future success. We’ve improved our
everyday banking experience through simplifying onboarding and improving the rewards for loyalty. We’re
expanding with more bankers offering local expertise and new retail and business banking service centres in
growth regions. We are transforming the company through our ‘One Best Way’ approach, driving simplification,
consistency, efficiency and innovation to make banking easier and more cost-effective. UNITE aims to unlock
value by resolving structural legacy technology and operational issues. The Discovery phase is complete and 8
initiatives have been delivered. Notable Items Notable Items Notable Items reduced net profit after tax in 2025 by
$56 million (2024: $123 million reduction) and increased net profit after tax in Second Half 2025 by $84 million
(First Half 2025: $140 million reduction). Details of Notable Items (post tax) are presented below: Category Net
profit impact Full Year 2025 Net profit impact Second Half 2025 Detail Hedging items $56 million reduction $84
million benefit • The unrealised fair value loss on hedges of accrual accounted term funding transactions for the
year was $43 million reduction (2H25: $49 million benefit; 1H25: $92 million reduction; 2024: $128 million
reduction); and • The net ineffectiveness on qualifying hedges was a reduction of $13 million (2H25: $35 million
benefit; 1H25: $48 million reduction; 2024: $5 million benefit). Total Notable Items $56 million reduction $84
million benefit Review of earnings Review of earnings Net interest income Net interest income increased 3% to
$19,380 million. Notable Items relating to hedging items including unrealised revaluation of economic hedges of
term funding reduced income by of $93 million. Excluding Notable Items net-interest income increased by 3% to
$19,473 million with key drivers outline below. Net interest income excluding the impact of Notable Items Net
interest income increased 3% to $19,473 million. Key drivers included: • Higher core net interest income, up 3%
to $18,191 million. Balance sheet growth was partly offset by lower net interest margin; • Treasury and Markets
income, down 2% to $1,282 million due to a stronger performance from Treasury in the prior year. Average
interest-earning assets increased by 3% to $1,002.9 billion, including growth of 11% in business loans and 2% in
housing loans. This was partially offset by the reduction in personal loans and the runoff and subsequent sale of
the auto finance portfolio in March 2025. Average liquid assets increased by 2% while other interest-earning
assets decreased by 8% due to the reduction in collateral balances.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 275 Review of earnings (Continued) Net interest margin movement The NIM of
1.93% was flat. NIM comprised: • Core NIM of 1.81%, which contracted by 1 basis point with key drivers
described below; • Treasury and Markets contribution of 13 basis points, which was stable; and • Notable Items
relating to hedging items including unrealised revaluations of economic hedges of term funding detracted 1 basis
point. Net interest margin excluding the impact of Notable Items NIM decreased 1 basis point to 1.94%. NIM
comprised: • Core NIM of 1.81%, which contracted by 1 basis point with key drivers described below; and •
Treasury and Markets contribution of 13 basis points, which was stable. Core NIM comprised the following
movements: • Loan interest spread: 1 basis point narrower. Higher spreads in New Zealand mortgages driven by
fixed rate repricing was more than offset by tighter spreads in Australia due to competition and the sale of the
auto finance portfolio; • Deposit interest spread: 2 basis points decrease with a mix shift towards lower spread
savings products, margin compression in term deposits and the impact from lower interest rates. Earnings on
hedged deposits were higher; • Liquid Assets: 2 basis points increase as average liquid assets rose by less than
average lending assets; • Wholesale funding: 1 basis point decrease from the impact of higher funding costs, with
the final Term Funding Facility (TFF) draw downs maturing in the prior year; and • Capital and Other: 1 basis
point increase primarily from higher earnings on hedged capital balances. Loans Loans increased by 6% to
$851.9 billion and comprised the following movements: • Growth in Australian housing loans, excluding RAMS, of
5% to $497.0 billion, mainly in variable rate mortgages with the mix of investor lending increasing throughout the
year as part of a targeted strategy; • RAMS housing loans contracted by 28% to $21.6 billion as the portfolio is
closed to new business; • Australian personal lending was down 4%1 to $9.0 billion reflecting subdued new
lending; • Growth in Australian business lending of 14%1 to $221.8 billion. Growth in Institutional lending was in
the infrastructure, resources, energy and property sectors. Business segment growth was diversified, with strong
growth in the target sectors of health, professional services and agriculture and the SME sub segment; • Growth
in New Zealand lending of 4% to NZ$107.3 billion with growth mainly in owner occupied mortgages; and • Growth
in other overseas loan balances to $12.6 billion. Execution of our strategy in Institutional has led to offshore
financing where there is a strong nexus to Australia. Deposits Customer deposits grew by 7% to $723.0 billion
and comprised the following movements: • Australian deposits up 8% to $642.6 billion, supported by strong
growth in household deposits, an increase in business transaction balances driven by new account openings and
retention, and a targeted institutional strategy to maintain strength in the public sector and grow share in financial
institutions; • New Zealand deposits were up 2% to $81.0 billion in NZ$ terms reflecting an increase in savings
and non-interest bearing balances as customers preferred the flexibility in the falling interest rate environment;
and • Other overseas deposits were up 39% to $9.2 billion, primarily from growth in Institutional offshore term
deposits. The deposit to loan ratio of 84.9% was 137 basis points higher than 30 September 2024, with deposit
growth more than funding loan growth during the year. Non-interest income Non-interest income increased by 6%
to $3,004 million. This included Notable Items of $13 million related to hedging items including unrealised
revaluations of economic hedges. Excluding Notable Items non-interest income increased by 5% to $2,991
million with key drivers outline below. Non-interest income excluding the impact of Notable Items Non-interest
income increased by 5% to $2,991 million. 1. Movement excludes the auto finance portfolio which was sold in
March 2025.
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276 WESTPAC GROUP 2025 ANNUAL REPORT GROUP PERFORMANCE Review of earnings (Continued) Net
fee income increased by 4% to $1,732 million reflecting an increase in card fees and higher business and
Institutional lending fees from a larger balance sheet. Net wealth management income increased by 8% to $476
million from higher funds under administration. Trading and other income increased by 7% to $783 million
reflecting higher sales and risk management income, including rates and foreign exchange. Operating expenses
Total operating expenses increased 9% to $11,916 million. The increase included a restructuring charge of $273
million in the Second Half of 2025 to support targeted productivity initiatives under our Fit for Growth program.
Excluding this charge, operating expenses increased by 6% due to the ramp up in UNITE investment, wage
growth and higher software amortisation. Lower occupancy costs provided a partial offset. The expense to
income ratio excluding Notable Items was 53.0%, up from 50.3%. Staff expenses1 increased by 7% to $6,326
million mainly due to wage growth, UNITE and the investment in bankers. Average FTE increased by 1% with the
increase to support UNITE and the investment in bankers more than offsetting reductions from productivity
initiatives. Occupancy expenses decreased by 7% to $652 million with further reductions in the Group's corporate
and branch footprint. Technology expenses increased 13% to $3,136 million due to higher costs related to the
UNITE program, an increase in software amortisation related to projects completed in prior years and higher
software maintenance and licensing costs. Other Expenses1 decreased by 3% to $1,529 million due to lower
professional and servicing costs and higher costs in the prior year from the closure of RAMS, partly offset by
higher litigation and remediation costs, and advertising spend. Fit for Growth restructuring expenses to support
targeted productivity initiatives were $273 million in the Second Half of 2025. Investment spend Total investment
spend of $1,918 million was 9% higher, primarily due to the increased investment in UNITE. The proportion of
investment spend expensed increased by 4 percentage points to 60%. UNITE accounted for 34%, growth and
productivity initiatives accounted for 30% and 36% was directed towards risk and regulatory activities. UNITE
investment spend increased to $660 million with 74% expensed. Key achievements: • One identity verification
process following the consolidation of 20 processes; • Functionality for multiple offset accounts for all eligible
home loan customers, providing customers with greater choice and control over their finances; • One BankTrade
system, simplifies process while reducing risk and complexity; • Transitioned customers to a single Private Bank
under the Westpac brand enabling customers to benefit from an enhanced service offering; and • Banker and
customer experience has improved with the consolidation of the two chat platforms to one. Spend in the year
focused on prioritised initiatives, including: • Mortgage simplification to a single suite of products, processes and
applications; • Moving to One Wealth Platform; • Migrated 6,000 bankers onto Digital Banker; • Consolidating
seven collections systems to one system; and • Streamlining fraud operations from four workflow systems to one
solution. Growth and Productivity investments include: • Launch and progressive rollout of new features on the
integrated business lending origination platform, BizEdge; • The Westpac One Core transaction banking platform
achieved New Payments Platform certification, representing significant progress towards delivering real-time
treasury management; • Launched Westpac OnlinePay to help business customers accept payments with a
virtual terminal; • Enabled Click to Pay on eligible Westpac cards, allowing fast, secure online checkout without
sharing card details with merchants; • Enabled onboarding from overseas for eligible customers; 1. Excludes Fit
for Growth restructuring expenses.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 277 Review of earnings (Continued) • Implemented AI-driven solutions and
integrated M365 Copilot for over 10,000+ employees to help streamline workflows, reduce manual effort and
enhance the quality of work; and • Technology and digital capability improvements for customer experience in
New Zealand. Risk and Regulatory investments include: • Ongoing improvement of scam prevention capabilities
to enhance customer protection; • Core payments platform upgraded, including migration of domestic high value
payments and international payments processing to a new application; • Compliance with revised regulation,
including the 2025 Banking Code of Practice, Prudential Standard CPS 230, Operational Risk Management and
Prudential Standard APS 117, Capital Adequacy - Interest Rate Risk in the Banking Book; and • Continuing to
enhance records management systems and processes. Capitalised software Capitalised software decreased
$261 million or 10% compared to September 2024. The decrease reflects increased amortisation due to the
completion of key projects such as One Banking Platform, payments and investment to comply with RBNZ’s
outsourcing policy, BS11. Additions included ongoing investment in payment systems and UNITE. This has
resulted in average amortisation period reducing by 0.4 years to 2.7 years from September 2024. Credit
impairment charges The credit impairment charge of $424 million represented 5 basis points of average loans,
down from 7 basis points in the prior year. The lower impairment charge was mainly due to an increase in write-
backs and recoveries partly offset by a higher CAP charge. The CAP charge of $458 million comprised write-offs
of $561 million which was partly offset by a benefit in other changes in CAP of $103 million. Write-offs were
largely within the credit card and personal loan portfolios. The other changes in CAP were due to: • A reduction
from an improved economic outlook for commercial property prices and interest rates; • A reduction in mortgage
90+ day delinquencies from 1.05% to 0.70%; • An increase in the downside scenario weight of 5 percentage
points reflecting a rise in geopolitical instability; and • An increase for new portfolio overlays. The IAP benefit of
$34 million comprised: • New IAPs of $408 million, mostly in the services and wholesale & retail trade sectors and
the mortgages portfolio; • Recoveries of $247 million, mostly within the credit cards and personal loan portfolios;
and • Write-backs of $195 million, mostly in the wholesale & retail trade and manufacturing sectors. Income tax
expense The rise in the effective tax rate to 31.0%, up from 30.8%, was mainly due to benefits from prior period
tax adjustments in Full Year 2024 not repeated in Full Year 2025. The effective tax rate is above the Australian
corporate tax rate of 30%. Credit quality Credit quality Stressed exposures as a percentage of total committed
exposures were 1.28% a decrease of 17 basis points. The composition and drivers of stressed exposures were: •
Impaired exposures of 15 basis points: a 1 basis point decrease reflecting lower impaired balances in the
Business portfolio; • Non-performing, 90+ days past due and not impaired exposures of 32 basis points: a 15
basis point decrease reflecting lower mortgage 90+ day delinquencies; • Non-performing, less than 90 days past
due and not impaired exposures of 30 basis points: a 7 basis point increase reflecting a rise in mortgages
categorised as non-performing after exiting 90+ days past due; and • Watchlist and substandard exposures of 51
basis points: an 8 basis point decrease reflecting lower stress in the Business and New Zealand portfolios.
Impaired exposures to gross loans were flat at 0.24%. The provision coverage of the impaired portfolio was 40%,
down from 41% at 30 September 2024. Impaired exposures have an appropriate level of provision cover.
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278 WESTPAC GROUP 2025 ANNUAL REPORT GROUP PERFORMANCE Credit quality (Continued) Portfolios
Stressed exposures in Institutional reduced by 6 basis points to 0.70%, driven by strong volume growth along
with lower stress in the trade and, transport and storage sectors. Impaired exposures to TCE increased by 4
basis points to 0.09%, driven by a large single name downgrade in the services sector. Australian Business
stressed exposures decreased by 43 basis points to 4.81%, due to improvement in the property and trade
sectors. Impaired exposures to TCE decreased by 16 basis points to 0.49% with improvement in the agriculture
and manufacturing sectors. Australian mortgage 90+ day delinquencies decreased 39 basis points to 0.73% due
to a reduction in hardship and a change to serviceability treatment. Properties in possession were 154, a
reduction of 47 reflecting fewer properties being repossessed. Australian other consumer 90+ day delinquencies
reduced 34 basis points to 1.13%, driven by the sale of the auto finance portfolio in First Half 2025. In New
Zealand, stressed exposure to TCE decreased by 26 basis points to 1.47%. This was driven by a reduction in
watchlist exposures in the mining and agriculture sectors. New Zealand mortgage 90+ day delinquencies were 3
basis points lower at 0.46%. Other consumer 90+ day delinquencies were 17 basis points lower at 0.70%.
Improvements reflect easing of cost of living pressures. Provisioning Total provisions decreased 2% to $4,987
million driven by a reduction in CAPs. The decrease in modelled CAPs of $168 million was due to: • An improved
outlook for commercial property prices and interest rates; • Lower mortgage 90+ day delinquencies; and • The
sale of the auto finance portfolio. This was partly offset by a 5 percentage point increase in the downside scenario
weight reflecting a rise in geopolitical instability, including in relation to the potential impact of international trade
policies. Overlays were $59 million higher. Key movements included: • New overlays related to portfolio
seasoning and geographical areas experiencing higher stress not included in modelled outcomes; • Release of
the construction sector, Australian mortgages and consumer finance overlays as the expected risks did not
materialise or are reflected in modelled outcomes. IAPs remained relatively flat over the year.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 279 SEGMENT REPORTING Segment reporting The impact of Notable Items on
net profit, income and expenses have been excluded from the Segment Performance section. Consumer
Consumer Net profit increased 4% to $2,282 million. The 4% increase in pre-provision profit included a modest
impact from segment compositional changes in Full Year 2025. Full Year 2024 comparatives have not been
restated. Excluding composition changes, pre-provision profit also increased 4%, with operating income rising 4%
and operating expenses increasing 4%. The increase in operating income reflected 3 basis points of net interest
margin expansion while expenses rose reflecting a step up in UNITE spend and inflationary pressures that were
partly offset from the benefits of a simpler operating model and a smaller property footprint. Net interest income
up 3% • The net interest margin increased 3 basis points to 1.73%. Key drivers included: – Favourable portfolio
mix as deposit growth outpaced lending growth, resulting in a higher deposit to loan ratio; – Stabilising lending
spreads reflecting customers switching from lower spread fixed rate mortgages to higher spread variable rate
mortgages was offset by competition to both retain and attract new mortgage customers; – Lower deposit
spreads reflecting a mix shift towards higher interest rate, lower margin savings accounts, a lower interest rate
environment and compression in term deposit spreads. These impacts were partly offset by higher returns on
hedged deposits and proactive repricing; – Higher funding costs primarily due to the widening of the spread
between the bank bill and overnight index swap rates; and – Higher returns on hedge capital balances provided a
benefit. • Loans increased by 3% to $525.4 billion. Mortgage growth of 3% was below system, reflecting the
decision to close RAMS to new business. Excluding this impact, mortgages grew 5%, representing 0.8x APRA
housing system growth. Almost all new flow was in variable rate mortgages, with the mix of investor loans
increasing throughout the year as part of a targeted strategy; • Deposits were up 10% to $366.3 billion
representing 1.0x APRA household deposits system growth. Growth in savings balances of $20.9 billion reflected
the continued shift in customer preference to towards higher yielding flexible products. Mortgage offset balances
increased by 15% to $72.7 billion as fixed rate mortgage customers shifted onto variable rate mortgages with
deposit offset features; and • With deposit growth continuing to exceed loan growth, the deposit to loan ratio
improved 417 basis points to 69.7%. Non-interest income up 6% • Non-interest income increased 6% to $561
million due to higher credit card fees and scheme incentives, which was partly offset by higher customer
remediation costs. Expenses up 3% • Operating expenses increased 3%. Excluding compositional changes
operating expenses increased 4%. This was driven by: – The step up in UNITE investment, although this was
partly offset by lower spend across other investments; and – Inflationary pressures from both wages and salaries
and third-party vendor costs. • The benefits from a simpler operating model and a smaller property footprint,
including branches and ATMs, partly offset other cost pressures. Impairment charge of $217 million • Impairment
charges to average loans were 4 basis points, down 1 basis point from the prior year. The charge reflects write-
offs in cards and personal lending and an increase in the downside scenario weight. This was partly offset by a
release of portfolio overlay provisions. • Stressed exposure to TCE improved by 19 basis points to 0.91%
reflecting the continued resilience of customers. Mortgage 90+ day delinquencies decreased 39 basis points to
0.73% due to a reduction in hardship and a change to serviceability treatment. Other consumer loan 90+ day
delinquencies decreased 10 basis points to 1.13%.
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280 WESTPAC GROUP 2025 ANNUAL REPORT SEGMENT REPORTING Business & Wealth Business &
Wealth Net profit declined 7% to $2,186 million. Pre-provision profit fell 4% to $3,383 million reflecting the impact
of segment compositional changes in Full Year 2025. Full Year 2024 comparatives have not been restated. This
includes moving the merchant services business from Business & Wealth to Institutional and auto finance from
Business & Wealth to Group Businesses following the completion of its sale. Excluding the impact of
compositional changes, pre-provision profit fell 1% with a 3% increase in operating income more than offset by a
10% increase in operating expenses. Operating income reflected strong growth in lending balances which was
partly offset by a lower net interest margin, while operating expenses increased due to the step up in UNITE
spend and investment in front line bankers. Net interest income flat • Excluding compositional changes, net
interest income increased 3%. • Strong balance sheet growth was offset by 50 basis points of margin contraction.
The decline in net interest margin included the impact from segment compositional changes and provision
releases in the prior period. Excluding these impacts, the net interest margin contracted by 39 basis points.
Drivers included: – Portfolio mix shift as lending growth outpaced deposit growth, reflected in a lower deposit to
loan ratio; – Lower deposit spreads from the impact of a lower cash rate environment and an increase in
customers switching to higher yielding accounts. Favourable product mix with growth in transaction and savings
accounts and a contraction in term deposits as well as higher returns on hedged deposits partly offset these
impacts; and – Lower lending spreads reflecting competitive market dynamics, partly offset by higher returns on
hedged capital balances. • Loans increased by 13% to $115.2 billion. Business lending grew 15% with growth
diversified across most sectors and segments. Target sectors of agriculture, health and professional services all
grew between 17% and 24%. This was partly offset by the wind down and subsequent sale of the $2.1 billion
auto finance portfolio; and • Deposits increased 6% to $152.3 billion primarily driven by strong new account
growth and proactive retention strategies. Non-interest income down 4% • Non-interest income decreased 4%
reflecting compositional changes. Excluding this impact, non-interest income increased 7% reflecting: – Higher
platforms revenue, reflecting a 9% increase in funds under administration from strong equity markets and flows
into the GIS platform; and – Higher lending fees due to a larger loan book. Expenses up 4% • Operating
expenses increased 4%. Excluding compositional changes, operating expenses increased 10% reflecting: – The
step up in UNITE investment; – An investment in 135 business bankers and banker tools to drive growth; and –
Inflationary pressures on salaries and wages and third party vendor costs, largely offset by lower investment
spend on non-UNITE initiatives. Impairment charge of $245 million • The impairment charge of 23 basis points of
average loans compared to 14 basis points in the prior year. The charge reflects higher overlays, an increase in
the downside scenario and new IAPs in the wholesale & retail trade sector. • Credit quality metrics improved with
stressed exposures to TCE decreasing 55 basis points to 5.01%, mostly within the property sector. The
proportion of impaired exposures to TCE decreased 18 basis points to 0.50%.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 281 Institutional Institutional Net profit increased 15% to $1,575 million. Pre-
provision profit increased 6% to $2,161 million with the inclusion of the merchants business following
compositional changes to segments in Full Year 2025. Full Year 2024 comparatives have not been restated.
Excluding this impact, pre-provision profit increased 2%, with a 5% rise in operating income more than offsetting
an 11% increase in operating expenses. The growth in operating income reflects lending growth and higher
earnings on capital. The 11% increase in operating expenses was driven by increased investment spend,
including the step up of UNITE and higher software amortisation, in addition to an increase in bankers to support
growth. Net interest income up 8% • Solid balance sheet growth more than offset a decline in the net interest
margin. The net interest margin contracted 5 basis points, including a benefit from Markets and composition
changes. Excluding this, the net interest margin declined 13 basis points reflecting an increase in funding costs,
in part due to lending growth outpacing deposit growth, and lending spreads contracted reflecting market
dynamics. These were partly offset by higher returns on hedged capital; • Loans increased 17% to $117.7 billion
from strengthening relationships with existing clients, predominantly in the infrastructure, property and energy
sectors. Offshore lending where there is a clear nexus to Australia or New Zealand also contributed to growth;
and • Deposits increased 10% to $131.4 billion driven by transactional, term products and savings accounts. The
growth reflects a targeted strategy to maintain strength in the public sector and grow in financial institutions. Non-
interest income up 10% • Non-interest income increased 10% to $1,395 million. Excluding the impact of
composition changes, non-interest income increased 2%. This was driven by: – Higher fee income from a larger
loan book; and – A modest increase in Markets reflecting higher sales and risk management income including
rates and foreign exchange. Expenses up 12% • Expenses were up 12% to $1,647 million. Excluding the impact
of composition changes, expenses increased 11%. Movements reflected: – Higher investment costs including
software amortisation from prior investments and the ramp up of UNITE; and – Inflationary pressures on salaries
and wages as well as an increase in front-line staff to support relationships and lending growth. Impairment
benefit of $1 million • Impairment benefit of $1 million, compared to a $120 million charge in the prior year. The
benefit was driven by revisions to economic forecasts partly offset by new IAPs within the service sector. •
Stressed exposures to TCE improved 6 basis points to 0.70% driven by portfolio growth and lower stress in the
wholesale & retail trade and transport & storage sectors. The proportion of impaired exposures to TCE
deteriorated modestly to 0.09%.
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282 WESTPAC GROUP 2025 ANNUAL REPORT SEGMENT REPORTING New Zealand New Zealand All
figures are in NZ$ unless otherwise stated. Net profit increased 13% to $1,197 million, including a credit
impairment benefit. Pre-provision profit increased 8% to $1,618 million, reflecting an 8% increase in operating
income which more than offset a 7% increase in operating expenses. Operating income reflected growth in
lending and a higher net interest margin, while operating expenses were driven by higher staff expenses, third
party vendor costs, software amortisation and higher investment spend. Net interest income up 9% • The net
interest margin increased 15 basis points, reflecting improved housing lending spreads and higher returns on
transaction deposits and capital balances. This was partly offset by competition for term deposits and lower
business lending spreads from competitive pressures. • Loans increased 4%, primarily driven from housing
growth. Business conditions continue to reflect a challenging economic environment. Key drivers included: –
Mortgage growth of 5%, represents 0.9x RBNZ housing system growth. Expectations for the RBNZ to continue to
cut interest rates drove a shift in customers preference to shorter fixed rate tenors and variable rate loans; and –
Business lending growth of 2% reflecting higher corporate and medium sized business lending. This was partly
offset by a decline in agriculture and institutional lending. • Deposits increased 2% to $81.0 billion, reflecting an
increase in savings and transaction balances as customers preferred to retain funds in at call accounts in a falling
interest rate environment. The contraction in term deposits reflected a reduction in Institutional term deposits as
growth in higher quality household deposits was achieved. Non-interest income down 3% • Non-interest income
declined 3% to $270 million reflecting lower cards income. Expenses up 7% • Operating expenses increased 7%,
reflecting: – Higher staff expenses and third-party vendor costs; – Increase in technology investment to enhance
core infrastructure and digital capability; and – Higher software amortisation. Impairment benefit of $44 million •
The impairment benefit to average loans was 4 basis points, compared to a charge of 3 basis points in the prior
year. The benefit was driven by write-backs and a CAP benefit, largely in the mortgages portfolio. • Stressed
exposures to TCE decreased 26 basis points to 1.47% mostly due to lower watchlist exposures in the agriculture
sector. Impaired exposures to TCE increased by 3 basis points to 0.19%.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 283 Group Businesses Group Businesses Net loss of $161 million compared to a
net profit of $227 million in the prior year. Pre-provision profit of $40 million compared to a profit of $513 million in
the prior year, including a modest impact from segment compositional changes in Full Year 2025. Full Year 2024
comparatives have not been restated. Excluding composition changes, pre-provision profit also decreased 92%
reflecting higher operating expenses. Net operating income down 1% • Income was down $9 million reflecting
composition changes. Excluding this impact, operating income decreased $158 million reflecting a decline in
income on surplus capital as interest rates reduced. Expenses up 58% • Operating expenses increased 58% or
$464 million. Excluding compositional changes, operating expenses increased 34% or $323 million reflecting: – A
$273 million restructuring charge to support targeted productivity initiatives through the Fit for Growth program;
and – Increases in certain employee provisions and remediation costs.
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284 WESTPAC GROUP 2025 ANNUAL REPORT REVIEW OF EARNINGS: 2024 - 2023 Group performance
Review of earnings: 2024 - 2023 Group performance $7.0BN Statutory net profit down 3% on FY23 $7.1BN Net
profit excluding Notable Items down 3% on FY23 Statutory net profit for 2024 was $6,990 million, a decrease of
3% on the prior year. Excluding Notable Items, net profit decreased of 3% and pre-provision profit declined by 4%
with operating income stable while operating expenses increased 7%. Operating income reflected solid loan
growth constrained by a modest decline in net interest margin. The increase in operating expenses was driven by
higher software amortisation and technology costs along with the impact of closing RAMS to new business. Net
interest income increased 2% as an increase in average interest earnings assets more than offset a 2 basis point
decline in net interest margin, from 1.95% to 1.93%. Excluding Notable Items net interest income increased 3%
with stronger Treasury and Markets performance and lending growth offsetting a modest decline in net interest
margin. Average interest earning assets increased 3% with growth in business lending and owner-occupied
mortgages, partly offset by auto finance loan runoff. The deposit to loan ratio increased to 83.5%, with customer
deposit growth of 5% broadly funding loan growth during the year. Non-interest income decreased by 15%. The
contribution to revenue from business sold was $140 million in the prior period. This related to Advance Asset
Management Limited, BT's superannuation business and Westpac Life Insurance Ltd prior to their exit. Excluding
Notable Items and the impact of businesses sold in the prior period, non-interest income decreased 5% driven by
reduction on other income attributable to losses on commodity and FX derivatives. Operating expenses were 2%
higher. Excluding Notable Items operating expenses increased by 7% mainly due to higher software amortisation,
higher third-party technology vendor expenses and costs related to closing RAMS to new business. The
reduction in operating expenses was partly offset by Cost Reset actions. Credit impairment charges of $537
million represented 7 basis points of average loans, down from 9 basis points in the prior year. The charge
reflected the impact of: • Higher inflation, rising interest rates and expectation of slowing economic activity; and •
Deterioration in credit quality metrics through the year including increased stressed exposures in mortgages and
institutional lending. The effective tax rate of 30.8% was slightly above the Australian corporate tax rate of 30%
due to certain non tax deductible expenses. The Board determined a final ordinary dividend of 76 cents per
share. The FY24 ordinary dividends of $1.51 per share were 9 cents or 6% higher than the ordinary dividends in
the prior year and represented a payout ratio of 74.6%. The 2024 final ordinary dividend was fully franked.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 285 Segment performance Segment performance Consumer Net profit of $2,184
million was $461 million or 17% lower. • Net-interest income declined 7% reflecting a 18 basis point reduction in
the net interest margin driven by price competition in mortgages and narrower deposit spreads; • Non-interest
income rose 1% reflecting the higher credit card fees which was partly offset by higher customer remediation
costs.; • Operating expenses rose 6% driven by higher wage and vendor services inflation and increased
amortisation, offset by a simpler operating model; and • Impairments charge of $248 million was slightly higher
than previous year reflecting higher mortgage and consumer loan delinquencies, which was partly offset by
reductions in mortgage overlay. 31% Contribution to Group profit Business and Wealth Net profit of $2,356 million
was $270 million or 13% higher. • Net-interest income increased 7% reflecting 18 basis point increase to net
interest margin as rising interest rates supported higher deposit spreads and returns on both hedged deposits
and capital; • Non-interest income declined 5% due to lower merchant fees and auto finance fees; • Operating
expenses increased 7% due to inflationary pressures on salaries and vendor costs, higher investment in BizEdge
and investment in business bankers; and • Impairment charge of $142 million reflected a less favourable outlook
for commercial property which was offset by a reduction in the downside scenario weight in First Half 2024. Auto
finance continued to run-down with $4.2 billion remaining at 30 September 2024. Platforms funds under
advisement increased by 11% reflecting higher equity markets valuation and dividend distributions. 34%
Contribution to Group profit Westpac Institutional Bank Net profit of $1,367 million was $30 million or 2% higher. •
Net-interest income increased by 16% driven by growth in loans of 9% and a 4 basis point increase to net interest
margin which benefited from higher interest rates which supported loan and deposit spreads and returns on
capital • Non-interest income declined 7% driven by lower sales and risk management income and a reduction
from derivative valuation adjustments driven by tightening credit spreads; • Operating expenses increased by
11% reflecting higher software amortisation from investment and higher inflationary pressures on salaries and
wages; and • Impairment charge of $120 million was slightly higher than previous year driven by a higher CAP
charge reflecting an increase in stressed exposures and revised economic projections. 20% Contribution to
Group profit Westpac New Zealand Net profit of NZ$1,055 million was NZ$92 million or 10% higher than 2023,
primarily driven by higher returns on both transaction deposits and capital balances, and higher non-interest
income from investment income from increased activity. This was partly offset by inflationary pressures on
salaries and wages, and increased investment for regulatory activities. 14% Contribution to Group profit
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286 WESTPAC GROUP 2025 ANNUAL REPORT REVIEW OF EARNINGS: 2024 - 2023 Segment performance
(Continued) Group Businesses Net profit of $110 million was $129 million lower than 2023. • Higher net-interest
income reflecting increase in treasury earnings due to favourable positioning for interest rate volatility; and •
Lower operating expenses due to favourable employee provision movements, and lower consulting and third-
party costs. For further discussion and analysis of the financial year ended 30 September 2024 compared to
2023, please refer to “Group Performance” and “Segment Reporting” on pages 276-313 in our Annual Report on
Form 20-F for the fiscal year ended 30 September 2024, which was filed with the US Securities and Exchange
Commission on 5 November 2024 and which sections are incorporated herein by reference.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 287 FINANCIAL STATEMENTS Financial statements The financial statements
section is presented on pages 1-135.
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288 WESTPAC GROUP 2025 ANNUAL REPORT EXHIBIT 15.4 Cybersecurity management and governance
Exhibit 15.4 Cybersecurity management and governance The Group Chief Information Security Officer (CISO)
reports to the Chief Information Officer, a member of the Executive Team. The CISO is a member of key
cybersecurity governance forums and is responsible for leading and managing the cybersecurity function, setting
the cybersecurity strategy and direction, and overseeing the implementation, operation and execution of the
cybersecurity policies, standards, controls, and capabilities, including for third parties who are engaged to
manage Westpac’s information assets. We have implemented a range of cybersecurity processes, technologies,
and controls to facilitate our efforts to assess, identify, and manage such risks, including regular network and
endpoint monitoring, access controls, vulnerability assessments, penetration testing, annual information security
training for employees, and tabletop cybersecurity incident response exercises. We have an Incident Response
Plan which guides the actions we are to take in the event of a suspected or confirmed cybersecurity incident. The
plan includes processes to triage, investigate, contain, and remediate the incident. The plan is designed to
contain and minimise the impact of a cybersecurity incident on our customers. We also maintain a Business
Continuity Plan, which provides procedures for maintaining the continuity of critical business processes in the
event of business interruption, including any that involve cybersecurity incidents which may significantly impact
our operations. Our cybersecurity team is informed about and monitors the prevention, mitigation, detection and
remediation of cybersecurity threats through their management of, and participation in, the strategy processes.
The CISO and the cybersecurity team have relevant expertise and experience in various aspects of
cybersecurity, such as strategy, governance, risk management, threat intelligence, incident response, security
operations, architecture, engineering, testing and awareness. The CISO has extensive experience in information
technology and cybersecurity. The cybersecurity team consists of qualified and competent professionals who
have diverse backgrounds and skills in cybersecurity. The cybersecurity team regularly participates in training,
education, and development programs to enhance their knowledge and skills to keep up with the evolving
cybersecurity landscape. As part of its cybersecurity risk management, Westpac engages with third parties for
independent reviews and assessments of its cybersecurity policies, standards, controls, and capabilities. These
third parties include external auditors, industry bodies, consultants, and specialists. The purpose of these
engagements is to obtain assurance, validation, benchmarking and improvement recommendations on Westpac's
cybersecurity posture and maturity. Westpac holds ISO27001, PCI-DSS and SOC 2 Type 2 certifications for
areas of the Group. The CISO escalates key cybersecurity risk and control issues, as appropriate, to the
Technology Risk Committee (TRC) or to the appropriate Line of Business and Divisional Committees. The TRC, a
senior management committee, oversees the technology function and technology risk management. The TRC
reports to the Group Executive Risk Committee (GRISKCO), the executive management committee responsible
for overseeing the group's strategy, performance, and risk management. The Board of Directors receives periodic
updates from the CIO and the CISO regarding cybersecurity matters. The Board is ultimately responsible for the
oversight of the cybersecurity risk management. The Board delegates some of its oversight responsibilities to the
Board Risk Committee, which assists the Board in the oversight of cybersecurity risk management. During the
period covered by this 2025 Annual Report, we have not experienced any cybersecurity incidents which have
materially affected or are reasonably likely to materially affect our business strategy, results of operations, or
financial condition. However, institutions like ours, as well as our employees, service providers and other third
parties have experienced a significant increase in information security and cybersecurity risk in recent years and
will likely continue to be the target of increasing sophisticated cyber-related attacks.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 289 ADDITIONAL INFORMATION READING THIS REPORT SHAREHOLDER
INFORMATION OTHER WESTPAC BUSINESS INFORMATION GLOSSARY OF ABBREVIATIONS AND
DEFINED TERMS
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290 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Disclosure regarding forward-
looking statements Reading this report Disclosure regarding forward-looking statements This 2025 Annual Report
contains statements that constitute ‘forward-looking statements’ within the meaning of Section 21E of the US
Securities Exchange Act of 1934. Forward-looking statements are statements that are not historical facts.
Forward-looking statements appear in a number of places in this 2025 Annual Report and include statements
regarding our current intent, belief or expectations with respect to our business and operations, macro and micro
economic and market conditions, results of operations and financial condition and performance, capital adequacy
and liquidity and risk management, including, without limitation, future loan loss provisions and financial support
to certain borrowers, forecasted economic indicators and performance metric outcomes, indicative drivers,
climate- and other sustainability-related statements, commitments, targets, projections and metrics, and other
estimated and proxy data. Words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’,
‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’, ‘forecast’, ‘assumption’,
‘projection’, ‘target’, ‘goal’, ‘guidance’, ‘objective’, ‘ambition’ or other similar words, are used to identify forward-
looking statements. These statements reflect our current views on future events and are subject to change,
certain known and unknown risks, uncertainties and assumptions and other factors which are, in many instances,
beyond our control (and the control of our officers, employees, agents, and advisors), and have been made
based on management’s and/or the Board's current expectations or beliefs concerning future developments and
their potential effect upon Westpac. Forward-looking statements may also be made, verbally or in writing, by
members of Westpac’s management or Board in connection with this 2025 Annual Report. Such statements are
subject to the same limitations, uncertainties, assumptions and disclaimers set out in this document. There can
be no assurance that future developments or performance will align with our expectations or that the effect of
future developments on us will be those anticipated. Actual results could differ materially from those we expect or
which are expressed or implied in forward-looking statements, depending on various factors including, but not
limited to: • information security breaches, including cyberattacks • geopolitical events, conflicts, trade tensions
(including the adoption of protectionist trade measures (including tariffs) or sanctions) or other changes in
countries in which Westpac, its customers or suppliers operate • the effect of, and changes in, laws, regulations,
policies, supervisory activities, regulator expectations and industry codes of practice • actual or alleged failure to
comply with laws, regulations or regulatory policy • the effectiveness of our risk management, including our
framework, policies, processes, practices, governance, accountability and culture • the reliability and security of
Westpac’s technology and risks associated with changes to technology systems that we use or are used in
connection with our business • climate-related risks (including physical, transition and liability risks) that may arise
from changing climate patterns, and risks associated with the transition to a lower carbon economy (including
Westpac’s ambition to become a net-zero, climate resilient bank) or risks from legal and regulatory action, or risks
from other sustainability factors such as human rights and natural capital • the failure to comply with financial
crime obligations (including anti-money laundering and counter-terrorism financing laws, anti-bribery and
corruption laws, sanctions laws and tax transparency laws) • internal and external events which may adversely
impact our reputation • litigation and other legal proceedings and regulator investigations and enforcement
actions (including the liability of Westpac to pay significant monetary settlements and legal costs in order to
resolve a dispute) • adverse funding market conditions including market volatility, disruptions and decreased
liquidity • inadequate capital levels • material downturn or shock to the economies of Australia or New Zealand, or
a slowdown in economic growth or change in policy settings of Australia’s major trading partners • declines in
asset markets or an increase in impairments and provisioning • failure to maintain our credit ratings • the effects
of market competition and competition regulatory policy impacting the areas in which we operate • operational
risks resulting from inadequate or failed internal processes, people and systems or from external events • market
risk resulting from changes in market factors, such as foreign exchange rates, commodity prices, equity prices,
credit spreads and interest rates • poor data quality, data availability, data controls, data retention or data
destruction • evaluation and implementation of strategic decisions, priorities and objectives including to simplify,
streamline, diversify, innovate, separate, divest, retain, acquire, invest and integrate • failure to recruit and retain
key executives, employees and Directors • changes to our critical accounting assumptions and estimates; and
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 291 Disclosure regarding forward-looking statements (Continued) • various other
factors including those beyond Westpac’s control. The above list is not exhaustive. For certain other factors that
may impact on forward-looking statements made by Westpac, refer to Risk Management (page 180) and the
2025 Risk Factors. When relying on forward-looking statements to make decisions with respect to Westpac,
investors and others relying on information in this 2025 Annual Report should carefully consider the foregoing
factors and other uncertainties and events. Except as required by law, we assume no obligation to revise or
update any forward-looking statements in this 2025 Annual Report, whether from new information, future events,
conditions, or otherwise, after the date of this 2025 Annual Report. Further important information regarding
climate change and sustainability-related statements This 2025 Annual Report contains forward-looking
statements and other representations relating to ESG topics, including but not limited to climate change, net zero,
climate resilience, natural capital, emissions intensity, human rights and other sustainability-related statements,
commitments, targets, projections, scenarios, risk and opportunity assessments, pathways, forecasts, estimated
projections and other proxy data. These are subject to known and unknown risks, and there are significant
uncertainties, limitations, risks and assumptions in the metrics and modelling on which these statements rely. In
particular, the metrics, methodologies and data relating to climate and sustainability are rapidly evolving and
maturing, including variations in approaches and common standards in estimating and calculating emissions, and
uncertainty around future climate- and sustainability-related policy and legislation. There are inherent limits in the
current scientific understanding of climate change and its impacts. Some material contained in this 2025 Annual
Report may include information including, without limitation, methodologies, modelling, scenarios, reports,
benchmarks, tools and data, derived from publicly available or government or industry sources that have not
been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability
of such information. There is a risk that the estimates, judgements, assumptions, views, models, scenarios or
projections used by Westpac may turn out to be incorrect. These risks may cause actual outcomes, including the
ability to meet commitments and targets, to differ materially from those expressed or implied in this 2025 Annual
Report and the 2025 Risk Factors. The climate- and sustainability-related forward-looking statements made in
this 2025 Annual Report and the 2025 Risk Factors are not guarantees or predictions of future performance and
Westpac gives no representation, warranty or assurance (including as to the quality, accuracy or completeness of
these statements), nor guarantee that the occurrence of the events expressed or implied in any forward-looking
statement will occur. There are usually differences between forecast and actual results because events and
actual circumstances frequently do not occur as forecast and these differences may be material. Westpac will
continue to review and develop its approach to ESG as this subject area matures.
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292 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Non-AAS financial measures Non-
AAS financial measures Westpac’s statutory results are prepared in accordance with AAS and are also compliant
with IFRS. In assessing Westpac’s performance and that of our operating segments we use a number of financial
measures, including amounts, measures and ratios that are presented on a non-AAS basis, as described below.
Non-AAS financial measures and ratios do not have standardised meanings under AAS. As such they are
unlikely to be directly comparable to similar measures presented by other companies and should not be viewed in
isolation from, or as a substitute for, the AAS results. Our non-AAS measures fall within the following categories:
MEASURE/RATIO DESCRIPTION FURTHER INFORMATION Income statement measures excluding Notable
Items The net interest income, non-interest income, operating expenses and segment reporting sections of this
report include performance measures that exclude Notable Items. Notable Items are items that management
believes are not reflective of Westpac’s ongoing business performance. Details of Notable Items are included in
Impact of Notable Items (page 294). Performance measures which are adjusted for one or more of these items
include: • Net interest income • Non-interest income (including net fee income, net wealth management, trading
income and other income) • Net operating income (including net interest income and non-interest income) •
Operating expenses (including staff expenses, occupancy expenses, technology expenses and other expenses) •
Pre-provision profit • Income tax (expense)/benefit • Net profit • Net profit attributable to owners of WBC • Net
profit attributable to owners of WBC (adjusted for RSP dividends) • Core net interest income • Core NIM
Management considers this information useful as these measures provide a view that reflects Westpac’s ongoing
business performance. See pages 297-298 Pre-provision profit Pre-provision profit is net profit/(loss) excluding
credit impairment (charges)/benefits and income tax (expense)/benefit. This is calculated as net interest income
plus non-interest income less operating expenses. This includes (charges)/benefits relating to provisions and
impairment other than from expected credit losses. Management considers this information useful as this
measure provides readers with a view of the impact of the operating performance of Westpac. See page 298
Basic earnings per share excluding Notable Items and Diluted earnings per share excluding Notable Items Basic
earnings per share excluding Notable Items is calculated as net profit attributable to owners of WBC (adjusted for
RSP dividends) excluding Notable Items divided by the weighted average number of ordinary shares on issue
during the period, adjusted for treasury shares. Diluted earnings per share is calculated by adjusting the basic
earnings per share excluding Notable Items by assuming all dilutive potential ordinary shares are converted.
Management considers this information useful as these measures provide a view of the basic and diluted
earnings per share based on the ongoing operating performance of Westpac. See pages 297-298
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 293 Non-AAS financial measures (Continued) MEASURE/RATIO DESCRIPTION
FURTHER INFORMATION Core net interest income and core net interest margin (NIM) Core net interest income
is calculated as net interest income excluding Treasury and Markets income. Core NIM is calculated as core net
interest income (annualised where applicable) divided by average interest earning assets. Management
considers this information useful as these measures provide a view of the underlying performance of Westpac’s
net interest income and margin, for lending, deposit and wholesale funding. See page 298 Adjusted dividend
payout ratio Calculated as ordinary dividend paid/declared on issued shares (net of Treasury shares) divided by
the net profit attributable to owners of WBC (adjusted for RSP dividends) excluding Notable Items. Management
considers this information useful as it provides a view of the dividend payout ratio based on the ongoing
operating performance of Westpac. See pages 297-298 Expense to income ratio excluding Notable Items
Calculated as operating expenses excluding Notable Items divided by net operating income excluding Notable
Items. Management considers this information useful as this measure provides a view of the efficiency of the
ongoing operating performance of Westpac. See page 297 Average tangible ordinary equity, Return on average
tangible ordinary equity (ROTE) and ROTE excluding Notable Items Average tangible ordinary equity is
calculated as average ordinary equity less average intangible assets (excluding capitalised software). Return on
average tangible ordinary equity is calculated as net profit attributable to owners of WBC adjusted for RSP
dividends (annualised where applicable) divided by average tangible ordinary equity. ROTE excluding Notable
Items is calculated as net profit attributable to owners of WBC adjusted for RSP dividends (annualised where
applicable) excluding Notable Items divided by average tangible ordinary equity. Management considers this
information useful as these measures are commonly used as a performance measure by WBC, investors,
analysts and others in assessing Westpac's application of equity. See pages 297-298 Return on average ordinary
equity (ROE) excluding Notable Items ROE excluding Notable Items is calculated as net profit attributable to
owners of WBC adjusted for RSP dividends (annualised where applicable) excluding Notable Items divided by
average ordinary equity. Management considers this information useful as this measure provides a view that
reflects Westpac’s ongoing business performance. See pages 297-298
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294 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Non-AAS financial measures
(Continued) Impact of Notable Items To assist in explaining our financial performance, we report Notable Items,
which represent certain items that are not considered to be reflective of Westpac's ongoing business
performance. Notable Items fall into the following categories: • Unrealised fair value gains/(losses) on economic
hedges that do not qualify for hedge accounting • Net ineffectiveness on qualifying hedges • Large items that are
not reflective of Westpac's ordinary operations. In individual reporting periods large items may include: –
Provisions for remediation, litigation, fines and penalties – The impact of asset sales and revaluations – The
write-down of assets (including goodwill and capitalised software) – Restructuring costs In determining dividends,
the impact of Notable Items is typically excluded. Notable Items reduced net profit after tax in 2025 by $56 million
(2024: $123 million, 2023: $173 million). Details of Notable Items (post tax) impacting on 2025 results are
presented below: Category Net profit impact Detail 2025 Unrealised fair value gains/ (losses) on economic
hedges that do not qualify for hedge accounting $43 million reduction The unrealised fair value loss on hedges of
accrual accounted term funding transactions for the year was $43 million. This represents a timing difference for
the statutory results but does not affect profits over the life of the hedge. Net ineffectiveness on qualifying hedges
$13 million reduction The net ineffectiveness on qualifying hedges of $13 million for the period arises from the fair
value movement in these hedges which reverses over time and therefore does not affect profits over time. Total
Notable Items $56 million reduction Details of Notable Items (post tax) impacting on 2024 results are presented
below: 2024 Unrealised fair value gains/ (losses) on economic hedges that do not qualify for hedge accounting
$128 million reduction The unrealised fair value loss on hedges of accrual accounted term funding transactions
for the year was $128 million. This represents a timing difference for the statutory results but does not affect
profits over the life of the hedge. Net ineffectiveness on qualifying hedges $5 million benefit The net
ineffectiveness on qualifying hedges of $5 million for the period arises from the fair value movement in these
hedges which reverses over time and therefore does not affect profits over time. Total Notable Items $123 million
reduction Details of Notable Items (post tax) impacting on 2023 results are presented below:
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 295 Non-AAS financial measures (Continued) Category Net profit impact Detail
2023 The impact of asset sales and revaluations $256 million benefit Gain on the sale of Advance Asset
Management Limited of $243 million. This also includes a tax refund related to transaction and separation costs.
Provision for remediation, litigation, fines and penalties $176 million reduction Net operating income - $103
million • Decrease in revenue due to additional repayments to institutional, business and superannuation
customers. Expenses - $132 million • An increase in provisions for costs associated with customer remediation
programs, regulatory investigations and litigation of $90 million. • Estimated costs for the one-off levy for the
Commonwealth’s Compensation Scheme of Last Resort of $42 million. Restructuring costs $140 million reduction
Costs associated with accelerating organisation simplification and the discontinuance of specialist businesses.
The write-down of assets $87 million reduction The write-down of property assets and costs related to the
reduction in corporate office space and accelerated consolidation of branches. Unrealised fair value gains/
(losses) on economic hedges that do not qualify for hedge accounting $92 million reduction The unrealised fair
value loss on hedges of accrual accounted term funding transactions for the year was $92 million. This
represents a timing difference for the statutory results but does not affect profits over the life of the hedge. Net
ineffectiveness on qualifying hedges $66 million benefit The net ineffectiveness on qualifying hedges of $66
million for the period arises from the fair value movement in these hedges which reverses over time and therefore
does not affect profits over time. Total Notable Items $173 million reduction
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296 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Non-AAS financial measures
(Continued) A summary of 2025, 2024 and 2023 Notable Items is presented below: $m Hedging items Large
items Total 2025 Net interest income (93) - (93) Non-interest income 13 - 13 Net operating income (80) - (80)
Operating expenses - - - Pre-provision profit (80) - (80) Income tax (expense)/benefit and NCI 24 - 24 Net
profit/(loss) (56) - (56) 2024 Net interest income (163) - (163) Non-interest income (12) - (12) Net operating
income (175) - (175) Operating expenses - - - Pre-provision profit (175) - (175) Income tax (expense)/benefit and
NCI 52 - 52 Net profit/(loss) (123) - (123) 2023 Net interest income (19) (78) (97) Non-interest income (18) 218
200 Net operating income (37) 140 103 Operating expenses - (460) (460) Pre-provision profit (37) (320) (357)
Income tax (expense)/benefit and NCI 11 173 184 Net profit/(loss) (26) (147) (173)
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ADDITIONAL INFORMATION 297 Non-AAS financial measures (Continued) Calculation of Non-AAS financial
measures Details of the calculation of non-AAS financial measures not disclosed elsewhere are provided below:
Reconciliation of statutory income statement performance measures to performance measures excluding Notable
Items $m Statutory measure Hedging items Large items Ex Notable Items measure 2025 Net interest income
19,380 93 - 19,473 Trading income 717 (13) - 704 Income tax (expense)/benefit and NCI (3,128) (24) - (3,152)
2024 Net interest income 18,753 163 - 18,916 Trading income 704 12 - 716 Income tax (expense)/benefit and
NCI (3,117) (52) - (3,169) 2023 Net interest income 18,317 19 78 18,414 Net wealth management income 562 -
10 572 Trading income 717 18 15 750 Other income 404 - (243) 161 Operating expenses (10,692) - 460 (10,232)
Income tax (expense)/benefit and NCI (3,110) (11) (173) (3,294) Expense to income ratio (excluding Notable
Items) $m 2025 2024 2023 Operating expenses 11,916 10,944 10,692 Less: Notable Items (operating expenses)
- - (460) Operating expenses excluding Notable Items 11,916 10,944 10,232 Net operating income 22,384 21,588
21,645 Add/(less): Notable Items (net interest income) 93 163 97 Add/(less): Notable Items (non-interest income)
(13) 12 (200) Net operating income excluding Notable Items 22,464 21,763 21,542 Expense to income ratio
(excluding Notable Items) 53.04% 50.29% 47.50% Net profit attributable to owners of WBC (adjusted for RSP
dividends) excluding Notable Items $m 2025 2024 2023 2022 2021 Net profit attributable to owners of WBC
6,916 6,990 7,195 5,694 5,458 Adjustment for restricted share dividends (6) (7) (5) (3) (2) Net profit attributable to
owners of WBC (adjusted for RSP dividends) 6,910 6,983 7,190 5,691 5,456 Add/(less): Notable Items (post tax)
56 123 173 874 1,495 Net profit attributable to owners of WBC (adjusted for RSP dividends) excluding Notable
Items 6,966 7,106 7,363 6,565 6,951 Average tangible ordinary equity and Return on average tangible ordinary
equity (ROTE) $m 2025 2024 2023 2022 2021 Net profit attributable to owners of WBC (adjusted for RSP
dividends) 6,910 6,983 7,190 5,691 5,456 Average ordinary equity 71,544 71,493 71,229 70,268 70,849 Less:
Intangible assets (average) (10,586) (10,758) (10,664) (10,182) (11,310) Add: Computer software (average)
2,518 2,680 2,552 1,992 2,361 Average tangible ordinary equity 63,476 63,415 63,117 62,078 61,900 Return on
average tangible ordinary equity (ROTE) 10.89% 11.01% 11.39% 9.17% 8.81%
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298 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Non-AAS financial measures
(Continued) ROE (excluding Notable Items) and ROTE (excluding Notable Items) $m 2025 2024 2023 2022 2021
Net profit attributable to owners of WBC (adjusted for RSP dividends) excluding Notable Items 6,966 7,106 7,363
6,565 6,951 Average ordinary equity 71,544 71,493 71,229 70,268 70,849 Average tangible ordinary equity
63,476 63,415 63,117 62,078 61,900 Return on average ordinary equity (excluding Notable Items) 9.74% 9.94%
10.34% 9.34% 9.81% Return on average tangible ordinary equity (excluding Notable Items) 10.97% 11.21%
11.67% 10.58% 11.23% Pre-provision profit $m 2025 2024 2023 Net interest income 19,380 18,753 18,317 Non-
interest income 3,004 2,835 3,328 Operating expenses (11,916) (10,944) (10,692) Pre-provision profit 10,468
10,644 10,953 Adjusted dividend payout ratio $m 2025 2024 2023 Ordinary dividend paid/declared on issued
shares (net of Treasury shares) 5,227 5,208 4,975 Divided by: Net profit attributable to owners of WBC (adjusted
for RSP dividends) excluding Notable Items 6,966 7,106 7,363 Adjusted dividend payout ratio (excluding Notable
Items)a 75.04% 73.29% 67.57% a. Dividend used in calculation not subjected to rounding. Core net interest
income (excluding Notable Items) and core NIM (excluding Notable Items) $m 2025 2024 2023 Net interest
income 19,380 18,753 18,317 Less: Treasurya (946) (893) (710) Less: Markets (243) (252) (166) Core net
interest income 18,191 17,608 17,441 Add: Non-hedging Notable Itemsa - - 78 Core net interest income
(excluding Notable Items) 18,191 17,608 17,519 Average interest earning assets 1,002,856 970,055 940,449
Core NIM 1.81% 1.82% 1.85% Core NIM (excluding Notable Items) 1.81% 1.82% 1.86% a. Hedging Notable
Items are included in the Treasury net interest income. Earnings per ordinary share (excluding Notable Items)
2025 2024 2023 Basic Diluted Basic Diluted Basic Diluted Net profit attributable to owners of WBC (adjusted for
RSP dividends) ($m) 6,910 7,358 6,983 7,466 7,190 7,595 Add/(less): Notable Items ($m) 56 56 123 123 173
173 Adjusted net profit attributable to owners of WBC (adjusted for RSP dividends) (excluding Notable Items)
($m) 6,966 7,414 7,106 7,589 7,363 7,768 Adjusted weighted average number of ordinary shares 3,422 3,690
3,476 3,895 3,502 3,891 Earnings per ordinary share (excluding Notable Items) (cents) 203.6 200.9 204.4 194.8
210.3 199.6
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 299 Currency of presentation, exchange rates and certain definitions Currency of
presentation, exchange rates and certain definitions In this Annual Report, ‘financial statements’ means our
audited consolidated balance sheets as at 30 September 2025 and 30 September 2024 and income statements,
statements of comprehensive income, changes in equity and cash flows for each of the years ended 30
September 2025, 2024 and 2023 together with accompanying notes which are included in this Annual Report.
Our financial year ends on 30 September. As used throughout this Annual Report, the financial year ended 30
September 2025 is referred to as 2025 and other financial years are referred to in a corresponding manner. All
dollar values in this report are in Australian dollars unless otherwise noted or the context otherwise requires,
references to ‘dollars’, ‘dollar amounts’, ‘$’, ‘AUD’ or ‘A$’ are to Australian dollars. References to ‘US$’, ‘USD’ or
‘US dollars’ are to United States dollars, references to ‘NZ$’, ‘NZD’ or ‘NZ dollars’ are to New Zealand dollars and
references to 'GBP' are to British Pound Sterling. Refer to Exchange rates (page 299) for information regarding
the rates of exchange between the Australian dollar and the US dollar applied by Westpac as part of its operating
activities for 2025, 2024 and 2023. Any discrepancies between totals and sums of components in tables
contained in this Annual Report are due to rounding. Percentage (%) movements are shown as % unless
otherwise stated to all the tables in this document and represent the percentage change between 2025 and 2024.
Information on terms, acronyms and calculations used in this report are provided in the Glossary of Abbreviations
and Defined Terms (page 324). Exchange rates Exchange rates For each of the years indicated, the high, low,
average and year-end noon buying rates1 for Australian dollars were: Year Ended 30 September (US$ per
A$1.00) 2026a 2025 2024 2023 2022 2021 High 0.6615 0.6895 0.6934 0.7102 0.7598 0.7953 Low 0.6588
0.5980 0.6290 0.6219 0.6437 0.7006 Averageb n/a 0.6411 0.6620 0.6651 0.7097 0.7490 Close (on 30
September)c n/a 0.6614 0.6934 0.6451 0.6437 0.7228 a. Through to 3 October 2025. On 3 October 2025, the
noon buying rate was A$1.00 = 0.6615. b. The average is calculated by using the average of the exchange rates
on the last day of each month during the period. c. The noon buying rate as such date may differ from the rate
used in the preparation of our consolidated financial statements at such date. Refer to Note 1(a) to the financial
statements. For each of the months indicated, the high and low noon buying rates for Australian dollars were:
Month (US$ per A$1.00) October 2025a September 2025 August 2025 July 2025 June 2025 May 2025 High
0.6615 0.6678 0.6546 0.6601 0.6573 0.6489 Low 0.6588 0.6514 0.6421 0.6430 0.6423 0.6369 a. Through to 3
October 2025. On 3 October 2025, the noon buying rate was A$1.00 = 0.6615. Exchange rates against A$
Twelve months to/as at 30 Sept 2025 2024 2023 Currency Average Spot Average Spot Average Spot US$
0.6442 0.6599 0.6594 0.6929 0.6662 0.6467 GBP 0.4932 0.4907 0.5201 0.5176 0.5435 0.5284 NZ$ 1.0981
1.1377 1.0846 1.0885 1.0846 1.0738 1. The noon buying rate in New York City for cable transfers in Australian
dollars as certified for customs purposes by the Federal Reserve Bank of New York.
For personal use only
300 WESTPAC GROUP 2025 ANNUAL REPORT READING THIS REPORT Exchange rates (Continued) Impact
of exchange rate movements on Westpac's results 2025 vs 2024 2024 vs 2023 Growth FX impact ($m) Growth
ex- FX Growth FX impact ($m) Growth ex- FX Net interest income 3% (32) 4% 2% (2) 2% Non-interest income
6% 3 6% (15%) 9 (15%) Net operating income 4% (29) 4% - 7 - Operating expenses 9% 8 9% 2% (9) 2% Pre-
provision profit (2%) (21) (2%) (3%) (2) (3%) Impairment (charges)/benefits (21%) - (21%) (17%) - (17%) Profit
before income tax expense (1%) (21) - (2%) (2) (2%) Income tax expense - 6 - - - - Profit after income tax
expense (1%) (15) (1%) (3%) (2) (3%) Profit attributable to non-controlling interests (NCI) - - - (100%) - (100%)
Net profit attributable to owners of WBC (1%) (15) (1%) (3%) (2) (3%) Exchange rate risk on future NZ$ earnings
Westpac’s policy in relation to the hedging of the future earnings of Westpac’s New Zealand division is to manage
the economic risk for volatility of the NZ$ against A$. Westpac manages these flows over a time horizon under
which up to 100% of the expected earnings for the following 12 months and 50% of the expected earnings for the
subsequent 12 months can be hedged. NZ Future Earnings hedges are only implemented when AUD/NZD is
trading at the low end of the range or is expected to move higher over the next 6 months. As at 30 September
2025, Westpac has 1 hedge in place covering one month of forecast up to October 2025, for NZ$96 million, with
an average all-in rate of 1.0686.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 301 Selected consolidated financial and operating data Selected consolidated
financial and operating data The information contained in the Strategic Review and Performance Review sections
as of, and for the financial years ended, 30 September 2025, 2024 and 2023 were derived from the Financial
Report, except for certain data that are derived from filings with our regulators or data that are specifically
attributed to other sources. This information is not audited and should be read together with our audited
information contained in the Financial Report section of this Annual Report Audited information KPMG has
audited the financial statements as of 30 September 2025 and the accompanying notes contained within the
Financial Report of this Annual Report and has issued an unmodified audit report. PwC has audited the financial
statements as of 30 September 2024 and for each of the two years in the period ended 30 September 2024,
including the accompanying notes, contained within the Financial Report of this Annual Report and has issued an
unmodified audit report. All other sections of the Annual Report have not been subject to audit by KPMG or PwC.
The financial information contained in this Annual Report includes information extracted from the audited financial
statements together with information that has not been audited. Presentation changes Presentation changes
Comparative information has been revised where appropriate to conform to changes in presentation in the
current year and to enhance comparability. References to websites References to websites Information contained
in or accessible through the websites mentioned in this Annual Report does not form part of this Annual Report
unless we specifically state that it is incorporated by reference and forms part of this Annual Report.
For personal use only
302 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Shareholder Information
Westpac ordinary shares Top 20 ordinary shareholders as at 30 September 2025 Number of Fully Paid Ordinary
Shares % Held HSBC Custody Nominees (Australia) Limited 908,063,861 26.55 J P Morgan Nominees Australia
Pty Limited 551,713,949 16.13 Citicorp Nominees Pty Limited 238,581,359 6.98 BNP Paribas Nominees Pty Ltd
<Agency Lending A/C> 69,237,624 2.02 BNP Paribas NOMS Pty Ltd 39,172,236 1.15 National Nominees
Limited 30,044,569 0.88 HSBC Custody Nominees (Australia) Limited <NT-Comnwlth Super Corp A/C>
24,425,199 0.71 Pacific Custodians Pty Limited <WBC Plans Ctrl A/C> 18,561,498 0.54 Netwealth Investments
Limited <Wrap Services A/C> 17,743,987 0.52 BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd>
16,741,749 0.49 Australian Foundation Investment Company Limited 13,282,500 0.39 Citicorp Nominees Pty
Limited <Colonial First State Inv A/C> 12,527,449 0.37 HSBC Custody Nominees (Australia) Limited 6,844,937
0.20 IOOF Investment Services Limited <IPS Superfund A/C> 6,824,296 0.20 BNP Paribas NOMS (NZ) Ltd
6,265,861 0.18 Argo Investments Limited 5,807,648 0.17 IOOF Investment Services Limited <IOOF IDPS A/C>
5,445,695 0.16 Mutual Trust Pty Ltd 4,900,519 0.14 BNP Paribas Nominees Pty Ltd <Clearstream> 4,850,892
0.14 UBS Nominees Pty Ltd 4,117,750 0.12 Total of Top 20 registered shareholdersa 1,985,153,578 58.04 a. As
recorded on the holder register by holder reference number. As at 30 September 2025, there were 571,807
holders of our ordinary shares compared to 585,176 in 2024 and 654,993 in 2023. Ordinary shareholders with a
registered address in Australia held approximately 99% of our fully paid share capital at 30 September 2025
(approximately 96% in 2024 and 98% in 2023). Substantial shareholders as at 30 September 2025 As at 30
September 2025, BlackRock Group (comprised of BlackRock Inc. and its subsidiaries), State Street Corporation
(comprised of State Street Corporation and its subsidiaries), and The Vanguard Group (comprised of The
Vanguard Group, Inc. and its controlled entities) had a ‘substantial holding’ of our shares within the meaning of
the Corporations Act. A person has a substantial holding of our shares if the total votes attached to our voting
shares in which they or their associates have relevant interests is 5% or more of the total number of votes
attached to all our voting shares. The above table of the Top 20 ordinary shareholders includes shareholders that
may hold shares for the benefit of third parties. BlackRock Group has been a substantial shareholder since 4
April 2017 (221,964,794 equity securities as at 24 March 2020). State Street Corporation has been a substantial
shareholder since 20 July 2022 (226,119,322 equity securities as at 6 August 2024). The Vanguard Group has
been a substantial shareholder since 12 May 2022 (206,182,459 equity securities as at 18 December 2024).
Control of registrant We are not directly or indirectly owned or controlled by any other corporation(s) or by any
foreign government. Refer to the section ‘Exchange controls and other limitations affecting security holders’,
which provides information on the Foreign Acquisitions and Takeovers Act 1975, Corporations Act 2001 and
Financial Sector (Shareholdings) Act 1998, which impose limits on equity holdings. At 30 September 2025, our
Directors and Executive Officers owned beneficially, directly or indirectly, an aggregate of 1,396,727 (0.0408%) of
the fully paid ordinary shares outstanding.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 303 Westpac ordinary shares (Continued) Analysis by range of holdings of
ordinary shares as at 30 September 2025 Number of Shares Number of Holders of Fully Paid Ordinary Shares %
Number of Fully Paid Ordinary Shares % Number of Holders of Share Options and Rights 1 – 1,000 329,053
57.55 111,830,426 3.27 24,237 1,001 – 5,000 182,310 31.88 438,783,353 12.83 334 5,001 – 10,000 35,838 6.27
252,056,538 7.37 56 10,001 – 100,000 24,030 4.20 503,446,729 14.72 124 100,001 and over 576 0.10
2,114,236,259 61.81 16 Totals 571,807 100.00 3,420,353,305 100.00 24,767 There were 10,654 shareholders
holding less than a marketable parcel ($500) based on a market price of $38.970 per share at the close of trading
on 30 September 2025. Voting rights of ordinary shares Holders of our fully paid ordinary shares have, at general
meetings (including special general meetings), one vote on a show of hands and, upon a poll, one vote for each
fully paid ordinary share held by them. Westpac Capital Notes 7 Westpac Capital Notes 7 Top 20 holders of
Westpac Capital Notes 7 as at 30 September 2025 Number of Westpac Capital Notes 7 % Held BNP Paribas
Nominees Pty Ltd <Agency Lending A/C> 1,026,588 5.96 HSBC Custody Nominees (Australia) Limited 940,798
5.46 Citicorp Nominees Pty Limited 815,764 4.74 Citicorp Nominees Pty Limited <143212 NMMT Ltd A/C>
582,886 3.38 BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd> 471,502 2.74 Netwealth Investments
Limited <Wrap Services A/C> 278,062 1.61 Mutual Trust Pty Ltd 225,749 1.31 Netwealth Investments Limited
<Super Services A/C> 157,401 0.91 Dimbulu Pty Ltd 150,000 0.87 HSBC Custody Nominees (Australia) Limited
- GSI EDA 145,000 0.84 HSBC Custody Nominees (Australia) Limited - A/C 2 121,392 0.71 J P Morgan
Nominees Australia Pty Limited 113,876 0.66 Marrosan Investments Pty Ltd 110,000 0.64 Bond Street
Custodians Limited <BENQLD - D79772 A/C> 100,000 0.58 IOOF Investment Services Limited <IPS Superfund
A/C> 97,983 0.57 A R E Investments Pty Limited 95,070 0.55 BNP Paribas Nominees Pty Ltd <Pitcher Partners>
90,706 0.53 IOOF Investment Services Limited <IOOF IDPS A/C> 85,152 0.49 BNP Paribas NOMS Pty Ltd
83,460 0.48 V S Access Pty Ltd <V S Access A/C> 64,624 0.38 Total of Top 20 registered shareholdersa
5,756,013 33.41 a. As recorded on the holder register by holder reference number.
For personal use only
304 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Westpac Capital Notes 7
(Continued) Analysis by range of holdings of Westpac Capital Notes 7 as at 30 September 2025 Number of
Shares Number of Holders of Westpac Capital Notes 7 % Number of Westpac Capital Notes 7 % 1 – 1,000
15,028 87.98 5,255,759 30.50 1,001 – 5,000 1,840 10.77 3,902,320 22.65 5,001 – 10,000 130 0.76 959,124 5.57
10,001 – 100,000 70 0.41 1,973,142 11.45 100,001 and over 13 0.08 5,139,018 29.83 Totals 17,081 100.00
17,229,363 100.00 There were 3 security holders holding less than a marketable parcel ($500) of Westpac
Capital Notes 7 based on a market price of $102.310 at the close of trading on 30 September 2025.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 305 Westpac Capital Notes 8 Westpac Capital Notes 8 Top 20 holders of Westpac
Capital Notes 8 as at 30 September 2025 Number of Westpac Capital Notes 8 % Held BNP Paribas Nominees
Pty Ltd <Agency Lending A/C> 3,839,682 21.94 HSBC Custody Nominees (Australia) Limited 1,132,055 6.47
Citicorp Nominees Pty Limited 737,308 4.21 BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd>
375,688 2.15 Netwealth Investments Limited <Wrap Services A/C> 279,869 1.60 Mutual Trust Pty Ltd 253,060
1.44 Dimbulu Pty Ltd 200,000 1.14 HSBC Custody Nominees (Australia) Limited - A/C 2 170,985 0.98 IOOF
Investment Services Limited <IPS Superfund A/C> 155,483 0.89 J P Morgan Nominees Australia Pty Limited
142,015 0.81 Netwealth Investments Limited <Super Services A/C> 103,248 0.59 IOOF Investment Services
Limited <IOOF IDPS A/C> 95,697 0.55 BNP Paribas Nominees Pty Ltd <Pitcher Partners> 75,644 0.43 BNP
Paribas Nominees Pty Ltd <IB Au Noms Retailclient> 62,722 0.36 Megt (Australia) Ltd 61,516 0.35 V S Access
Pty Ltd <V S Access A/C> 52,220 0.30 Invia Custodian Pty Limited <Wehi - Investment Pool A/C> 43,735 0.25
Adirel Holdings Pty Ltd 33,000 0.19 HSBC Custody Nominees (Australia) Limited - GSI EDA 30,000 0.17 Bond
Street Custodians Limited <RVK - D93096 A/C> 29,684 0.17 Total of Top 20 registered shareholdersa 7,873,611
44.99 a. As recorded on the holder register by holder reference number. Analysis by range of holdings of
Westpac Capital Notes 8 as at 30 September 2025 Number of Shares Number of Holders of Westpac Capital
Notes 8 % Number of Westpac Capital Notes 8 % 1 – 1,000 13,873 88.47 4,795,543 27.40 1,001 – 5,000 1,628
10.38 3,241,084 18.52 5,001 – 10,000 118 0.75 854,108 4.88 10,001 – 100,000 52 0.33 1,219,872 6.97 100,001
and over 11 0.07 7,389,393 42.23 Totals 15,682 100.00 17,500,000 100.00 There were 5 security holders holding
less than a marketable parcel ($500) of Westpac Capital Notes 8 based on a market price of $104.260 at the
close of trading on 30 September 2025.
For personal use only
306 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Westpac Capital Notes 9
Westpac Capital Notes 9 Top 20 holders of Westpac Capital Notes 9 as at 30 September 2025 Number of
Westpac Capital Notes 9 % Held BNP Paribas Nominees Pty Ltd <Agency Lending A/C> 3,813,523 25.27 HSBC
Custody Nominees (Australia) Limited 1,062,218 7.04 Citicorp Nominees Pty Limited 529,056 3.51 BNP Paribas
Nominees Pty Ltd <HUB24 Custodial Serv Ltd> 496,495 3.29 Bond Street Custodians Limited <BENQLD -
D79696 A/C> 275,000 1.82 Netwealth Investments Limited <Wrap Services A/C> 264,110 1.75 HSBC Custody
Nominees (Australia) Limited - A/C 2 208,821 1.38 Netwealth Investments Limited <Super Services A/C>
156,358 1.04 Mutual Trust Pty Ltd 115,435 0.77 Dimbulu Pty Ltd 100,000 0.66 BNP Paribas Nominees Pty Ltd
<Pitcher Partners> 90,565 0.60 Royal Freemasons' Benevolent Institution 82,000 0.54 IOOF Investment Services
Limited <IPS Superfund A/C> 66,758 0.44 Marrosan Investments Pty Ltd 50,000 0.33 IOOF Investment Services
Limited <IOOF IDPS A/C> 49,893 0.33 Bond Street Custodians Limited <BENQLD - D80279 A/C> 40,832 0.27
Pesutu Pty Ltd <Karedis Super A/C> 32,826 0.22 Sir Moses Montefiore Jewish Home <Income A/C> 30,000 0.20
HSBC Custody Nominees (Australia) Limited - GSI EDA 30,000 0.20 Morris Commercial P/L 30,000 0.20 Total of
Top 20 registered shareholdersa 7,523,890 49.86 a. As recorded on the holder register by holder reference
number. Analysis by range of holdings of Westpac Capital Notes 9 as at 30 September 2025 Number of
Securities Number of Holders of Westpac Capital Notes 9 % Number of Westpac Capital Notes 9 % 1 – 1,000
8,979 86.30 3,534,436 23.42 1,001 – 5,000 1,270 12.21 2,644,532 17.53 5,001 – 10,000 93 0.89 677,896 4.49
10,001 – 100,000 53 0.51 1,313,000 8.70 100,001 and over 9 0.09 6,921,016 45.86 Totals 10,404 100.00
15,090,880 100.00 There were 4 security holders holding less than a marketable parcel ($500) of Westpac
Capital Notes 9 based on a market price of $104.410 at the close of trading on 30 September 2025.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 307 Westpac Capital Notes 10 Westpac Capital Notes 10 Top 20 holders of
Westpac Capital Notes 10 as at 30 September 2025 Number of Westpac Capital Notes 10 % Held HSBC
Custody Nominees (Australia) Limited 1,554,642 8.88 Citicorp Nominees Pty Limited 1,210,928 6.92 BNP
Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd> 569,907 3.26 HSBC Custody Nominees (Australia)
Limited - A/C 2 460,971 2.63 Netwealth Investments Limited <Wrap Services A/C> 432,275 2.47 Mutual Trust Pty
Ltd 206,659 1.18 Bond Street Custodians Limited <BENQLD - D79696 A/C> 200,000 1.14 Netwealth
Investments Limited <Super Services A/C> 164,482 0.94 J P Morgan Nominees Australia Pty Limited 163,742
0.94 IOOF Investment Services Limited <IPS Superfund A/C> 137,745 0.79 Tandom Pty Ltd 125,499 0.72 BNP
Paribas Nominees Pty Ltd <Pitcher Partners> 124,953 0.71 Elmore Super Pty Ltd <The Peabody Super Fund
A/C> 105,900 0.60 Dimbulu Pty Ltd 100,000 0.57 V S Access Pty Ltd <V S Access A/C> 90,000 0.51 IOOF
Investment Services Limited <IOOF IDPS A/C> 69,196 0.40 BNP Paribas Nominees Pty Ltd <IB Au Noms
Retailclient> 57,622 0.33 J C Family Investments Pty Limited <J Herrington Super Fund A/C> 54,007 0.31 John
E Gill Trading Pty Ltd 50,000 0.29 Willimbury Pty Ltd 50,000 0.29 Total of Top 20 registered shareholdersa
5,928,528 33.88 a. As recorded on the holder register by holder reference number. Analysis by range of holdings
of Westpac Capital Notes 10 as at 30 September 2025 Number of Securities Number of Holders of Westpac
Capital Notes 10 % Number of Westpac Capital Notes 10 % 1 – 1,000 11,346 83.20 4,600,533 26.29 1,001 –
5,000 2,028 14.87 4,316,725 24.67 5,001 – 10,000 166 1.22 1,215,936 6.95 10,001 – 100,000 84 0.62 1,909,103
10.91 100,001 and over 13 0.09 5,457,703 31.18 Totals 13,637 100.00 17,500,000 100.00 There were 4 security
holders holding less than a marketable parcel ($500) of Westpac Capital Notes 10 based on a market price of
$106.170 at the close of trading on 30 September 2025. Voting rights of Westpac Capital Notes 7, Westpac
Capital Notes 8, Westpac Capital Notes 9 and Westpac Capital Notes 10 In accordance with the terms of issue,
holders of Westpac Capital Notes 7, Westpac Capital Notes 8, Westpac Capital Notes 9 and Westpac Capital
Notes 10 have no right to vote at any general meeting of Westpac before conversion into Westpac ordinary
shares. If conversion occurs (in accordance with the applicable terms of the relevant AT1 instrument), holders of
Westpac Capital Notes 7, Westpac Capital Notes 8, Westpac Capital Notes 9 or Westpac Capital Notes 10 (as
applicable) will become holders of Westpac ordinary shares and have the voting rights that attach to Westpac
ordinary shares. Unquoted securities Unquoted securities Westpac also has the following unquoted securities on
issue: USD 1.25 billion AT1 securities (comprised of 3 individual notes) which are all held by Cede & Co. as
nominee for the Depository Trust Company. See Note 14 (page 56) to the financial statements for further
information.
For personal use only
308 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Information on domicile
Information on domicile Domicile1 of ordinary shareholders as at 30 September 2025 Number of Holders % of
Holdings Number of Issued Shares and Options % of Issued Shares and Options Australia 550,677 96.30
3,378,371,138 98.77 New Zealand 17,872 3.13 31,179,232 0.91 United Kingdom 1,291 0.23 2,377,259 0.07
United States 477 0.08 1,214,872 0.04 Other overseas 1,490 0.26 7,210,804 0.21 Total 571,807 100.00
3,420,353,305 100.00 Domicile1 of holders of Westpac Capital Notes 7 as at 30 September 2025 Number of
Holders % of Holdings Number of Issued Westpac Capital Notes 7 % of Issued Westpac Capital Notes 7
Australia 17,061 99.89 17,216,020 99.92 New Zealand 3 0.02 1,460 0.01 United Kingdom 4 0.02 3,077 0.02
United States 6 0.03 5,026 0.03 Other overseas 7 0.04 3,780 0.02 Total 17,081 100.00 17,229,363 100.00
Domicile1 of holders of Westpac Capital Notes 8 as at 30 September 2025 Number of Holders % of Holdings
Number of Issued Westpac Capital Notes 8 % of Issued Westpac Capital Notes 8 Australia 15,664 99.89
17,492,398 99.96 New Zealand 2 0.01 400 0.00 United Kingdom 3 0.02 2,073 0.01 United States 5 0.03 2,828
0.02 Other overseas 8 0.05 2,301 0.01 Total 15,682 100.00 17,500,000 100.00 Domicile1 of holders of Westpac
Capital Notes 9 as at 30 September 2025 Number of Holders % of Holdings Number of Issued Westpac Capital
Notes 9 % of Issued Westpac Capital Notes 9 Australia 10,395 99.91 15,078,156 99.92 New Zealand 0 0.00 0
0.00 United Kingdom 0 0.00 0 0.00 United States 3 0.03 4,200 0.03 Other overseas 6 0.06 8,524 0.05 Total
10,404 100.00 15,090,880 100.00 Domicile1 of holders of Westpac Capital Notes 10 as at 30 September 2025
Number of Holders % of Holdings Number of Issued Westpac Capital Notes 10 % of Issued Westpac Capital
Notes 10 Australia 13,624 99.91 17,490,551 99.95 New Zealand 1 0.01 100 0.00 United Kingdom 2 0.01 952
0.01 United States 3 0.02 970 0.01 Other overseas 7 0.05 7,427 0.03 Total 13,637 100.00 17,500,000 100.00 1.
Based on registered address holder.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 309 Financial calendar Financial calendar Westpac shares are listed on the
securities exchanges in Australia (ASX) and New Zealand (NZX). Westpac Capital Notes 7, Westpac Capital
Notes 8, Westpac Capital Notes 9 and Westpac Capital Notes 10 are listed on the ASX. Important dates to note
are set out below, subject to change. Payment of any distribution, dividend or interest payment is subject to the
relevant payment conditions and the key dates for each payment will be confirmed to the ASX for securities listed
on the ASX. Westpac Ordinary Shares (ASX code: WBC, NZX code: WBC) Ex-dividend date for final dividend 6
November 2025 Record date for final dividend 7 November 2025 Annual General Meeting 11 December 2025
Final dividend payable 19 December 2025 Financial Half Year end 31 March 2026 Interim Results and dividend
announcement 5 May 2026 Ex-dividend date for interim dividend 8 May 2026 Record date for interim dividend 11
May 2026 Interim dividend payable 26 June 2026 Financial Year end 30 September 2026 Final Results and
dividend announcement 2 November 2026 Ex-dividend date for final dividend 5 November 2026 Record date for
final dividend 6 November 2026 Annual General Meeting 16 December 2026a Final dividend payable 21
December 2026 a. Details regarding the location of the meeting and the business to be dealt with will be
contained in a Notice of Meeting sent to shareholders in November before the meeting. Westpac Capital Notes 7
(ASX code: WBCPJ) Ex-date for quarterly distribution 11 December 2025 Record date for quarterly distribution 12
December 2025a Payment date for quarterly distribution 22 December 2025 Ex-date for quarterly distribution 12
March 2026 Record date for quarterly distribution 13 March 2026a Payment date for quarterly distribution 23
March 2026b Ex-date for quarterly distribution 11 June 2026 Record date for quarterly distribution 12 June 2026a
Payment date for quarterly distribution 22 June 2026 Ex-date for quarterly distribution 11 September 2026 Record
date for quarterly distribution 14 September 2026 Payment date for quarterly distribution 22 September 2026 Ex-
date for quarterly distribution 11 December 2026 Record date for quarterly distribution 14 December 2026
Payment date for quarterly distribution 22 December 2026 a. Adjusted to immediately preceding business day as
record date falls on a non-ASX business day or a date on which banks are not open for general business in
Sydney. b. Adjusted to next business day as payment date falls on a non-ASX business day or a date on which
banks are not open for general business in Sydney.
For personal use only
310 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Financial calendar
(Continued) Westpac Capital Notes 8 (ASX code: WBCPK) Ex-date for quarterly distribution 11 December 2025
Record date for quarterly distribution 12 December 2025a Payment date for quarterly distribution 22 December
2025b Ex-date for quarterly distribution 12 March 2026 Record date for quarterly distribution 13 March 2026
Payment date for quarterly distribution 23 March 2026b Ex-date for quarterly distribution 11 June 2026 Record
date for quarterly distribution 12 June 2026a Payment date for quarterly distribution 22 June 2026b Ex-date for
quarterly distribution 10 September 2026 Record date for quarterly distribution 11 September 2026a Payment
date for quarterly distribution 21 September 2026 Ex-date for quarterly distribution 10 December 2026 Record
date for quarterly distribution 11 December 2026a Payment for quarterly distribution 21 December 2026 a.
Adjusted to immediately preceding business day as record date falls on a non-ASX business day or a date on
which banks are not open for general business in Sydney. b. Adjusted to next business day as payment date falls
on a non-ASX business day or a date on which banks are not open for general business in Sydney. Westpac
Capital Notes 9 (ASX code: WBCPL) Ex-date for quarterly distribution 11 December 2025 Record date for
quarterly distribution 12 December 2025a Payment date for quarterly distribution 22 December 2025 Ex-date for
quarterly distribution 12 March 2026 Record date for quarterly distribution 13 March 2026a Payment date for
quarterly distribution 23 March 2026b Ex-date for quarterly distribution 11 June 2026 Record date for quarterly
distribution 12 June 2026a Payment date for quarterly distribution 22 June 2026 Ex-date for quarterly distribution
11 September 2026 Record date for quarterly distribution 14 September 2026 Payment date for quarterly
distribution 22 September 2026 Ex-date for quarterly distribution 11 December 2026 Record date for quarterly
distribution 14 December 2026 Payment date for quarterly distribution 22 December 2026 a. Adjusted to
immediately preceding business day as record date falls on a non-ASX business day or a date on which banks
are not open for general business in Sydney. b. Adjusted to next business day as payment date falls on a non-
ASX business day or a date on which banks are not open for general business in Sydney.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 311 Financial calendar (Continued) Westpac Capital Notes 10 (ASX code:
WBCPM) Ex-date for quarterly distribution 11 December 2025 Record date for quarterly distribution 12 December
2025a Payment date for quarterly distribution 22 December 2025 Ex-date for quarterly distribution 12 March 2026
Record date for quarterly distribution 13 March 2026a Payment date for quarterly distribution 23 March 2026b Ex-
date for quarterly distribution 11 June 2026 Record date for quarterly distribution 12 June 2026a Payment date for
quarterly distribution 22 June 2026 Ex-date for quarterly distribution 11 September 2026 Record date for quarterly
distribution 14 September 2026 Payment date for quarterly distribution 22 September 2026 Ex-date for quarterly
distribution 11 December 2026 Record date for quarterly distribution 14 December 2026 Payment date for
quarterly distribution 22 December 2026 a. Adjusted to immediately preceding business day as record date falls
on a non-ASX business day or a date on which banks are not open for general business in Sydney. b. Adjusted to
next business day as payment date falls on a non-ASX business day or a date on which banks are not open for
general business in Sydney.
For personal use only
312 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Exchange controls and other
limitations affecting security holders Exchange controls and other limitations affecting security holders Australian
exchange controls Australian laws control and regulate or permit the control and regulation of a broad range of
payments and transactions involving non-residents of Australia. Pursuant to a number of exemptions, authorities
and approvals, there are no general restrictions from transferring funds from Australia or placing funds to the
credit of non-residents of Australia. However, Australian foreign exchange controls are implemented from time to
time against prescribed countries, entities and persons. At the present time, these include: (a) withholding taxes
in relation to remittances or dividends (to the extent they are unfranked) and interest payments; (b) the financial
sanctions administered by the Department of Foreign Affairs and Trade (DFAT) in accordance with the
Autonomous Sanctions Act 2011 (Cth) and the Autonomous Sanctions Regulations 2011, specifically, in relation
to transactions involving the transfer of funds or payments to, by the order of, or on behalf of individuals or
entities designated by the Minister of Foreign Affairs as published on the DFAT Sanctions Webpage
(https://www.dfat.gov.au/ international-relations/security/sanctions); (c) the United Nations Security Council
(UNSC) financial sanctions administered by DFAT, including: – Terrorist Asset Freezing Regime In accordance
with the Charter of the United Nations Act 1945 (Cth) and the Charter of the United Nations (Dealings with
Assets) Regulations 2008, a person is prohibited from using or dealing with funds, financial assets or economic
resources of persons or entities listed as terrorists by the Minister for Foreign Affairs in the Commonwealth of
Australia Gazette. It is also a criminal offence to make assets available to such persons or entities; and –
Country-based sanctions Under the Charter of the United Nations Act 1945 and associated regulations, UNSC
financial sanctions have been implemented. It is an offence to use or deal with funds, financial assets or
economic resources of certain persons or entities associated with countries designated by the UNSC. It is also a
criminal offence to make assets available to such persons or entities. Limitations affecting security holders The
following Australian laws impose limitations on the right of non-residents or non-citizens of Australia to hold, own
or vote Westpac shares. Foreign Acquisitions and Takeovers Act 1975 Acquisitions of interests in shares in
Australian companies by foreign persons that meet certain thresholds are required to be notified to the Treasurer
of Australia (through the Foreign Investment Review Board) and to obtain a no objections notification under the
Foreign Acquisitions and Takeovers Act 1975 (Cth). That legislation applies to any acquisition by a foreign
person, including a corporation or group of associated foreign persons, which results in ownership of 20% or
more of the issued shares of an Australian company or the ability to control 20% or more of the total voting
power. In addition, the legislation applies to any acquisition by a foreign government investor of 10% or more of
the total voting power or ownership of an Australian company (or any interest if the foreign government investor
acquires any control or influence– for example the right to appoint a director). Further, this lower 10% or
control/influence threshold also applies to any acquisition by a foreign person, including a corporation or group of
associated foreign persons, insofar as Westpac Banking Corporation owns or operates a critical banking asset as
defined in the Security of Critical Infrastructure Act 2018 (Cth). The legislation requires any persons proposing to
make any such acquisition to first notify the Treasurer of their intention to do so. Where such an acquisition has
already occurred in the absence of a no objections notification, the Treasurer has the power to order divestment if
he considers the acquisition to be contrary to Australia’s national interest. Financial Sector (Shareholdings) Act
1998 The Financial Sector (Shareholdings) Act 1998 (Cth) imposes restrictions on shareholdings in Australian
financial sector companies (which includes Westpac). Under that legislation a person (including a corporation)
may not hold more than a 20% ‘stake’ in a financial sector company without prior approval from the Treasurer of
Australia. A person’s stake in a financial sector company is equal to the aggregate of the person’s voting power in
the company and the voting power of the person’s associates. The concept of voting power is broadly defined.
The Treasurer may approve a higher percentage stake if the Treasurer is satisfied that it is in the national interest
to do so. In addition, even if a person’s stake in a financial sector company does not exceed the 20% limit, the
Treasurer has the power to declare that a person has ‘practical control’ of a financial sector company and require
the person to relinquish that control or reduce their stake in that company. Corporations Act 2001 The
Corporations Act 2001 (Cth) prohibits any person (including a corporation) from acquiring a relevant interest in
our voting shares if, after the acquisition, that person or any other person would be entitled to exercise more than
20% of the voting power in our shares. The prohibition is subject to certain limited exceptions. In addition, under
the Corporations Act, a person is required to give a notice to us and to the ASX providing certain prescribed
information, including their name, address and details of their relevant interests in our voting shares if they begin
to have, or cease to have, a substantial holding in us, or if they already have a substantial holding and there is a
movement of at least 1% in their holding. Such notice must, generally, be provided within two business days after
the person becomes aware of that information. A person will have a substantial holding if the total votes attached
to our voting shares in which they or their associates have relevant interests is 5% or more of the total number of
votes attached to all our voting shares.
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 313 Exchange controls and other limitations affecting security holders (Continued)
The concepts of ‘associate’ and ‘relevant interest’ are broadly defined in the Corporations Act and investors are
advised to seek their own advice on their scope. In general terms, a person will have a relevant interest in a
share if they: (a) are the holder of that share; (b) have power to exercise, or control the exercise of, a right to vote
attached to that share; or (c) have power to dispose of, or control the exercise of a power to dispose of, that
share. It does not matter how remote the relevant interest is or how it arises. If two or more persons can jointly
exercise any one of these powers, each of them is taken to have that power. Nor does it matter that the power or
control is express or implied, formal or informal, exercisable either alone or jointly with someone else.
Enforceability of foreign judgments in Australia We are an Australian public corporation with limited liability. All of
our Directors and Executive Officers reside outside the US. Substantially all or a substantial portion of the assets
of all or many of such persons are located outside the US. As a result, it may not be possible for investors to
effect service of process within the US upon such persons or to enforce against them judgments obtained in US
courts predicated upon the civil liability provisions of the federal securities laws of the US. There may be doubt as
to the enforceability in Australia, in original actions or in actions for enforcement of judgments of US courts, of
civil liabilities predicated upon the federal securities laws of the US. Taxation Taxation Australian taxation The
following discussion is a summary of certain Australian taxation implications of the ownership and disposition of
ordinary shares for shareholders holding their shares on capital account. This discussion is based on the laws in
force at the date of the Annual Report and the Convention between the Government of Australia and the
Government of the United States of America for the Avoidance of Double Taxation and The Prevention of Fiscal
Evasion with Respect to Taxes on Income (the Tax Treaty), and is subject to any changes in Australian law and
any change in the Tax Treaty occurring after that date. This discussion is intended only as a descriptive summary
and does not purport to be a complete analysis of all the potential Australian tax implications of owning and
disposing of ordinary shares. The specific tax position of each investor will determine the applicable Australian
income tax implications for that investor and we recommend that investors consult their own tax advisers
concerning the implications of owning and disposing of ordinary shares. Taxation of dividends Under the
Australian dividend imputation system, Australian tax paid at the company level is imputed (or allocated) to
shareholders by means of imputation credits (also called franking credits) which attach to dividends paid by the
company to the shareholder. Such dividends are termed ‘franked dividends’. When an Australian resident
individual shareholder receives a franked dividend, the shareholder may be entitled, depending upon their
particular circumstances, to a tax offset to the extent of the franking credits, which may be offset against the
Australian income tax payable by the shareholder. An Australian resident shareholder may, in certain
circumstances, be entitled to a refund of excess tax offsets. The extent to which a dividend is franked typically
depends upon a company’s available franking credits at the time of payment of the dividend. Accordingly, a
dividend paid to a shareholder may be wholly or partly franked or wholly unfranked. Fully franked dividends paid
to non-resident shareholders are exempt from Australian dividend withholding tax. Dividends paid to a non-
resident shareholder which are not fully franked are subject to dividend withholding tax at the rate of 30% (unless
reduced by a double tax treaty) to the extent they are unfranked. In the case of residents of the US who are
entitled to the benefits of the Tax Treaty and are beneficially entitled to the dividends, the rate is reduced to 15%
under the Tax Treaty, provided the shares are not effectively connected with a permanent establishment or a fixed
base of the non-resident in Australia through which the non-resident carries on business in Australia or provides
independent personal services. In the case of residents of the US that have a permanent establishment or fixed
base in Australia where the shares in respect of which the dividends are paid are attributable to that permanent
establishment or fixed base, there is no dividend withholding tax. Rather, such dividends will be taxed on a net
assessment basis and, where the dividends are franked, entitlement to a tax offset may arise. Fully franked
dividends paid to non-resident shareholders and dividends that have been subject to dividend withholding tax
should not be subject to any further Australian income tax. There are circumstances where a shareholder may
not be entitled to the benefit of franking credits. The application of these rules depends upon the shareholder’s
own circumstances, including the period during which the shares are held and the extent to which the
shareholder is ‘at risk’ in relation to their shareholding. Gain or loss on disposition of shares Generally, any profit
made by a resident shareholder on disposal of shares will be subject to capital gains tax. However, if the
shareholder is regarded as a trader or speculator, or carries on a business of investing for profit, any profits may
be taxed as ordinary income. A discount may be available on capital gains on shares held for 12 months or more
by Australian resident individuals, trusts or complying superannuation entities. The discount is one half for
individuals and trusts, and one third for complying superannuation entities. Companies
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314 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Taxation (Continued) are not
eligible for the capital gains tax discount. For shares acquired prior to 21 September 1999, an alternative basis of
calculation of the capital gain may be available which allows the use of an indexation formula. Normal rates of
income tax would apply to capital gains so calculated. Any capital loss can only be offset against capital gains.
Excess capital losses may be able to be carried forward for offset against future capital gains. Generally, subject
to two exceptions, a non-resident disposing of shares in an Australian public company who holds those shares on
capital account will be free from income tax in Australia. The main exceptions are: • shares held as part of a trade
or business conducted through a permanent establishment in Australia. In such a case, any profit on disposal
would be assessable to tax. Losses may give rise to capital losses or be otherwise deductible; and • shares held
in companies where the shareholder and its associates have held at the time of disposal (or at least 12 months in
the 24 months prior to disposal) a holding of 10% or more in the company and more than 50% of the company’s
assets are represented by interests in Australian real property (which is unlikely to be the case for Westpac). In
such a case, capital gains tax would apply. United States taxation The following discussion is a summary of
certain US federal income tax implications of the ownership and disposition of ordinary shares by US holders (as
defined below) that hold the ordinary shares as capital assets. This discussion is based on the US Internal
Revenue Code of 1986, as amended, its legislative history, existing and proposed regulations, published rulings
and court decisions, and the Tax Treaty, all as currently in effect and all of which are subject to change, possibly
on a retroactive basis. This discussion is intended only as a descriptive summary. It does not purport to be a
complete analysis of all the potential US federal income tax consequences of owning and disposing of ordinary
shares and does not address US federal income tax considerations that may be relevant to US holders subject to
special treatment under US federal income tax law (such as banks, insurance companies, real estate investment
trusts, regulated investment companies, dealers in securities, brokers, tax-exempt entities, retirement plans,
certain former citizens or residents of the US, persons holding ordinary shares as part of a straddle, hedge,
conversion or other integrated transaction, persons that have a ‘functional currency’ other than the US dollar,
persons that own 10% or more (by vote or value) of our stock, persons that generally mark their securities to
market for US federal income tax purposes or persons that receive ordinary shares as compensation). As this is
a complex area, we recommend investors consult their own tax advisers concerning the US federal, state and/or
local implications of owning and disposing of ordinary shares. For the purposes of this discussion you are a US
holder if you are a beneficial owner of ordinary shares and you are for US federal income tax purposes: • an
individual who is a citizen or resident of the US; • a corporation created or organised in or under the laws of the
US or any state thereof or the District of Columbia; • an estate, the income of which is subject to US federal
income taxation regardless of its source; or • a trust, if a US court can exercise primary supervision over the
trust’s administration and one or more US persons are authorised to control all substantial decisions of the trust,
or certain electing trusts that were in existence on 19 August 1996 and were treated as domestic trusts on that
date. If an entity treated as a partnership for US federal income tax purposes owns the ordinary shares, the US
federal income tax implications of the ownership and disposition of ordinary shares will generally depend upon
the status and activities of such partnership and its partners. Such an entity should consult its own tax adviser
concerning the US federal income tax implications to it and its partners of owning and disposing of ordinary
shares. Taxation of dividends If you are a US holder, you must include in your income as a dividend, the gross
amount of any distributions paid by us out of our current or accumulated earnings and profits (as determined for
US federal income tax purposes) without reduction for any Australian tax withheld from such distribution. We
have not maintained and do not plan to maintain calculations of earnings and profits for US federal income tax
purposes, and as a result, you may need to include the entire amount of any distribution in income as a dividend.
If you are a non-corporate US holder, dividends paid to you that constitute qualified dividend income may be
taxable to you at a preferential tax rate so long as certain holding period and other requirements are met.
Dividends we pay with respect to the ordinary shares generally will be qualified dividend income so long as we
are not a passive foreign investment company (PFIC) during the taxable year in which the dividend is paid or the
preceding taxable year. Each non-corporate US holder should consult their own tax advisor regarding the
possible applicability of the reduced tax rate and the related restrictions and special rules. Dividends paid by us
constitute ordinary income that must generally be included in income when actually or constructively received.
Such dividends will not be eligible for the dividends-received deduction generally allowed to corporate
shareholders with respect to dividends received from US corporations. The amount of the dividend that you must
include in your income as a US holder will be the US dollar value of the Australian dollar payments made,
determined at the spot Australian dollar/US dollar rate on the date the dividend distribution is included in your
income, regardless of whether the payment is in fact converted into US dollars. Generally, any gain or loss
resulting from currency exchange fluctuations during the period from the date you include the dividend payment
in income to the date you convert the payment into US dollars will be treated as ordinary income or loss and will
not be eligible for the special tax rate applicable to qualified dividend income. This gain or loss generally will be
income from sources within the US for foreign tax
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 315 Taxation (Continued) credit limitation purposes. Distributions on an ordinary
share in excess of current and accumulated earnings and profits, as determined for US federal income tax
purposes, will be treated as a non-taxable return of capital to the extent of your basis in such ordinary share and
thereafter as capital gain. Subject to certain limitations, Australian tax withheld in accordance with the Tax Treaty
and paid over to Australia may be claimed as a foreign tax credit against your US federal income tax liability.
Special rules apply in determining the foreign tax credit limitation with respect to dividends that are subject to a
preferential tax rate. A US holder that does not elect to claim a US foreign tax credit for Australian income tax
withheld may instead claim a deduction for such withheld tax, but only for a taxable year in which the US holder
elects to do so with respect to all non-US income taxes paid or accrued in such taxable year. Dividends paid by
us generally will be income from sources outside the US for foreign tax credit limitation purposes. Under the
foreign tax credit rules, dividends may, depending on your circumstances, generally be ‘passive category’ or
‘general category’ income for purposes of computing the foreign tax credit. The rules relating to US foreign tax
credits are very complex, and each US holder should consult its own tax adviser regarding the application of such
rules. Taxation of capital gains If you sell, exchange or otherwise dispose of your ordinary shares, you will
generally recognise a capital gain or loss for US federal income tax purposes equal to the difference between the
US dollar value of the amount that you realise and your tax basis, determined in US dollars, in your ordinary
shares. A capital gain of a non-corporate US holder is generally taxed at a reduced rate if the holder has a
holding period greater than one year. The deductibility of capital losses is subject to limitations. Such capital gain
or loss generally will be income from sources within the US, for foreign tax credit limitation purposes. Medicare
tax In addition to regular US federal income tax, certain US holders that are individuals, estates or trusts are
subject to a 3.8% tax on all or a portion of their ‘net investment income’, which may include all or a portion of their
dividend income and net gain from the sale, exchange or other disposition of their ordinary shares. Passive
foreign investment company considerations We believe that we will not be treated as a passive foreign
investment company (PFIC) for US federal income tax purposes, and this discussion assumes we are not a
PFIC. However, the determination as to whether we are a PFIC is made annually at the end of each taxable year
and therefore could change. If we were to be treated as a PFIC, a US holder of ordinary shares could be subject
to certain adverse tax consequences. Disclosure requirements for specified foreign financial assets Individual US
holders (and certain US entities specified in US Internal Revenue Service (IRS) guidance) who, during any
taxable year, hold any interest in any specified foreign financial asset, generally will be required to file with their
US federal income tax returns certain information on IRS Form 8938 if the aggregate value of all such assets
exceeds certain specified amounts. ‘Specified foreign financial asset’ generally includes any financial account
maintained with a non-US financial institution and may also include the ordinary shares if they are not held in an
account maintained with a financial institution. Substantial penalties may be imposed, and the period of
limitations on assessment and collection of US federal income taxes may be extended, in the event of a failure to
comply. US holders should consult their own tax advisers as to the possible application to them of this filing
requirement. Information reporting and backup withholding Under certain circumstances, information reporting
and/or backup withholding may apply to US holders with respect to payments on or the proceeds from the sale,
exchange or other disposition of the ordinary shares, unless an applicable exemption is satisfied. Backup
withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be
allowed as a refund or credit against a US holder’s US federal income tax liability if the required information is
furnished by the US holder on a timely basis to the IRS.
For personal use only
316 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Our constitution Our
constitution Overview We were incorporated in 1850 under the Bank of New South Wales Act 1850 (NSW), a
special piece of legislation passed by the New South Wales Parliament at a time when there was no general
companies’ legislation in Australia. On 23 August 2002, Westpac became registered under the Corporations Act
2001 (Cth) (Corporations Act) as a public company limited by shares. As part of the process of becoming a
company regulated under the Corporations Act, shareholders adopted a new constitution at the AGM on 15
December 2000, which came into operation on 23 August 2002. Our constitution has been subsequently
amended by shareholders on 15 December 2005, 13 December 2007, 13 December 2012 and 15 December
2021. Our objects and purposes Our constitution does not contain a statement of our objects and purposes. As a
company regulated by the Corporations Act, we have the legal capacity and powers of an individual both within
and outside Australia, and all the powers of a body corporate, including the power to issue and cancel shares, to
issue debentures, to distribute our property among our equity holders (either in kind or otherwise), to give security
by charging our uncalled capital, to grant a floating charge over our property and to do any other act permitted by
any law. Directors’ voting powers Under clause 9.11(a) of our constitution, subject to complying with the
Corporations Act regarding disclosure of and voting on matters involving material personal interests, our
Directors may: 1. hold any office or place of profit in our company, except that of auditor; 2. hold any office or
place of profit in any other company, body corporate, trust or entity promoted by our company or in which it has
an interest of any kind; 3. enter into any contract or arrangement with our company; 4. participate in any
association, institution, fund, trust or scheme for past or present employees or Directors of our company or
persons dependent on or connected with them; 5. act in a professional capacity (or be a member of a firm that
acts in a professional capacity) for our company, except as auditor; and 6. participate in, vote on and be counted
in a quorum for any meeting, resolution or decision of the Directors and be present at any meeting where any
matter is being considered by the Directors. Under clause 9.11(b) of our constitution, a Director may do any of the
above despite the fiduciary relationship of the Director’s office: 1. without any liability to account to our company
for any direct or indirect benefit accruing to the Director; and 2. without affecting the validity of any contract or
arrangement. Under the Corporations Act, however, a Director who has a material personal interest in any matter
to be considered at any Board meeting must not be present while the matter is being considered or vote on the
matter, unless the other Directors resolve to allow that Director to be present and vote or a declaration is made by
ASIC permitting that Director to participate and vote. These restrictions do not apply to a limited range of matters
set out in section 191(2) of the Corporations Act, where the Director’s interest: 1. arises because the Director is a
shareholder of the company and is held in common with other shareholders; 2. arises in relation to the Director’s
remuneration as a Director of the company; 3. relates to a contract the company is proposing to enter into that is
subject to shareholder approval and will not impose obligations on the company if not approved by shareholders;
4. arises merely because the Director is a guarantor or has given an indemnity or security for all or part of a loan
(or proposed loan) to the company; 5. arises merely because the Director has a right of subrogation in relation to
a guarantee or indemnity referred to in (d); 6. relates to a contract that insures, or would insure, the Director
against liabilities the Director incurs as an officer of the company (but only if the contract does not make the
company or related body corporate the insurer); 7. relates to any payment by the company or a related body
corporate in respect of certain indemnities permitted by the Corporations Act or any contract relating to such an
indemnity; or 8. is in a contract or proposed contract with, or for the benefit of, or on behalf of, a related body
corporate and arises merely because the Director is a Director of that related body corporate. If there are not
enough Directors to form a quorum for the Board meeting because of Directors’ interests in a particular matter, a
general meeting for shareholders may be called to consider the matter and interested Directors are entitled to
vote on any proposal to requisition such a meeting. Under clause 9.7 of our constitution, the maximum aggregate
amount of annual remuneration to be paid to our Non-Executive Directors must be approved by our shareholders.
This aggregate amount is paid to the Non-Executive Directors in such manner as the Board from time to time
determines. Directors’ remuneration is one of the exceptions under section 191 of the Corporations Act to the
prohibitions against being present and voting on any matter in which a Director has a material personal interest.
Directors’ borrowing powers Clause 10.2 of our constitution empowers our Directors, as a Board, to exercise all
the powers of Westpac to borrow or raise money, to charge any property or business of Westpac or all or any of
its uncalled capital and to issue debentures or give any other security for a
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 317 Our constitution (Continued) debt, liability or obligation of Westpac or of any
other person. Such powers may only be changed by amending the constitution, which requires a special
resolution (that is, a resolution passed by at least 75% of the votes cast by members entitled to vote on the
resolution and for which notice has been given in accordance with the Corporations Act). Minimum number of
Directors Our constitution requires that the minimum number of Directors is determined in accordance with the
Corporations Act or other regulations. Currently the Corporations Act prescribes three as a minimum number of
Directors for a public company and APRA governance standards specify five as the minimum number of
Directors for APRA regulated entities. Westpac’s current number of Directors is above these prescribed
minimums. Share rights The rights attaching to our ordinary shares are set out in the Corporations Act and in our
constitution, and may be summarised as follows: a. Profits and dividends Holders of ordinary shares are entitled
to receive such dividends on those shares as may be determined by our Directors from time to time. Dividends
that are paid but not claimed may be invested by our Directors for the benefit of Westpac until claimed or required
to be dealt with in accordance with any law relating to unclaimed monies. Under the Corporations Act, Westpac
must not pay a dividend unless our assets exceed our liabilities immediately before the dividend is declared and
the excess is sufficient for payment of the dividend. In addition, the payment must be fair and reasonable to the
company’s shareholders as a whole and must not materially prejudice our ability to pay our creditors. Subject to
the Corporations Act, the constitution, the rights of persons (if any) entitled to shares with special rights to a
dividend and any contrary terms of issue of or applying to any shares, our Directors may determine that a
dividend is payable, fix the amount and the time for payment and authorise the payment or crediting by Westpac
to, or at the direction of, each shareholder entitled to that dividend. If any dividends are returned unclaimed, we
are generally obliged, under the Banking Act 1959 (Cth) (Banking Act), to hold those amounts as unclaimed
monies for a period of seven years. If at the end of that period the monies remain unclaimed by the shareholder
concerned, we must submit an annual unclaimed money return to ASIC by 31 March each year containing the
unclaimed money as at 31 December of the previous year. Upon such payment being made, we are discharged
from further liability in respect of that amount. Our Directors may, before paying any dividend, set aside out of our
profits such sums as they think proper as reserves, to be applied, at the discretion of our Directors, for any
purpose for which the profits may be properly applied. Our Directors may carry forward so much of the profits
remaining as they consider ought not to be distributed as dividends without transferring those profits to a reserve.
The following additional restrictions apply to our ability to declare and/or pay dividends: 1. if the payment of the
dividend would breach or cause a breach by us of applicable capital adequacy or other supervisory requirements
of APRA, including where Westpac’s Common Equity Tier 1 Capital Ratio falls within APRA’s capital conservation
buffer range (consisting of the capital conservation buffer plus any countercyclical capital buffer, currently 5.75%
of risk-weighted assets). Currently, one such requirement is that a dividend should not be paid without APRA’s
prior consent if payment of that dividend, after taking into account all other dividends (if any) paid on our shares
and payments on more senior capital instruments, in the preceding 12 consecutive months to which they relate,
would cause the aggregate of such dividend payments to exceed our after tax earnings for the preceding 12
consecutive months, as reflected in our relevant audited consolidated financial statements; and 2. if, under the
Banking Act, we are directed by APRA not to pay a dividend; 3. if the declaration or payment of the dividend
would result in us becoming insolvent; or 4. if any interest payment, dividend or distribution on certain Additional
Tier 1 securities issued by us is not paid in accordance with the terms of those securities, we may be restricted
from declaring and/or paying dividends on ordinary shares. This restriction is subject to a number of exceptions.
b. Voting rights Holders of our fully paid ordinary shares have, at general meetings, one vote on a show of hands
and, upon a poll, one vote for each fully paid share held by them. c. Voting and re-election of Directors Under our
constitution, each Director, apart from the Managing Director, must not hold office without re-election past the
third AGM following the Director’s appointment or last election, whichever is longer. A retiring Director holds office
until the conclusion of the meeting at which that Director retires but is eligible for re-election at that meeting. In
addition, there must be an election of Directors at each AGM. This is consistent with the requirements of the ASX
Listing Rules. Under the Corporations Act, the election or re-election of each Director by shareholders at a
general meeting of a public company must proceed as a separate item, unless the shareholders first resolve that
the elections or re-elections may be voted on collectively. A resolution to allow collective voting in relation to
elections or re-elections is effective only if no votes are cast against that resolution. Any resolution electing or re-
electing two or more Directors in contravention of this requirement is void. d. Winding up Subject to any
preferential entitlement of holders of preference shares on issue at the relevant time, holders
For personal use only
318 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Our constitution (Continued)
of our ordinary shares are entitled to share equally in any surplus assets if we are wound up. e. Sinking fund
provisions We do not have any class of shares on issue that is subject to any sinking fund provisions. Variation of
rights attaching to our shares Under the Corporations Act, unless otherwise provided by the terms of issue of a
class of shares, the terms of issue of a class of shares in Westpac can only be varied or cancelled in any way by
a special resolution of Westpac and with either the written consent of our shareholders holding at least 75% of
the votes in that class of shares or with the sanction of a special resolution passed at a separate meeting of the
holders of that class of shares. Convening general meetings Under our constitution, our Directors may convene
and arrange to hold a general meeting of Westpac whenever they think fit and must do so if required to do so
under the Corporations Act and ASX Listing Rules. Under the Corporations Act, our Directors must call and
arrange to hold a general meeting of Westpac if requested to do so by our shareholders who hold at least 5% of
the votes that may be cast at the general meeting. Shareholders who hold at least 5% of the votes that may be
cast at a general meeting may also call and arrange to hold a general meeting of Westpac at their own expense.
At least 28 days notice must be given of a meeting of our shareholders. Written notice must be given to all
shareholders entitled to attend and vote at the meeting. All ordinary shareholders are entitled to attend and,
subject to the constitution and the Corporations Act, to vote at general meetings of Westpac. Limitations on
securities ownership A number of limitations apply in relation to the ownership of our shares, and these are
described in more detail in the section ‘Limitations affecting security holders’. Change in control restrictions
Restrictions apply under the Corporations Act, the Financial Sector (Shareholdings) Act 1998 (Cth) and the
Foreign Acquisitions and Takeovers Act 1975 (Cth). For more detailed descriptions of these restrictions, refer to
the sections ‘Limitations affecting security holders’, ‘Foreign Acquisitions and Takeovers Act 1975’, ‘Financial
Sector (Shareholdings) Act 1998’, and ‘Corporations Act 2001’. Substantial shareholder disclosure There is no
provision in our constitution that requires a shareholder to disclose the extent of their ownership of our shares.
Under the Corporations Act, however, any person who begins or ceases to have a substantial holding of our
shares must notify us within two business days after they become aware of that information. A further notice must
be given to us if there is an increase or decrease of 1% in a person’s substantial holding. Copies of these notices
must also be given to the ASX. A person has a substantial holding of our shares if the total votes attached to our
voting shares in which they or their associates have relevant interests is 5% or more of the total number of votes
attached to all our voting shares. For more details, refer to the section ‘Corporations Act 2001’. We also have a
statutory right under the Corporations Act to trace the beneficial ownership of our shares by giving a direction to a
shareholder, or certain other persons, requiring disclosure to us of, among other things, their own relevant
interest in our shares and the name and address of each other person who has a relevant interest in those
shares, the nature and extent of that interest and the circumstances that gave rise to that other person’s interest.
Such disclosure must, except in certain limited circumstances, be provided within two business days after the
direction is received. Australian Company and Business Numbers All Australian companies have a unique nine-
digit identifier, referred to as an Australian Company Number (ACN), which must be included on public
documents, eligible negotiable instruments and the company’s common seal. In addition, entities can apply for
registration on the Australian Business Register and be allocated a unique eleven-digit identifier known as an
Australian Business Number (ABN). For Australian companies, the last nine digits of their ABN are identical to
their ACN. The ABN may be quoted on documents in lieu of the ACN. Our ACN is 007 457 141 and our ABN is
33 007 457 141. Documents on display We are subject to the disclosure requirements of the US Securities
Exchange Act of 1934, as amended. In accordance with these requirements, we file Annual Reports with, and
furnish other information to, the US Securities & Exchange Commission (SEC). The SEC also maintains a
website at www.sec.gov that contains reports, proxy statements and other information regarding registrants that
file electronically with the SEC. Since April 2002, we have filed our reports on Form 20-F and have furnished
other information to the SEC in electronic format which may be accessed through this website.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 319 Dividend reinvestment plan Dividend reinvestment plan The Board has
determined a fully franked final ordinary dividend of 77 cents per share, to be paid on 19 December 2025 to
shareholders on the register at the record date of 7 November 2025. The 2025 final and interim ordinary dividend
represents a payout ratio of 75.65%. In addition to being fully franked, the final ordinary dividend will carry
NZ$0.06 in New Zealand imputation credits that may be used by New Zealand tax residents. Westpac operates a
DRP that is available to holders of fully paid ordinary shares who are resident in, or whose address on the
register of shareholders is in Australia or New Zealand. Shareholders can choose to receive their 2025 final
ordinary dividend as cash or reinvest it in additional shares under the DRP. As noted in Note 28 (page 106) to the
financial statements, the Board has made certain determinations in relation to the DRP for the 2025 final ordinary
dividend only, including that the market price will be set over 15 trading days commencing 12 November 2025
and will not include a discount. Shareholders who wish to commence participation in the DRP, or to vary their
current participation election, must do so by 5.00pm (Sydney time) on 10 November 2025. Shareholders can
provide these instructions: • Online for shareholders with holdings that have a market value of less than
$1,000,000 within their MUFG Corporate Markets portfolio, by logging into or creating a Portfolio via the Westpac
share registry’s website at au.investorcentre.mpms.mufg.com and electing the DRP or amending their existing
instructions online; or • By completing and returning a DRP application or variation form to Westpac’s share
registry. Registry contact details are listed in the Useful information section (page 320). Information on related
entities Information on related entities a. Changes in control of Westpac entities During the twelve months ended
30 September 2025 the following entities were acquired, formed, or incorporated: • Series 2024-2 WST Trust
(formed 4 October 2024) During the twelve months ended 30 September 2025, the following controlled entities
ceased to be controlled: • Asgard Wealth Solutions Pty Limited (deregistered 3 November 2024) • Series 2014-2
WST Trust (terminated 3 March 2025) • Series 2015-1 WST Trust (terminated 2 June 2025) • Danaby Pty Limited
(deregistered 18 September 2025) • Sallmoor Pty. Ltd. (deregistered 18 September 2025) • St. George Business
Finance Pty Limited (deregistered 18 September 2025) • Waratah Receivables Corporation Pty Limited
(deregistered 22 September 2025) • Magnitude Group Pty Ltd (deregistered 22 September 2025) • Westpac RE
Pty Limited (deregistered 25 September 2025) • Westpac Securities Administration Pty Limited (deregistered 25
September 2025) b. Associates As at 30 September 2025 Ownership Interest Held (%) Akahu Technologies Ltd
33.7% OpenAgent Pty Ltd 22.3% mx51 Group Pty Ltd 22.2% Lawpath Holdings Pty Ltd 15.1% Safe Will Pty Ltd
12.6%
For personal use only
320 WESTPAC GROUP 2025 ANNUAL REPORT SHAREHOLDER INFORMATION Useful information Useful
information Key sources of information for shareholders We report our full year performance to shareholders, in
late October or early November, in the following forms: an Annual Report; a Climate Report; an Investor
Discussion Pack and earnings releases. Electronic communications Shareholders can elect to receive the
following communications electronically: • Annual Report; • Dividend statements when paid by direct credit or via
Westpac’s Dividend Reinvestment Plan (DRP); • Notices of Meetings and proxy forms; and • Major company
announcements. Opt for electronic communications by logging into Westpac’s Share Registrar’s Investor Centre
at au.investorcentre.mpms.mufg.com. Online information Australia Westpac’s website www.westpac.com.au
provides information for shareholders and customers, including: • access to internet banking and online investing
services; • details on Westpac’s products and services; • company history, results, market releases and news;
and • corporate responsibility and Westpac in the community activities. New Zealand Westpac’s New Zealand
website www.westpac.co.nz provides: • access to internet banking services; • details on products and services; •
economic updates, news and information, key financial results; and • sponsorships and other community
activities. Stock exchange listings Westpac ordinary shares are listed on: • Australian Securities Exchange (code
WBC); • New Zealand Exchange Limited (code WBC). We do not sponsor or endorse and are not affiliated in any
way with trading in our equity securities in any market or under any facility other than direct trading in our ordinary
shares listed on the Australian Securities Exchange and New Zealand Exchange Limited. Westpac Investor
Relations Investors can access the Investor Centre at www.westpac.com.au/investorcentre. The Investor Centre
includes the current Westpac share price and links to the latest ASX announcements. Information other than that
relating to your shareholding can be obtained from: • Westpac Investor Relations 275 Kent Street Sydney NSW
2000 Australia Telephone: +61 2 9178 2977 Email: investorrelations@westpac.com.au Westpac sustainability For
further information on Westpac’s sustainability approach, policies and performance please visit
westpac.com.au/sustainability Email: sustainability@westpac.com.au Share registrars Shareholders can check
and update their information in Westpac’s Share Registrars’ online Investor Centres, see details below. In
Australia, broker sponsored holders must contact their broker to amend their address. Australia – Ordinary
shares on the main register, Westpac Capital Notes 7, Westpac Capital Notes 8, Westpac Capital Notes 9 and
Westpac Capital Notes 10. MUFG Corporate Markets (AU) Limited Liberty Place Level 41 161 Castlereagh Street
Sydney NSW 2000 Australia Postal address: Locked Bag A6015, Sydney South NSW 1235, Australia Website:
au.investorcentre.mpms.mufg.com Email: westpac@cm.mpms.mufg.com Telephone: 1800 804 255 (free call
within Australia) International: +61 1800 804 255 Facsimile: +61 2 9287 0303 New Zealand – Ordinary shares
MUFG Pension & Market Services (NZ) Limited Level 30 PwC Tower 15 Customs Street West Auckland 1010,
New Zealand Postal address: P.O. Box 91976, Auckland 1142, New Zealand Website:
nz.investorcentre.mpms.mufg.com Email: enquiries.nz@cm.mpms.mufg.com Telephone: 0800 002 727 (free call
within New Zealand) International: +64 9 375 5998
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 321 OTHER WESTPAC BUSINESS INFORMATION Property Other Westpac
business information Property Occupied premises are primarily in Australia, New Zealand and Pacific including
749 branches (2024: 762) as at 30 September 2025. This includes 125 (2024: 111) co-located branches in
Australia which support multiple brands. With the exception of 2 freehold branches, all retail premises occupied in
Australia and New Zealand are held under commercial leases with terms generally ranging between 12 months
and 7 years. The carrying value of our directly owned Corporate and Retail premises and sites was $57 million
(2024: $45 million). Head office is located at Westpac Place, 275 Kent Street, Sydney with leases over levels 1-
23, allowing continued occupation until 2030. There is also a lease over levels 1-28 of International Tower 2,
Barangaroo, Sydney until 2030, of which 9 floors are sublet. Together these sites provide a current capacity for
approximately 16,500 staff on a hybrid working basis. In the Sydney metropolitan area, the lease commitment for
the corporate office at Kogarah expires in 2034 and provides capacity for approximately 2,000 staff on a hybrid
working basis. The lease for 8 levels at 8 Parramatta Square, Parramatta provides capacity for approximately
3,000 staff on a hybrid working basis. In Melbourne, there is a lease over the majority of 150 Collins Street until
2033, providing capacity for approximately 2,000 staff. Westpac on Takutai is Westpac New Zealand’s head
office, located at the eastern end of Britomart Precinct near Customs Street in Auckland, comprising 21,904
square metres of office space across two buildings. The lease commitments at this site extend to 30 June 2031,
with two six-year options to extend thereafter. Significant long-term agreements Significant long-term agreements
We have no individual contracts, other than contracts entered into in the ordinary course of business, that would
constitute a material contract. Related party disclosures Related party disclosures Details of our related party
disclosures are set out in Note 34 (page 120) to the financial statements and details of Directors’ interests in
securities are set out in the Remuneration Report (page 222) included in the Directors’ Report. Other than as
disclosed in Note 34 (page 120) to the financial statements and the Remuneration Report (page 222), if
applicable, loans made to parties related to Directors and other key management personnel of Westpac are
made in the ordinary course of business on normal terms and conditions (including interest rates and collateral).
Loans are made on the same terms and conditions (including interest rates and collateral) as they apply to other
employees and certain customers in accordance with established policy. These loans do not involve more than
the normal risk of collectability or present any other unfavourable features.
For personal use only
322 WESTPAC GROUP 2025 ANNUAL REPORT OTHER WESTPAC BUSINESS INFORMATION Auditor’s
remuneration Auditor’s remuneration Auditor’s remuneration, to the external auditor for the years ended 30
September 2025 and 2024 is provided in Note 33 (page 119) to the financial statements. Audit related services
Westpac’s Group Finance function monitors the application of the pre-approval process in respect of audit, audit-
related and non-audit services provided by KPMG under Westpac’s Pre-Approval of Engagement of KPMG for
Audit or Non-Audit Services Policy (‘Pre-Approval Policy’). Group Finance promptly brings to the attention of the
Board Audit Committee any exceptions that need to be approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01
of Regulation S-X. The Pre-Approval Policy is communicated to Westpac’s divisions through publication on the
Westpac intranet. During the year ended 30 September 2025, there were no fees paid by Westpac to KPMG that
required approval by the Board Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-
X. Westpac debt programs and issuing shelves Westpac debt programs and issuing shelves Access in a timely
and flexible manner to a diverse range of debt markets and investors is provided by the following programs and
issuing shelves as at 30 September 2025: Program Limit Issuer(s) Program/Issuing Shelf Type Australia No limit
WBC Debt Issuance Program No limit WBC Capital Notes Program New Zealand No limit WNZL Medium Term
Note Program Euro Market No limit WBC Euro Commercial Paper and Certificate of Deposit Program USD 20
billion WNZL Euro Commercial Paper and Certificate of Deposit Program USD 70 billion WBC Euro Medium Term
Note Program USD 10 billion WSNZLa Euro Medium Term Note Program USD 40 billion WBCb Global Covered
Bond Program EUR 5 billion WSNZLc Global Covered Bond Program Japan JPY 750 billion WBC Samurai shelf
JPY 750 billion WBC Uridashi shelf United States USD 45 billion WBC US Commercial Paper Program USD 10
billion WSNZLa US Commercial Paper Program USD 35 billion WBC US Medium Term Note Program USD 10
billion WNZL US Medium Term Note Program No limit WBC (NY Branch) Certificate of Deposit Program No limit
WBC US Securities and Exchange Commission registered shelves a. Notes issued under this program by
Westpac Securities NZ Limited, London branch are guaranteed by Westpac New Zealand Limited, its parent
company. b. Notes issued under this program are guaranteed by BNY Trust Company of Australia Limited as
trustee of the Westpac Covered Bond Trust. c. Notes issued under this program by Westpac Securities NZ
Limited, London branch are guaranteed by Westpac New Zealand Limited, its parent company, and Westpac NZ
Covered Bond Limited.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 323 OTHER WESTPAC BUSINESS INFORMATION Commitments Other Westpac
business information Commitments Contractual obligations and commitments In connection with our operating
activities we enter into certain contractual obligations and commitments. The following table shows our significant
contractual obligations as at 30 September 2025: $m Up to 1 year Over 1 year to 3 years Over 3 years to 5 years
Over 5 years Total On balance sheet long-term debt 32,120 55,821 36,451 12,347 136,739 Lease liabilities 424
725 589 249 1,987 Total contractual cash obligations 32,544 56,546 37,040 12,596 138,726 The above table
excludes deposits and other liabilities taken in the normal course of banking business and short-term and
undated liabilities. Commercial commitments1 The following table shows our significant commercial commitments
as at 30 September 2025: $m Up to 1 year Over 1 year to 3 years Over 3 years to 5 years Over 5 years Total
Financial guarantees, letters of credit and other credit substitutes 6,820 3,934 1,190 3,777 15,721 Performance-
related contingencies 4,611 1,609 455 34 6,709 Remaining commitments to extend credit 58,429 42,787 19,995
77,528 198,739 Total undrawn credit commitments 69,860 48,330 21,640 81,339 221,169 Financial reporting
Internal control over financial reporting The US Congress passed the Public Company Accounting Reform and
Investor Protection Act in July 2002, which is commonly known as the Sarbanes-Oxley Act of 2002 (SOx). SOx is
a wide ranging piece of US legislation concerned largely with financial reporting and corporate governance. We
are obligated to comply with SOx by virtue of being a foreign registrant with the SEC and we have established
procedures designed to comply with all applicable requirements of SOx. Disclosure controls and procedures Our
management, with the participation of our CEO and CFO, evaluated the effectiveness of the design and operation
of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the US Securities Exchange Act of
1934) as of 30 September 2025. Based upon this evaluation, our CEO and CFO have concluded that the design
and operation of our disclosure controls and procedures were effective as of 30 September 2025. Management’s
report on internal control over financial reporting Rule 13a-15(a) under the US Securities Exchange Act of 1934
requires us to maintain an effective system of internal control over financial reporting. Refer to the sections
headed ‘Management’s report on internal control over financial reporting’ and ‘Report of independent registered
public accounting firm’ in Section 3 for those reports. Changes in our internal control over financial reporting
There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the US
Securities Exchange Act of 1934) for the year ended 30 September 2025 that has been identified and that has
materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 1. The
numbers in this table are notional amounts (refer to Note 25 to the financial statements).
For personal use only
324 WESTPAC GROUP 2025 ANNUAL REPORT GLOSSARY OF ABBREVIATIONS AND DEFINED TERMS
Glossary of Abbreviations and Defined Terms Shareholder value Adjusted dividend payout ratio Ordinary
dividend paid/declared on issued shares (net of Treasury shares) divided by the net profit attributable to owners
of WBC (adjusted for RSP dividends) excluding Notable Items. Average ordinary equity Average total equity less
average non-controlling interests. Average tangible ordinary equity Average ordinary equity less intangible assets
(excluding capitalised software). Average total equity The average balance of shareholders’ equity, including non-
controlling interests. Basic earnings per share excluding Notable Items and Diluted earnings per share excluding
Notable Items • Basic earnings per share excluding Notable Items is calculated as net profit attributable to
owners of WBC (adjusted for RSP dividends) excluding Notable Items divided by the weighted average number
of ordinary shares on issue during the period, adjusted for treasury shares. • Diluted earnings per share is
calculated by adjusting the basic earnings per share excluding Notable Items by assuming all dilutive potential
ordinary shares are converted. Dividend payout ratio Ordinary dividend paid/declared on issued shares (net of
Treasury shares) divided by the net profit attributable to owners of WBC (adjusted for RSP dividends). Earnings
per ordinary share • Basic earnings per ordinary share is calculated by dividing the net profit attributable to
owners of WBC (adjusted for RSP dividends) by the weighted average number of ordinary shares on issue during
the period, adjusted for treasury shares. • Diluted earnings per ordinary share is calculated by adjusting the basic
earnings per ordinary share by assuming all dilutive potential ordinary shares are converted. Fully franked
ordinary dividends per share (cents) Dividends paid out of retained profits which carry a credit for Australian
company income tax paid by Westpac. Net tangible assets per ordinary share Net tangible assets (total equity
less goodwill and other intangible assets less non-controlling interests) divided by the number of ordinary shares
on issue (less Treasury shares held). Pre-provision profit Net interest income plus non-interest income less
operating expenses. Return on average ordinary equity (ROE) Net profit attributable to the owners of WBC
adjusted for RSP dividends (annualised where applicable) divided by average ordinary equity. Return on average
tangible ordinary equity (ROTE) Net profit attributable to the owners of WBC adjusted for RSP dividends
(annualised where applicable) divided by average tangible ordinary equity. ROE excluding Notable Items Net
profit attributable to owners of WBC adjusted for RSP dividends excluding Notable Items (annualised where
applicable) divided by average ordinary equity. ROTE excluding Notable Items Net profit attributable to owners of
WBC adjusted for RSP dividends excluding Notable Items (annualised where applicable) divided by average
tangible ordinary equity. Weighted average ordinary shares Weighted average number of fully paid ordinary
shares listed on the Australian Stock Exchange for the relevant period less Westpac shares held by Westpac
(‘Treasury shares’). Productivity and efficiency Expense to income ratio Operating expenses divided by net
operating income. Expense to income ratio excluding Notable Items Operating expenses excluding Notable Items
divided by net operating income excluding Notable Items. Full time equivalent employees (FTE) A calculation
based on the number of hours worked by full and part-time employees as part of their normal duties. For
example, the full time equivalent of one FTE is 76 hours paid work per fortnight. Business Performance Average
Where possible, daily balances are used to calculate the average balance for the period. Average interest bearing
liabilities The average balance of liabilities owed by Westpac that incur an interest expense. Where possible,
daily balances are used to calculate the average balance for the period. Average interest earning assets The
average balance of assets held by Westpac that generate interest income. Where possible, daily balances are
used to calculate the average balance for the period. Core net interest income excluding Notable Items Net
interest income excluding Notable Items and Treasury & Markets. Core NIM Calculated by dividing core net
interest income (annualised where applicable) by average interest earning assets. Net interest margin (NIM)
Calculated by dividing net interest income (annualised where applicable) by average interest earning assets. Net
profit Net profit attributable to owners of WBC. TSR Total shareholder return.
For personal use only
FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 325 Capital Adequacy Australian Prudential Regulation Authority (APRA) leverage
ratio The leverage ratio is defined by APRA as Tier 1 capital divided by the “Exposure measure” and is expressed
as a percentage. “Exposure measure” includes on-balance sheet exposures, derivatives exposures, securities
financing transaction (SFT) exposures, and other off-balance sheet exposures. Common equity tier 1 (CET1)
capital ratio Common equity tier 1 (CET1) capital divided by risk weighted assets, as defined by APRA. Credit
risk weighted assets (Credit RWA) Credit risk weighted assets represent risk weighted assets (on-balance sheet
and off-balance sheet) that relate to credit exposures and therefore exclude market risk, operational risk and
IRRBB. Internationally comparable capital ratios Internationally comparable methodology references the ABA
study on the comparability of APRA’s capital framework released on 10 March 2023. Operational risk The risk of
loss resulting from inadequate or failed internal processes, people and systems or from external events, including
legal risk but excluding strategic or reputational risk. Risk weighted assets (RWA) Assets (both on and off-
balance sheet) are risk weighted according to each asset’s inherent potential for default and what the likely
losses would be in case of default. In the case of non-asset backed risks (i.e. market, IRRBB and operational
risk), RWA is determined by multiplying the capital requirements for those risks by 12.5. Tier 1 capital ratio Total
Tier 1 capital divided by risk weighted assets, as defined by APRA. Total capital ratio Total capital divided by risk
weighted assets, as defined by APRA. Funding and liquidity Deposit to loan ratio Customer deposits divided by
loans. Funding for Lending Programme (FLP) A facility that was established by the RBNZ in December 2020 to
provide 3 year term funding to eligible New Zealand institutions via repurchase transactions, subject to qualifying
conditions, to help support lending to New Zealand customers. The facility closed to new draw downs in
December 2022. High Quality Liquid Assets (HQLA) Assets which meet APRA’s criteria for inclusion as HQLA in
the numerator of the LCR. Liquid assets HQLA and non LCR qualifying liquid assets, but excludes internally
securitised assets that are eligible for a repurchase agreement with the RBA and the RBNZ. Liquidity Coverage
Ratio (LCR) An APRA requirement to maintain an adequate level of unencumbered high quality liquid assets, to
meet liquidity needs for a 30 calendar day period under an APRA-defined severe stress scenario. Absent a
situation of financial stress, the value of the LCR must not be less than 100%. LCR is calculated as the
percentage ratio of stock of HQLA, and qualifying RBNZ securities over the total net cash out-flows in a modelled
30 day defined stressed scenario. Net Stable Funding Ratio (NSFR) The NSFR is defined as the ratio of the
amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by APRA. The
amount of ASF is the portion of an ADI’s capital and liabilities expected to be a reliable source of funds over a
one year time horizon. The amount of RSF is a function of the liquidity characteristics and residual maturities of
an ADI’s assets and off-balance sheet activities. ADIs must maintain an NSFR of at least 100%. Term funding
from central banks Term funding from central banks includes the drawn balances of the RBNZ FLP and Term
Lending Facility. Wholesale funding Wholesale funding includes debt issues, loan capital, certificates of deposit,
term funding from central banks and interbank placements. Credit quality Collectively assessed provisions
(CAPs) Collectively assessed provisions for expected credit loss under AASB 9 represent the Expected Credit
Loss (ECL) which is collectively assessed in pools of similar assets with similar risk characteristics. This
incorporates forward-looking information and does not require an actual loss event to have occurred for an
impairment provision to be recognised. Default Credit exposures that are non-performing. Exposure at default
(EAD) EAD is calculated at facility level and includes outstandings as well as the proportion of committed
undrawn that is expected to be drawn in the event of a future default. Impaired exposures Includes exposures
that have deteriorated to the point where full collection of interest and principal is in doubt, based on an
assessment of the customer’s outlook, cash flow, and the net realisation of value of assets to which recourse is
held: • Facilities 90 days or more past due, and full recovery is in doubt: exposures where contractual payments
are 90 or more days in arrears and the net realisable value of assets to which recourse is held may not be
sufficient to allow full collection of interest and principal, including overdrafts or other revolving facilities that
remain continuously outside approved limits by material amounts for 90 or more calendar days; • Non-accrual
facilities: exposures with individually assessed impairment provisions held against them, excluding restructured
loans; • Restructured facilities: exposures where the original contractual terms have been formally modified to
provide for concessions of interest or principal for reasons related to the financial difficulties of the customer; •
Other assets acquired through security enforcement (includes other real estate owned): includes the value of any
other assets acquired as full or partial settlement of outstanding obligations through the enforcement of security
arrangements; or • Any other facilities where the full collection of interest and principal is in doubt. Impaired
exposures provisions to impaired exposures Impairment provisions relating to impaired exposures include
individually assessed provisions plus the proportion of the collectively assessed provisions that relate to impaired
exposures. Impairment charges/(benefit) to average loans Calculated as impairment charges/(benefit)
(annualised where applicable) divided by average gross loans.
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326 WESTPAC GROUP 2025 ANNUAL REPORT GLOSSARY OF ABBREVIATIONS AND DEFINED TERMS
Credit quality Individually assessed provisions (IAPs) Provisions raised for losses on loans that are known to be
impaired and are assessed on an individual basis. The estimated losses on these impaired loans is based on
expected future cash flows discounted to their present value and, as this discount unwinds, interest will be
recognised in the income statement. Loss given default (LGD) The loss that is expected to arise in the event of a
default. Non-performing not impaired exposures Includes those credit exposures that are in default, but where it
is expected that the full value of principal and accrued interest can be collected, generally by reference to the
value of security held. Performing exposures Credit exposures that are not non-performing. Probability of default
(PD) Probability of default is a through-the-cycle assessment of the likelihood of a customer defaulting on its
financial obligations within one year. Provision for expected credit losses (ECL) Expected credit losses are a
probability-weighted estimate of the cash shortfalls expected to result from defaults over the relevant time frame.
They are determined by evaluating a range of possible outcomes and taking into account the time value of
money, past events, current conditions and forecasts of future economic conditions. 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 expected credit losses is recognised. Interest revenue is calculated on the gross carrying
amount of the financial asset. 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
expected losses is recognised. Interest revenue is calculated on the gross carrying amount of the financial asset.
Stage 3: Lifetime ECL - non-performing For financial assets that are non-performing a provision for lifetime
expected losses is recognised. Interest revenue is calculated on the carrying amount net of the provision for ECL
rather than the gross carrying amount. Stressed exposures Watchlist and substandard credit exposures plus non-
performing exposures. Total committed exposure (TCE) Represents the sum of the committed portion of direct
lending (including funds placement overall and deposits placed), contingent and pre-settlement risk plus the
committed portion of secondary market trading and underwriting risk. Watchlist and substandard Loan facilities
where customers are experiencing operating weakness and financial difficulty but are not expected to incur loss
of interest or principal. Sustainability ESG Environment, social and governance FPIC Free, Prior and Informed
Consent NZBA Net-Zero Banking Alliance OHI Organisational Health Index RAP Reconciliation Action Plan
TNFD Taskforce on Nature-related Financial Disclosures
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FINANCIAL REPORT EXHIBITS INDEX STRATEGIC REVIEW PERFORMANCE REVIEW EXHIBIT 15.4
ADDITIONAL INFORMATION 327 Other AAS Australian Accounting Standards AASB Australian Accounting
Standards Board ABA Australian Banking Association ACCC Australian Competition and Consumer Commission
ADI Authorised Deposit-taking Institution AGM Annual General Meeting AI Artificial Intelligence ALM Asset and
Liability Management AML Anti-Money Laundering APRA Australian Prudential Regulation Authority APS
Australian Prudential Standard ASIC Australian Securities and Investments Commission ASX Australian
Securities Exchange ATM Automated Teller Machine ATO Australian Taxation Office AUSTRAC Australian
Transaction Reports and Analysis Centre BBSW Bank bill swap rate BCCC The Banking Code Compliance
Committee bps Basis points CORE program Customer Outcomes and Risk Excellence Credit Value Adjustment
(CVA) CVA adjusts the fair value of over-the-counter derivatives for credit risk. CVA is employed on the majority
of derivative positions and reflects the market view of the counterparty credit risk. A Debit Valuation Adjustment is
employed to adjust for our own credit risk. CTF Counter-Terrorism Financing DRP Dividend Reinvestment Plan
D-SIB Domestic systemically important bank EIP Executive Incentive Plan FATCA Foreign Account Tax
Compliance Act Full Year 2023 (FY23) Twelve months ended 30 September 2023 Full Year 2024 (FY24) Twelve
months ended 30 September 2024 Full Year 2025 (FY25) Twelve months ended 30 September 2025 Full Year
2026 (FY26) Twelve months ended 30 September 2026 Funding Value Adjustment (FVA) FVA relates to the
funding cost or benefit associated with the uncollateralised portion of the derivative portfolio. FVIS Fair value
through income statement FVOCI Fair value through other comprehensive income FX Foreign exchange IFRS
International Financial Reporting Standards IRRBB Interest Rate Risk in the Banking Book LTVR Long term
variable reward NCI Non-controlling interests Non-interest earning/bearing Instruments which do not carry an
entitlement to interest NPS® Net Promoter Score. Consumer: RFI Consumer Atlas, Sep-25, 6MMA, MFI
customers. Business: RFI Business Atlas, Sep-25, 6MMA, MFI businesses. Business includes Small Business,
SME (12MMA) and Commercial customers, weighted by number of businesses in each segment. The ranking
refers to Westpac's position relative to the other three major Australian banks (ANZ, CBA and NAB) OAIC The
Office of the Australian Information Commissioner OCI Other comprehensive income PwC
PricewaterhouseCoopers RBA Reserve Bank of Australia RBNZ Reserve Bank of New Zealand RSP Restricted
Share Plan Runoff Scheduled and unscheduled repayments and debt repayments, net of redraws Second Half
2025 Six months ended 30 September 2025 Segment reporting Segment reporting is presented on a
management reporting basis. Internal charges and transfer pricing adjustments are included in the performance
of each segment reflecting the management structure rather than the legal entity (these results cannot be
compared to results for individual legal entities). Where management reporting structures or accounting
classifications have changed, financial results for comparative periods have been restated and may differ from
results previously reported. Overhead costs are allocated to revenue generating segments. Westpac’s internal
transfer pricing frameworks facilitate risk transfer, profitability measurement, capital allocation and segment
alignment, tailored to the jurisdictions in which Westpac operates. Transfer pricing allows Westpac to measure
the relative contribution of products and segments to Westpac’s interest margin and other dimensions of
performance. Key components of Westpac’s transfer pricing frameworks are funds transfer pricing for interest
rate and liquidity risk and allocation of basis and contingent liquidity costs, including capital allocation. SME Small
to medium size enterprises SPPI Solely payments of principal and interest STVR Short term variable reward
UNITE program A business-led, technology-enabled simplification program Value at Risk (VaR) A statistical
estimate of the potential loss in earnings over a specified period of time and to a given level of confidence based
on historical market movements. WNZL Westpac New Zealand Limited
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EXHIBIT 15.4
1
EXHIBIT 15.4
Cybersecurity management and governance
The Group Chief Information Security Officer (CISO) reports to the Chief Information Officer, a member of the Executive Team. The CISO is a member of key cybersecurity governance
forums and is responsible for leading and managing the cybersecurity function, setting the cybersecurity strategy and direction, and overseeing the implementation, operation and
execution of the cybersecurity policies, standards, controls, and capabilities, including for third parties who are engaged to manage Westpac’s information assets.
We have implemented a range of cybersecurity processes, technologies, and controls to facilitate our efforts to assess, identify, and manage such risks, including regular network and
endpoint monitoring, access controls, vulnerability assessments, penetration testing, annual information security training for employees, and tabletop cybersecurity incident response
exercises.
We have an Incident Response Plan which guides the actions we are to take in the event of a suspected or confirmed cybersecurity incident. The plan includes processes to triage,
investigate, contain, and remediate the incident. The plan is designed to contain and minimise the impact of a cybersecurity incident on our customers. We also maintain a Business
Continuity Plan, which provides procedures for maintaining the continuity of critical business processes in the event of business interruption, including any that involve cybersecurity
incidents which may significantly impact our operations.
Our cybersecurity team is informed about and monitors the prevention, mitigation, detection and remediation of cybersecurity threats through their management of, and participation in,
the strategy processes.
The CISO and the cybersecurity team have relevant expertise and experience in various aspects of cybersecurity, such as strategy, governance, risk management, threat intelligence,
incident response, security operations, architecture, engineering, testing and awareness. The CISO has extensive experience in information technology and cybersecurity. The
cybersecurity team consists of qualified and competent professionals who have diverse backgrounds and skills in cybersecurity. The cybersecurity team regularly participates in training,
education, and development programs to enhance their knowledge and skills to keep up with the evolving cybersecurity landscape.
As part of its cybersecurity risk management, Westpac engages with third parties for independent reviews and assessments of its cybersecurity policies, standards, controls, and
capabilities. These third parties include external auditors, industry bodies, consultants, and specialists. The purpose of these engagements is to obtain assurance, validation,
benchmarking and improvement recommendations on Westpac's cybersecurity posture and maturity. Westpac holds ISO27001, PCI-DSS and SOC 2 Type 2 certifications for areas of the
Group.
The CISO escalates key cybersecurity risk and control issues, as appropriate, to the Technology Risk Committee (TRC) or to the appropriate Line of Business and Divisional Committees.
The TRC, a senior management committee, oversees the technology function and technology risk management. The TRC reports to the Group Executive Risk Committee (GRISKCO),
the executive management committee responsible for overseeing the group's strategy, performance, and risk management.
The Board of Directors receives periodic updates from the CIO and the CISO regarding cybersecurity matters. The Board is ultimately responsible for the oversight of the cybersecurity
risk management. The Board delegates some of its oversight responsibilities to the Board Risk Committee, which assists the Board in the oversight of cybersecurity risk management.
During the period covered by this 2025 Annual Report, we have not experienced any cybersecurity incidents which have materially affected or are reasonably likely to materially affect
our business strategy, results of operations, or financial condition. However, institutions like ours, as well as our employees, service providers and other third parties have experienced a
significant increase in information security and cybersecurity risk in recent years and will likely continue to be the target of increasing sophisticated cyber-related attacks.
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