1H23 changes to reporting

ASX
Release



24 March 2023


1H23 changes to reporting

Following is an update on the reporting changes Westpac will make in first half 2023.





For further information:


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


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



Level 18, 275 Kent Street
Sydney, NSW, 2000

1H23 Reporting
Changes Update
24 March 2023

Single measure of performance – net profit.
Westpac Group 1H23 Reporting Changes Update
Net profit
1
is the single measure the Group will use to assess overall financial performance
This change simplifies the financial reporting suite and provides greater transparency of performance.
Changes:
• Report net profit only
• ASX and US results announcements will be closely aligned
• Results announcement and annual report will be combined
The Group will continue to report notable items that don’t reflect underlying business performance.
2
Notable items ($m after tax)1H222H22
Remediation & litigation(65)(68)
Asset sales & revaluations213(1,089)
Write-down of assets(154)(129)
Economic hedges204266
Ineffective hedges(19)(33)
Total notable items179(1,053)
1 Also referred to as Net profit attributable to owners of WBC, net profit after tax or statutory net profit.

Summary of proposed reporting changes
SectionSummary of change
Proforma table
reference
1.1 Performance summarySummary of result based on net profit including the impact of notable items.Slide 5
1.2 Key financial informationMetrics in ‘Section 1.2 Key financial information’ updated.Slide 5-6
Cash earnings sectionsCash earnings specific sections removed.
1.4 Impact of notable itemsImpact of notable items section will include a description of notable items and summary by
reporting line item.
1.5.2 Net interest income‘Notable items’ and ‘Group net interest margin excluding notable items, Treasury & Markets’
added.
Presentation of loans has been revised to separate housing, personal and business loans.
Presentation of deposits average balance and interest have been revised to separate
certificates of deposits, At call and term deposits
Slide 7
1.5.5 Non-interest incomeNotable items restated.
1.5.7 Markets related income
Presentation of Markets related income revised to better align to the current business structure
and operations.
Slide 7
1.7 Balance sheetPresentation of balance sheet revised to improve disclosure.Slide 8
Funding view of the balance sheet
table
Funding view of the balance sheet table has been removed – information is included in
‘Section 1.7 Balance Sheet’.
2.0 Segment reportingSegment results on net profit basis including impact of notable items.Slide 4
3.7 Note 3 Average balance sheet
and interest rates
Presentation of average balance sheet updated:
a.Loans average balance and interest have been revised to separate housing, personal and
business loans
b.Deposits average balance and interest have been revised to separate certificates of
deposits, At call and term deposits
Slide 9
Westpac Group 1H23 Reporting Changes Update3

Net profit by segment – 1H22 and 2H22
1H22 $mConsumerBusinessCBBWIB
Westpac NZ
(A$)
Specialist
Businesses
Group
BusinessesGroup
Net interest income
4,3771,3235,700481
1,034242564
8,021
Non-interest income
324165489592
15144236
1,710
Notable items
----
132109258
499
Net operating income
4,7011,4886,1891,073
1,317793858
10,230
Operating expenses
(2,369)(984)(3,353)(581)
(534)(370)(304)
(5,142)
Notable items
----
-(215)(16)
(231)
Total operating expenses
(2,369)(984)(3,353)(581)
(534)(585)(320)(5,373)
Core profit
2,3325042,836492
783208538
4,857
Impairment benefit/(charge)
27(158)(131)(58)9383
(139)
Tax and NCI
(713)(107)(820)(128)
(190)(114)(186)
(1,438)
Net profit
1,6462391,885306
602132355
3,280
Total notable items----129(114)164179
2H22 $mConsumerBusinessCBBWIB
Westpac NZ
(A$)
Specialist
Businesses
Group
BusinessesGroup
Net interest income
4,6081,7046,312629
1,073232339
8,585
Non-interest income
288167455554
12841834
1,589
Notable items
----
(12)(1,120)334
(798)
Net operating income
4,8961,8716,7671,183
1,189(470)707
9,376
Operating expenses
(2,254)(915)(3,169)(607)
(538)(313)(412)
(5,039)
Notable items
(66)-(66)-
-(150)(174)
(390)
Total operating expenses
(2,320)(915)(3,235)(607)
(538)(463)(586)(5,429)
Core profit
2,5769563,532576
651(933)121
3,947
Impairment benefit/(charge)
(228)15(213)(27)
1629(1)
(196)
Tax and NCI
(703)(292)(995)(168)
(192)49(31)
(1,337)
Net profit
1,6456792,324381
475(855)89
2,414
Total notable items(47)-(47)-(10)(1,112)116(1,053)
Westpac Group 1H23 Reporting Changes Update
4

Appendix 1: Proforma tables
5 Westpac Group 1H23 Reporting Changes Update
1.1 Performance summary

1.2 Key financial information summary
3

Appendix 1: Proforma tables
6 Westpac Group 1H23 Reporting Changes Update
1.2 Key financial information summary (continued)

Appendix 1: Proforma tables
7 Westpac Group 1H23 Reporting Changes Update
1.5.2 Net interest income
1



1.5.7 Markets related income
1,2

Appendix 1: Proforma tables
8 Westpac Group 1H23 Reporting Changes Update
1.7 Balance sheet

Appendix 1: Proforma tables
9 Westpac Group 1H23 Reporting Changes Update
3.7 Note 3 Average balance sheet and interest rates