Westpac Pillar 3 Report (December 2023)

ASX
Release



19 February 2024

Pillar 3 Report as at 31 December 2023

Westpac Banking Corporation (“Westpac”) today provides the attached Pillar 3 Report
(December 2023).









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.



Level 18, 275 Kent Street
Sydney, NSW, 2000

DDEECCEEMMBBEERR 22002233
INCORPORATING THE REQUIREMENTS OF APS330
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Pillar 3
Report

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT ii
Table of conTenTs
Structure of Pillar 3 Report
EXECUTiVE SUMMARY1
Introduction3
Group structure4
Capital overview6
Leverage ratio9
Credit risk exposures10
Securitisation 15
Liquidity coverage ratio 18
APPENDiCES19
Appendix I - APRA’s capital framework19
Appendix II – APS330 quantitative requirements21
Appendix III – Exchange rates22
GLOSSARY23
DiSCLOSURE REGARDiNG
FORWARD-LOOKiNG STATEMENTS26
Table of contents
In this report references to ‘Westpac’, ‘Westpac Group’, ‘the Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled
entities (unless the context indicates otherwise).
In this report, unless otherwise stated or the context otherwise requires, references to ‘$’, ‘AUD’ or ‘A$’ 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 Appendix III for information regarding the rates of exchange between the Australian dollar and other currencies
applied by the Group as part of its operating activities as at 31 December 2023, 30 September 2023 and 31 December 2022.
Any discrepancies between totals and sums of components in tables contained in this report are due to rounding.
In this report, unless otherwise stated, disclosures reflect the Australian Prudential Regulation Authority’s (APRA) implementation of Basel III.
Information contained in or accessible through the websites mentioned in this 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.
Westpac Banking Corporation ABN 33 007 457 141
WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT
Westpac’s reporting suite
Our 2023 Annual Report is our primary
report to shareholders. Guided by the
Integrated Reporting Framework principles,
it brings together financial and non-financial
performance, strategic progress and the value
created for stakeholders over the Full Year 2023
(FY23) reporting period.
Our Annual Report forms part of our broader
2023 reporting suite, which comprises the
Group’s financial, non-financial, risk and
sustainability performance for the year. It
includes our FY23 Financial Results Presentation
and Investor Discussion Pack, Pillar 3 Report,
Corporate Governance Statement and our
inaugural Climate Report.
Our full suite is available online at
westpac.com.au/2023annualreport.

50-YEAR PARTNERSHIP WITH
THE WESTPAC LIFESAVER
RESCUE HELICOPTER SERVICE
WESTPAC
2023 ANNUAL REPORT
CREATING
BETTER FUTURES
TOGETHER
WESTPAC
2023 CLIMATE REPORT
CREATING
BETTER FUTURES
TOGETHER
PILLAR 3
REPORT
SEPTEMBER 2023
INCORPORATING THE REQUIREMENTS OF APS330
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
PRESENTATION
AND INVESTOR
DISCUSSION PACK
2023 FULL YEAR FINANCIAL RESULTS
FOR THE 12 MONTHS ENDED
30 SEPTEMBER 2023
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
2023 ANNUAL GENERAL MEETING
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
THURSDAY, 14 DECEMBER 2023
10:00 AM (BRISBANE TIME)
NOTICE OF
MEETING
CORPORATE
GOVERNANCE
STATEMENT
2023
WESTPAC BANKING CORPORATION
ABN 33 007 457 141
Annual ReportFY23 Results
Presentation and
Investor Discussion
Pack
Climate Report
Notice of MeetingPillar 3 ReportCorporate Governance
Statement
Acknowledgment of Indigenous Peoples
Westpac acknowledges the First Peoples of Australia and recognises
their ongoing role as Traditional Owners of the land and waters of this
country, and we pay respect to Elders past and present. We extend that
respect to Westpac’s Aboriginal and Torres Strait Islander employees,
partners and stakeholders, and to the Indigenous Peoples in the other
locations where we operate.
In Aotearoa (New Zealand) we also acknowledge tangata whenua and
the unique relationship that Indigenous Peoples share with all New
Zealanders as partners and custodians of their natural ecosystems
under Te Tiriti o Waitangi.
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 2.
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 2. Please consider those important disclaimers when reading the forward-looking statements in this
Annual Report.
Information contained in or accessible through the websites mentioned in this Annual Report does not form part of this report unless we specifically
state that it is incorporated by reference and forms part of this report. All references in this report to websites are inactive textual references and are
for information only.
Westpac Banking Corporation ABN 33 007 457 141
WESTPAC GROUP 2023 ANNUAL REPORT

1
ExEcutivE summary
Key capital ratios
%31 Dec 2023 30 Sep 202331 Dec 2022
Level 2 Regulatory capital structure
Common equity Tier 1 capital ratio % 12.29 12.38 11.13
Additional Tier 1 capital ratio % 2.45 2.21 2.07
Tier 1 capital ratio % 14.74 14.59 13.20
Tier 2 capital % 6.30 5.86 4.90
Total regulatory capital ratio % 21.04 20.45 18.10
APRA leverage ratio % 5.41 5.50 5.51
Level 1 Regulatory capital structure
Level 1 Common equity Tier 1 capital ratio % 12.45 12.62 11.08
The current APRA capital framework became effective on 1 January 2023. A summary of the changes can be found in
Appendix I. Disclosures for the period ending 31 December 2022 have not been restated.
Common equity Tier 1 (CET1) Ratio for First Quarter 2024
Westpac’s Level 2 CET1 capital ratio at 31 December 2023 was 12.29%, 9 basis points lower than 30 September 2023.
The decrease was primarily due to payment of the 2023 final dividend, which more than offset net profit derived in the
quarter and lower risk weighted assets (RWA). Total RWA decreased over the quarter since 30 September 2023 by $8.0
billion or 1.8%, mainly due to the lower embedded loss within Interest Rate Risk in the Banking Book (IRRBB) RWA.
CET1 Ratio First Quarter 2023 to First Quarter 2024
Westpac’s Level 2 CET1 capital ratio at 31 December 2023 is 116 basis points higher than 31 December 2022. The increase
reflects net profit derived in the year and lower RWA which more than offset payment of the interim and final 2023
dividends and higher capital deductions. Total RWA reduced from 31 December 2022 by $37.0 billion or 7.7%. Credit
RWA reduced by $26.0 billion mostly from APRA’s revised capital framework which reduced credit RWA by $23.7 billion
and resulted in a 62 basis point increase to the CET1 ratio. Non-credit risk RWA reduced by $11.1 billion, mainly from lower
IRRBB RWA.
Risk Weighted Assets (RWA)
$m31 Dec 2023 30 Sep 202331 Dec 2022
Risk weighted assets at Level 2
Credit risk 337,949 339,758 363,914
Market risk 11,553 11,538 10,626
Operational risk 54,934 55,175 56,945
Interest rate risk in the banking book 33,935 40,138 43,866
Other 5,056 4,809 5,092
Total RWA 443,427 451,418 480,443
Total Exposure at Default 1,187,223 1,173,867 1,228,791
Total RWA decreased by $8.0 billion or 1.8% to $443.4 billion over the quarter with decreases across credit and
non-credit RWA.
Credit RWA decreased by $1.8 billion. Key movements included:
•A $2.1 billion decrease due to data refinements mainly related to Residential Mortgages and Corporate exposures;
•A $1.5 billion decrease from counterparty credit risk and credit valuation adjustments due to decreases in the mark-
to-market value of derivatives from changes in underlying foreign currency rates; and
•A $0.8 billion decrease from foreign currency translation impacts from the appreciation of the A$ against the US$
and the NZ$.
These decreases were partially offset by:
•
A $2.0 billion incr
ease due to some deterioration in credit metrics mainly from an increase in delinquencies in
Residential Mortgages; and
•
A $0.6 billion incr
ease from higher lending primarily in Residential Mortgages and Corporate lending.
Executive summary

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 2
ExEcutivE summary
Non-credit RWA were $6.2 billion lower, driven by the decrease in IRRBB RWA as the embedded loss reduced due to
lower interest rate swap rates.
Exposure at Default
Exposure at default (EAD) increased $13.4 billion over the quarter. Key movements included:
•$10.8 billion increase in Sovereign exposures, as part of liquidity management;
•$7.5 billion increase from higher lending primarily in Residential Mortgages and Corporate segments;
•$2.8 billion decrease from foreign currency translation impacts; and
•$2.3 billion decrease in derivative exposures.
Additional Tier 1 and Tier 2
During the quarter the Group issued $1.75 billion of Additional Tier 1 capital instruments, and redeemed $0.8 billion of
Additional Tier 1 capital instruments. The net impact of these transactions was an increase in the Tier 1 capital ratio of
approximately 21 basis points.
The Group also issued $2.6 billion of Tier 2 capital instruments over the quarter. The impact of these transactions was an
increase in the total capital ratio of approximately 59 basis points. There were no Tier 2 capital instruments redeemed.
On 2 December 2021, APRA announced a requirement for domestic systemically important banks (D-SIBs) including
Westpac, to increase total capital requirements by 4.5 percentage points of RWA to meet additional loss absorbing capacity.
From 1 January 2026 the total capital requirement is 18.25%. The increase in total capital, is expected to be managed through
issuance of additional Tier 2 capital.
Leverage ratio
The leverage ratio represents the amount of Tier 1 capital relative to exposure
1
. At 31 December 2023, Westpac’s leverage
ratio was 5.41%, above the requirement of 3.50%. The leverage ratio was down 9 basis points from 30 September 2023 due
to an increase in total exposures and slightly lower Tier 1 capital.
Liquidity Coverage Ratio (LCR)
Westpac’s average LCR for the quarter ended 31 December 2023 was 133% (30 September 2023: 134%), above the
regulatory minimum of 100%. The decrease in the ratio was mainly due to a decrease in holdings of liquid assets driven
by widening gap between bank loans and customer deposits (customer funding gap), partially offset with lower average
Net Cash Outflows (NCO). The decrease in average NCOs was driven by lower wholesale funding outflows, as prior
period outflows included the maturity of the first tranche of the Term Funding Facility (TFF).
1.As defined under Attachment D of APS110: Capital Adequacy.

3
introduction
Westpac Banking Corporation is an Authorised Deposit-taking Institution (ADI) subject to regulation by APRA. APRA
has accredited Westpac to apply advanced models permitted by the Basel III global capital adequacy regime to the
measurement of its regulatory capital requirements. Westpac uses the Advanced Internal Ratings-Based approach
(Advanced IRB or AIRB) for credit risk and the Standardised Measurement Approach (SMA) for operational risk.
In accordance with APS330 Public Disclosure, financial institutions that have received the Advanced IRB accreditation,
such as Westpac, are required to disclose prudential information about their risk management practices on a semi-
annual basis. A subset of this information must be disclosed quarterly.
In addition to this report, the regulatory disclosures section of the Westpac website
1
contains the reporting requirements
for:
• Capital instruments under Attachment B of APS330; and
• The identification of potential Global-Systemically Important Banks (G-SIB) under Attachment H of APS330
(disclosed annually).
Capital instruments disclosures are updated when:
• A new capital instrument is issued that will form part of regulatory capital; or
• A capital instrument is redeemed, converted into CET1 capital, written off, or its terms and conditions are changed.
1. westpac.com.au/about-westpac/investor-centre/financial-information/regulatory-disclosures/
Introduction

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 4
Group structurE
APRA applies a tiered approach to measuring Westpac’s capital adequacy
1
by assessing financial strength at three levels:
• Level 1, comprising Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as
being part of a single ‘Extended Licensed Entity’ (ELE) for the purposes of measuring capital adequacy;
• Level 2, 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; and
• Level 3, the consolidation of Westpac Banking Corporation and all its subsidiary entities.
Unless otherwise specified, all quantitative disclosures in this report refer to the prudential assessment of Westpac’s
financial strength on a Level 2 basis
2
.
The Westpac Group
The following diagram shows the Level 3 conglomerate group and illustrates the different tiers of regulatory consolidation.
Westpac Banking
Corporation
Offshore Branches and
Extended Licensed
Entities
Westpac New Zealand Limited
Other Banking & Financial Entities
Insurance, Funds Management, Non-Financial,
Special Purpose Entities
Level 3
Level 2
Level 1
Accounting consolidation
3
The consolidated financial statements incorporate the assets and liabilities of all entities (including structured entities)
controlled by Westpac. Westpac and its subsidiaries are referred to collectively as the ‘Group’. The effects of all
transactions between entities in the Group are eliminated on consolidation. Control exists when the parent entity is
exposed to, or has rights to, variable returns from its involvement with an entity, and has the ability to affect those
returns through its power over that entity. Subsidiaries are fully consolidated from the date on which control commences
and they are no longer consolidated from the date that control ceases.
Group entities excluded from the regulatory consolidation at Level 2
Consolidation at Level 2 includes the global entities of Westpac and its subsidiaries, including other controlled banking,
securities and financial entities, except for those entities involved in the following business activities:
• insurance;
• acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management;
• non-financial (commercial) operations; or
• special purpose entities to which assets have been transferred in accordance with the requirements of APS120
Securitisation.
Retained earnings and equity investments in subsidiary entities excluded from the consolidation at Level 2 are deducted
from capital, with the exception of securitisation special purpose entities.
1. APS110 Capital Adequacy outlines the overall framework adopted by APRA for the purpose of assessing the capital adequacy of an ADI.
2. Impaired assets and provisions held in Level 3 entities are excluded from the tables in this report.
3. Refer to Note 29 of Westpac’s 2023 Annual Report for further details.
Group Structure

5
Subsidiary banking entities
Westpac New Zealand Limited (WNZL), a wholly owned subsidiary entity, is a registered bank incorporated in
New Zealand and regulated by, among others, the Reserve Bank of New Zealand (RBNZ) for prudential purposes.
WNZL uses both the Advanced IRB and Standardised methodologies for credit risk, and the SMA for operational
risk. Other subsidiary banking entities in the Group include Westpac Bank PNG Limited, Westpac Europe Limited and
Westpac Europe GMBH. For the purposes of determining Westpac’s capital adequacy subsidiary banking entities are
consolidated at Level 2.
Restrictions and major impediments on the transfer of funds or regulatory capital within the Group
Certain subsidiary banking and trustee entities are subject to local prudential regulation in their own right, including
capital adequacy requirements and investment or intra-group exposure limits. Westpac seeks to ensure that its
subsidiary entities are adequately capitalised and adhere to regulatory requirements at all times. Dividends and capital
are repatriated in line with the Group’s policy subject to subsidiary Board approval and local regulations.
Minimum capital (‘thin capitalisation’) rules
Tax legislation in most jurisdictions in which the Group operates prescribes minimum levels of capital that must
be retained in that jurisdiction to avoid a portion of the interest costs incurred in the jurisdiction ceasing to be tax
deductible. Capital for these purposes includes both contributed capital and non-distributed retained earnings. Westpac
seeks to maintain sufficient capital/retained earnings in these entities to comply with these rules.
T
ax costs associated with repatriation
Repatriation of retained earnings (and capital) may result in tax being payable in either the jurisdiction from which
the repatriation occurs or in Australia on receipt of the relevant amounts. This cost would reduce the amount actually
repatriated.
Intra-group exposure limits
Exposures to related entities are managed within the prudential limits prescribed by APRA in APS222 Associations with
Related Entities
1
. Westpac has an internal limit structure and approval process governing credit exposures to related
entities. This limit structure and approval process, combined with APRA’s prudential limits, is designed to reduce the
potential for unacceptable contagion risk.
RBNZ capital review
The RBNZ capital adequacy framework became effective from 1 July 2022. The reforms were phased in from
1 October 2021, with changes yet to be fully implemented including:
• WNZL T
ier 1 capital requirement will increase to 16% of RWA by 1 July 2028, of which 13.5% must be CET1 capital and
up to 2.5% may be Additional Tier 1 capital;
•
WNZL’s total capital requirement will increase to 18% of RWA by 1 July 2028, of which up to 2% can be Tier 2 capital;
and
• Eligible Tier 1 capital will comprise common equity and redeemable perpetual preference shares. Existing Additional
Tier 1 capital instruments are being progressively phased out by 1 July 2028.
1.For the purposes of APS222, subsidiaries controlled by Westpac, other than subsidiaries that form part of the ELE, represent ‘related entities’.
Prudential and internal limits apply to intra-group exposures between the ELE and related entities, both on an individual and aggregate basis.

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 6
Capital overview
Capital management strategy
Westpac’s capital management strategy is reviewed on an ongoing basis and annually through an Internal Capital
Adequacy Assessment Process (ICAAP). Key features include:
• Consideration of strategy, business mix and operations, regulatory capital minimums, capital buffers and
contingency plans. The current regulatory capital minimums together with the capital conservation buffer (CCB) and
countercyclical capital buffer are the Total CET1 Requirement. The Total CET1 Requirement for Westpac is at least
10.25%1 based on an industry minimum CET1 requirement of 4.5% plus a capital conservation buffer of 4.75% and a
countercyclical capital buffer of 1.0%2;
• 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 challenges the capital measures, coverage and capital requirements including the
impact of adverse economic scenarios.
The Board has determined that Westpac will target a CET1 capital operating range of between 11.0% and 11.5%, in normal
operating conditions.
Westpac’s capital adequacy ratios
31 Dec30 Sept31 Dec
%202320232022
The Westpac Group at Level 2
Common equity Tier 1 capital ratio 12.29 12.38 11.13
Additional Tier 1 capital 2.45 2.21 2.07
Tier 1 capital ratio 14.74 14.59 13.20
Tier 2 capital 6.30 5.86 4.90
Total regulatory capital ratio 21.04 20.45 18.10
The Westpac Group at Level 1
Common equity Tier 1 capital ratio 12.45 12.62 11.08
Additional Tier 1 capital 2.68 2.42 2.22
Tier 1 capital ratio 15.13 15.04 13.30
Tier 2 capital 6.94 6.44 5.30
Total regulatory capital ratio 22.07 21.48 18.60
Westpac New Zealand Limited’s capital adequacy ratios
31 Dec30 Sept31 Dec
%202320232022
Westpac New Zealand Limited
Common equity Tier 1 capital ratio 11.63 11.10 11.41
Additional Tier 1 capital 2.17 1.62 1.94
Tier 1 capital ratio 13.80 12.72 13.35
Tier 2 capital 1.74 1.73 0.89
Total regulatory capital ratio 15.54 14.45 14.24
1. Noting that APRA may apply higher CET1 requirements for an individual ADI.
2. APRA has currently set a 1.0% default countercyclical capital buffer for Australian exposures however this may be varied by APRA in the range
of 0% to 3.5%. The final countercyclical capital buffer is ADI specific and dependent on a bank’s international exposures.
Capital overview

7
This table shows risk weighted assets for each risk type included in the regulatory assessment of Westpac’s capital adequacy.
More detailed disclosures for selected risk classes are presented in the following sections of this report.
31 December 2023
$m
IRB
Approach
1
FIRB
Approach
2
Standardised
Approach
3
Total Risk
Weighted
Assets
Credit risk
Corporate 24,621 - 1,160 25,781
Business Lending 23,834 - 224 24,058
Property Finance 30,434 - - 30,434
Large Corporate - 20,214 - 20,214
Sovereign - 2,171 1,597 3,768
Financial Institutions - 12,402 51 12,453
Residential Mortgages 115,518 - 17,274 132,792
Australian Credit Cards 3,738 - - 3,738
Other Retail 4,447 - 432 4,879
Small Business 17,062 - 116 17,178
Specialised Lending 3,084 - 453 3,537
Securitisation 7,530 - - 7,530
New Zealand 44,211 - 2,275 46,486
Credit valuation adjustment - - 5,101 5,101
Total Credit risk 274,479 34,787 28,683 337,949
Market risk 11,553
Operational risk 54,934
Interest rate risk in the banking book 33,935
Other
4
5,056
Total 443,427

1. IRB approaches excluding Foundation IRB (FIRB).
2. Under FIRB, an ADI must provide its own estimates of probability of default (PD) and maturity and rely on supervisory estimates of loss given
default (LGD) and EAD.
3. Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories.
4. Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 8
Capital overview
30 September 2023
$m
IRB
Approach
1
FIRB
Approach
2
Standardised
Approach
3
Total Risk
Weighted
Assets
Credit risk
Corporate 24,818 - 656 25,474
Business Lending 23,860 - 223 24,083
Property Finance 30,416 - - 30,416
Large Corporate - 20,570 - 20,570
Sovereign - 2,143 1,805 3,948
Financial Institutions - 13,457 71 13,528
Residential Mortgages 112,948 - 19,290 132,238
Australian Credit Cards 3,712 - - 3,712
Other Retail 4,607 - 425 5,032
Small Business 17,040 - 125 17,165
Specialised Lending 3,065 - 466 3,531
Securitisation 7,661 - - 7,661
New Zealand 44,350 - 2,298 46,648
Credit valuation adjustment - - 5,752 5,752
Total Credit risk 272,477 36,170 31,111 339,758
Market risk 11,538
Operational risk 55,175
Interest rate risk in the banking book 40,138
Other
4
4,809
Total 451,418
31 December 2022
$m
IRB
Approach
Standardised
Approach
3
Total Risk
Weighted
Assets
Credit risk
Corporate 71,568 885 72,453
Business lending 29,895 725 30,620
Sovereign 2,462 1,668 4,130
Bank 4,835 70 4,905
Residential mortgages 151,384 2,706 154,090
Australian credit cards 3,923 - 3,923
Other retail 6,539 697 7,236
Small business 13,917 - 13,917
Specialised lending 59,717 437 60,154
Securitisation 7,241 - 7,241
Credit valuation adjustment - 5,245 5,245
Total credit risk 351,481 12,433 363,914
Market risk 10,626
Operational risk 56,945
Interest rate risk in the banking book 43,866
Other assets
4
5,092
Total 480,443
1. IRB approaches excluding FIRB.
2. Under FIRB, an ADI must provide its own estimates of probability of default (PD) and maturity and rely on supervisory estimates of loss given
default (LGD) and EAD.
3. Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories.
4. Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

9
leverage ratio
Leverage ratio
The following table summarises Westpac’s leverage ratio.
$ billion31 December 202330 September 202330 June 202331 March 2023
Net Tier 1 Regulatory Capital 65.3 65.9 64.5 65.6
Total Exposures 1,207.4 1,196.7 1,202.1 1,200.1
Leverage ratio 5.4% 5.5% 5.4% 5.5%
Leverage Ratio

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 10
CREDIT RISK EXPOSURES
Summary credit risk disclosure
31 December 2023
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
1
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-
performing
Exposures
Actual
losses for
the 3 months
ended
Corporate 40,897 24,621 534 146 155 (18)
Business Lending 43,761 23,834 548 238 321 3
Property Finance 54,407 30,434 322 157 165 2
Large Corporate 39,716 20,214 71 71 - -
Sovereign 182,183 2,171 3 3 - -
Financial Institutions 34,216 12,402 65 28 17 -
Residential Mortgages 538,252 115,518 1,243 827 419 9
Australian Credit Cards 13,606 3,738 155 126 29 27
Other Retail 4,576 4,447 190 135 55 26
Small Business 28,115 17,062 503 343 163 14
Specialised Lending 4,009 3,084 25 25 - -
Securitisation 38,585 7,530 - - - -
Standardised
2
30,018 26,408 - - 99 1
New Zealand 134,882 46,486 561 378 132 4
Total 1,187,223 337,949 4,220 2,477 1,555 68
30 September 2023
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
1
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-
performing
Exposures
Actual
losses for
the 12 months
ended
Corporate 40,545 24,818 477 151 93 16
Business Lending 42,327 23,860 529 244 296 39
Property Finance 54,736 30,416 320 162 157 4
Large Corporate 41,328 20,570 84 84 - -
Sovereign 175,377 2,143 3 3 - -
Financial Institutions 38,426 13,457 66 30 16 9
Residential Mortgages 529,740 112,948 1,166 788 382 32
Australian Credit Cards 13,590 3,712 155 124 31 99
Other Retail 4,848 4,607 193 133 59 122
Small Business 28,232 17,040 509 346 165 57
Specialised Lending 3,981 3,065 25 25 - -
Securitisation 37,600 7,661 - - - -
Standardised
2
29,393 28,813 - - 97 5
New Zealand 133,744 46,648 551 377 120 27
Total 1,173,867 339,758 4,078 2,467 1,416 410
1. Includes regulatory expected losses for defaulted and non-defaulted exposures.
2. Includes credit valuation adjustment.
CREDIT RISK EXPOSURES

11
Expected credit loss provision
This table provides a summary of expected credit loss provision. For 31 December 2023 and 30 September 2023, Stage 1
and Stage 2 credit losses are included in the provision held against performing exposures Line item. Stage 3 credit losses
are included in the Total Specific Provision line.
The majority of the increase in IAPs since 30 September 2023 related to a single name customer and an increase in
more than 90 days delinquency in the programme managed portfolio reflecting the impact of higher interest rates and
inflation on some customers. The impacts are also reflected in our mortgage and personal exposures, which has resulted
in a higher CAPs balance compared to 30 September 2023.
31 December 2023
AAS Provisions
Total
Regulatory
$mIAPsCAPs Provisions
Specific Provisions
for impaired loans 443 203 646
for defaulted but not impaired loans - 909 909
Total Specific Provision
3
443 1,112 1,555
Provisions held against performing exposures - 3,517 3,517
Total provisions for ECL 443 4,629 5,072
30 September 2023AAS Provisions
Total
Regulatory
$mIAPsCAPs Provisions
Specific Provisions
for impaired loans 351 215 566
for defaulted but not impaired loans - 850 850
Total Specific Provision
3
351 1,065 1,416
Provisions held against performing exposures - 3,525 3,525
Total provisions for ECL 351 4,590 4,941
31 December 2022AAS Provisions
Total
Regulatory
$mIAPsCAPs Provisions
Specific Provisions
for impaired loans 398 257 655
for defaulted but not impaired loans - 724 724
For Stage 2 - 2,005 2,005
Total Specific Provision
3
398 2,986 3,384
General Reserve for Credit Loss
3
- 1,408 1,408
Total provisions for ECL 398 4,394 4,792
1. Includes regulatory expected losses for defaulted and non-defaulted exposures.
2. Includes credit valuation adjustment.
3. Provisions classified according to APRA’s letter dated 4 July 2017 “Provisions for regulatory purposes and AASB 9 financial instruments”.
31 December 2022
$m
Exposure
at Default
Risk
Weighted
Assets
Regulatory
Expected
Loss
1
Regulatory
expected
loss for
non-defaulted
exposures
Specific
Provision for
Non-
performing
Exposures
Actual
losses for
the 3 months
ended
Corporate 140,667 71,568 853 331 151 (37)
Business lending 54,963 29,895 611 296 126 12
Sovereign 232,293 2,462 2 2 - -
Bank 21,078 4,835 6 6 - -
Residential mortgages 605,540 151,384 1,389 995 69 10
Australian credit cards 15,090 3,923 156 123 29 26
Other retail 8,688 6,539 288 195 88 33
Small business 27,724 13,917 448 286 133 7
Specialised Lending 71,103 59,717 930 593 8 -
Securitisation 37,274 7,241 - - - -
Standardised
2
14,371 12,433 - - 51 -
Total 1,228,791 363,914 4,683 2,827 655 51
Credit risk exposures

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 12
CREDIT RISK EXPOSURES
Exposure at Default by major type
1
The following tables segment the portfolio by characteristics that provide an insight into the assessment of credit risk
concentration.
31 December 2023 Off-balance sheetTotalAverage
On balanceNon-marketMarket Exposure3 months
$msheet relatedrelatedat Defaultended
Corporate 28,333 9,760 2,804 40,897 39,231
Business Lending 37,228 6,383 150 43,761 42,315
Property Finance 48,829 5,259 319 54,407 53,936
Large Corporate 20,760 14,748 4,208 39,716 40,196
Sovereign 158,863 250 23,070 182,183 194,225
Financial Institutions 16,240 4,783 13,193 34,216 37,077
Residential Mortgages 471,342 66,910 - 538,252 527,484
Australian Credit Cards 6,311 7,295 - 13,606 13,631
Other Retail 3,635 941 - 4,576 5,068
Small Business 20,847 7,268 - 28,115 28,823
Specialised Lending 2,080 1,748 181 4,009 3,925
Securitisation 31,341 7,132 112 38,585 36,260
Standardised 19,410 5,301 5,307 30,018 29,786
New Zealand 112,987 21,274 621 134,882 133,217
Total 978,206 159,052 49,965 1,187,223 1,185,174
30 September 2023 Off-balance sheetTotalAverage
On balanceNon-marketMarket Exposure6 months
$msheet relatedrelatedat Defaultended
Corporate 27,410 9,835 3,300 40,545 38,676
Business Lending 36,285 5,989 53 42,327 41,833
Property Finance 48,877 5,577 282 54,736 53,779
Large Corporate 22,845 13,686 4,797 41,328 40,356
Sovereign 148,767 297 26,313 175,377 198,239
Financial Institutions 17,001 4,545 16,880 38,426 38,031
Residential Mortgages 464,316 65,424 - 529,740 523,896
Australian Credit Cards 6,170 7,420 - 13,590 13,639
Other Retail 3,886 962 - 4,848 5,232
Small Business 21,200 7,032 - 28,232 29,059
Specialised Lending 2,079 1,803 99 3,981 3,897
Securitisation 29,823 7,723 54 37,600 35,485
Standardised 21,077 5,249 3,067 29,393 29,709
New Zealand 111,491 21,536 717 133,744 132,661
Total 961,227 157,078 55,562 1,173,867 1,184,492
31 December 2022 Off-balance sheetTotalAverage
On balanceNon-marketMarket Exposure3 months
$msheet relatedrelatedat Defaultended
Corporate 67,228 58,986 14,453 140,667 144,082
Business lending 41,219 13,744 - 54,963 54,677
Sovereign 177,522 1,537 53,234 232,293 227,309
Bank 11,571 1,647 7,860 21,078 21,213
Residential mortgages 523,220 82,320 - 605,540 601,186
Australian credit cards 6,310 8,780 - 15,090 15,079
Other retail 6,116 2,572 - 8,688 8,830
Small business 20,842 6,882 - 27,724 27,927
Specialised lending 57,875 12,782 446 71,103 69,828
Securitisation 29,431 7,799 44 37,274 36,798
Standardised 10,836 992 2,543 14,371 14,487
Total 952,170 198,041 78,580 1,228,791 1,221,416
1. As set out in Appendix I, APRA’s capital framework effective 1 January 2023 introduced new credit risk asset classes. This resulted in exposures
moving between asset classes. Given this, for 30 September 2023 the average EAD over 6-months has been shown rather than a 12-month
average.

13
Non-performing and past due loans by portfolio
This table discloses non-performing and past due loans by credit asset class. ADI’s are required to disclose non-
performing exposures which are exposures in default aligned to the definition in APS220 Credit Risk Management. Under
APS 220, the initial recognition of default is where either one, or both, of the following has happened:
• Westpac considers that the borrower is unlikely to pay its credit obligations to Westpac in full, and without recourse
to actions such as realising available security;
• the borrower is 90 days or more past-due on a credit obligation to Westpac.
ADI’s are also required to classify an exposure as non-performing for an additional 90 days after returning to
performing.
31 December 2023NonSpecificActual
PerformingNonTotalprovisionsLosses
ExposuresPerformingNonfor Nonfor the
- NotExposuresPerformingPerforming3 months
$mImpaired- ImpairedExposuresExposuresended
Corporate 39 161 200 155 (18)
Business Lending 871 189 1,060 321 3
Property Finance 729 16 745 165 2
Large Corporate - - - - -
Sovereign - - - - -
Financial Institutions 56 8 64 17 -
Residential Mortgages 4,516 229 4,745 419 9
Australian Credit Cards - 80 80 29 27
Other Retail - 113 113 55 26
Small Business 664 336 1,000 163 14
Specialised Lending - - - - -
Securitisation - - - - -
Standardised 355 118 473 99 1
New Zealand 637 121 758 132 4
Total 7,867 1,371 9,238 1,555 68
30 September 2023NonSpecificActual
PerformingNonTotalprovisionsLosses
ExposuresPerformingNonfor Nonfor the
- NotExposuresPerformingPerforming12 months
$mImpaired- ImpairedExposuresExposuresended
Corporate 27 100 127 93 16
Business Lending 823 190 1,013 296 39
Property Finance 716 36 752 157 4
Large Corporate - - - - -
Sovereign - - - - -
Financial Institutions 51 8 59 16 9
Residential Mortgages 4,117 238 4,355 382 32
Australian Credit Cards - 84 84 31 99
Other Retail - 123 123 59 122
Small Business 667 320 987 165 57
Specialised Lending - - - - -
Securitisation - - - - -
Standardised 345 124 469 97 5
New Zealand 661 79 740 120 27
Total 7,407 1,302 8,709 1,416 410

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 14
CREDIT RISK EXPOSURES
31 December 2022Actual
SpecificLosses
Provisionsfor the
DefaultedImpairedfor Impaired3 months
$mnot impaired
1
LoansLoansended
Corporate 215 203 151 (37)
Business lending 1,175 264 126 12
Sovereign - - - -
Bank - - - -
Residential mortgages 3,623 291 69 10
Australian credit cards - 59 29 26
Other retail - 169 88 33
Small business 600 364 133 7
Specialised lending 601 38 8 -
Securitisation - - - -
Standardised 78 98 51 -
Total 6,292 1,486 655 51
1. Includes items past 90 days not impaired.

15
SecuritiSation
Banking book summary of securitisation activity by asset type
This table shows assets transferred into securitisation schemes by underlying asset type (ADI originated) for the relevant
period.
The overall reduction in the amounts securitised is due to the reduction in the frequency and volume of sales to the
internal securitisation programmes, resulting from reduced requirements following the phase-out of the Reserve Bank of
Australia’s Committed Liquidity Facility on 1 January 2023.

For the 3 months endedRecognised
31 December 2023Amountgain or loss
$msecuritisedon sale
Residential mortgages 1,018 -
Credit cards - -
Auto and equipment finance - -
Business lending - -
Investments in ABS - -
Other - -
Total 1,018 -
For the 12 months endedRecognised
30 September 2023 Amount gain or loss
$m securitised on sale
Residential mortgages 26,201 -
Credit cards - -
Auto and equipment finance - -
Business lending - -
Investments in ABS - -
Other - -
Total 26,201 -
For the 3 months endedRecognised
31 December 2022 Amount gain or loss
$m securitised on sale
Residential mortgages 7,157 -
Credit cards - -
Auto and equipment finance - -
Business lending - -
Investments in ABS - -
Other - -
Total 7,157 -

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 16
SecuritiSation
Banking book summary of on and off-balance sheet securitisation by exposure type
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 December 2023
Securities - 7,780 - 7,780
Liquidity facilities - - 394 394
Funding facilities 7,383 - 955 8,338
Underwriting facilities - - - -
Lending facilities 778 - 66 844
Warehouse facilities 15,400 - 5,829 21,229
Total 23,561 7,780 7,244 38,585
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
30 September 2023
Securities - 7,520 - 7,520
Liquidity facilities - - 329 329
Funding facilities 6,800 - 767 7,567
Underwriting facilities - - - -
Lending facilities 1,870 - 220 2,090
Warehouse facilities 13,632 - 6,462 20,094
Total 22,302 7,520 7,778 37,600
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 December 2022
Securities - 7,061 37 7,099
Liquidity facilities - - 280 280
Funding facilities 4,910 - 747 5,657
Underwriting facilities - - - -
Lending facilities 2,141 - 325 2,466
Warehouse facilities 15,318 - 6,454 21,772
Total 22,369 7,061 7,843 37,274

17
Trading book summary of on and off-balance sheet securitisation by exposure type1
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 December 2023
Securities - 546 - 546
Liquidity facilities - - - -
Funding facilities - - - -
Underwriting facilities - - - -
Lending facilities - - - -
Warehouse facilities - - - -
Credit enhancements - - - -
Basis swaps - - 107 107
Other derivatives - - 5 5
Total - 546 112 658
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
30 September 2023
Securities - 447 - 447
Liquidity facilities - - - -
Funding facilities - - - -
Underwriting facilities - - - -
Lending facilities - - - -
Warehouse facilities - - - -
Credit enhancements - - - -
Basis swaps - - 49 49
Other derivatives - - 5 5
Total - 447 54 501
On balance sheetTotal
SecuritisationSecuritisationOff-balanceExposure
$mretainedpurchasedsheetat Default
31 December 2022
Securities - 433 - 433
Liquidity facilities - - - -
Funding facilities - - - -
Underwriting facilities - - - -
Lending facilities - - - -
Warehouse facilities - - - -
Credit enhancements - - - -
Basis swaps - - 35 35
Other derivatives - - 10 10
Total - 433 45 478
1. EAD associated with trading book securitisation is not included in the EAD by major type on page 16. Trading book securitisation exposure is
captured and risk weighted under APS116.

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 18
Liquidity Coverage ratio
Liquidity Coverage Ratio
The Liquidity Coverage Ratio (LCR) measures a bank’s ability to meet its liquidity needs under an acute liquidity stress
scenario (prescribed by APRA), measured over a 30-day time frame. LCR is calculated as High-Quality Liquid Assets
(HQLA) as a percentage of Net Cash Outflows (NCO).
Westpac’s average LCR for the quarter was 133% (30 September 2023: 134%) and continues to be above the regulatory
minimum of 100%.
The decrease in average LCR for the quarter ended 31 December 2023 (133%) reflects a decrease in holdings of liquid
assets
1
, largely driven by higher average customer funding gap, partially offset with lower average NCOs. The decrease in
average NCOs was driven by lower wholesale funding outflows, as prior period outflows included the maturity of the first
tranche of the TFF.
Westpac’s portfolio of HQLA averaged $172.9 billion over the quarter2 (30 September 2023: $177.6 billion).
Funding is sourced from retail, small business, corporate and institutional customer deposits and wholesale funding.
Westpac seeks to minimise the outflows associated with this funding by targeting customer deposits with lower LCR
outflow rates and actively manages the maturity profile of its wholesale funding portfolio. Westpac maintains a buffer
over the regulatory minimum of 100% in line with Liquidity Risk tolerance.
31 December 202330 September 2023

$m
Total
unweighted
value
(average)
Total
weighted
value
(average)
Total
unweighted
value
(average)
Total
weighted
value
(average)
Liquid assets, of which:
1 High-quality liquid assets (HQLA) 172,884 177,611
2 Alternative liquid assets (ALA) - -
3 Reserve Bank of New Zealand (RBNZ) securities 4,729 4,271
Cash Outflows
4 Retail deposits and deposits from small business customers, of which: 335,665 29,718 329,247 29,304
5 Stable deposits 163,225 8,161 159,374 7,969
6 Less stable deposits 172,440 21,557 169,873 21,335
7 Unsecured wholesale funding, of which: 168,433 75,641 170,569 76,953
8 Operational deposits (all counterparties) and deposits in networks for cooperative banks 75,696 18,853 74,815 18,631
9 Non-operational deposits (all counterparties) 81,798 45,849 84,505 47,073
10
Unsecured debt 10,939 10,939 11,249 11,249
11 Secured wholesale funding 341 3,891
12 Additional requirements, of which: 215,992 32,348 215,038 30,463
13 Outflows related to derivatives exposures and other collateral requirements 12,772 12,772 12,462 12,462
14 Outflows related to loss of funding on debt products 1,573 1,573 136 136
15 Credit and liquidity facilities 201,647 18,003 202,440 17,865
16 Other contractual funding obligations 9,220 6,439 7,606 4,515
17 Other contingent funding obligations 47,592 4,141 46,727 4,082
18 Total cash outflows 148,628 149,208
Cash inflows
19 Secured lending (e.g. reverse repos) 7,254 - 7,876 -
20 Inflows from fully performing exposures 9,779 5,268 9,400 5,020
21 Other cash inflows 10,147 10,147 7,988 7,988
22 Total cash inflows 27,180 15,415 25,264 13,008
23 Total liquid assets 177,613 181,882
24 Total net cash outflows 133,213 136,200
25 Liquidity Coverage Ratio (%)133%134%
Number of data points used 63 65
1. Liquid assets included in the LCR comprise HQLA such as cash, deposits with central banks, Australian Government and semi-government
securities, and additional qualifying RBNZ securities.
2. Calculated as a simple average of the daily observations over the quarter.
Liquidity Coverage Ratio

19
Appendix i | ApRA’s cApitAl fRAmewoRk
APRA’s capital framework (Basel III) became effective on 1 January 2023 and included updated prudential standards
for capital adequacy and credit risk capital. The objectives of the capital framework are to provide flexibility for banks
to operate in all environments including in times of stress, enhance risk sensitivity and improve comparability with
international standards. Revisions on 1 January 2023 include:
• Capital requirements: The total CET1 Requirement for D-SIBs, including Westpac, is 10.25% (noting that APRA may
apply higher CET1 requirements for an individual ADI). This comprises:
–Minimum CET1 of 4.5%;
–Capital conservation buffer (CCB) of 4.75%; and
–Countercyclical capital buffer of 1.0%.
• Calculation of Credit RWA: There have been several changes, with the most significant including:
–Asset classifications used to determine RWA;
–Greater use of internal modelling within property finance and mortgages which reduced risk weightings;
–Higher capital requirements for higher risk segments such as interest only and investor mortgages;
–Revised credit conversion factors (CCFs) for the calculation of off-balance sheet exposures which has reduced
exposure at default. CCFs are percentage values used to convert an off-balance sheet exposure into an on-balance
sheet equivalent; and
–New Zealand RWA largely determined by the RBNZ requirements which increased RWA compared to prior
periods.
• Introduction of a capital floor which limits the capital benefit available to advanced banks to no more than 72.5% of
the RWA outcomes available under the standardised approach; and
• Introduction of a minimum leverage ratio of 3.5% and amendments of the leverage exposure calculation.
APRA’s capital framework reduced credit RWA by $23.7 billion on implementation. Key drivers were:
– Property Finance: Internal modelling has reduced the risk weight of property finance. These exposures were
formerly calculated using the IRB slotting approach;
– Residential Mortgages: Revisions to mortgage models reduced RWA, although additional capital was required for
higher risk segments, including standardised risk weights for some exposures; and
– Off-balance sheet exposures: EAD has reduced mainly related to changes in CCFs for non-retail exposures.
Changes to credit risk capital
APRA’s capital framework included updated prudential standards for credit risk capital (APS113 Capital Adequacy:
Internal Ratings-Based (IRB) Approach to Credit Risk and APS 112 Capital Adequacy: Standardised Approach to Credit
Risk). The revised IRB standard requires an ADI to categorise banking book exposures into four broad IRB APS113 asset
classes (Corporate, Sovereign, Financial Institution and Retail) and apply the prescribed treatment for those classes to
each credit exposure within them for the purposes of deriving its regulatory capital requirement. APS113 cascades these
asset classes into further sub-asset classes as per below.
APRA’s capital framework resulted in changes to previously reported credit asset classes. This includes changes to credit
RWA calculations from AIRB to FIRB and Standardised approaches for some exposure classes. Under FIRB, an ADI must
provide its own estimates of PD and maturity and rely on supervisory estimates of LGD and EAD. Under Standardised, an
ADI must apply risk weight percentages and CCFs set out in APS 112 to calculate the relevant RWA.
The capital framework has resulted in some exposures being prescribed a standardised risk weight. This includes certain
mortgages including interest-only mortgages greater than five years and mortgages held by self-managed super funds.
Appendix I | APRA’s capital framework

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 20
Appendix i | ApRA’s cApitAl fRAmewoRk
The table below summarises Westpac’s credit risk asset classes under APRA’s capital framework.
Credit Asset Classes
Previously Reported Credit Asset Classes
Corporate
Corporate
Business Lending
Business Lending
Small Business
Property Finance
Specialised Lending
Large Corporate
Corporate
Sovereign
Sovereign
Financial Institutions
Corporate
Business Lending
Bank
Residential Mortgages
Residential Mortgages
Australian Credit Cards
Australian Credit Cards
Other Retail
Other Retail
Small Business
Small Business
Business Lending
Specialised Lending
Specialised Lending
Securitisation
Securitisation
New Zealand
Corporate
Business Lending
Sovereign
Banks
Residential Mortgages
Other Retail
Small Business
Specialised Lending
Securitisation

21
Appendix ii | Aps 330 quAntitAtive RequiRements
APS330 referenceWestpac disclosurePage
General requirements
Paragraph 51Tier 1 capital, total exposures and leverage ratio9
Attachment C:
Table 3: Capital adequacy(a) to (e)Capital requirements7
(f)Westpac’s capital adequacy ratios6
Capital adequacy ratios of major subsidiary banks6
Table 4: Credit risk(a)Exposure at Default by major type12
(b)Non-performing and past due loans by portfolio13
(c)
Provisions held against performing exposures11
Table 5: Securitisation exposures(a)Banking book summary of securitisation activity by asset
type
15
(b)Banking book summary of on and off-balance sheet
securitisation by exposure type
16
Trading book summary of on and off-balance sheet
securitisation by exposure type
17
Attachment F:
Table 20: Liquidity coverage Ratio
disclosure template
Liquidity Coverage Ratio disclosure18
APPENDIX II | APS 330 quantitative
requirements

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 22
Appendix iii | excHAnGe RAtes
Exchange rates
The following exchange rates were used in the Westpac Pillar 3 report, and reflect spot rates for the period end.
31 Dec30 Sept31 Dec
202320232022
USD0.6842 0.6469 0.6778
GBP0.5364 0.5285 0.5623
NZD1.0769 1.0741 1.0704
EUR0.6184 0.6110 0.6360
APPENDIX III | EXCHANGE RATES

23
GlossARY
TermDescription
Actual lossesRepresent direct write-offs and write-offs from provisions after adjusting for recoveries.
Additional Tier 1 capital (AT1)Comprises high quality components of capital that provide a permanent and unrestricted
commitment of funds that are freely available to absorb losses but rank behind claims of
depositors and other more senior creditors. They also provide for fully discretionary capital
distributions.
Alternative Liquid Assets (ALA)Assets that qualify for inclusion in the numerator of the LCR in jurisdictions where there is
insufficient supply of HQLA.
Australian Accounting Standards
(AAS)
A set of Australian reporting standards and interpretations issued by the Australian
Accounting Standards Board.
Australian and New Zealand
Standard Industrial Classification
(ANZSIC)
A code used by the Australian Bureau of Statistics and Statistics New Zealand for
classifying businesses.
Authorised Deposit-taking
Institution (ADI)
ADIs are corporations that are authorised under the Banking Act 1959 to carry on banking
business in Australia.
Banking bookThe banking book includes all securities that are not actively traded by Westpac.
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.
Committed Liquidity Facility (CLF)Facility established with the RBA to cover the shortfall in Australian dollars between the
ADI’s holding of HQLA and net cash outflows. The CLF is an ALA for the Group’s LCR
calculation.
Common equity Tier 1 (CET1)
capital
The highest form of capital. The key components of common equity are shares, retained
earnings and undistributed current year earnings.
Credit valuation adjustment (CVA)
risk
The risk of mark-to-market losses related to deterioration in the credit quality of a
derivative counterparty.
DefaultPre – 1 January 2023:
A customer default is deemed to have occurred when Westpac considers that either or
both of the following events have taken place:
• the customer is unlikely to pay its credit obligations to its financiers in full, without
recourse by any of them to actions such as realising security (where held); and
• the customer is past due 90 or more calendar days on any material credit obligation to
its financiers. Overdrafts will be considered past due once the customer has breached
an advised limit, or been advised of a limit smaller than the current outstandings.
From 1 January 2023:
Refer to non-performing exposures definition.
Defaulted not impairedPre – 1 January 2023:
Includes facilities where:
• contractual payments of interest and/or principal are 90 or more calendar days
overdue, including overdrafts or other revolving facilities that remain continuously
outside approved limits by material amounts for 90 or more calendar days (including
accounts for customers who have been granted hardship assistance); or
• an order has been sought for the customer’s bankruptcy or similar legal action has
been instituted, which may avoid or delay repayment of its credit obligations; and
• the estimated net realisable value of assets/security to which Westpac has recourse is
sufficient to cover repayment of all principal and interest, or where there are otherwise
reasonable grounds to expect payment in full and interest is being taken to profit on an
accrual basis.
These facilities, while in default, are not treated as impaired for accounting purposes.
From 1 January 2023:
Equivalent to non-performing exposures that have not been impaired for accounting purposes.
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.
Expected credit loss (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.
GLOSSARY

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 24
GlossARY
TermDescription
Extended Licensed Entity (ELE)An extended licensed entity (ELE) comprises an ADI and any subsidiaries of the ADI that
have been approved by APRA as being part of a single ‘stand-alone’ entity.
High-quality liquid assets (HQLA)Assets which meet APRA’s criteria for inclusion as HQLA in the numerator of the LCR.
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.
Impaired exposuresIncludes 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, cashflow, 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; and
• any other facilities where the full collection of interest and principal is in doubt.
IndustryExposures to businesses, government and other financial institutions are classified into
industry clusters based upon groups of related ANZSIC codes. Companies that operate in
multiple industries are classified according to their primary industry. Consumer customers
as classified as “retail” and not further broken down.
Interest rate risk in the banking
book (IRRBB)
The risk of loss in earnings or economic value in the banking book as a consequence of
movements in interest rates.
Internal ratings-based approach
(IRB & Advanced IRB)
These approaches allow banks to use internal estimates of the risks of their loans as
inputs into the determination of the amount of credit risk capital needed to support the
organisation. In the Advanced IRB approach, banks must supply their own estimates for
all three credit parameters – Probability of Default, Loss Given Default and Exposure at
Default.
Leverage ratioThe 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.
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, CLF and qualifying
Reserve Bank of New Zealand securities over the total net cash out flows in a modelled 30
day defined stressed scenario.
Loss given default (LGD)The LGD represents an estimate of the expected severity of a loss to Westpac should a
customer default occur during a severe economic downturn. Westpac assigns LGD to
each credit facility, assuming an event of default has occurred and taking into account a
conservative estimate of the net realisable value of assets to which Westpac has recourse
and over which it has security. LGDs also reflect the seniority of exposure in the customer’s
capital and debt structure.
MaturityThe maturity date used is drawn from the contractual maturity date of the customer loans.
Net cash outflowsTotal expected cash outflows minus total expected cash inflows in the specified LCR stress
scenario calculated in accordance with APRA’s liquidity standard.
GLOSSARY

25
TermDescription
Non-performing exposuresCredit default exposures, the initial recognition of which under APS220 occurs where either
one, or both, of the following has happened:
•
W
estpac considers that the borrower is unlikely to pay its credit obligations to Westpac
in full, and without recourse to actions such as realising available security;
•
the borr
ower is 90 days or more past-due on a credit obligation to Westpac.
Off-balance sheet exposureCredit exposures arising from facilities that are not recorded on Westpac's balance
sheet (under accounting methodology). Undrawn commitments and the expected future
exposure calculated for Westpac's derivative products are included in off-balance sheet
exposure.
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.
Risks-not-in-VaR (RNIV)The RNIV framework is a component of APRA’s APS 116 internal model approach for
market risk regulatory capital.
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 and operational risk), RWA is determined by
multiplying the capital requirements for those risks by 12.5.
Securities financing transactions
(SFT)
APRA defines SFTs as “transactions such as repurchase agreements, reverse repurchase
agreements, and security lending and borrowing, and margin lending transactions, where
the value of the transactions depends on the market valuation of securities and the
transactions are typically subject to margin agreements.”
Term Funding Facility (TFF)The TFF provides low cost three-year funding for ADIs to support the supply of credit. It also
provides an incentive for ADIs to increase their lending to businesses, especially small and
medium-sized enterprises.
Tier 2 capitalIncludes other capital elements, which, to varying degrees, fall short of the quality of Tier 1
capital but still contribute to the overall strength of an entity as a gone concern capital.
Trading bookTrading book activity represents dealings that encompass book running and distribution
activity. The types of market risk arising from trading activity include interest rate risk,
foreign exchange risk, commodity risk, equity price risk, credit spread risk and volatility
risk. Financial Markets and Treasury are responsible for managing market risk arising from
Westpac’s trading activity.
Value at risk (VaR)VaR is the potential loss in earnings from adverse market movements and is calculated
over a one-day time horizon at a 99% confidence level using a minimum of one year of
historical rate data. VaR takes account of all material market variables that may cause
a change in the value of the trading portfolio and the banking book including interest
rates, foreign exchange rates, price changes, volatility, and the correlation among these
variables.
Other
TermDescription
AIRBAdvanced Internal Ratings-Based Approach
APRAAustralian Prudential Regulatory Authority
APSAustralian Prudential Standard
CCB Capital Conservation Buffer
CCFsCredit conversion factors
D-SIBsDomestic Systemically Important Banks
FIRBFoundation Internal Ratings-Based Approach
FXForeign Exchange
G-SIBGlobal Systemically Important Banks
ICAAPInternal Capital Adequacy Assessment Process
RBAReserve Bank of Australia
RBNZReserve Bank of New Zealand
SMAStandardised Measurement Approach
WNZLWestpac New Zealand Limited

WESTPAC GROUP DECEMBER 2023 PILLAR 3 REPORT 26
disclosuRe ReGARdinG foRwARd-lookinG stAtements
The information contained in this report contains statements that constitute “forward-looking statements” within the
meaning of section 21E of the U.S. 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 report and include statements regarding Westpac’s intent, belief or current expectations with
respect to its business and operations, macro and micro economic and market conditions, results of operations and
financial condition, capital adequacy 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’, ‘f’cast’, ‘f’, ‘assumption’, ‘projection’, ‘target,’ goal’,
‘guidance’, ‘ambition’ or other similar words are used to identify forward-looking statements, or otherwise identify
forward-looking statements. These forward-looking statements reflect Westpac’s 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 Westpac’s control (and the control of Westpac’s officers, employees, agents and advisors), and have
been made based on management’s 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 report. Such statements are subject to the same limitations, uncertainties, assumptions and
disclaimers set out in this report.
There can be no assurance that future developments or performance will align with Westpac’s expectations or that the
effect of future developments on Westpac 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, those described in the section titled ‘Risk factors’ under the section ‘Performance Review’ in Westpac’s 2023
Annual Report. When relying on forward-looking statements to make decisions with respect to Westpac, investors and
others should carefully consider such factors and other uncertainties and events.
Except as required by law, Westpac assumes no obligation to revise or update any forward-looking statements in this
report, whether from new information, future events, conditions or otherwise, after the date of this report.
Disclosure regarding forward-looking statements

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