Westpac 2025 Group Annual Report and Appendix 4E
ASX RELEASE
Westpac Banking Corporation
Level 18, 275 Kent Street
Sydney, NSW, 2000
3 November 2025
Westpac 2025 Group Annual Report and Appendix 4E
Westpac Banking Corporation (“Westpac”) today provides the attached Westpac 2025
Group Annual Report and Appendix 4E.
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.
i
ASX APPENDIX 4E
ASX Appendix 4E
Results for announcement to the market
1
Report for the full year ended 30 September 2025
2
Revenue from ordinary activities
a,b
($m)up4%to22,384
Profit from ordinary activities after tax attributable to equity holders
b
($m)down1%to6,916
Net profit for the period attributable to equity holders
b
($m)down1%to6,916
a.Comprises reported interest income, interest expense and non-interest income.
b.Above comparisons are to the reported results for the twelve months ended 30 September 2024.
Dividend distributions (cents per ordinary share)Amount per securityFranked amount per security
Final dividend7777
Interim dividend7676
Record date for determining entitlements to the final dividend07 November 2025
As at
30 Sept 2025
As at
30 Sept 2024
Net tangible assets
Net tangible assets per ordinary share ($)18.2517.75
1.This document comprises the Westpac 2025 Full Year Financial Results, and is provided to the Australian Securities Exchange under Listing
Rule 4.3A.
2.This report should be read in conjunction with Westpac's 2025 reporting suite and any public announcements made in the period by Westpac in
accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX Listing Rules.
iiWESTPAC 2025 ANNUAL REPORT
This page has been intentionally left blank.
2025
ANNUAL
REPORT
WESTPAC
WESTPAC 2025 ANNUAL REPORT
Acknowledgement of Indigenous Peoples
Westpac acknowledges the First Peoples of Australia. We recognise
their ongoing role as Traditional Owners of the land and waters of
this country and pay our respects to Elders, past and present. We
extend our 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 tāngata whenua and
the unique relationship that Indigenous Peoples share with all New
Zealanders under Te Tiriti o Waitangi.
Westpac’s reporting suite
The 2025 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. The information in this report relates to our 2025 (FY25) reporting period unless stated otherwise.
Our Annual Report forms part of our broader 2025 reporting suite which includes:
•Full Year Financial Results Announcement;
•Financial Results Presentation and Investor Discussion Pack;
•Sustainability Report;
•Pillar 3 Report;
•Notice of Meeting;
•Corporate Governance Statement; and
•Risk Factors.
The 2025 Sustainability Index and Datasheet is the reporting hub for many of our sustainability metrics. It provides
a glossary and details of our alignment with key reporting standards.
The full reporting suite is available online at westpac.com.au/2025annualreport.
In this 2025 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 and non-financial information in this Annual Report refer to Reading this report
(page 238).
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, refer to Reading this report (page 238). 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. Information on those websites owned by Westpac is current as
at the date of this report. Except as required by law, we assume no obligation to revise or update those websites after the date of this report. We
are not in a position to verify information on websites owned and/or operated by third parties.
Westpac Banking Corporation ABN 33 007 457 141
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
3
Contents
STRATEGIC REVIEW4
About Westpac4
Operating environment5
Chairman’s report6
CEO’s report8
Our Strategy10
Top and emerging risks12
Our approach to sustainability13
How we create value14
Creating value for shareholders16
Creating value for customers22
Creating value for our people28
Creating value for the community32
Creating value for the environment36
Transformation40
Data, Digital and AI41
Risk Management42
Corporate Governance50
Directors’ Report54
Board of Directors54
Executive Team58
Remuneration Report69
Information on Westpac101
FINANCIAL REPORT103
Income statements104
Statements of comprehensive income105
Balance sheets106
Statements of changes in equity107
Cash flow statements109
Notes to the Financial Statements110
Consolidated Entity Disclosure Statement227
Statutory Statements230
ADDITIONAL INFORMATION237
Reading this report238
Shareholder information248
Other Westpac business information258
Glossary of Abbreviations and Defined Terms260
Contact Us265
4WESTPAC 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
Trusts
1
. 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 Australia
2
.
As we evolve, we're inspired by customers, their needs and our purpose of taking action now to create a better future.
Market share
AUSTRALIANEW ZEALAND
Household deposits
aa
21%
Consumer lending
b
18%
Mortgages
a
21%
Deposits
b
17%
Business lending
a
16%
Business lending
b
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
5
OPERATING
ENVIRONMENT
1
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.
6WESTPAC 2025 ANNUAL REPORT
CHAIRMAN’S
REPORT
It was a defining year for the
company, with renewed leadership,
a clear growth strategy and
the delivery of UNITE’s first
initiatives as part of our major
transformation agenda.
Dear fellow shareholders,
Following a year of global uncertainty, Westpac
maintained its resilience and balance sheet strength
to support customers, communities and the economic
stability of Australia and New Zealand.
It was a defining year for the company, with renewed
leadership, a clear growth strategy and the delivery
of UNITE’s first initiatives as part of our major
transformation agenda.
Our financial position is unquestionably strong, supported
by disciplined financial management and a robust balance
sheet. Capital, funding and liquidity remain well above
regulatory minimums, including a Common Equity Tier 1
(CET1) capital ratio of 12.5%. This capital strength places
Westpac in the top quartile of banks globally.
We completed the Customer Outcomes and Risk
Excellence (CORE) program, designed to strengthen
Westpac’s risk practices and culture.
In response, APRA released the remaining $500 million
operational risk capital overlay in October. This milestone
reflects five years of meaningful change to strengthen
Westpac’s risk management, governance and culture.
While embedding these changes has been demonstrated,
ongoing improvements in risk will be prioritised.
Financial performance
The financial performance reflected our strategy of
balancing growth and return while investing for the
future. Profit after tax was down 1% to $6.9 billion. This
resulted in a modest decline in return on tangible equity
(ROTE) to 11%, which remains well above our cost of
capital. Earnings per ordinary share were stable at 201.9
cents, with the execution of the share buyback adding
three cents to earnings per share.
The steady financial performance and strong capital
position allowed the Board to declare a final ordinary
dividend of 77 cents per share, taking full year dividends,
fully franked, to $1.53 per share. This equates to a payout
ratio of 75% of Profit after tax, excluding Notable Items.
Total shareholder return for the year was 29%. That
places Westpac first among its major bank peers for
total shareholder return over one, two and three year
time horizons.
While it is pleasing to see investors acknowledge the
progress made in recent years, the return on tangible
equity remains below the market leader. Improving return
is a priority as we aim to improve our market position and
cost base relative to peers.
The Board determined it is prudent to carry surplus
capital in an uncertain operating environment. This
enables us to balance the investment required for ongoing
transformation and business growth, while maintaining
the flexibility to return surplus capital to shareholders.
In this regard, we are conscious of the company's
significant franking credit balance and in addition, there
is approximately $1.0 billion remaining of the previously
announced on market share buyback.
Renewed leadership and strategic clarity
Anthony Miller stepped into the role of CEO on
16 December following Peter King’s retirement.
In his first nine months, Anthony has brought renewed
focus and momentum to Westpac’s strategy. He is driving
execution and strengthening employee engagement with
a whole-of-bank to customer approach, while setting a
clear path for growth.
Our ambition to be our customers’ number one bank and
partner through life continues to guide how we improve
and invest in products and services to reflect their needs.
Progress is reflected in a more visible banker and regional
branch presence, enhanced digital capabilities, faster loan
approvals and stronger scams and fraud protection.
We’ve begun leveraging data analytics and AI to help our
people anticipate customer needs and deliver safer, more
personalised banking experiences.
With a capable leadership team in place focused
on executing our strategy, supported by an engaged
workforce, we are well-positioned to deliver sustainable
returns for shareholders.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
7
Delivering the transformation agenda
The UNITE program is central to Westpac’s long-
term growth and competitiveness. It will help address
legacy complexity by simplifying products, processes and
systems for better customer and employee experiences,
while reducing operating costs.
The completion of extensive planning allowed us to
shift focus this year to execution, with eight initiatives
completed and 51 underway across the four businesses.
In 2024, the Board established a UNITE Oversight
Group, drawing on its relevant expertise and experience.
A dedicated transformation office is driving the
program’s implementation, supported by independent
advice and assurance.
UNITE is a strategic priority and we will keep shareholders
informed throughout its journey. While completion and
financial benefits will deliver over the term of the
program, UNITE represents a critical investment in
Westpac’s future.
Attracting and retaining the best people
Our people remain our greatest asset and pleasingly,
despite a year of change, our employee engagement
remains in the top quartile globally. The Board continues
to support inclusion and diversity alongside professional
development, advancing female careers and programs to
help our people to reach their full potential.
Regular engagement with teams across the bank
has deepened the Board’s insights, to strengthen
our risk culture and operational excellence. We
also remain focused on Executive and employee
remuneration, ensuring alignment with performance and
shareholder outcomes.
Sustainability and community impact
The Board oversees Westpac’s sustainability strategy,
which is aligned to the broader corporate strategy.
It focuses on three areas: climate transition, housing
affordability and regional prosperity.
As Australia’s largest lender to greenfield renewable
projects, we’re scaling support for activities that
accelerate decarbonisation while helping to maintain
energy security and affordability.
We have continued to reduce our operational emissions
in line with our 2030 targets. We're also realigning our
lending, reducing our thermal coal exposure to zero while
identifying growth opportunities in sustainable finance.
This year, sustainable finance lending rose 37% while our
share of sustainable bond facilitation increased by 40%.
It is important we continue to engage with customers
to understand their decarbonisation plans and provide
tailored solutions to support their journey. In May,
we published updated lending requirements for carbon-
intensive sectors. We have since released a Sustainability
Report in readiness for mandatory climate reporting from
next year and a new Climate Transition Plan.
To support the community more broadly, the independent
charitable Foundations
1
will align with national education
goals next year to improve literacy and numeracy for
disadvantaged children.
Westpac Scholars has awarded 1,000 scholarships in the
past decade, supporting the growth of young Australian
talent. We thank David Curran for his leadership of
Westpac Scholars as he steps down after many years of
service and welcome Margie Seale as she takes up the
role of Chair.
Governance and oversight
With a stronger risk culture, operating structure and
balance sheet, we are positioning the company for the
future while remaining mindful of the lessons of the past.
The Board continues to focus on managing current and
emerging non-financial risks. This includes reviewing the
company’s preparedness for issues that are particularly
relevant in today’s environment, such as cyber incidents
and data breaches. With the CORE program complete, our
focus on risk remains central as we deliver UNITE.
Consideration also extends to fostering strong
relationships with government and regulators to support
our shared interest in upholding the integrity of the
financial system.
This year, we transitioned to a new external auditor
KPMG, following an independent selection process to
appoint a new auditor after 55-years with former
auditor PricewaterhouseCoopers.
Board renewal and capability
Westpac's Board continues to evolve, strengthening
its collective skills, diversity and experience. This year,
we welcomed Debra Hazelton, David Cohen and Pip
Greenwood, who bring deep expertise across financial
services, governance and transformation.
Margie Seale, who has made a significant contribution to
the Board for many years, will retire as Chair of the Board
Remuneration Committee. Debra Hazelton will assume
this role with effect at the conclusion of the 2025 Annual
General Meeting.
Outlook
The rise of private and non-regulated credit, elevated
global debt levels and ongoing geopolitical tensions
present ongoing economic challenges. While the global
outlook remains uncertain, Westpac is well-positioned to
navigate this environment while executing its strategy and
supporting customers.
On behalf of the Board, I extend our gratitude to
shareholders, customers and the community for their
continued support as we focus on investing for growth
and delivering sustainable returns.
Yours sincerely,
Steven Gregg
CHAIRMAN,
WESTPAC
1.Refer to Creating value for the community (pages 32-35).
8WESTPAC 2025 ANNUAL REPORT
CEO’S REPORT
With renewed energy, clarity
and purpose, we are taking action
to make Westpac easier to bank with,
a better place to work and
simpler to operate to benefit
our stakeholders.
Dear fellow shareholders,
It has been a privilege to serve my first year as CEO, after
joining Westpac in 2020.
As Australia’s first bank, our company has a proud and
vibrant history of supporting customers and communities
for more than two centuries.
With renewed energy, clarity and purpose, we are taking
action to make Westpac easier to bank with, a better
place to work and simpler to operate to benefit our
stakeholders. This direction, shaped by feedback from
shareholders, customers, employees and regulators, is
designed to further strengthen our foundations and
address legacy challenges to become a more resilient,
customer-focused bank.
We began from a position of strength, with a robust
balance sheet and capital position that provide capacity
and flexibility to invest for growth. This is underpinned
by a diverse portfolio of trusted businesses serving
13 million customers.
Our areas of focus centre on five clear strategic priorities:
customer, people, transformation, risk and performance,
as outlined on page
10. We’re focused on executing
these with excellence, knowing that how we deliver is just
as important as what we deliver.
Customer: Improving service for deeper relationships
We’re determined to become the market leader by
consistently delivering excellent customer service that
builds trust, loyalty and stronger relationships to support
our growth.
Across our digital channels, branches, virtual teams and
Customer Care, we’re working as one team to deliver
the full breadth of our products with more timely and
personalised service. Our refreshed brand along with
our superior banking app, is helping us attract and
retain customers. With this whole-of-bank approach and
continued focus on the customer journey, we’re improving
our products, service and support. (Refer to page 24)
We track progress using two connected metrics: Net
Promoter Score (NPS®) and Main Financial Institution
(MFI). Improvements in NPS reflect growing customer
trust, which leads to greater engagement and more
customers choosing us as their MFI.
Transaction banking sits at the heart of customer
relationships and is the key driver of MFI. We’ve elevated
onboarding, loyalty rewards and everyday banking to
deepen engagement and support long-term growth.
We’re expanding in growth regions through new service
centres that combine retail and business banking, building
on our co-location strategy to improve efficiency. More
bankers with specialised expertise are helping lift NPS
and deepen relationships in priority segments.
Financial crime remains a national challenge and our
market-leading scam and fraud prevention tools are
helping to build trust by protecting customers in real time.
They helped to prevent $360 million in potential losses
over the past year.
These are some of the key initiatives we're working on to
support customer and brand advocacy. I was pleased to
see Consumer NPS improve to equal second place and in
Business, we lead in SME and Commercial however must
improve service to small businesses. While progress in
MFI was encouraging, particularly in Business & Wealth, it
remains below our aspirations.
People: Creating the best workplace
For our 35,000 people, we want to be the best workplace.
Diversity, equity and inclusion are essential to who we are
and how we operate. We’re committed to reflecting the
communities we serve and fostering a workplace where
everyone feels valued and respected.
We’re fostering a culture where service excellence and
customer obsession are central to everything we do. To
support this, we're investing in our people's professional
development while building skills in critical areas such as
generative AI, cyber awareness and data protection. We
have relaunched the Business Performance Academy, with
approximately 2,000 employees completing courses so far.
Meanwhile, the delivery of UNITE, which forms part of
our broader transformation, aims to streamline how our
people work and serve customers, helping to create a
more unified workplace.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
9
Risk: Excellence in execution
We see risk management not just as a form of protection,
but as a differentiator for Westpac. I am grateful to
our people who have embraced the effort to strengthen
our risk culture, governance and accountability. With
the CORE transition phase complete, APRA released the
remaining $500 million operational risk capital overlay
in October. Strengthening our risk practices remains an
ongoing priority.
Risk touches every part of our business and we're seeing
tangible benefits. For example, 77% of simple business
credit deals are auto-decisioned, freeing credit officers
to focus on more complex needs. Banker-led credit
approvals have risen from 8% to 28% over two years,
reflecting clearer credit settings, a stronger risk culture
and improved training. This has supported growth in
key segments.
Transformation: Investing for the future
While we have scale, unlocking its full potential requires
us to create an efficient operating environment by
addressing structural legacy issues that have persisted
for more than a decade.
UNITE aims to address these challenges. It is focused
on simplifying and removing duplication across the
bank by identifying the products, processes and
systems that represent our ‘One Best Way’ and
consolidating these onto a single technology stack. This
transformation aims to deliver better experiences for
customers and employees, reduce operating costs and
enhance our ability to compete and deliver sustainable
shareholder returns.
A newly formed Chief Transformation Office is overseeing
UNITE. We are also undertaking other strategic initiatives
such as Westpac One and BizEdge. These will deliver
market-leading capabilities that support our competitive
position. (Refer to page 40 for more information).
Performance: Balancing growth with returns
Financial performance reflected our strategy of balancing
growth with returns, while making the necessary
investments to support our future. We strengthened
our position in Business and Institutional banking while
improving performance in Consumer and New Zealand.
Business lending grew by 15%, with strong momentum
across priority sectors including health, professional
services and agriculture. Transaction deposits rose 8%.
In Institutional, deeper client relationships drove loan
growth of 17%. Progress was reflected in stronger
rankings across key Financial Market industry surveys
and a higher Markets income.
Consumer deposits increased 10%, underscoring the
strength of our business. While this is encouraging, we
recognise there’s more to do and are allocating resources
to improve our proprietary mortgage offering.
The transformation agenda has necessitated a period of
elevated expense growth, contributing to a rise in our
cost-to-income ratio to 53.1%. To address this, we’re
taking action to structurally lower costs through our Fit
for Growth program, which will help to offset expense
growth in FY26. Our medium-term objective is to deliver
an improved financial performance, culminating in a below
peer average cost-to-income ratio and an above peer
average ROTE.
Building stronger, more resilient communities
Beyond our five priorities, we’re proud to play an active
role in advancing social and economic prosperity in
Australia and New Zealand through our corporate giving
programs, targeted lending, supplier partnerships and the
independent charitable Foundations
1
.
Supporting customers in financial difficulty is another
way we help. We provided 46,485 hardship and disaster
support packages, helping three-quarters of these
customers get back on track by year-end.
For businesses, we extended $1 billion in working capital
solutions to help manage cash flow. We also doubled
our support for female entrepreneurs to $1 billion, which
has helped more than 1,800 women start or grow their
businesses since 2023.
In regional areas, we're improving banking access and
investing in sponsorships, scholarships and ag-tech to
help farmers tackle industry challenges.
Creating a better future
Australia’s strong governance and regulation have
historically made it attractive for global capital and talent
but this is not guaranteed. Weak productivity and over-
reliance on government risk undermining our success. A
smarter balance calls for bold, coordinated action across
government, regulators and the private sector.
From next year, our sustainability efforts will focus on
how we can further support three national priorities.
These reflect areas where we believe targeted action can
support the country's long-term prosperity and resilience.
•Accelerate Australia’s energy transition: Speeding
up the shift to renewable energy is essential to meet
climate goals and create economic opportunities;
•Build more homes for Australians: Addressing the
structural under-supply of housing in the $500K price
range; and
•Grow Australia’s regional cities: Investment is vital
for population growth, economic diversification and
national resilience.
Looking ahead, I’m pleased with our direction and
energised by the opportunities ahead. With a clear
strategy driving our momentum, Westpac is well placed
to deliver long-term value for shareholders and help build
a better future.
Yours sincerely,
Anthony Miller
CEO
1.Refer to Creating value for the community (pages 32-35).
10WESTPAC 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
PEOPLE
TRANSFORMATION
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
(NPS
1
) and for Institutional, to achieve the number one position in the Relationship Strength Index (RSI
2
).
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 260-263) for more information on NPS.
2.Coalition Greenwich Voice of Client 2025 Australia Large Corporate Relationship Banking Study.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
11
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
SegmentWho we serveKey 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.
12WESTPAC 2025 ANNUAL REPORT
Top and emerging risks
We regularly assess our operating environment to identify changes, emerging risks and opportunities. The factors
1
below may affect Westpac’s ability to create value over the short, medium or long term.
For further information, refer to Risk Management (pages 42-49) 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 44-49).
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 44-49).
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 44-49).
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 44-49).
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 44-49).
1.Not exhaustive. Refer to Risk Management (pages 42-49) for full table of material risk categories.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
13
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 16- 21
Vulnerable customers
Data Privacy and Security
Financial Inclusion
Housing affordability
and security
Fraud and scams
Refer to pages 22-27
Employee engagement
Health and safety
Diversity, equity and inclusion
Communities
Indigenous peoples
Refer to pages 28-31
Human rights and
modern slavery
Sustainable supply chain
Tax transparency
Refer to pages 32-35
Climate Change
Natural Capital
Refer to pages 36-39
Artificial Intelligence,
Cybersecurity and Data
Refer to page 41
Ethics and business conductRefer to page 50
Anti-money laundering/
Counter-Terrorism Financing
Refer to page 101
HOW WE CREATE VALU E
• 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 ACTI ON NOW TO
CREATE A BETTER FUTURE
14WESTPAC 2025 ANNUAL REPORT
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
17 to 21
total shareholder
return
13M
Refer to pages
22 to 27
Customers
80
Refer to pages
28 to 31
OHI score
$199M
Refer to pages
32 to 35
in community
investment
1
37%
Refer to pages
36 to 39
increase in sustainable
finance lending
2
1. Figure includes commercial sponsorships and foregone fee revenue.
2. Refer to 2025 Sustainability Report for definitions and detail.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
15
Jordan
Mobile Lending Manager
Broadbeach, QLD
16WESTPAC 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 13)
•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
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
17
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 (%)
9.89.7
FY24FY25
ROTE, EXCLUDING
NOTABLE ITEMS(%)
11.2
11.0
FY24FY25
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
InterimFinal
FY23FY24FY25
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 22-27)
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 40) 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 240- 245).
18WESTPAC 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 RAMS
1
, 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-24Sep-25
GROSS LOANS ($BN)
811.3
856.4
Sep-24Sep-25
Solid financial result
$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.
$mFull Year 2025Full Year 2024Full Year 2023% Mov't 2025-2024
Statutory net profit6,9166,9907,195(1)
Notable Items(56)(123)(173)(54)
Excluding Notable Items:
Net profit6,9727,1137,368(2)
Net operating income22,46421,76321,5423
Operating expenses(11,916)(10,944)(10,232)9
Pre-provision profit10,54810,81911,310(3)
Impairment charges/(benefits) to average loans5 bps7 bps9 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 240- 245.
1.RAMS was closed to new business from August 2024.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
19
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 240- 245.
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 240- 241.
20WESTPAC 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-24Sep-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
12.512.5
18.318.3
APRA basisInternationally comparable
Sep-24Sep-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
LCRNSFR
84.9%
Deposit to loan ratio,
up 137bps on Sep-24
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
21
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
11. 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.
22WESTPAC 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 13)
•Vulnerable customers
•Data privacy and security
•Financial inclusion
•Housing affordability and security
•Fraud and scams
Key highlights
13M
CUSTOMERS
#
1
MOBILE BANKING APP
1
21%
AUSTRALIAN MORTGAGE
MARKET SHARE
2
#2
CONSUMER NPS
3
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 260-263) for more information
on NPS.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
23
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 year
1
.
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
25) 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.
24WESTPAC 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, NPS
1
improved during the year, despite
intense competition. We are currently ranked equal
second in Consumer NPS
1
.
In Business, we hold an NPS
1
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 (RSI
2
) 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 260-263) for more information on NPS.
2.Coalition Greenwich Voice of Client 2025 Australia Large Corporate Relationship Banking Study.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
25
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.
26WESTPAC 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 banks
1
. 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 Party3rd Party
FY23FY24FY25
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 40)
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 40)
1.
According to Property Exchange Australia (PEXA) data as at September 2025.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
27
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.
Brittany
Mobile Home Finance Manager
Broadbeach, QLD
28WESTPAC 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 13)
•Employee engagement
•Health and safety
•Diversity, equity and inclusion
Key highlights
80
ORGANISATIONAL
HEALTH INDEX
49%
WOMEN IN
SENIOR LEADERSHIP
1
$6.3BN
PAID IN SALARIES
35,236
EMPLOYEES
2
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
29
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 43.
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.
30WESTPAC 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 Group
1
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 31 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 41 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
31
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 35 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.
32WESTPAC 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 13)
•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 YEAR
1
65,538
HOURS VOLUNTEERED
BY WESTPAC EMPLOYEES
$199M
IN COMMUNITY
INVESTMENT
2
$56.1M
SPENT WITH
DIVERSE SUPPLIERS
3
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
33
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 Foundation
1
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 Foundations
1
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 Trust
1
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 Trust
2
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.
34WESTPAC 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 areasFY25 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
35
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
26.
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 suppliers
1
,
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 AREAFY25 PROGRESS
a
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.
36WESTPAC 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 13)
•Climate change
•Natural capital
Photo: Aerial photo of Cooktown, Queensland.
Key highlights
1
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
37
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 CO
2
EQUIVALENT)
133,570
82,092
63,146
Scope 1, 2 and scope 3 Upstream emissions
b
2021
a
20232025
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.
38WESTPAC 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 MtCO
2
-e for FY24
1
, 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 Security
2
.
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
customers
3
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 deforestation
4
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
39
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 topics
1
and inform our
ongoing customer engagement.
Of the customers reviewed, more than 35% identified at
least one nature topic as a key sustainability topic
2
, 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 framework
3
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.
40WESTPAC 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 NPS
1
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.
BIZEDGEWESTPAC ONE
Fast, simple, digital business lending originationLeading 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 260-263) for more information on NPS.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
41
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 29 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.
42WESTPAC 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
R
i
s
k
C
u
l
t
u
r
e
T
h
r
e
e
L
i
n
e
s
o
f
D
e
f
e
n
c
e
CUSTOMERS
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
43
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'sPurpose.
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
44WESTPAC 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
45
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 175).
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 135) and Note 11 (page 145) 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.
46WESTPAC 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 175).
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).
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
47
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.
48WESTPAC 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
49
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.
50WESTPAC 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 customers,
our shareholders, our employees and the 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.
Westpac's Board and Board Committee Structure is available in the 2025 Corporate Governance Statement.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
51
Role of the Board and Board Committees
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. The Board Charter is available on our
website.
Key Board responsibilities
•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.
BOARD RISK COMMITTEE
BOARD AUDIT COMMITTEE
BOARD REMUNERATION
COMMITTEE
BOARD NOMINATIONS &
GOVERNANCE COMMITTEE
Assists the Board by
providing oversight of the
implementation and operation
of the risk management
framework, risk culture, the
risk profile for material
risks and risk appetite. The
Committee also considers and
recommends key risk policies
and frameworks to the Board
for approval.
Assists the Board by
having oversight of the
integrity of financial
statements, financial
reporting systems and
corporate reporting.
The Committee also
oversees the external
auditor engagement
and the performance of
Group Audit.
Assists the Board to
discharge its
responsibilities in
relation to
remuneration matters,
including by overseeing
the design, operation
and monitoring of the
remuneration
framework.
Assists the Board by
overseeing that the
Board and boards of
related bodies corporate
comprise individuals who
are best able to discharge
their role as Directors.
The Committee also
oversees that corporate
governance arrangements
are appropriate.
52WESTPAC 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.
BOARD SKILLS, EXPERIENCE AND ATTRIBUTES AS AT 30 SEPTEMBER 2025
SKILLS
AND EXPERIENCEDESCRIPTIONNUMBER 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 knowledgeGeneral working experience and knowledgeLimited 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
53
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 Directors.
As at 30 September 2025, the gender composition of the
Board was 64% male and 36% female.
Board tenure
The average Board tenure as at 30 September 2025 is
set out below. The length of service of each Director is
outlined in the Directors’ Report (pages 54-100).
Refer to our
2025 Corporate Governance Statement
for more information on our corporate governance
framework, policies and practices at 2 November
2025. The Statement, along with the Board and
Committee Charters, principles and policies are
available at westpac.com.au/corpgov.
Ethical decision making and
key policies
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. We also have policies that seek to manage
our regulatory compliance and human resource
requirements and are subject to a range of external
industry codes, such as the Banking Code of Practice
and the ePayments Code.
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.
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.
Anti-Bribery and Corruption
We have no tolerance for any form of bribery or
corruption and have an Anti-Bribery and Corruption
Policy (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.
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.
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.
Conflicts of interest
Our 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.
54WESTPAC 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 AuditBoard 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
55
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:
56WESTPAC 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:
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
57
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:
58WESTPAC 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
59
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.
60WESTPAC 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
61
Michael Rowland
B.Comm, FCA
Age: 64
CHIEF FINANCIAL OFFICER
Michael joined Westpac Group as Chief Financial Officer (CFO) in September 2020
a
. 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.
62WESTPAC 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 16- 21) 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
63
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
101-102) 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 4- 102) and in Significant
developments (pages 101-102) 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 42-49) 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.
64WESTPAC 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 69-98) 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 Gregg75,208-
Anthony Miller261,171
a
368,811
b
Tim Burroughs67,302-
Nerida Caesar13,583-
David Cohen1,253-
Pip Greenwood--
Debra Hazelton
c
1,350-
Andy Maguire6,615-
Peter Nash15,260-
Margaret Seale
d
10,438-
Michael Ullmer
e
12,570-
Former Directors
Peter King
f
385,807448,117
Audette Exel
g
11,952
Nora Scheinkestel
h
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).
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
65
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.
66WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
Environmental disclosure
The Westpac Group’s environmental disclosure is summarised in this Annual Report (pages 36-39) 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
67
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.
BoardCommittees
Scheduled
meetings
a
RiskAuditRemuneration
Nominations
& Governance
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Held
b
Attended
c
Director
Steven Gregg
d
99n/an/an/an/an/an/a44
Anthony Miller
e
66n/an/an/an/an/an/an/an/a
Tim Burroughs
f
9988n/an/a88n/an/a
Nerida Caesar
g
995544n/an/an/an/a
David Cohen
h
4444n/an/an/an/an/an/a
Pip Greenwood
i
22n/an/an/an/an/an/an/an/a
Debra Hazelton
j
55n/an/an/an/a55n/an/a
Andy Maguire
k
99n/an/an/an/a66n/an/a
Peter Nash
l
998844n/an/a44
Margaret Seale
m
99n/an/an/an/a8844
Michael Ullmer
n
998844n/an/an/an/a
Former Director
Peter King
o
44n/an/an/an/an/an/an/an/a
Audette Exel
p
333311n/an/an/an/a
Nora Scheinkestel
q
2222n/an/a22n/an/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.
68WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
69
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.
70WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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 71).
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 71).
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
28-31) 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 2025725.Further detail on executive
remuneration arrangements
83
2.Key management personnel746.Non-executive Director remuneration88
3.2025 remuneration outcomes and alignment
to performance
757.Statutory remuneration details89
4.Remuneration governance81
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
71
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.
KMPAPPOINTMENT 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 Goonan
a
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 KMPEXIT 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 Rowland
a
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.
72WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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 mix
1
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
73
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 achievedTarget
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.
74WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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.
NamePositionTerm as KMP
Managing Director & Chief Executive Officer
Anthony Miller
a
Managing Director & Chief Executive OfficerFull year
Group Executives
Scott CollaryChief Information OfficerFull year
Kate DeeChief People OfficerCommenced on 5 August 2025
Paul FowlerChief Executive, Business & WealthCommenced on 12 May 2025
Peter Herbert
b
Chief Transformation OfficerCommenced on 5 November 2024
Carolyn HoyActing Group Executive, Customer & Corporate ServicesCommenced on 12 May 2025
Nell HuttonChief Executive, Westpac Institutional BankFull year
Carolyn McCann
c
Chief Executive, ConsumerFull year
Catherine McGrathChief Executive Officer, Westpac New ZealandFull year
Michael RowlandChief Financial OfficerFull year
Ryan ZaninChief Risk OfficerFull year
Former Executives
Peter KingManaging Director & Chief Executive OfficerCeased on 15 December 2024
Christine ParkerGroup Executive, Human ResourcesCeased on 1 June 2025
Megan RutterActing Group Executive, Human ResourcesCommenced on 2 June 2025 and ceased on 4 August 2025
Jason YettonChief Executive, ConsumerCeased on 11 May 2025
Current Non-executive Directors
Steven GreggChairFull year
Tim BurroughsDirectorFull year
Nerida CaesarDirectorFull year
David CohenDirectorCommenced on 1 April 2025
Pip GreenwoodDirectorCommenced on 1 August 2025
Debra HazeltonDirectorCommenced on 4 March 2025
Andy MaguireDirectorFull year
Peter NashDirectorFull year
Margaret SealeDirectorFull year
Michael Ullmer AODirectorFull year
Former Non-executive Directors
Nora ScheinkestelDirectorRetired on 6 November 2024
Audette Exel AODirectorRetired 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
75
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
20252024202320222021
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)6,9166,9907,1955,6945,458
Net profit after tax (excluding Notable Items) ($m)
c
6,9727,1137,3686,5686,953
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 years77.11%113.10%(9.27%)(11.15%)(1.95%)
TSR – five years168.98%34.24%(4.05%)(13.82%)10.34%
Total ordinary dividend (cents per share)153151142125118
Special dividend (cents per share)015000
Share price – close$38.97$31.72$21.15$20.64$26.00
a.From 2024, maximum STVR opportunity was reduced from 150% to 125% of target STVR.
b.From 2024, target STVR opportunity was reduced from approximately 100% to 75% of fixed remuneration for business roles, and maintained at
75% for functional roles.
c.For additional information refer to the Non-AAS financial measures section of the Annual Report for a reconciliation of these measures.
3.2. 2022 LTVR vesting outcome
We tested the 2022 LTVR on 1 October 2025. Our TSR for the four year performance period was 77% resulting in a 62.5th
percentile ranking relative to the comparator group. This resulted in 75% of the 2022 LTVR award vesting.
Performance
hurdle
Performance
start date
Test date
Performance range
Outcome
%
Vested
%
Lapsed
ThresholdMaximum
Relative TSR
(100% of
award)
1 October
2021
1 October
2025
Percentile ranking is
at the median
Percentile ranking is at the
75th percentile or higher
62.5th percentile ranking
relative to the
comparator group
75%25%
NPAT (EXCLUDING NOTABLE ITEMS) AND
CEO STVR OUTCOME
NPAT
(excluding
Notable
Items)($m)
CEO
STVR
(%)
NPAT (excluding Notable Items)($m)
CEO STVR outcome (% of target)
CEO STVR outcome (% of maximum)
20212022202320242025
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)
20212022202320242025
0
4
8
12
40
60
80
100
120
TSR
(Four year period ending 30 September 2025)
TSR
(%)
WBCPeer 1Peer 2Peer 3
2022202320242025
-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)
20212022202320242025
0
40
80
20
60
100
0
40
80
20
60
100
76WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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 priorityMeasureOutcomeOutcome commentary
Key:
Threshold
50-99%
Stretch
10 1- 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
<0.8x0.8x>1x
Growth in Australian mortgages was 0.84x of ADI
financial system growth, which was at target.
0.8x1.0x1.2x
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)
-7780
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
77
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 priorityMeasureOutcomeOutcome commentary
Key:
Threshold
50-99%
Stretch
10 1- 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
<0.8x0.8x>1x
Growth in Australian mortgages was 0.84x of ADI
financial system growth, which was at target.
0.8x1.0x1.2x
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)
-7780
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.
78WESTPAC 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 equity
1
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 Officer
a
20252,250,412718,500792,8962,434,8496,196,657811,616
20241,277,944478,000706,7951,925,4624,388,2011,925,462
Group Executives
Scott Collary, Chief Information Officer
20251,300,279445,500725,2932,548,0985,019,170849,366
20241,293,976508,500706,4441,927,4124,436,3321,927,412
Kate Dee, Chief People Officer
2025129,809---129,809-
2024--------------------- Not a KMP in 2024 ---------------------
Paul Fowler, Chief Executive, Business & Wealth
a
2025442,256151,500--593,756-
2024--------------------- Not a KMP in 2024 ---------------------
Peter Herbert, Chief Transformation Officer
2025775,066300,400--1,075,466-
2024--------------------- Not a KMP in 2024 ---------------------
Carolyn Hoy, Acting Group Executive, Customer & Corporate Services
2025323,561112,800--436,361-
2024--------------------- Not a KMP in 2024 ---------------------
Nell Hutton, Chief Executive, Westpac Institutional Bank
20251,283,715464,000296,565-2,044,280-
20241,278,338502,000--1,780,338-
Carolyn McCann, Chief Executive, Consumer
20251,206,295438,000575,9511,512,1033,732,349504,034
20241,062,447437,500484,0981,149,4413,133,4861,269,346
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
20251,032,402345,588522,1001,625,5443,525,634541,822
2024981,129311,189502,028-1,794,346-
Michael Rowland, Chief Financial Officer
20251,303,016448,500668,7461,970,5294,390,791656,843
20241,274,390500,500577,7731,588,6683,941,3311,588,636
Ryan Zanin, Chief Risk Officer
a
20251,774,107677,000818,8581,182,6034,452,568394,175
20241,699,186674,000504,105-2,877,291-
Former Executives
Peter King, Managing Director & Chief Executive Officer
2025517,836132,8001,515,9933,680,6255,847,2541,226,862
20242,502,920975,0001,442,8982,990,4017,911,2193,314,178
Christine Parker, Group Executive, Human Resources
2025696,615239,500573,8711,768,9543,278,940589,626
20241,041,206417,000513,8211,459,7093,431,7361,459,677
Megan Rutter, Acting Group Executive, Human Resources
2025134,37440,800--175,174-
2024--------------------- Not a KMP in 2024 ---------------------
Jason Yetton, Chief Executive, Consumer
2025781,121268,500772,2102,434,8494,256,680811,616
20241,277,944443,000782,2852,009,1654,512,3943,432,493
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
79
3.5. Variable reward awarded for 2025
The table below shows the variable reward awarded
1
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 award2025 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 Miller1,683,6992,104,62485%68%1,437,000667,6241,571,4521,571,452
Group Executives
Chief Information Officer
Scott Collary968,6001,210,75092%74%891,000319,750904,000904,000
Chief People Officer
Kate Dee
c
n/an/an/an/an/an/an/an/a
Chief Executive, Business & Wealth
Paul Fowler
c
328,832411,04092%74%303,000108,040306,910306,910
Chief Transformation Officer
Peter Herbert
c
606,153757,69192%74%558,000199,691521,288348,493
Acting Group Executive, Customer & Corporate Services
Carolyn Hoy
c
204,247255,30992%74%188,00067,309136,164n/a
Chief Executive, Westpac Institutional Bank
Nell Hutton956,2501,195,31397%78%928,000267,313892,500892,500
Chief Executive, Consumer
Carolyn McCann903,0441,128,80597%78%876,000252,805842,841842,841
Chief Executive Officer, Westpac New Zealand
Catherine McGrath751,279939,09892%74%691,176247,922701,193701,193
Chief Financial Officer
Michael Rowland975,0001,218,75092%74%897,000321,750715,000715,000
Chief Risk Officer
Ryan Zanin1,327,5001,659,375102%82%1,354,000305,375973,500973,500
Former Executives
Managing Director & Chief Executive Officer
Peter King
c,d
390,411488,01485%68%332,000156,014n/an/a
Group Executive, Human Resources
Christine Parker
c
520,957651,19692%74%479,000172,196571,500571,500
Acting Group Executive, Human Resources
Megan Rutter
c
73,77592,21992%74%68,00024,21960,361n/a
Chief Executive, Consumer
Jason Yetton
c
584,229730,28692%74%537,000193,286892,500892,500
Average Group Executive STVR outcome94%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.
80WESTPAC 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 assessmentOutcome
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 discretionNo adjustment
Overall pre-grant assessmentGrant in full
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
81
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 oversightOther 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.
82WESTPAC 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 year¹MalusClawback
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 leaders
a
that received downward remuneration adjustments2
Senior leaders
a
that received upward remuneration adjustments4
Employees identified as not having met all risk expectations during performance assessments1,225
Employees that received downward remuneration adjustments
b
99
Employees leaving due to consequence outcomes240
Actions to recognise positive risk management and risk behaviours through our recognition platform98,051
Employees that received an additional variable reward for achieving great risk outcomes
b
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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83
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
PurposeProvide 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
PurposeReward 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 period50% 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 vestingRefer 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.
84WESTPAC 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
PurposeReward 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 opportunityThe 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 periodVested 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-testingThere is no re-testing. Awards that have not vested after the performance period are lapsed.
Early vestingUnvested 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 vestingRefer 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
85
5.3.2. Long term variable reward performance rights for 2025
Long term variable reward performance rights
PurposeReward 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 performanceIndicative vesting percentage
At the 75th percentile or higher100%
Between the median and the 75th percentilePro-rata vesting between 50% and 100%
At the median50%
Below the median0%
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 periodVested 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-testingThere is no re-testing. Awards that have not vested after the performance period are lapsed.
Early vestingUnvested 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.
86WESTPAC 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.
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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 requirementsDescription
Requirement levelCEO: Two times fixed remuneration including superannuation
a
.
Group Executives: One times fixed remuneration including superannuation.
Sale restrictionsExecutives 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 periodWithin 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.
TermConditions
Duration of agreementOngoing 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 cause
b
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 causeOccurs 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).
88WESTPAC 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 feesRelate to service on the Westpac Banking Corporation Board. The base fee for the Chair covers all
responsibilities, including for Board Committees.
Committee feesAdditional 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 feesAnnual fee $ (exclusive of superannuation)
Base fees
Chair823,000
Other Non-executive Directors215,000
Committee Chair fees
Board Audit Committee69,000
Board Risk Committee69,000
Board Remuneration Committee69,000
Committee membership fees
Board Audit Committee34,000
Board Risk Committee34,000
Board Remuneration Committee34,000
Other fees
UNITE oversight group34,000
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
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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
fees
a
Non-
monetary
benefits
b
SuperannuationTotal
Name$$$$
Non-executive Directors
Steven Gregg, Chair
2025826,16511,78630,440868,391
2024680,7275,89330,017716,637
Tim Burroughs
2025285,337-30,137315,474
2024269,410-28,054297,464
Nerida Caesar
2025312,585-30,250342,835
2024258,208-27,674285,882
David Cohen
c
2025125,458-14,753140,211
2024--------------------- Not a KMP in 2024 ---------------------
Pip Greenwood
c
202535,5581,5404,26741,365
2024--------------------- Not a KMP in 2024 ---------------------
Debra Hazelton
c
2025144,611-16,730161,341
2024--------------------- Not a KMP in 2024 ---------------------
Andy Maguire
2025282,00923,40930,223335,641
202453,631-6,16859,798
Peter Nash
2025354,650-30,166384,816
2024339,478-28,316367,795
Margaret Seale
2025282,865-30,240313,105
2024263,977-26,459290,436
Michael Ullmer AO
2025313,361-30,260343,621
2024300,846-8,214309,060
Former Non-executive Directors
Audette Exel AO
c
202566,022-6,50572,527
2024316,232-28,211344,443
Nora Scheinkestel
c
202536,337--36,337
2024340,346--340,346
Total fees
20253,064,95836,735253,9713,355,664
2024
d
3,050,6857,649194,0293,252,364
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.
90WESTPAC 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
benefitsShare-based payments
Fixed
remuneration
a
Cash
STVR
award
b
Non-
monetary
benefits
c
Other
payments
d
Superannuation
benefits
e
Long
service
leave
Restricted
shares
f
Restricted
rights
g
Performance
rights
g
Total
h
$$$$$$$$$$
Managing Director & Chief Executive Officer
Anthony Miller, Managing Director & Chief Executive Officer
20252,293,520718,5005,03917,38642,556107,886593,423538,282636,4114,953,003
20241,279,390478,0003,315166,27737,89819,056684,787238,441717,7283,624,892
Group Executives
Scott Collary, Chief Information Officer
20251,230,253445,5005,894-35,89419,190463,192463,401632,5233,295,847
20241,300,753508,5008,333-34,73921,537563,784241,512740,6743,419,832
Kate Dee, Chief People Officer
i
2025128,485-504175,33410,4701,979176,40414,22014,220521,616
2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------
Paul Fowler, Chief Executive, Business & Wealth
i
2025440,166151,5001,266100,72420,7976,591768,57130,9439,8411,530,399
2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------
Peter Herbert, Chief Transformation Officer
i
2025718,273300,4005,042-29,50120,816390,85053,57930,8321,549,293
2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------
Carolyn Hoy, Acting Group Executive, Customer & Corporate Services
i
2025306,243112,8001,266-36,09348,639123,751--628,792
2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------
Nell Hutton, Chief Executive, Westpac Institutional Bank
20251,271,484464,0004,606-37,03018,9461,168,985457,506175,2133,597,770
20241,230,101502,0005,359-35,04617,3521,132,285238,441105,9323,266,516
Carolyn McCann, Chief Executive, Consumer
20251,334,025438,0005,894-39,02454,728410,402401,849433,1323,117,054
20241,038,679437,5005,359-36,47915,727398,684198,233482,3932,613,054
Catherine McGrath, Chief Executive Officer, Westpac New Zealand
2025877,583345,58810,613-127,886--674,684442,6642,479,018
2024857,768311,1898,386-119,894--523,182388,3672,208,786
Michael Rowland, Chief Financial Officer
20251,260,305448,5008,987-35,89220,840296,066867,559689,8373,627,986
20241,249,398500,5003,315-34,00718,870465,327186,823579,2453,037,485
Ryan Zanin, Chief Risk Officer
20251,795,959677,00088,7925,9642,02728,630857,798488,077608,0974,552,344
20241,663,065674,000151,817116,6822,09725,268730,310249,101541,0634,153,403
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
91
Short term benefits
Post-
employment
benefits
Other
long term
benefitsShare-based payments
Fixed
remuneration
a
Cash
STVR
award
b
Non-
monetary
benefits
c
Other
payments
d
Superannuation
benefits
e
Long
service
leave
Restricted
shares
f
Restricted
rights
g
Performance
rights
g
Total
h
$$$$$$$$$$
Former Executives
Peter King, Managing Director & Chief Executive Officer
i,j
2025542,944132,8005,3882,500,0005,3017,998617,4641,395,9391,645,0196,852,853
20242,418,943975,00020,823-48,24922,0241,198,595728,3281,521,4876,933,449
Christine Parker, Group Executive, Human Resources
i,j,k
2025650,691239,5003,531936,07322,5339,767318,9681,296,3571,064,3854,541,805
20241,045,623417,0003,315-32,97616,896401,268152,684524,4122,594,174
Megan Rutter, Acting Group Executive, Human Resources
i
2025130,84040,800286-8,0512,37976,539--258,895
2024------------------------------------------------------- Not a KMP in 2024 -------------------------------------------------------
Jason Yetton, Chief Executive, Consumer
i,j,l
2025741,396268,5005,0601,082,55924,71013,927371,7031,918,9941,559,1345,985,983
20241,200,082443,0003,315-38,00919,050539,012238,441770,5743,251,483
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.
92WESTPAC 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.
NameType of equity-based instrument
Number
granted
a
Number
vested
b
Number
exercised
c
Value granted
$
d
Value
exercised
$
e
Value forfeited
or lapsed
$
e
Managing Director & Chief Executive Officer
Anthony MillerRestricted shares14,66231,791-478,861--
Restricted rights48,756--1,592,947--
Performance rights48,75860,24660,246679,1921,943,5361,934,499
Group Executives
Scott CollaryRestricted shares15,59822,104-509,431--
Restricted rights28,048--918,852--
Performance rights28,04860,30760,307361,3981,945,5041,936,458
Kate Dee
f
Restricted shares19,351--744,626--
Restricted rights------
Performance rights------
Paul Fowler
f
Restricted shares83,97922,700-2,811,617--
Restricted rights9,522--318,797--
Performance rights9,522--126,690--
Peter Herbert
f
Restricted shares22,726--742,231-298,856
Restricted rights10,812--342,200--
Performance rights10,813--156,680-706,660
Carolyn Hoy
f
Restricted shares4,176--150,503-90,037
Restricted rights------
Performance rights------
Nell HuttonRestricted shares15,39826,474-502,899--
Restricted rights27,691--907,157--
Performance rights27,692--356,811--
Carolyn McCannRestricted shares13,42015,147-438,297--
Restricted rights26,150--857,661--
Performance rights26,15035,96535,965338,0591,133,2571,154,804
Catherine McGrathUnhurdled share rights10,27715,708-313,623--
Restricted rights22,035--721,867--
Performance rights22,035--283,919--
Michael RowlandRestricted shares15,35218,078-501,396--
Restricted rights22,184--726,748--
Performance rights22,18449,70849,708285,8411,603,5801,596,092
Ryan ZaninRestricted shares20,67415,773-675,213--
Restricted rights30,204--989,483--
Performance rights30,205--389,190--
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
93
NameType of equity-based instrument
Number
granted
a
Number
vested
b
Number
exercised
c
Value granted
$
d
Value
exercised
$
e
Value forfeited
or lapsed
$
e
Former Executives
Peter King
f
Restricted shares29,90745,147-955,828--
Restricted rights------
Performance rights-93,56793,567-3,018,4713,004,436
Christine Parker
f
Restricted shares12,79116,077-417,754--
Restricted rights17,731--580,868--
Performance rights17,73245,67345,673228,4771,473,4111,466,528
Megan Rutter
f
Restricted shares------
Restricted rights------
Performance rights------
Jason Yetton
f
Restricted shares13,58824,477-443,784--
Restricted rights27,691--907,157--
Performance rights27,69262,86562,865356,8112,028,0252,018,595
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.
94WESTPAC 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 dateExpiryFair valuePerformance conditions
2024 STVR
a
27 Dec 20241 Oct 202330 Sep 202415 Nov 2025
(tranche one) and
15 Nov 2026
(tranche two)
N/A$32.66Service (noting STVR
Scorecard assessment
was completed)
2023 STVR19 Jan 20241 Oct 202230 Sep 20231 Oct 2025
(tranche two)
N/A$23.20
b
Service (noting STVR
Scorecard assessment
was completed)
2025 LTVR
performance
rights
CEO:
27 Dec 2024
Group
Executives:
6 Dec 2024
1 Oct 202430 Sep 2028CEO: 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 202430 Sep 2028Paul 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 202430 Sep 2028CEO: 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 202430 Sep 2028Paul 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)
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
95
Award name
Accounting
grant date
Performance
period start
date
Performance
period end
date
Deferral period
end dateExpiryFair valuePerformance conditions
2024 LTVR
performance
rights
19 Jan 20241 Oct 202330 Sep 2027CEO:
15 Nov 2029
Group Executives:
15 Nov 2028
CEO:
15 Nov 2031
Group
Executives:
15 Nov 2030
$12.81Relative TSR
2024 LTVR
restricted
rights
19 Jan 20241 Oct 202330 Sep 2027CEO: 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
$23.20Pre-vest assessment of
risk culture (noting a
pre-grant assessment
was completed)
2023 LTVR
performance
rights
15 Dec 20221 Oct 202230 Sep 202625 Oct 20261 Oct 2037$11.90Relative TSR
2022 LTVR
performance
rights
c
CEO:
16 Dec 2021
Group
Executives:
15 Dec 2021
1 Oct 202130 Sep 20251 Nov 20251 Oct 2036CEO: $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 202430 Sep 2028Peter 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/APeter
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
Dee
d
12 Sep 2025N/AN/A1 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$38.48Service to 1 Jan 2026
(tranche four and six), 1
Mar 2027 (tranche one,
two, three and five)
2025 Buy out
restricted
shares - Paul
Fowler
d
7 Jul 2025N/AN/A1 Sep 2026
(tranche two),
13 May 2029
(tranche three to
five), 13 May
2030 (tranche six
to eight)
N/A$33.48Service 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 20241 Oct 202430 Sep 202815 Nov 202915 Nov 2031$25.12UNITE program
deliverables and
performance metrics
2023
restricted
shares - Ryan
Zanin
19 Jan 2024N/AN/A24 Jan 2026
(tranche one),
24 Jan 2028
(tranche two) and
24 Jan 2029
(tranche three)
N/A$23.20Service 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.
96WESTPAC 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 2025
1
.
Number held at
start of the year
Changes
during the year
Number held at
end of the year
Non-executive Directors
Steven Gregg75,208-75,208
Tim Burroughs67,302-67,302
Nerida Caesar13,583-13,583
David Cohen
a
n/a-1,253
Pip Greenwood
a
n/a--
Debra Hazelton
a,b
n/a1,1501,350
Andy Maguire-6,6156,615
Peter Nash15,360-15,360
Margaret Seale
c
26,158-26,158
Michael Ullmer AO
d
12,570-12,570
Former Non-executive Directors
Audette Exel AO
a
11,952-n/a
Nora Scheinkestel
a
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
97
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 2025
1
.
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 MillerOrdinary shares186,26314,66260,246--261,171-
Restricted rights42,31848,756---91,074-
Performance rights349,47148,758(60,246)(60,246)-277,737-
Group Executives
Scott CollaryOrdinary shares140,54315,59860,307--216,448-
Restricted rights42,86328,048---70,911-
Performance rights358,82028,048(60,307)(60,307)-266,254-
Kate Dee
a
Ordinary sharesn/a19,351---19,351-
Restricted rightsn/a------
Performance rightsn/a------
Paul Fowler
a
Ordinary sharesn/a83,979---83,979-
Restricted rightsn/a9,522---9,522-
Performance rightsn/a9,522---9,522-
Peter Herbert
a
Ordinary sharesn/a22,726-(9,398)(11,000)66,204-
Restricted rightsn/a10,812---10,812-
Performance rightsn/a10,813-(22,222)-13,412-
Carolyn Hoy
a
Ordinary sharesn/a4,176-(2,446)-70,937-
Restricted rightsn/a------
Performance rightsn/a------
Nell HuttonOrdinary shares165,06015,398--(26,474)153,984-
Restricted rights42,31827,691---70,009-
Performance rights42,31927,692---70,011-
Carolyn McCannOrdinary shares111,09113,42035,965--160,476-
Restricted rights35,18226,150---61,332-
Performance rights225,64226,150(35,965)(35,964)-179,863-
Catherine McGrathOrdinary shares-------
Unhurdled share rights31,47110,277---41,74822,931
Restricted rights31,67022,035---53,705-
Performance rights165,15322,035---187,188-
Michael RowlandOrdinary shares55,51615,35249,708-(49,708)70,868-
Restricted rights33,15722,184---55,341-
Performance rights283,63822,184(49,708)(49,707)-206,407-
Ryan ZaninOrdinary shares53,23620,674---73,910-
Restricted rights44,21030,204---74,414-
Performance rights195,14530,205---225,350-
Former Executives
Peter King
a
Ordinary shares262,33329,90793,567--n/an/a
Restricted rights82,977----n/an/a
Performance rights552,274-(93,567)(93,567)-n/an/a
Christine Parker
a
Ordinary shares70,40712,79145,673-(45,637)n/an/a
Restricted rights27,09817,731---n/an/a
Performance rights254,05317,732(45,673)(45,672)-n/an/a
Megan Rutter
a
Ordinary sharesn/a----n/an/a
Restricted rightsn/a----n/an/a
Performance rightsn/a----n/an/a
Jason Yetton
a
Ordinary shares78,44613,58862,865--n/an/a
Restricted rights42,31827,691---n/an/a
Performance rights354,70927,692(62,865)(62,865)-n/an/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.
98WESTPAC 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 Directors3,012,367219,801-5,164,4963
CEO and Group Executives29,051,817783,342-10,650,7828
Total32,064,1841,003,143-15,815,27811
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 Greenwood
b
n/a18,824-1,810,4891,810,489
Peter Nash2,498,978174,905-2,901,0093,651,731
Margaret Seale413,38926,072-452,998464,906
CEO and Group Executives
Anthony Miller1,389,164233-1,255,6591,389,164
Scott Collary2,166,51337,935-1,926,8362,179,191
Kate Dee
b
n/a18,958-2,397,7982,400,949
Paul Fowler
b
n/a1,602-3,330,6213,330,621
Nell Hutton14,432,940456,000--14,439,811
Carolyn McCann3,250,672117,003-1,717,9863,254,146
Former Executives
Peter King
b
1,158,000--n/a1,158,000
Christine Parker
b
5,396,23691,899-n/a5,396,236
Megan Rutter
b
n/a6,160-n/a684,947
Jason Yetton
b
1,258,29253,407-n/a1,477,283
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.
K
PMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are
trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme
approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Westpac Banking Corporation
I declare that, to the best of my knowledge and belief, in relation to the audit of Westpac Banking
Corporation for the financial year ended 30 September 2025 there have been:
i.no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
ii.no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG Kim Lawry
Partner
Sydney
2 November 2025
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
99
100WESTPAC 2025 ANNUAL REPORT
DIRECTORS’ REPORT
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 221) 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.
Responsibility statement
The Directors of Westpac Banking Corporation confirm that to the best of their knowledge:
•the consolidated financial statements for the financial year ended 30 September 2025, which have been prepared
in accordance with the accounting policies described in Note 1 (page 110) to the consolidated financial statements,
being in accordance with Australian Accounting Standards (AAS), give a true and fair view of the assets, liabilities,
financial position and profit of the Group; and
•the Annual Report from the section entitled About Westpac (page 4) to and including the section entitled
Information on Westpac (page 102) and the subsection entitled 'Other Westpac business information' in the section
entitled Additional Information (page 237) includes a fair review of the information required by the Disclosure
Guidance and Transparency Rules 4.1.8R to 4.1.11R of the United Kingdom Financial Conduct Authority, together
with a description of the principal risks and uncertainties faced by the Group.
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
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
101
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 43).
102WESTPAC 2025 ANNUAL REPORT
INFORMATION ON WESTPAC
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 198)
in this Annual Report.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
103
FINANCIAL
REPORT
Financial Report
Income statements
Statements of comprehensive income
Balance sheets
Statements of changes in equity
Cash flow statements
NOTES TO THE FINANCIAL STATEMENTS
Note 1.Financial statements preparation
FINANCIAL PERFORMANCE
Note 2.Segment reporting
Note 3.Net interest income and average balance sheet and
interest rates
Note 4.Non-interest income
Note 5.Operating expenses
Note 6.Impairment charges
Note 7.Income tax
Note 8.Earnings per share
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Lending and credit risk
Note 9.Loans
Note 10.Provision for expected credit losses
Note 11.Credit risk management
Deposits and other funding arrangements
Note 12.Deposits and other borrowings
Note 13.Debt issues
Note 14.Loan capital
Note 15.Securitisation, covered bonds and other
transferred assets
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
INTANGIBLE ASSETS, PROVISIONS, COMMITMENTS
AND CONTINGENCIES
Note 24.Intangible assets
Note 25.Provisions, contingent liabilities, contingent assets
and credit commitments
CAPITAL AND DIVIDENDS
Note 26.Shareholders’ equity
Note 27.Capital adequacy
Note 28.Dividends
GROUP STRUCTURE
Note 29.Investments in subsidiaries and associates
Note 30.Structured entities
OTHER
Note 31.Share-based payments
Note 32.Superannuation commitments
Note 33.Auditor’s remuneration
Note 34.Related party disclosures
Note 35.Notes to the cash flow statements
Note 36.Subsequent events
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
STATUTORY STATEMENTS
Directors’ declaration
Independent auditor’s report to the members of Westpac
Banking Corporation
Limitation on Independent Registered Public Accounting
Firm’s Liability
104WESTPAC 2025 ANNUAL REPORT
INCOME STATEMENTS
for the years ended 30 September
Income statementsfor the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote20252024202320252024
Interest income:
Calculated using the effective interest method353,05452,73942,51548,85148,358
Other31,9881,6081,2372,1961,571
Total interest income55,04254,34743,75251,04749,929
Interest expense3(35,662)(35,594)(25,435)(34,949)(34,492)
Net interest income19,38018,75318,31716,09815,437
Non-interest income
Net fees41,7321,6721,6451,5431,494
Net wealth management4476441562--
Trading4717704717693637
Other479184041,5461,851
Total non-interest income3,0042,8353,3283,7823,982
Net operating income22,38421,58821,64519,88019,419
Operating expenses5(11,916)(10,944)(10,692)(10,455)(9,728)
Impairment (charges)/benefits6(424)(537)(648)(440)(475)
Profit before income tax expense10,04410,10710,3058,9859,216
Income tax expense7(3,111)(3,117)(3,104)(2,489)(2,525)
Profit after income tax expense6,9336,9907,2016,4966,691
Net profit attributable to non-controlling interests (NCI)(17)-(6)--
Net profit attributable to owners of Westpac Banking
Corporation (WBC)6,9166,9907,1956,4966,691
Earnings per share (cents)
Basic8201.9200.9205.3
Diluted8199.4191.7195.2
The above income statements should be read in conjunction with the accompanying notes.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
105
STATEMENTS OF COMPREHENSIVE INCOME
for the years ended 30 September
Statements of comprehensive incomefor the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$m20252024202320252024
Profit after income tax expense6,9336,9907,2016,4966,691
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 instruments15277(309)154132
Loss allowance on debt securities measured at FVOCI-11(1)1
Exchange differences on translation of foreign operations (net of
associated hedges)(254)(300)36731(134)
Income tax on items taken to or transferred from equity:
Debt securities measured at FVOCI(141)17998(118)242
Cash flow hedging instruments22(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)241(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)3133
Total comprehensive income6,9766,6836,5446,8096,694
Attributable to:
Owners of WBC6,9746,6856,5366,8096,694
NCI2(2)8--
Total comprehensive income6,9766,6836,5446,8096,694
The above statements of comprehensive income should be read in conjunction with the accompanying notes.
106WESTPAC 2025 ANNUAL REPORT
BALANCE SHEETS
as at 30 September
Balance sheetsas at 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote2025202420252024
Assets
Cash and balances with central banks3550,43065,66744,78258,400
Collateral paid4,5906,2694,5626,199
Trading securities and financial assets measured at fair value through income
statement (FVIS)
1655,84149,22853,62647,014
Derivative financial instruments2018,46424,10917,53423,902
Investment securities17117,541103,885109,10095,623
Loans9851,853806,767755,112710,043
Other financial assets1810,7665,45610,1264,951
Due from subsidiaries--48,83052,339
Investment in subsidiaries--8,5679,095
Property and equipment2,2662,2511,8051,804
Tax assets72,0782,1601,8431,896
Intangible assets2410,46510,7468,9189,131
Other assets1,0621,006916837
Total assets1,125,3561,077,5441,065,7211,021,234
Liabilities
Collateral received3,1873,0782,3642,935
Deposits and other borrowings12770,457720,489696,660644,481
Other financial liabilities1941,48838,07738,93533,917
Derivative financial instruments2020,63030,97420,49230,795
Debt issues13171,404169,284142,622143,882
Tax liabilities713756961408
Due to subsidiaries--52,56655,722
Provisions252,6122,5052,3762,271
Other liabilities2,3782,6331,8542,065
Total liabilities excluding loan capital1,012,293967,609957,930916,476
Loan capital1439,97037,88338,89136,770
Total liabilities1,052,2631,005,492996,821953,246
Net assets73,09372,05268,90067,988
Shareholders' equity
Share capital:
Ordinary share capital2637,26337,95837,26337,958
Treasury shares26(845)(758)(902)(816)
Reserves261,8801,7322,1761,757
Retained profits34,46832,77330,36329,089
Total equity attributable to owners of WBC72,76671,70568,90067,988
NCI26327347--
Total shareholders' equity and NCI73,09372,05268,90067,988
The above balance sheets should be read in conjunction with the accompanying notes.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
107
STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Statements of changes in equityfor the years ended 30 September
Westpac Banking Corporation
Consolidated
$m
Share
capital
(Note 26)
Reserves
(Note 26)
Retained
profits
Total equity
attributable
to owners
of WBC
NCI
(Note 26)
Total
shareholders'
equity
and NCI
Balance as at 30 September 202239,0112,37829,06370,4525770,509
Profit after income tax expense--7,1957,19567,201
Net other comprehensive income/(expense)-(533)(126)(659)2(657)
Total comprehensive income/(expense)-(533)7,0696,53686,544
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(4,696)(4,696)-(4,696)
Dividend reinvestment plan192--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 distributions11390(4,696)(4,493)(21)(4,514)
Balance as at 30 September 202339,1241,93531,43672,4954472,539
Profit after income tax expense--6,9906,990-6,990
Net other comprehensive income/(expense)-(304)(1)(305)(2)(307)
Total comprehensive income/(expense)-(304)6,9896,685(2)6,683
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,652)(5,652)-(5,652)
Share buyback
b
(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 issued
c
----339339
Other----(4)(4)
Total contributions and distributions(1,924)101(5,652)(7,475)305(7,170)
Balance as at 30 September 202437,2001,73232,77371,70534772,052
Profit after income tax expense--6,9166,916176,933
Net other comprehensive income/(expense)-69(11)58(15)43
Total comprehensive income/(expense)-696,9056,97426,976
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,215)(5,215)-(5,215)
Share buyback
b
(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 202536,4181,88034,46872,76632773,093
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.
108WESTPAC 2025 ANNUAL REPORT
STATEMENTS OF CHANGES IN EQUITY
for the years ended 30 September
Westpac Banking Corporation
Parent Entity
$m
Share
capital
(Note 26)
Reserves
(Note 26)
Retained
profits
Total equity
attributable
to owners
of WBC
Balance as at 30 September 202339,0661,65928,04968,774
Profit after income tax expense--6,6916,691
Net other comprehensive income/(expense)-213
Total comprehensive income/(expense)-26,6926,694
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,652)(5,652)
Share buyback
b
(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 202437,1421,75729,08967,988
Profit after income tax expense--6,4966,496
Net other comprehensive income/(expense)-325(12)313
Total comprehensive income/(expense)-3256,4846,809
Transactions in capacity as equity holders:
Dividends on ordinary shares
a
--(5,215)(5,215)
Share buyback
b
(672)--(672)
Other equity movements:
Share-based payment arrangements-94-94
Purchase of shares(23)--(23)
Net acquisition of treasury shares(86)--(86)
Other--55
Total contributions and distributions(781)94(5,210)(5,897)
Balance as at 30 September 202536,3612,17630,36368,900
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
109
CASH FLOW STATEMENTS
for the years ended 30 September
Cash flow statementsfor the years ended 30 September
Westpac Banking Corporation
ConsolidatedParent Entity
$mNote20252024202320252024
Cash flows from operating activities
Interest received53,88852,51541,97050,01548,242
Interest paid(35,638)(34,000)(22,654)(34,723)(33,039)
Dividends received2319871,285
Other non-interest income received2,2414,3143,5672,1734,274
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 liabilities6,8659,78410,5896,4019,427
Net (increase)/decrease in:
Collateral paid1,945(2,097)1,5451,905(2,057)
Trading securities and financial assets measured at FVIS(6,107)(18,994)(4,524)(6,054)(19,452)
Derivative financial instruments5,650(836)4,0821,0131,358
Loans(50,182)(35,083)(27,270)(45,997)(32,528)
Other financial assets(48)(348)128(26)(231)
Other assets(29)(34)822
Net increase/(decrease) in:
Collateral received(5)(318)(2,888)(709)(181)
Deposits and other borrowings51,85335,24324,69250,80335,870
Other financial liabilities(457)(7,084)(17,146)873(5,281)
Other liabilities4-(12)-(9)
Net cash provided by/(used in) operating activities359,489(19,767)(10,796)8,211(13,082)
Cash flows from investing activities
Proceeds from investment securities63,35647,62436,48061,16840,089
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 disposed35--293--
Purchase of controlled entities and other businesses35-(30)---
Net (increase)/decrease in investments in controlled entities---478(254)
Purchase of associates(10)(4)(1)(10)(3)
Proceeds from sale of loans portfolio
a
1,418--1,414-
Proceeds from disposal of property and equipment3346721537
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)68,85080,24570,97459,40468,438
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)5,0426,3263,4535,0426,326
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 NCI35(4)(25)---
Net cash provided by/(used in) financing activities(12,648)9,8325,655(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 banks82(753)694310(598)
Cash and balances with central banks as at beginning of year65,667102,522105,25758,40093,466
Cash and balances with central banks as at end of year3550,43065,667102,52244,78258,400
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.
110WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Financial statements preparation
Notes to the Financial StatementsNote 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
111
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.
112WESTPAC 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 10Provision for expected credit losses (ECL)
Note 22Fair values of financial assets and financial liabilities
Note 25Provisions, 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
113
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.
114WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL PERFORMANCE
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
115
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.
$mConsumer
Business &
WealthInstitutional
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
Income
Statement
2025
Net interest income7,8635,3462,4132,5681,28319,473(93)19,380
Net fee income538256773170(5)1,732-1,732
Net wealth
management income-434-43(1)476-476
Trading income1067577371370413717
Other income13745(4)1879-79
Net operating income8,4246,1103,8082,8141,30822,464(80)22,384
Operating expenses(4,932)(2,727)(1,647)(1,342)(1,268)(11,916)-(11,916)
Pre-provision profit3,4923,3832,1611,4724010,548(80)10,468
Impairment
(charges)/benefits(217)(245)141(4)(424)-(424)
Profit before income
tax expense3,2753,1382,1621,5133610,124(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)2,2822,1861,5751,090(161)6,972(56)6,916
Notable Items (post-tax)---(3)(53)(56)
Net profit attributable to
owners of WBC2,2822,1861,5751,087(214)6,916
Balance sheet
Loans525,447115,203117,70493,44356851,853
Deposits and
other borrowings366,299152,312131,37972,80647,661770,457
2024
Net interest income7,6325,3382,2402,3881,31818,916(163)18,753
Net fee income515341653179(16)1,672-1,672
Net wealth
management income-395-397441-441
Trading income-5763540(16)716(12)704
Other income135(23)(1)2418-18
Net operating income8,1606,1363,5052,6451,31721,763(175)21,588
Operating expenses(4,787)(2,626)(1,465)(1,262)(804)(10,944)-(10,944)
Pre-provision profit3,3733,5102,0401,38351310,819(175)10,644
Impairment
(charges)/benefits(248)(142)(120)(25)(2)(537)-(537)
Profit before income
tax expense3,1253,3681,9201,35851110,282(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)2,1842,3561,3679792277,113(123)6,990
Notable Items (post-tax)---(6)(117)(123)
Net profit attributable to
owners of WBC2,1842,3561,3679731106,990
Balance sheet
Loans510,317101,989100,58293,83346806,767
Deposits and
other borrowings334,462144,289119,79574,91247,031720,489
116WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 2. Segment reporting (Continued)
$mConsumer
Business &
WealthInstitutional
New
Zealand (A$)
Group
BusinessesTotal
Notable
Items
Income
Statement
2023
Net interest income8,1774,9921,9262,3171,00218,414(97)18,317
Net fee income50436059617781,645-1,645
Net wealth
management income-425-33114572(10)562
Trading income-4769233(22)750(33)717
Other income201279(3)53161243404
Net operating income8,7015,8363,2932,5571,15521,54210321,645
Operating expenses(4,533)(2,459)(1,316)(1,186)(738)(10,232)(460)(10,692)
Pre-provision profit4,1683,3771,9771,37141711,310(357)10,953
Impairment
(charges)/benefits(179)(257)(87)(124)(1)(648)-(648)
Profit before income
tax expense
3,9893,1201,8901,24741610,662(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)2,7932,1931,3478951407,368(173)7,195
Notable Items (post-tax)(148)(107)(10)(7)99(173)
Net profit attributable to
owners of WBC2,6452,0861,3378882397,195
Balance sheet
Loans492,71695,54892,56892,488(66)773,254
Deposits and
other borrowings308,342140,536116,05276,54446,694688,168
Notable Items after tax
$m202520242023
Economic hedges(43)(128)(92)
Hedge ineffectiveness(13)566
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)
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
117
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:
202520242023
$m%$m%$m%
Revenue
Australia48,21283.148,44284.740,22285.4
New Zealand8,01413.86,80911.95,05310.7
Other overseas
a
1,8203.11,9313.41,8053.9
Total58,046100.057,182100.047,080100.0
Non-current assets
b
Australia11,32289.011,57389.011,78289.7
New Zealand1,2529.81,31910.11,2829.8
Other overseas
a
1571.21050.9670.5
Total12,731100.012,997100.013,131100.0
a.Other overseas included Pacific Islands, Asia, the Americas and Europe.
b.Non-current assets represents property and equipment, and intangible assets.
118WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3. Net interest income and average balance sheet and interest rates
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.
ConsolidatedParent Entity
$m20252024202320252024
Interest income
Calculated using the effective interest method
Cash and balances with central banks2,5334,1234,2772,2603,651
Collateral paid468647581467646
Investment securities4,5873,4942,0374,2743,254
Loans45,45144,46035,58239,61738,217
Other financial assets1515381113
Due from subsidiaries---2,2222,577
Total interest income calculated using the effective
interest method53,05452,73942,51548,85148,358
Other
Net ineffectiveness on qualifying hedges(19)894(15)16
Trading securities and financial assets measured at FVIS2,0071,6001,1431,9111,474
Due from subsidiaries---30081
Total other1,9881,6081,2372,1961,571
Total interest income55,04254,34743,75251,04749,929
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 liabilities
a
(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---2242
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 income19,38018,75318,31716,09815,437
a.Includes net impact of Treasury balance sheet management activities.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
119
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.
202520242023
Average
balance
Interest
income
Average
rate
Average
balance
Interest
income
Average
rate
Average
balance
Interest
income
Average
rate
Consolidated$m$m%$m$m%$m$m%
Assets
Interest earning assets
Loans:
Australia660,39539,1515.9633,77237,8656.0607,15430,1645.0
New Zealand93,5095,6806.192,2226,1556.790,1305,0285.6
Other overseas10,4566205.96,6664406.66,5483906.0
Housing
a
Australia445,86025,5275.7439,12124,9825.7424,42719,6404.6
New Zealand61,9753,5645.860,8103,5615.959,3192,7024.6
Other overseas374164.3407174.2468183.8
Personal
Australia9,45096910.310,6841,0399.711,9541,0018.4
New Zealand1,0611019.51,063979.11,0941029.3
Other overseas7114.37114.37114.3
Business
Australia205,08512,6556.2183,96711,8446.4170,7739,5235.6
New Zealand30,4732,0156.630,3492,4978.229,7172,2247.5
Other overseas10,0756036.06,2524226.76,0733716.1
Trading securities and financial
assets measured at FVIS:
Australia38,8781,6154.228,6051,2234.323,4868433.6
New Zealand5,2792174.14,7182515.33,9592015.1
Other overseas4,2291754.13,0271264.22,641993.7
Investment securities:
Australia102,5714,1834.185,2083,2273.866,6311,8222.7
New Zealand7,1742653.76,5702013.16,1641482.4
Other overseas3,5241393.92,147663.12,082673.2
Other interest earning assets:
b
Australia54,3592,0913.879,2263,3404.296,2913,4243.6
New Zealand7,1762713.88,6364655.410,4964964.7
Other overseas15,3066354.119,2589885.124,8671,0704.3
Total interest earning assets and
interest income1,002,85655,0425.5970,05554,3475.6940,44943,7524.7
Non-interest earning assets
Derivative financial instruments24,88516,78623,423
All other assets
a,c
83,33870,46859,356
Total non-interest earning assets108,22387,25482,779
Total assets1,111,0791,057,3091,023,228
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: $49,702 million).
120WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3. Net interest income and average balance sheet and interest rates
(Continued)
202520242023
Average
balance
Interest
expense
Average
rate
Average
balance
Interest
expense
Average
rate
Average
balance
Interest
expense
Average
rate
Consolidated$m$m%$m$m%$m$m%
Liabilities
Interest bearing liabilities
Deposits and other borrowings:
Australia513,45119,8653.9489,69319,4134.0460,14913,5442.9
New Zealand65,2332,4543.865,0703,2204.963,7602,4643.9
Other overseas20,7059274.519,3561,0245.320,1329104.5
Certificates of deposit
Australia31,9261,3904.433,5981,5094.531,8221,1283.5
New Zealand1,914784.12,4241415.82,7271365.0
Other overseas13,4876544.812,8677365.713,3386574.9
Transactions
Australia119,9534,0513.4122,2354,1123.4129,7603,0832.4
New Zealand9,1362422.68,8364044.68,6473223.7
Other overseas853131.5823131.686870.8
Savings
Australia209,8127,5133.6189,4057,0073.7164,8004,6202.8
New Zealand18,5403962.118,4656353.419,3765372.8
Other overseas1,126262.3996252.51,035252.4
Term
Australia151,7606,9114.6144,4556,7854.7133,7674,7133.5
New Zealand35,6431,7384.935,3452,0405.833,0101,4694.5
Other overseas5,2392344.54,6702505.44,8912214.5
Repurchase agreements:
Australia14,0326834.922,0406923.134,5113140.9
New Zealand2,529983.94,3182345.44,9222314.7
Other overseas1,099494.5193115.7219115.0
Loan capital:
Australia40,1301,8694.737,2291,6764.531,8951,3134.1
New Zealand3,0211725.72,9831725.82,4891355.4
Other interest bearing liabilities:
a
Australia171,9778,4814.9164,7228,3705.1154,8595,9903.9
New Zealand22,6361,0784.820,1347683.819,9864642.3
Other overseas594(14)(2.4)953141.51,854593.2
Total interest bearing liabilities and
interest expense855,40735,6624.2826,69135,5944.3794,77625,4353.2
Non-interest bearing liabilities
Deposits and other borrowings:
Australia134,244119,408117,538
New Zealand10,75510,89112,213
Other overseas1,2021,3331,292
Derivative financial instruments26,75121,41326,353
All other liabilities10,8356,024(218)
Total non-interest bearing liabilities183,787159,069157,178
Total liabilities1,039,194985,760951,954
Shareholders’ equity71,54471,49371,229
NCI3415645
Total equity71,88571,54971,274
Total liabilities and equity1,111,0791,057,3091,023,228
a.Interest expense includes the net impact of Treasury balance sheet management activities and the bank levy.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
121
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.
20252024
ConsolidatedChange due toChange due to
$mVolumeRateTotalVolumeRateTotal
Interest earning assets
Loans:
Australia1,583(297)1,2861,3376,3647,701
New Zealand86(561)(475)1171,0101,127
Other overseas249(69)18074350
Housing
Australia1,174(629)5458534,4895,342
New Zealand50(47)365794859
Other overseas9(10)(1)-(1)(1)
Personal
Australia46(116)(70)43(5)38
New Zealand1342(7)(5)
Other overseas1(1)----
Business
Australia3634488114411,8802,321
New Zealand35(517)(482)50223273
Other overseas239(58)18174451
Trading securities and financial assets measured
at FVIS:
Australia448(56)392185195380
New Zealand30(64)(34)381250
Other overseas50(1)49151227
Investment securities:
Australia6582989565088971,405
New Zealand184664104353
Other overseas4231732(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 income1,826(1,131)6951,3179,27810,595
122WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 3. Net interest income and average balance sheet and interest rates
(Continued)
20252024
ConsolidatedChange due toChange due to
$mVolumeRateTotalVolumeRateTotal
Interest bearing liabilities
Deposits and other borrowings:
Australia956(504)4529224,9475,869
New Zealand8(774)(766)51705756
Other overseas71(168)(97)(35)149114
Certificates of deposits
Australia54(173)(119)128253381
New Zealand-(63)(63)325
Other overseas51(133)(82)(25)10479
Transactions
Australia192(253)(61)1828471,029
New Zealand2(164)(162)77582
Other overseas1(1)--66
Savings
Australia3351715062782,1092,387
New Zealand1(240)(239)118798
Other overseas1-1(1)1-
Term
Australia375(249)1263341,7382,072
New Zealand5(307)(302)30541571
Other overseas18(34)(16)(9)3829
Repurchase agreements:
Australia(150)141(9)134244378
New Zealand(97)(39)(136)(28)313
Other overseas51(13)38(1)1-
Loan capital:
Australia13360193219144363
New Zealand2(2)-271037
Other interest bearing liabilities:
Australia322(211)1113502,0302,380
New Zealand782323103301304
Other overseas(22)(6)(28)(41)(4)(45)
Total change in interest expense1,352(1,284)681,6018,55810,159
Change in net interest income:
Australia371267638(164)576412
New Zealand63(110)(47)247599
Other overseas40(4)36(144)69(75)
Total change in net interest income474153627(284)720436
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
123
Note 4. Non-interest income
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.
124WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 4. Non-interest income (Continued)
ConsolidatedParent Entity
$m20252024202320252024
Net fees
Facility fees795763697746709
Transaction fees1,1261,1181,146944935
Other non-risk fee income195135154138125
Fee income2,1162,0161,9971,8281,769
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 fees1,7321,6721,6451,5431,494
Net wealth management476441562--
Trading717704717693637
Other
Dividends received from subsidiaries---9861,284
Transactions with subsidiaries---453564
Dividends received from other entities23111
Net gain/(loss) on disposal of assets16-18
Net gain/(loss) on hedging of overseas operations-(1)-42(4)
Net gain/(loss) on derivatives held for risk
management purposes
a
1271127
Net gain/(loss) on financial instruments measured at
fair value38(24)7831(32)
Net gain/(loss) on disposal of controlled entities and
other businesses
b
--268--
Other2627562023
Total other79184041,5461,851
Total non-interest income3,0042,8353,3283,7823,982
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
125
Note 5. Operating expenses
Note 5. Operating expenses
ConsolidatedParent Entity
$m20252024202320252024
Staff
Employee remuneration, entitlements and on-costs5,6265,1605,2544,9774,540
Superannuation597551521538491
Share-based payments9597909194
Restructuring costs2679123323475
Total staff6,5855,8996,0985,8405,200
Occupancy
Operating lease rentals12711615310999
Depreciation and impairment of property and equipment420455474348387
Other10512915997120
Total occupancy652700786554606
Technology
Amortisation and impairment of software assets1,018908629887802
Depreciation and impairment of IT equipment1211251328599
Technology services1,052871735942770
Software maintenance and licences869770603736653
Telecommunications76901125569
Total technology3,1362,7642,2112,7052,393
Other
Professional and processing services692798905602696
Postage and stationery145130139122109
Advertising220176169194150
Non-lending losses1471116510288
Amortisation and impairment of other intangible assets and
deferred expenditure234212
Impairment of investments in subsidiaries---10117
Other expenses337332317325367
Total other1,5431,5811,5971,3561,529
Total operating expenses11,91610,94410,69210,4559,728
126WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 6. Impairment charges
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.
ConsolidatedParent Entity
$m20252024202320252024
Provisions raised/(released)
Performing(36)(150)27414(142)
Non-performing707877565666801
Recoveries(247)(190)(191)(240)(184)
Impairment charges/(benefits)424537648440475
of which relates to:
Loans and credit commitments427536647466469
Debt securities at amortised cost(3)--(2)1
Debt securities at FVOCI-11(1)1
Due from subsidiaries---(23)4
Impairment charges/(benefits)424537648440475
Further details are included in Note 10.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
127
Note 7. Income tax
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.
128WESTPAC 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.
ConsolidatedParent Entity
$m20252024202320252024
Profit before income tax10,04410,10710,3058,9859,216
Tax at the Australian company tax rate of 30%3,0133,0323,0922,6962,765
The effect of amounts which are not deductible/(assessable)
in calculating taxable income:
Hybrid capital distributions129139117129139
Dividend adjustments1-3(295)(379)
Other non-assessable items(1)(4)(9)(1)(3)
Other non-deductible items2425491623
Adjustment for overseas tax rates(15)(27)(25)6(4)
Income tax (over)/under provided in prior years-(20)7-(13)
Other items
a
(40)(28)(130)(62)(3)
Total income tax expense3,1113,1173,1042,4892,525
Income tax expense comprises:
Current income tax3,1283,1253,0092,5592,520
Movement in deferred tax(17)1288(70)18
Income tax (over)/under provision in prior years-(20)7-(13)
Total income tax expense3,1113,1173,1042,4892,525
Total Australia2,6142,6322,6372,4492,480
Total Overseas4974854674045
Total income tax expense3,1113,1173,1042,4892,525
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
ConsolidatedParent Entity
$m2025202420252024
Current tax assets20131713
Deferred tax assets2,0582,1471,8261,883
Total tax assets2,0782,1601,8431,896
Tax liabilities
ConsolidatedParent Entity
$m2025202420252024
Current tax liabilities13756961408
Total tax liabilities13756961408
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
129
Note 7. Income tax (Continued)
Deferred tax assets
The balance comprises temporary differences attributable to:
ConsolidatedParent Entity
$m2025202420252024
Amounts recognised in the income statements and opening retained profits
Provision for ECL on loans and credit commitments1,4811,5191,3121,314
Provision for long service leave, annual leave and other employee benefits422407405388
Property and equipment190203192192
Other provisions195167172141
Lease liabilities518576456508
All other liabilities188222173205
Total amounts recognised in the income statements and opening
retained profits2,9943,0942,7102,748
Amounts recognised directly in OCI
Investment securities8320683206
Total amounts recognised directly in OCI8320683206
Gross deferred tax assets3,0773,3002,7932,954
Set-off of deferred tax assets and deferred tax liabilities(1,019)(1,153)(967)(1,071)
Net deferred tax assets2,0582,1471,8261,883
Movements
Balance as at beginning of year2,1472,0951,8831,957
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 liabilities1341104(119)
Balance as at end of year2,0582,1471,8261,883
Deferred tax liabilities
The balance comprises temporary differences attributable to:
ConsolidatedParent Entity
$m2025202420252024
Amounts recognised in the income statements and opening retained profits
Finance lease transactions1811212106
Property and equipment514538464482
All other assets233232236232
Total amounts recognised in the income statements and opening
retained profits765882712820
Amounts recognised directly in OCI
Cash flow hedges211233214214
Defined benefit43384137
Total amounts recognised directly in OCI254271255251
Gross deferred tax liabilities1,0191,1539671,071
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)554175
Set-off of deferred tax assets and deferred tax liabilities1341104(119)
Balance as at end of year----
130WESTPAC 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%.
ConsolidatedParent Entity
$m2025202420252024
Deductible temporary differences
Tax losses on revenue account414422414422
Tax losses on capital account424265380150
Taxable temporary differences
Retained earnings of subsidiaries that would be subject to withholding tax
if distributed401402--
Note 8. Earnings per share
Note 8. Earnings per share
Accounting policy
Basic earnings per share (EPS) is calculated by dividing the net profit attributable to owners of WBC by the weighted
average number of ordinary shares on issue during the period. These numbers are adjusted for treasury shares
and the dividends related to treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all
dilutive potential ordinary shares are converted. Refer to Note 14 and Note 31 for further information on the potential
dilutive instruments.
202520242023
BasicDilutedBasicDilutedBasicDiluted
Net profit attributable to owners of WBC ($m)6,9166,9166,9906,9907,1957,195
Adjustment for restricted share dividends
a
(6)-(7)-(5)-
Adjustment for potential dilution:
Distributions to convertible loan
capital holders
b
-442-476-400
Adjusted net profit attributable to owners
of WBC6,9107,3586,9837,4667,1907,595
Weighted average number of ordinary shares
(# m)
Weighted average number of ordinary shares
on issue3,4273,4273,4813,4813,5073,507
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 capital
b
-261-413-385
Adjusted weighted average number of
ordinary shares3,4223,6903,4763,8953,5023,891
Earnings per ordinary share (cents)201.9199.4200.9191.7205.3195.2
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
131
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
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.
132WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
133
Lending and credit risk
Note 9. Loans
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.
ConsolidatedParent Entity
$m2025202420252024
Australia
Housing518,654503,271518,654503,270
Personal9,04310,1749,04310,174
Business221,840195,483219,187193,042
Total Australia749,537708,928746,884706,486
New Zealand
Housing62,67262,484--
Personal1,0431,058--
Business30,55431,055436306
Total New Zealand94,26994,597436306
Total other overseas12,5567,81011,7607,189
Gross loans856,362811,335759,080713,981
Provision for ECL on loans (refer to Note 10)(4,509)(4,568)(3,968)(3,938)
Total loans
a,b
851,853806,767755,112710,043
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.
134WESTPAC 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
$mUp to 1 year
Over 1 year to
5 years
Over 5 years to
15 yearsOver 15 yearsTotal
Australia
Housing4,66995221,853491,180518,654
Personal6,1452,254644-9,043
Business65,300136,86310,8338,844221,840
Total Australia76,114140,06933,330500,024749,537
New Zealand
Housing1525604,24457,71662,672
Personal8302112-1,043
Business20,05910,275218230,554
Total New Zealand21,04111,0464,46457,71894,269
Total other overseas4,4326,9121,212-12,556
Total loans101,587158,02739,006557,742856,362
The following table shows Westpac’s interest rate segmentation of loans maturing after one year as at
30 September 2025.
Consolidated
$m
Loans at
variable
interest rates
Loans at
fixed
interest ratesTotal
Interest rate segmentation of loans maturing after one year
Australia
Housing499,98114,004513,985
Personal1,6441,2542,898
Business152,9543,586156,540
Total Australia654,57918,844673,423
New Zealand
Housing7,68654,83462,520
Personal213-213
Business8829,61310,495
Total New Zealand8,78164,44773,228
Total other overseas7,7513738,124
Total loans maturing after one year671,11183,664754,775
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
135
Note 10. Provision for expected credit losses
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),
136WESTPAC 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
137
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.
20252024
Performing
Non-
PerformingPerforming
Non-
Performing
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Consolidated
Provision for ECL on loans
Housing1868046151,6051628796391,680
Personal59179843226120799367
Business5381,0679772,5824051,1639532,521
Total loans ECL provision
(Note 9)
7832,0501,6764,5096282,2491,6914,568
Provision for ECL on
credit commitments
Housing1121-32718-25
Personal1420-341627-43
Business1322413040311030038448
Total credit commitments
ECL provision (Note 25)1572823046913334538516
Total provision for
ECL on loans and
credit commitments9402,3321,7064,9787612,5941,7295,084
Presented as provision for
ECL on:
Individually
assessed provisions--539539--536536
Collectively
assessed provisions9402,3321,1674,4397612,5941,1934,548
Total provision for
ECL on loans and
credit commitments9402,3321,7064,9787612,5941,7295,084
Gross loans711,230135,4759,657856,362639,900161,12110,314811,335
Credit commitments200,39320,306470221,169181,27530,395441212,111
Gross loans and
credit commitments911,623155,78110,1271,077,531821,175191,51610,7551,023,446
Coverage ratio on loans (%)0.111.5117.360.530.101.4016.400.56
Coverage ratio on
loans and credit
commitments (%)0.101.5016.850.460.091.3516.080.50
138WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
20252024
Performing
Non-
PerformingPerforming
Non-
Performing
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Parent Entity
Provision for ECL on loans
Housing1557125401,4071367435751,454
Personal52159772885418492330
Business4729228792,2733489688382,154
Total loans ECL provision
(Note 9)
6791,7931,4963,9685381,8951,5053,938
Provision for ECL on
credit commitments
Housing716-23614-20
Personal1216-281217-29
Business1282232837910528327415
Total credit commitments
ECL provision (Note 25)
1472552843012331427464
Total provision for
ECL on loans and
credit commitments8262,0481,5244,3986612,2091,5324,402
Presented as provision for
ECL on:
Of which:
Individually
assessed provisions--459459--437437
Collectively
assessed provisions8262,0481,0653,9396612,2091,0953,965
Total provision for
ECL on loans and
credit commitments8262,0481,5244,3986612,2091,5324,402
Gross loans628,492121,9478,641759,080564,844139,8289,309713,981
Credit commitments177,41417,852438195,704160,41827,033411187,862
Gross loans and
credit commitments805,906139,7999,079954,784725,262166,8619,720901,843
Coverage ratio on loans (%)0.111.4717.310.520.101.3616.170.55
Coverage ratio on
loans and credit
commitments (%)0.101.4616.790.460.091.3215.760.49
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
139
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.
ConsolidatedParent Entity
Performing
Non-
PerformingPerforming
Non-
Performing
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Balance as at 30 September 20237062,8081,4164,9306002,4191,2484,267
Transfers to Stage 11,222(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 year303(328)(293)(318)267(308)(243)(284)
Net remeasurement of provision
for ECL(1,149)1,0701,1231,044(1,016)9371,016937
Write-offs--(620)(620)--(573)(573)
Exchange rate and
other adjustments(3)(5)5648(1)-5655
Balance as at 30 September 20247612,5941,7295,0846612,2091,5324,402
Transfers to Stage 11,386(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 year306(409)(277)(380)266(385)(229)(348)
Net remeasurement of provision
for ECL(1,304)1,2811,0771,054(1,137)1,2029891,054
Write-offs--(763)(763)--(705)(705)
Exchange rate and
other adjustments(4)(46)33(17)-(36)31(5)
Balance as at 30 September 20259402,3321,7064,9788262,0481,5244,398
140WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Provision for expected credit losses (Continued)
ConsolidatedParent Entity
Performing
Non-
PerformingPerforming
Non-
Performing
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Housing
Balance as at 30 September 20231581,0525131,7231219204461,487
Transfers to Stage 1351(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 year59(131)(158)(230)55(123)(143)(211)
Net remeasurement of provision
for ECL(357)209396248(309)174357222
Write-offs--(57)(57)--(46)(46)
Exchange rate and
other adjustments(1)(2)2421--2222
Balance as at 30 September 20241698976391,7051427575751,474
Transfers to Stage 1377(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 year81(177)(170)(266)71(160)(141)(230)
Net remeasurement of provision
for ECL(385)197409221(314)180342208
Write-offs--(52)(52)--(44)(44)
Exchange rate and
other adjustments132529--2222
Balance as at 30 September 20251978256151,6371627285401,430
Personal
Balance as at 30 September 202382225984056819190349
Transfers to Stage 1358(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 year36(9)-2734(8)-26
Net remeasurement of provision
for ECL(340)405295360(305)372283350
Write-offs--(394)(394)--(378)(378)
Exchange rate and
other adjustments-(1)1312--1212
Balance as at 30 September 202477234994106620192359
Transfers to Stage 1342(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 year31(15)-1629(15)-14
Net remeasurement of provision
for ECL(319)368360409(288)337347396
Write-offs--(461)(461)--(447)(447)
Exchange rate and
other adjustments(5)(13)-(18)(1)(5)-(6)
Balance as at 30 September 202573199843566417577316
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
141
Note 10. Provision for expected credit losses (Continued)
ConsolidatedParent Entity
Performing
Non-
PerformingPerforming
Non-
Performing
$mStage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Business
Balance as at 30 September 20234661,5318052,8024111,3087122,431
Transfers to Stage 1513(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 year208(188)(135)(115)178(177)(100)(99)
Net remeasurement of provision
for ECL(452)456432436(402)391376365
Write-offs--(169)(169)--(149)(149)
Exchange rate and
other adjustments(2)(2)1915(1)-2221
Balance as at 30 September 20245151,4639912,9694531,2518652,569
Transfers to Stage 1667(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 year194(217)(107)(130)166(210)(88)(132)
Net remeasurement of provision
for ECL(600)716308424(535)685300450
Write-offs--(250)(250)--(214)(214)
Exchange rate and
other adjustments-(36)8(28)1(31)9(21)
Balance as at 30 September 20256701,3081,0072,9856001,1459072,652
Total provision for ECL
ConsolidatedParent Entity
$m2025202420252024
Provision for ECL on loans and credit commitments4,9785,0844,3984,402
Provision for ECL on debt securities at amortised cost
a
36-2
Provision for ECL on debt securities at FVOCI
b
6656
Total provision for ECL4,9875,0964,4034,410
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
ConsolidatedParent Entity
$m2025202420252024
Loans and credit commitments:
Business activity during the year(380)(318)(348)(284)
Net remeasurement of the provision for ECL1,0541,0441,054937
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)424537440475
142WESTPAC 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
%20252024
Housing0.010.01
Personal2.662.21
Business0.080.05
Total write-offs net of recoveries to average loans0.060.05
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.
ConsolidatedParent Entity
$m2025202420252024
Individually assessed provisions539536459437
Modelled provision for ECL on loans and credit commitments4,2014,3693,6913,768
Overlays238179248197
Total provision for ECL on loans and credit commitments4,9785,0844,3984,402
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
143
Note 10. Provision for expected credit losses (Continued)
The base case scenario uses the following Westpac Economic forecasts:
Key economic assumptions for base
case scenario30 September 202530 September 2024
Annual GDP:
AustraliaForecast 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 ZealandForecast 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:
AustraliaForecast 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 ZealandForecast 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:
AustraliaForecast 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 ZealandForecast 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.
144WESTPAC 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).
ConsolidatedParent Entity
$m2025202420252024
Reported probability-weighted ECL4,9785,0844,3984,402
100% base case ECL3,0313,5592,6733,089
100% downside ECL7,1437,1956,3166,221
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 (%)20252024
Upside2.55.0
Base50.052.5
Downside47.542.5
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
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
145
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 11. Credit risk management
IndexNote name
Note
number
Credit risk
The risk of financial loss where a customer
or counterparty fails to meet their financial
obligations to Westpac.
Credit risk management framework11.1
Credit risk ratings system11.2
Credit risk concentrations and maximum exposure to
credit risk
11.3
Credit quality of financial assets11.4
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.
146WESTPAC 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 disclosureWestpac CRGMoody’s RatingS&P Rating
StrongAAaa – Aa3AAA – AA–
BA1 – A3A+ – A–
CBaa1 – Baa3BBB+ – BBB–
Good/satisfactoryDBa1 – B1BB+ – B+
Westpac Rating
WeakEWatchlist
FSpecial Mention
GSubstandard/Default
HDoubtful/Default
Program-managed portfolio
The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit
cards) 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
147
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.
148WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Credit risk management (Continued)
20252024
Consolidated
$m
Loans
Total all
other on
balance
sheet
Undrawn
credit
commit-
mentsTotalLoans
Total all
other on
balance
sheet
Undrawn
credit
commit-
mentsTotal
Australia
Accommodation, cafes
and restaurants11,517291,68113,2279,810261,63711,473
Agriculture, forestry
and fishing16,640473,10219,78913,733402,71316,486
Construction8,642254,90713,5747,900334,62312,556
Finance and insurance31,60899,15017,399148,15729,484112,86013,801156,145
Government,
administration
and defence690108,5161,679110,88581199,8301,558102,199
Manufacturing10,4833318,06518,8799,9974998,36118,857
Mining3,6564303,1577,2432,8654153,0386,318
Property66,63151615,00682,15360,76754613,77175,084
Property services and
business services15,1941368,26923,59914,3211497,92122,391
Services15,2151018,42623,74213,0151088,36921,492
Trade17,3842419,28826,91315,1593669,93325,458
Transport and storage12,8126916,07619,57910,2896816,31317,283
Utilities10,5877548,56119,9028,1759838,37317,531
Retail lending527,18199582,940611,116511,0251,05684,006596,087
Other1,2976141,3563,2671,5775921,7813,950
Total Australia749,537212,576179,9121,142,025708,928218,184176,1981,103,310
New Zealand
Accommodation, cafes
and restaurants305331339313332348
Agriculture, forestry
and fishing7,838475658,4508,352415738,966
Construction50815281,0373851566952
Finance and insurance4,06613,1011,95119,1184,75711,3641,83817,959
Government,
administration
and defence1839,87271210,7672108,8208129,842
Manufacturing1,8461001,4243,3701,785581,4443,287
Mining9111242161512125278
Property7,8354071,3629,6047,6046491,0809,333
Property services and
business services972544971,5239621213571,440
Services1,951429682,9611,961458232,829
Trade2,475301,1553,6602,164321,1543,350
Transport and storage581555211,1576611053621,128
Utilities1,7684162,1774,3611,6215571,3403,518
Retail lending63,73810113,87777,71663,56311714,22177,901
Other1129914635710877123308
Total New Zealand94,26924,32926,038144,63694,59721,99224,850141,439
Other overseas
Accommodation, cafes
and restaurants76-159185-1196
Agriculture, forestry
and fishing2-132-13
Construction35-8211734-73107
Finance and insurance6,0569,0005,66920,7253,6569,4474,96418,067
Government,
administration
and defence5311,034-11,087-4,389-4,389
Manufacturing1,49842,3133,81595831,5002,461
Mining38-96199928-931959
Property6512131784472237511
Property services and
business services962309361,928503357971,335
Services65-55662136-629665
Trade1,32442,5753,90390931,8132,725
Transport and storage741174221,18052715108650
Utilities64421,4952,1412321139372
Retail lending340-22362328-13341
Other7116141273409747184
Total other overseas12,55620,25415,21948,0297,81013,99211,06332,865
Total gross credit risk856,362257,159221,1691,334,690811,335254,168212,1111,277,614
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
149
Note 11. Credit risk management (Continued)
20252024
Parent Entity
$m
Loans
Total all
other on
balance
sheet
Undrawn
credit
commit-
mentsTotalLoans
Total all
other on
balance
sheet
Undrawn
credit
commit-
mentsTotal
Australia
Accommodation, cafes
and restaurants11,482291,68113,1929,777261,63711,440
Agriculture, forestry
and fishing16,551473,10219,70013,659402,71316,412
Construction7,835244,90712,7667,188314,62311,842
Finance and insurance31,561143,63917,399192,59929,430160,94713,801204,178
Government,
administration
and defence689108,5181,679110,88680999,8311,558102,198
Manufacturing10,2893318,06518,6859,8114968,36118,668
Mining3,6094303,1577,1962,8164153,0386,269
Property66,61051815,00682,13460,74354813,77175,062
Property services and
business services14,8791358,26923,28314,0131517,92122,085
Services14,9851018,42623,51212,8021078,36921,278
Trade17,1792419,28826,70814,9623659,93325,260
Transport and storage12,4246916,07619,1919,9786826,31316,973
Utilities10,5567558,56119,8728,1459838,37317,501
Retail lending527,18099582,940611,115511,0231,05684,006596,085
Other1,0555591,3562,9701,3305211,7813,632
Total Australia746,884257,013179,9121,183,809706,486266,199176,1981,148,883
New Zealand
Accommodation, cafes
and restaurants-2-2-2-2
Agriculture, forestry
and fishing-27330-11415
Construction1-38392-7880
Finance and insurance-8,2071098,316-5,9691126,081
Government,
administration
and defence-2,52982,537-2,08722,089
Manufacturing299683208355582172
Mining21-3-16162
Property-82-82-141-141
Property services and
business services25118712211336
Services-37845-39645
Trade3972823766226628223517
Transport and storage156308717632109
Utilities4300141445-32794421
Retail lending--------
Other-516--11
Total New Zealand43611,42167612,5333068,7577089,771
Other overseas
Accommodation, cafes
and restaurants67-148174-1185
Agriculture, forestry
and fishing1-121-12
Construction23-668924-6690
Finance and insurance6,0518,9265,65620,6333,6489,0474,95717,652
Government,
administration
and defence5310,051-10,104-3,288-3,288
Manufacturing1,40942,3093,72289541,4982,397
Mining15-9599742-928930
Property3781117496241116258
Property services and
business services894309321,856480357941,309
Services41-55459517-626643
Trade1,12132,5433,66776831,7872,558
Transport and storage705174191,14149915103617
Utilities63921,4952,1362281139368
Retail lending308-22330282-10292
Other559029174309420144
Total other overseas11,76019,12415,11646,0007,18912,48810,95630,633
Total gross credit risk759,080287,558195,7041,242,342713,981287,444187,8621,189,287
150WESTPAC 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.
Consolidated20252024
$mStage 1Stage 2Stage 3Total
a
Stage 1Stage 2Stage 3Total
a
Loans - housing
Strong332,20327,057-359,260311,05424,975-336,029
Good/satisfactory159,99840,537-200,535159,01645,242-204,258
Weak1,93913,9735,95921,8712,51216,3896,89325,794
Total loans - housing494,14081,5675,959581,666472,58286,6066,893566,081
Loans - personal
Strong3,96481-4,0454,104104-4,208
Good/satisfactory4,561744-5,3055,254825-6,079
Weak127465152744191570190951
Total loans - personal8,6521,29015210,0949,5491,49919011,238
Loans - business
Strong108,8439,453-118,29681,69619,387-101,083
Good/satisfactory99,30037,145-136,44575,87347,282-123,155
Weak2956,0203,5469,8612006,3473,2319,778
Total loans - business208,43852,6183,546264,602157,76973,0163,231234,016
Investment securities
Strong116,574--116,574102,721--102,721
Good/satisfactory-----71-71
Weak-494-494-649-649
Total
investment securities
b
116,574494-117,068102,721720-103,441
All other financial assets
Strong64,722--64,72276,264--76,264
Good/satisfactory848--848899--899
Weak216--216229--229
Total all other
financial assets65,786--65,78677,392--77,392
Undrawn
credit commitments
Strong154,4438,981-163,424140,78614,341-155,127
Good/satisfactory45,7789,984-55,76240,27114,186-54,457
Weak1721,3414701,9832181,8684412,527
Total undrawn
credit commitments200,39320,306470221,169181,27530,395441212,111
Total strong780,74945,572-826,321716,62558,807-775,432
Total good/satisfactory310,48588,410-398,895281,313107,606-388,919
Total weak2,74922,29310,12735,1693,35025,82310,75539,928
Total on and off-
balance sheet1,093,983156,27510,1271,260,3851,001,288192,23610,7551,204,279
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
151
Note 11. Credit risk management (Continued)
Parent Entity20252024
$mStage 1Stage 2Stage 3Total
a
Stage 1Stage 2Stage 3Total
a
Loans - housing
Strong325,33326,908-352,241304,16924,829-328,998
Good/satisfactory112,49734,157-146,654117,33933,284-150,623
Weak1,66113,1535,25320,0672,23315,4716,23523,939
Total loans - housing439,49174,2185,253518,962423,74173,5846,235503,560
Loans - personal
Strong3,58870-3,6583,72192-3,813
Good/satisfactory4,135585-4,7204,849647-5,496
Weak114413144671178512180870
Total loans - personal7,8371,0681449,0498,7481,25118010,179
Loans - business
Strong96,8568,462-105,31870,44818,047-88,495
Good/satisfactory84,14033,297-117,43761,78442,132-103,916
Weak1684,9023,2448,3141234,8142,8947,831
Total loans - business181,16446,6613,244231,069132,35564,9932,894200,242
Investment securities
Strong108,880--108,88095,346--95,346
Good/satisfactory-----71-71
Total
investment securities
b
108,880--108,88095,34671-95,417
All other financial assets
Strong105,946--105,946119,265--119,265
Good/satisfactory708--708731--731
Weak58--5871--71
Total all other
financial assets106,712--106,712120,067--120,067
Undrawn
credit commitments
Strong141,5178,385-149,902129,37913,659-143,038
Good/satisfactory35,7318,259-43,99030,82711,667-42,494
Weak1661,2084381,8122121,7074112,330
Total undrawn
credit commitments177,41417,852438195,704160,41827,033411187,862
Total strong782,12043,825-825,945722,32856,627-778,955
Total good/satisfactory237,21176,298-313,509215,53087,801-303,331
Total weak2,16719,6769,07930,9222,81722,5049,72035,041
Total on and off-
balance sheet1,021,498139,7999,0791,170,376940,675166,9329,7201,117,327
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.
152WESTPAC 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 personal
a
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.
OffsettingCreditworthy 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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
153
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:
CoverageSecured loan to collateral value ratio
Fully securedLess than or equal to 100%
Partially securedGreater than 100% but not more than 150%
UnsecuredGreater 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:
20252024
%Housing loans
a
Personal
loans
Business
loansTotalHousing loans
a
Personal
loans
Business
loansTotal
Performing loans
Consolidated
Fully secured100.010.267.388.9100.09.768.189.6
Partially secured-4.614.74.6-11.114.24.2
Unsecured-85.218.06.5-79.217.76.2
Total100.0100.0100.0100.0100.0100.0100.0100.0
Parent Entity
Fully secured100.011.367.589.1100.010.768.389.9
Partially secured-5.214.64.5-12.214.14.1
Unsecured-83.517.96.4-77.117.66.0
Total100.0100.0100.0100.0100.0100.0100.0100.0
Non-performing loans
Consolidated
Fully secured88.8-54.674.991.5-56.779.0
Partially secured11.24.627.917.28.523.223.413.4
Unsecured-95.417.57.9-76.819.97.6
Total100.0100.0100.0100.0100.0100.0100.0100.0
Parent Entity
Fully secured89.4-57.976.191.8-59.780.0
Partially secured10.64.926.116.38.224.421.712.7
Unsecured-95.116.07.6-75.618.67.3
Total100.0100.0100.0100.0100.0100.0100.0100.0
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
ConsolidatedParent Entity
$m2025202420252024
Cash, primarily for derivatives3,1883,0792,3652,936
Securities under reverse repurchase agreements
a
28,26917,95028,26917,950
Securities under derivatives
a
679112452112
Total other collateral held32,13621,14131,08620,998
a.Securities received as collateral are not recognised in the Group and Parent Entity’s balance sheet.
154WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Deposits and other funding arrangements
Note 12. Deposits and other borrowings
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.
ConsolidatedParent Entity
$m2025202420252024
Australia
Certificates of deposit33,94033,21533,94033,215
Non-interest bearing, repayable at call140,842128,705140,842128,705
Other interest bearing - transactions120,830110,393120,830110,393
Other interest bearing - savings223,216197,415223,216197,415
Other interest bearing term157,675157,282157,675157,282
Total Australia676,503627,010676,503627,010
New Zealand
Certificates of deposit1,5931,711--
Non-interest bearing, repayable at call10,70010,287--
Other interest bearing - transactions7,8848,815--
Other interest bearing - savings18,50217,854--
Other interest bearing term34,12836,245--
Total New Zealand72,80774,912--
Other overseas
Certificates of deposit11,95311,94811,95311,948
Non-interest bearing, repayable at call1,1471,193546503
Other interest bearing - transactions910736729532
Other interest bearing - savings1,2549871,161892
Other interest bearing term5,8833,7035,7683,596
Total other overseas21,14718,56720,15717,471
Total deposits and other borrowings770,457720,489696,660644,481
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
155
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
$mUp to 3 months
Over 3 months
to 6 months
Over 6 months
to 1 yearOver 1 yearTotal
Certificates of deposit in excess of insured amounts
Australia15,21518,2104922333,940
New Zealand1,392201--1,593
Other overseas3,7134,6663,574-11,953
Total certificates of deposit in excess of insured amounts20,32023,0774,0662347,486
Term deposits in excess of insured amounts
Australia62,51324,04430,8125,615122,984
New Zealand13,1788,6604,2922,03728,167
Other overseas3,4859061,406845,881
Total term deposits in excess of insured amounts79,17633,61036,5107,736157,032
Interbank term deposits in excess of insured amounts
a
Australia1,9392,3261,79576,067
Other overseas270--27297
Total interbank term deposits in excess of insured amounts2,2092,3261,795346,364
a.Interbank term deposits are included in Note 19.
156WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 13. Debt issues
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.
ConsolidatedParent Entity
$m2025202420252024
Short-term debt
Own issuances34,66532,32832,25228,905
Total short-term debt34,66532,32832,25228,905
Long-term debt
Covered bonds37,67139,47231,91135,513
Senior93,48991,94578,45979,464
Securitisation5,5795,539--
Total long-term debt136,739136,956110,370114,977
Total debt issues171,404169,284142,622143,882
Movement reconciliation
Balance as at beginning of year169,284156,573143,882134,957
Issuances68,85080,24559,40468,438
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 impact8,442(5,798)7,295(5,167)
Fair value adjustments(125)283(118)275
Fair value hedge accounting adjustments3964,3382653,659
Other567743484651
Total non-cash movements9,280(434)7,926(582)
Balance as at end of year171,404169,284142,622143,882
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
157
Note 13. Debt issues (Continued)
Consolidated
$m20252024
Short-term debt
Own issuances:
US commercial paper25,95822,507
EUR commercial paper4,0141,048
Senior Debt:
AUD1,1991,900
EUR-483
GBP1,8345,313
USD152-
Other1,5081,077
Total short-term debt34,66532,328
Long-term debt (by currency):
AUD38,39841,191
CHF2,8532,554
EUR36,60532,182
GBP5,7055,695
JPY7278
NZD3,1043,483
USD48,58350,258
Other1,4191,515
Total long-term debt136,739136,956
Westpac manages FX exposure from debt issuances as part of its hedging activities. Further details of Westpac’s hedge
accounting are in Note 20.
158WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 14. Loan capital
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.
ConsolidatedParent Entity
$m2025202420252024
Additional Tier 1 (AT1) loan capital
Westpac capital notes6,6978,3766,6978,376
USD AT1 securities1,8381,7281,8381,728
Total AT1 loan capital8,53510,1048,53510,104
Tier 2 loan capital
Subordinated notes31,43527,77930,35626,666
Total Tier 2 loan capital31,43527,77930,35626,666
Total loan capital39,97037,88338,89136,770
Movement reconciliation
Balance as at beginning of year37,88333,17636,77032,085
Issuances5,0426,3265,0426,326
Maturities, repayments, buybacks and reductions(4,122)(1,957)(4,127)(1,951)
Total cash movements9204,3699154,375
FX translation impact1,219(1,416)1,267(1,401)
Fair value hedge accounting adjustments(68)1,714(74)1,675
Other16401336
Total non-cash movements1,1673381,206310
Balance as at end of year39,97037,88338,89136,770
Additional Tier 1 loan capital
A summary of the key terms and common features of AT1 instruments is provided below.
Consolidated and Parent Entity
$mDistribution or interest rate
Potential scheduled
conversion date
a
Optional
redemption date
b
20252024
Westpac capital notes (WCN)
AUD 1,690 million WCN5(3-month BBSW rate + 3.20% p.a.)
x (1 - Australian corporate tax rate)
22 September 202722 September 2025
c
-1,688
AUD 1,723 million WCN7(3-month BBSW rate + 3.40% p.a.)
x (1 - Australian corporate tax rate)
22 March 202922 March 20271,7191,716
AUD 1,750 million WCN8(3-month BBSW rate + 2.90% p.a.)
x (1 - Australian corporate tax rate)
21 June 203221 September 20291,7421,740
AUD 1,509 million WCN9(3-month BBSW rate + 3.40% p.a.)
x (1 - Australian corporate tax rate)
22 June 203122 September 20281,5011,499
AUD 1,750 million WCN10(3-month BBSW rate + 3.10% p.a.)
x (1 - Australian corporate tax rate)
22 June 203422 September 20311,7351,733
Total WCN6,6978,376
USD AT1 securities
USD 1,250 million USD
AT1 securities
Fixed 5.00% p.a.
d
n/a21 September 20271,8381,728
Total USD AT1 securities1,8381,728
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
159
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 instrument
1
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 basis
2
); 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 convert
1
, or may be required to convert
1
, 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.
160WESTPAC 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:
$mInterest rate
a
Maturity date
Optional
redemption date
b
20252024
Subordinated notes issued by Westpac Banking Corporation
USD 100 millionFixed23 February 2046n/a107110
JPY 20,000 millionFixed19 May 2026n/a204202
JPY 10,200 millionFixed2 June 2026n/a104103
JPY 10,000 millionFixed9 June 2026n/a102101
USD 1,500 millionFixed23 November 203123 November 20262,2272,095
AUD 185 millionFixed24 January 2048n/a184184
AUD 130 millionFixed2 March 2048n/a130130
USD 1,000 millionFixed24 July 2039n/a1,2051,196
USD 1,250 millionFixed24 July 203424 July 20291,7821,686
USD 1,500 millionFixed4 February 20304 February 2025-2,141
USD 1,500 millionFixed15 November 203515 November 20301,9781,854
USD 1,000 millionFixed16 November 2040n/a1,0131,010
AUD 1,250 millionFloating29 January 203129 January 20261,2491,250
EUR 1,000 millionFixed13 May 203113 May 20261,7531,544
USD 1,000 millionFixed18 November 2041n/a1,0541,059
USD 1,250 millionFixed18 November 203618 November 20311,6601,572
JPY 26,000 millionFixed8 June 20328 June 2027262261
USD 1,000 millionFixed10 August 203310 August 20321,4251,368
SGD 450 millionFixed7 September 20327 September 2027544516
AUD 1,500 millionFloating23 June 203323 June 20281,5001,496
AUD 300 millionFixed/Floating23 June 203323 June 2028299300
AUD 1,100 millionFixed/Floating23 June 203823 June 20331,0931,100
AUD 1,500 millionFixed/Floating15 November 2038n/a1,4951,502
USD 750 millionFixed17 November 2033n/a1,1771,148
AUD 650 millionFloating3 April 20343 April 2029648649
AUD 600 millionFixed/Floating3 April 20343 April 2029600593
AUD 1,000 millionFloating10 July 203410 July 20291,000996
AUD 500 millionFixed/Floating10 July 203410 July 2029500500
USD 1,500 millionFixed20 November 203520 November 20342,318-
AUD 850 millionFloating12 February 203512 February 2030843-
AUD 400 millionFixed/Floating12 February 203512 February 2030400-
AUD 1,500 millionFixed/Floating4 June 20404 June 20351,500-
Total subordinated notes issued by Westpac Banking Corporation30,35626,666
Subordinated notes issued by Westpac New Zealand Limited
c
NZD 600 millionFixed/Floating16 September 203216 September 2027525541
NZD 600 millionFixed/Floating14 February 203414 February 2029554572
Total subordinated notes issued by Westpac New Zealand Limited1,0791,113
Total subordinated notes31,43527,779
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.
STRATEGIC REVIEWFINANCIAL REPORTADDITIONAL INFORMATION
161
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
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.
162WESTPAC 2025 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
Note 15. Securitisation, covered bond
[TRUNCATED]
=== IR PAGE TRANSCRIPT: AGM Transcript (PDF 468KB) ===
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Company: Westpac Banking Corporation (WBC)
Date: 11 December 2025
Time: 10:00am AEDT
[START OF TRANSCRIPT]
[Video playing]
Timothy Hartin: Well good morning, everyone and welcome to the 2025 Annual General Meeting
of Westpac Banking Corporation. My name is Tim Hartin, and I am Westpac's Company
Secretary.
On behalf of Westpac I'd like to acknowledge the Gadigal people of the Eora Nation. We pay our
respects to their Elders both past and present. We also acknowledge the Traditional Owners of
the lands from which those joining us on the webcast are located today.
Westpac has been helping Australians across our nation for more than 200 years and we're
proud of our long-standing commitment to reconciliation and are working towards our vision of
an Australia where Aboriginal and Torres Strait Islander people enjoy equitable opportunities.
Before I introduce your Chairman, I'll run through a few procedural matters. This year, we're
taking a different approach to the agenda of the meeting. You'll hear first from your Chairman
and CEO. The items of business will then be displayed on the screen, followed by the
presentation of the proxy and direct voting results.
Your directors seeking re-election and election will then address the meeting, followed by Mr
Kyle Robertson, who represents shareholders who are proposing resolutions 5A and 5B. Your
Chairman will then invite shareholders to ask questions on all resolutions together, which is
intended to provide an enhanced meeting experience. We'll take questions from the people
joining us here in the room first, then we'll move to the questions submitted by those who are
watching our live webcast.
If you're here in person, you should have received a coloured card at registration. A red voting
card allows you to speak and to vote. Blue card holders can speak but cannot vote. Yellow cards
are for visitors who can observe today's meeting but cannot speak or vote. If you do wish to ask
a question, please approach a microphone attendant and show them your red or blue card. If
you have a mobility restriction, please raise your hand and a microphone attendant will come to
you. For those watching the webcast today, we ask that you please submit one question at a
time. We may aggregate questions if we receive multiple questions on the same topic. All
resolutions today will be decided by a poll, so please mark your voting card to cast your vote for
each resolution.
MUFG Corporate Markets is the returning officer responsible for overseeing the voting process
for this meeting and can assist you with any questions. Completed voting cards must be placed
in one of the ballot boxes, and you can do this at any time after the Chairman opens the polls.
Voting will close 15 minutes after the meeting has concluded, and the results of the polls will be
advised to the ASX and available on Westpac's website. As set out in the Notice of Meeting,
MUFG Corporate Markets
A division of MUFG Pension & Market Services
online voting is not available at today's meeting. If you do have any issues viewing the webcast
or asking a question online, please call MUFG on 1-800-990-363. I'll now hand over to your
Chairman, Steven Gregg.
Steven Gregg: Thank you, Tim. I've been advised that a quorum is present. I therefore declare
the 2025 Annual General Meeting of Westpac Banking Corporation open. I also declare the polls
open. Please cast your votes at any time. I would like to extend a warm welcome to everybody
joining today. I would now like to introduce my fellow directors. On my left is Margie Seale, Peter
Nash, Michael Ullmer, Andy Maguire, Pip Greenwood, and David Cohen. On my right is - next to
Tim, is Anthony Miller, our Chief Executive, Nerida Caesar, Tim Burroughs, and Debra Hazelton.
Westpac's auditor, Kim Lawry of KPMG, is seated in the front row with our executive team. If you
have any questions in relation to the conduct of the audit, I will ask Kim to respond.
Before we move to matters in the Notice of Meeting, both the CEO and I would like to address
the meeting. This will include responding to the most commonly raised matters by shareholders
prior to the AGM.
Ladies and gentlemen, 2025 has been a seminal year for Westpac. With renewed leadership, we
have set a bold agenda to transform the organisation and to position it for long-term success.
Our focus is to strengthen the foundations and accelerate changes that will achieve greater
operational efficiency and better customer experiences, all of which will help to deliver stronger,
sustainable returns for our shareholders.
The completion of the five-year CORE program, responding to the Enforceable Undertaking, was
a significant milestone for Westpac. It sets a new benchmark for risk management and
governance and accountability across Westpac, a standard we will continue to embed and
strengthen.
APRA removed the remaining $500 million risk capital overlay in October, which has further
strengthened our capital base. Our capital position remains unquestionably strong, supported
by disciplined financial management and a robust balance sheet. Our CET1 capital ratio of
12.5% reinforces our standing amongst the world's strongest banks and is market leading within
the Australian banking system.
On sustainability, we reinforced our position as Australia's largest lender to the renewable
energy sector. This reflects our support for the nation's transition while balancing energy
reliability, security and affordability. Importantly, we are committed to partnering with
institutional customers to help them reduce the emissions intensity across their operations.
Financial performance in 2025 reflected our strategy of balancing growth and return, while
making the necessary investments in people, innovation, and transformation to support
Westpac's future. Net profit, excluding notable items, was marginally down at AU$7 billion.
Return on tangible equity remained well above our cost of capital at 11%, excluding notable
items, despite higher transformation costs.
Pleasingly, we experienced strong deposit growth of 7%, slightly ahead of our loan growth at 6%,
lifting the deposit to loan ratio to 85%, which has strengthened our funding. Margins were
stable, despite competitive pressures, reflecting a disciplined management effort. Total
expenses increased by 9% this year, due to strategic and structural decisions. These include
investment in transformation and bankers, along with higher amortisation and employee costs.
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A division of MUFG Pension & Market Services
We expect the restructuring charge to provide productivity benefits in the years ahead. A major
focus going forward will be to reduce our cost base to align with our peers.
Earnings per ordinary share were 201.9 cents, with share buybacks contributing 0.03 cents.
Your Board declared a final dividend of 77 cents per share, which is up 0.02 cents on FY24,
taking the full year ordinary dividends to $1.53 per share, fully franked.
In an uncertain operating environment, the Board determined it was prudent to carry surplus
capital to prioritise your bank's financial strength. This enables us to balance the investment
required for ongoing transformation and business growth while maintaining the flexibility to
return surplus capital to shareholders when appropriate. Total shareholder return for the year
‘25 was 29%, ranking Westpac the first amongst Australian banks across one, two and three-
year periods. This is a significant improvement on prior years.
In his first year as your CEO, Anthony Miller has brought a new energy, focus and momentum to
Westpac's strategy. He has commenced his journey as the CEO incredibly well. He is driving an
important cultural shift to make Westpac more agile and focus on execution and delivering a
better outcome for all our customers. We are pleased to see our people embracing this change
and new direction.
Employee engagement remains in the top quartile globally, which is a testament to their
dedication and commitment. Your Board stays connected with teams across the bank and
continues to champion diversity and inclusion, alongside professional development, to ensure
Westpac attracts and retains top bankers and talent. In this regard, we have attracted some
exceptional leaders to the Company this year and are delighted that a capable leadership team
is guiding the next chapter for Westpac.
This year, we advanced our transformation agenda, which is critical to achieving our growth
ambitions. Through UNITE, we are building a more efficient, future-ready bank by consolidating
technology platforms, streamlining processes, and simplifying our product and system
landscape. These changes will help strengthen our foundations and should reduce both risk
and cost to support sustainable returns and improved service. The Board monitors progress
through a Directors UNITE Oversight Group, providing additional governance and strategic
guidance.
Alongside UNITE, we are making strides in digital innovation with BizEdge, a new business
lending platform, and Westpac One, a new banking platform for institutional banking
customers.
Sustainability is another area which supports our ability to create long-term value for our
shareholders. We've evolved our practices and disclosures, releasing a new sustainability
strategy, Climate Transition Plan , and reconciliation plan this year. We manage all our material
sustainability topics, including nature and human rights.
However, today I will focus on climate, as this was the most prominent theme raised in
shareholders’ questions. We appreciate our shareholders hold diverse views on this matter.
As an organisation, we aim to be a net zero climate resilient bank by reducing our emissions and
supporting customers with their decarbonisation plans. 89% of our Australian and New Zealand
generation lending was to renewables such as wind, solar and hydropower at the end of
MUFG Corporate Markets
A division of MUFG Pension & Market Services
September. As mentioned, Westpac is the largest lender in the country to renewables. Our
exposure to the fossil fuel sector across the entire value chain represents a very small
percentage of our total committed exposure at just 0.6 of 1%.
To put this in context, in year ‘25 we had $39 billion in total sustainable finance lending. This is
almost five times larger than our lending to the fossil fuel value chain. Overall exposure to the
sector is marginally increased this year to a slight increased exposure to downstream activities
such as distribution and retail. Importantly, however, our exposure to upstream oil and gas
extraction has fallen 10% and now represents 0.1% – 0.1 of 1%, I should say, of Westpac's total
exposure.
We also have no corporate lending to thermal coal mining customers.
In response to shareholder feedback this year, we updated lending requirements for customers
in carbon-intensive sectors. This included expanding the scope of sectors required to have
climate transition plans from oil and gas extraction to metallurgical coal mining and coal-fired
power generation. We provided more detail on our customer climate transition plan evaluation
criteria and ratings, which apply to a small number of customers we have operating in these
sectors.
To be eligible for new and renewed corporate lending and bond facilitation from 2026, our
customers must have interim Scope 1 and 2 targets aligned to well below two degrees Paris
Agreement goal. We also consider customers’ Scope 3 emissions in our evaluation, including
their net zero ambitions and reduction plans. Our commitment to reducing emissions across
our value chain is endorsed by the Board and management and is led by our Chief Sustainability
Officer who reports directly to the CEO.
We welcome several new directors this year, strengthening the Board's collective skills, diversity
and experience. Our composition represents a balance between continuity and renewal,
blending the experience of long-serving directors with fresh perspectives from new directors.
Your Board of Directors has a significant level of financial services and banking experience,
which I believe is fundamental in providing good governance and oversight.
The new directors who are seeking election this year are Debra Hazelton, who joined the Board
in March and serves on the Board Remuneration Committee. She has more than 30 years of
global financial services experience. David Cohen, who joined the Board in April and serves on
the Board Risk Committee. He has more than two decades of experience in financial services,
including serving as the deputy CEO of the Commonwealth Bank of Australia. Pip Greenwood,
who joined in August. Pip is an experienced Non-Executive Director with financial services
experience and currently chairs both Westpac New Zealand and The a2 Milk Company.
Board Director Peter Nash is also seeking re-election, and we acknowledge the split in voting on
this item of business. However, the Board unanimously supports Peter's nomination,
recognising his contribution over the past seven years and the expertise he brings to the Board.
Since joining Westpac during the Royal Commission, Peter has played a key role in our
remediation efforts in completing the CORE program, helping to restore confidence amongst
investors and regulators.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
As the Audit Committee Chair and the longest-serving Director, he has also been instrumental
in resetting the executive team and shaping Westpac's strategy. His continuity provides an
important bridge from past challenges to future opportunities.
Additionally, Margie Seale is stepping down as the Chair of the Remuneration Committee,
although remains a Committee member, and I'd like to thank Margie for her commitment and
wise council as Chair of that Committee. I'm delighted that Debra Hazelton will also assume
this role at the conclusion of today's meeting.
Looking ahead, challenges are expected, including ongoing geopolitical and trade tensions, the
rise of private and non-regulated credit and elevated global debt levels. Notwithstanding these
headwinds, prospects for the Australian and New Zealand economies remain positive. Recent
interest rate relief has supported a modest recovery in activity, though we recognise that some
businesses and households continue to face pressures such as labour, energy and insurance
costs.
At Westpac we are well positioned to deliver on our strategy and create lasting economic, social
and environmental value for our customers and the communities we serve. I extend my
gratitude to shareholders, customers, our people and the community for their continued
support as we focus on investing for growth and delivering sustainable shareholder returns.
Now, I'm very pleased to welcome your CEO, Anthony Miller. Thank you.
Anthony Miller: Thank you, Chairman. Good morning and welcome to all our shareholders. It's a
privilege to be here today to share how we're building a stronger, more sustainable Westpac. A
key focus in my first year as CEO has been ensuring we have the right structures and people in
place to lead Westpac towards becoming a more resilient, customer-focused bank. We're
shaping a culture that moves faster, with a relentless focus on execution and customer service.
Delivering for customers is critical to our success. By improving our standard of service, and
then delivering that standard consistently, we build trust and earn customer loyalty. If we do this
well, we will achieve our ambition to be our customers' number one bank and partner through
life and thus grow the business and returns for our shareholders.
In addition to lifting and sustaining service levels to our customers, we are pursuing a growth
and transformation agenda, enabled by a robust balance sheet and a strong capital position.
We want to be the number one bank in the marketplace. As we go after this, we are guided by
five priorities. Getting to number one will take some time. But if we stay focused and deliver on
these priorities, we will get there.
We're committed to relentless execution and are holding ourselves accountable with clear
targets and transparent reporting. We'll keep being honest with each of you about where we
stand, the challenges we face and the progress we're making.
Turning to this year's performance, it has been a solid year at Westpac. We have a very strong
balance sheet and saw great momentum in our target segments. Net profit was $7 billion,
representing a return on tangible equity of 11%, excluding notable items. This reflects the
balance we have struck between delivering returns while investing for the future. Our revenue
grew 4 %, and this was supported by solid lending and deposit growth.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Some of the highlights included 10% growth in our Consumer and Institutional division
deposits, reflecting the quality of our consumer business and customer base, a 15% increase in
business lending, with solid growth in health, professional services and agriculture, and
institutional lending growth of 17%.
Looking at costs, we know managing this effectively is essential. The 9% rise in expenses this
year was driven by higher staff and technology costs, as well as the UNITE program, and the
decision we made to invest in more bankers and additional growth projects. It also included a
restructuring charge to help support productivity.
We are reducing expenses by structurally lowering the costs of running the bank through UNITE.
We are targeting, by FY29, a cost-to-income ratio below the peer average and a return on
tangible equity above the peer average. We acknowledge there is a lot of work ahead of us to
achieve these objectives.
Our service proposition is at the heart of what we do. Our approach is to bring the whole bank to
our 13 million customers, meeting and serving them where and how they want. We strive to earn
their trust and to look after their entire banking needs. We are here to support our customers
through the cycle. We provided 46,000 hardship packages this year to those experiencing
financial challenges. Pleasingly, three quarters of these customers needed only short-term
support for up to three months.
Building trust and supporting our customers also means tackling issues affecting our
customers and Australians more broadly. This includes scams, which are a national challenge
and require all parts of the ecosystem to play their part. Over the past five years, we have spent
more than $500 million to combat scams and fraud, including investing in new detection and
prevention measures to protect our customers.
This includes recent innovations such as SafeCall, SafeBlock and Confirmation of Payee, which
have all contributed to a 21% decline in scam losses this year and helped to save our customers
from losing over $360 million to scammers. What's clear to me is that Westpac and the other
banks can't solve the scam scourge alone. As I mentioned, to help keep Australians safe, we
need more action from other players in the ecosystem, including social media companies like
Meta.
In addition to adding new innovative scam defences, we're also lifting engagement and loyalty
through our award-winning banking app, refreshed brand positioning, and community
partnerships. Service quality in critical customer moments is improving. Our mortgage
processing times have halved, with most home loan application decisions made within five
days. We're also processing business loans faster through our new digital lending platform,
BizEdge, which has already handled $5 billion in applications while continuing to expand our
banker presence.
We've doubled our Women in Business commitment to $1 billion, which has supported more
than 1,800 entrepreneurial women-founded businesses since inception.
For institutional clients, we're investing in the best bankers to be number one in our target
markets. This week, we commenced our pilot for Westpac One, our cloud-based digital
platform that will transform how institutional customers manage their liquidity, payments, and
MUFG Corporate Markets
A division of MUFG Pension & Market Services
FX. We plan to progressively roll out the capabilities within the platform over the next 36
months.
Finally, to our customers here today, who we engage to support this year's AGM, MUFG, Bread
and Butter Project, and Indigo, thank you for being customers of Westpac. We really appreciate
our partnership with you.
We are investing in technology programs, AI, and the workforce of the future. However, this is a
people business, and our priority is to have the best team giving their best every day. We aim to
be the number one place to work and to attract and retain the best bankers and talent.
Despite significant change this year, employee engagement remains in the top quartile globally.
Our latest survey confirms this with more than 70,000 comments captured from our people.
This is feedback that helps us keep improving. Flexible working is a big part of that. We're
committed to helping people work in ways that enables them to perform at their best. We are
focused on outcomes and the right level of team connections to deliver for our customers.
We've enhanced our employee proposition with four wellbeing days and a wide range of leave
options to support every stage of life. Our people are engaged, working to lift our customer
service and challenging us to deliver UNITE and set the bank up for the future.
Risk management underpins resilience and long-term shareholder value. This year we have
continued to embed improvements in governance, culture and accountability. The completion
of the CORE transition and response from APRA is recognition of the progress that we have
made. While we are a simpler and stronger bank than five years ago, the lessons of the past
must stay front of mind, and we must remain resolute in ensuring past mistakes are not
repeated.
Strong risk management is not a destination, it's a discipline. We're focused on making it our
competitive advantage and our differentiator.
The cornerstone of our transformation agenda is UNITE, which addresses legacy issues and
complexity. We've finalised the program scope, we have a dedicated team and have grouped
initiatives into 10 work packages as we make progress towards our FY29 targets. UNITE is
starting to deliver improvements that are making banking simpler and more connected for our
customers.
Eight initiatives are complete, 51 are underway and the majority are on track. Where challenges
arise, we act quickly to get back on course. We'll continue to provide regular updates. Alongside
UNITE, we are implementing AI tools and AI agentic programs right across the business. These
are not standalone tech initiatives, but are strategic enablers led by our businesses. Some
examples of their use include strengthening defences against fraud and scams and supporting
faster approvals for mortgages and business loans.
When used well, it helps us serve customers better, make smarter decisions, deliver
consistently, and unlock productivity. Currently, more than 15,000 of our people are using AI to
support work as we go after our goal of ‘AI for everyone’. The key is making sure we find proven,
tangible use cases and that we use AI tools responsibly.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Looking ahead, AI will be critical to how we personalise experiences and drive efficiency at
scale. But AI technology isn't enough. Like any tool, AI is only as good as the people who use it.
We're also investing in our people, and this includes the appointment of our Chief Data, Digital,
and AI Officer, reporting to me.
As one of Australia's largest companies and employers, we play a vital role in supporting
economic prosperity. A key challenge for the Australian economy is productivity. Without
improvement, we cannot lift living standards or remain competitive globally. It is encouraging to
see productivity at the centre of the national debate. Addressing this challenge requires a
coordinated response and we are contributing to this in a number of ways.
One way in which we do this is through our sustainability strategy. The Chairman addressed our
first focus area, climate change. We are supporting our customers in the transition. The
transition represents a significant investment opportunity for Australia. The prosperity of
regional communities is another critical area where we're supporting our sustainability strategy.
It drives 30% of GDP and is home to one third of our population. To maximise output from the
regions, they need to have access to the banking services they need to thrive.
Our commitment to regional Australia is demonstrated by our expanded presence and
commitments, including the extension of our regional branch closure moratorium through to
2030, a new pilot for community banking hubs in New South Wales towns, Dungog, Manilla and
Bulahdelah, with the view to expanding this nationally next year. A new service centre in Moree,
with two more opening next year in Leongatha in Victoria, and Smithton in Tasmania.
Through engagement with our agri customers and industry stakeholders, we have listened to
feedback on our no-deforestation policy, which was set back in 2023. Customer feedback has
been clear. They need more help in navigating existing regulations and demands rather than
dealing with additional bank requirements. In response, we’ve removed the no deforestation
commitment and will focus on providing practical support to help our customers manage their
risks and contribute to industry-led solutions. We continue to expect all our customers to
comply with vegetation laws and remain committed to our financed emissions targets for this
sector.
Our final sustainability focus area is housing affordability. The root cause of this problem is
supply. What will make a difference is increasing the supply of quality housing at a more
affordable price point. We are committed to playing our part in a coordinated approach to help
more Australians achieve home ownership.
Generally, the Australian economy is in good position, and we are optimistic about the outlook.
The rate relief over the past year has been welcomed by many customers and we're starting to
see this flow through to spending and consumer confidence, though this is finely balanced as
we head into 2026.
Our stable political and regulatory environment continues to be a differentiator, providing
confidence in the nation's resilience and growth potential. However, we must continue to
challenge for effective, reliable and transparent regulation. I think it is appropriate to
acknowledge the commendable stewardship of monetary policy by the Reserve Bank as an
important contributor.
MUFG Corporate Markets
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While risks persist, including lingering inflation and geopolitical uncertainty, there are more
opportunities than threats. For Westpac, I am pleased with our progress. I am energised by the
opportunities we have ahead. I am grateful to our shareholders, customers and employees for
their continued support as we shape Westpac's future.
With the right team, the right plan and disciplined execution, we will continue to build a
stronger, more sustainable company - one that delivers for our customers and creates long-
term value for our shareholders. Thank you.
Steven Gregg: Thank you, Anthony. Well spoken. We'll just wait a few minutes, if we could, folks,
for the media to leave the room. Ladies and gentlemen, we'll now move to the matters in the
Notice of Meeting. The items of business are now shown on the screen. Item 1 concerns the
receipt and consideration of the financial report, the directors’ report and the auditor's report of
Westpac Banking Corporation for the year ended 30 September 2025. This item does not require
a resolution be put to the meeting.
Item 2 concerns the re-election of Peter Nash and the election of David Cohen, Pip Greenwood
and Debra Hazelton as directors. Item 3 concerns the adoption of the remuneration report for
the year ended 30 September 2025. As stated in the notice of meeting, this resolution is
advisory only and is non-binding. However, the Board will take the outcome of the vote and any
discussion on this item into consideration when reviewing the remuneration framework for
directors and senior executives.
Item 4 is to approve the grant of equity to the Managing Director and CEO, Anthony Miller, for the
2026 financial year. Item 5, which includes two resolutions requisitioned by a group of
shareholders. Item 5A requests an amendment to the Constitution, and then item 5B requests
further disclosure on Westpac's customer transition plan approach and the climate
commitments.
Under the Corporations Act, shareholders can propose to move a resolution at a general
meeting. In this instance, a group of shareholders with at least 100 signatories put forward the
resolution in item 5. The Notice of Meeting contains an explanation on why the resolutions are
being put forward, along with the Board's view. Resolution 5A is required to be passed as a
special resolution and item 5B is conditional on item 5A being passed.
The Board recommends that shareholders vote in favour of resolutions 2A, 2B, 2C, 2D, 3 and 4,
and against the requisitioned resolutions 5A and 5B.
The direct votes cast, and the position of proxy votes received on all items of business prior to
this meeting are now displayed on the screen for your information. The direct and proxy votes
received show an against vote for item 5A, which will not be materially impacted by votes
received today, as resolution 5A will not be passed by a special majority, resolution 5B will not
be put to a vote at the meeting.
I would now like to invite the directors who are seeking re-election and election today to address
the meeting. In accordance with Westpac's Constitution, Peter Nash is retiring by rotation at
this meeting and, being eligible, is offering himself for re-election. David Cohen was appointed
on the 1 April 2025, Pip Greenwood on 1 August 2025 and Debra Hazelton on 4 March 2025, and
are all seeking election at this meeting.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
The Board, other than the directors concerned in each case, has considered the performance of
each director standing for re-election and election today. Following this review, the Board
recommends that shareholders vote in favour of Peter Nash, David Cohen, Pip Greenwood and
Debra Hazelton being re-elected or elected to your Board. I have personally enjoyed working
with each of these directors and support their election. Detailed biographies for each of the
directors are set out in the Notice of Meeting.
As I referred to in my opening address, ladies and gentlemen, there have been shareholders
who have expressed concerns with Peter's re-election, primarily because of his prior role at
another organisation. In unanimously supporting Peter's re-election to you, the Board
determined that he has been an exceptional Director for shareholders and has made a
significant contribution to Westpac. I'm very supportive of this.
Peter, I now invite you to address the meeting, please.
Peter Nash: Thank you, Chairman, and good morning shareholders. I'm grateful for the
opportunity to seek re-election, and I do so with a deep sense of responsibility and commitment
to Westpac. For the past seven years, I've been proud to serve on your Board, helping to guide
the Company through significant challenges and necessary change.
Since joining in 2018, during the Hayne Royal Commission, I've directed much of my time
towards remediation and strengthening risk management, which supported the successful
completion of the five-year CORE program this year. This has required a sustained focus on
resetting the Company's - sorry, this has required a sustained focus on resetting the Company's
risk standards, culture, and governance to restore confidence among our customers,
shareholders and regulators.
We've learned a lot from this period, and these lessons remain embedded in how we operate.
As one of the longest serving directors, I’ve sought to bring a steady hand and corporate
memory as we focus on the future.
My areas of expertise are financial and sustainability reporting, strategy, internal controls and
governance, which I apply diligently in my responsibilities as Chair of the Audit Committee and
as a member of the Risk Committee as well as the Board Nominations and Governance
Committee.
This expertise comes from decades of experience in banking and finance, audit and
governance, garnered mainly through my time as a partner and then Chairman of KPMG in
Australia. An executive career at KPMG instilled in me a strong belief that auditor independence
is fundamental. In this regard, I would wish to note for shareholders that I formally recused
myself from the recent auditor selection process that Westpac conducted.
Beyond Westpac, my experiences across ASX-listed companies, which have included
companies that have faced challenging transformation projects, has strengthened my capability
as a Director and I'm now applying these lessons as a member of the Board, including in my role
as a member of the oversight group for UNITE.
I'm proud of the contribution that the Audit Committee has made and what we've achieved in
recent years. We have overseen an improvement in the quality of earnings, disclosure and
reporting. More broadly, Westpac has been through significant change, and this has positioned
MUFG Corporate Markets
A division of MUFG Pension & Market Services
us for sustainable growth. Leadership has been reset, operations simplified, and risk
management has been strengthened. I'm grateful for the support I've received from my fellow
directors, the executive team, our people, and our shareholders during this time. Should I be re-
elected, I would be honoured to continue to represent shareholders as management delivers
our strategy and the Board maintains strong oversight at a pivotal time for Westpac. Thank you.
Steven Gregg: Peter, well-spoken. David, if I may invite you to speak, please.
David Cohen: Thank you, Chairman, and good morning shareholders. I'm very grateful for the
opportunity to seek your support for my election to the Board.
My decision to join Westpac reflects both my confidence in the Company's direction and my
eagerness to be part of its journey. After a period of necessary introspection, Westpac has an
energised management team, stronger risk foundations, clear strategic direction, and an
organisational mindset focused on transformation and progress. These provide a solid platform
for continuous improvement and sustainable growth.
To support this next chapter, I bring more than 20 years’ experience in Australia and overseas in
financial services, offering informed perspective and sound judgment to help drive performance
and uphold the interests of all shareholders.
During my career, I served as Deputy Chief Executive Officer of the Commonwealth Bank of
Australia. After earlier roles as that bank's Group General Counsel, Group Executive for Human
Resources and Corporate Affairs, and then Chief Risk Officer, including during the Hayne Royal
Commission. Prior to my time at Commonwealth Bank, I was General Counsel of AMP and a
partner at law firm Allens Arthur Robinson.
Since joining the Westpac Board in April, I've served on the Board Risk Committee. Alongside
this, I chair TAL Australia Limited, Australia's leading life insurer, and I serve on the Board of the
Paul Ramsay Foundation and am a member of the Adara Partners panel. If elected today, I look
forward to working closely with my fellow directors and management to support the successful
delivery of Westpac's strategy, building resilience and driving change to create lasting
shareholder value for you. Thank you.
Steven Gregg: Thank you, David. Again, well-spoken. Pip, if I may turn to you please for your
address.
Pip Greenwood: Thank you, Chairman. Good morning shareholders. I'm honoured to stand for
election today, having joined the Westpac Board in August this year. I also have the privilege of
serving as Chair of Westpac New Zealand since 2021. This has deepened my understanding of
banking and financial services and Westpac's opportunities and challenges.
In the past four years, we've made meaningful change in New Zealand from strengthening the
Board and appointing a new CEO to navigating regulatory reform, cultural renewal and
technology transformation. This progress is also reflected in our improved financial
performance.
Serving on both Boards reflects the significant contribution Westpac New Zealand makes to the
Westpac Group, and the importance of New Zealand as one of our core markets. Outside the
banking sector, I am Chair of The a2 Milk Company, and I previously served as a Director of
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Fisher and Paykel Healthcare, Spark New Zealand and Vulcan Steel. These roles have enhanced
my commercial and legal judgement and my focus on building capable high performing boards.
My career began in law, and I have 25 years’ experience in financial services, capital markets,
mergers and acquisitions and governance. As a senior partner of a leading New Zealand law
firm, Russell McVeagh, I advised on many of New Zealand's most significant transactions, and
later served on the firm's board, including terms as Board Chair and interim CEO.
I also have regulatory experience from my tenure on the New Zealand Takeovers Panel where my
primary responsibility was safeguarding shareholders' interests. I believe governance is a team
effort and I will work hard to ensure the Boards I serve on are connected, collaborative and
accountable. My legal background also facilitates open debate, encourages diverse
perspectives and supports rigorous governance standards. Should I be elected today, I will work
alongside my fellow directors to lead with clarity and ambition to drive long-term value for our
customers, and sustainable returns for shareholders. Thank you very much.
Steven Gregg: Thank you, Pip. Well spoken. Debra, if I may ask you please to address the
meeting. Thank you.
Debra Hazelton: Thank you, Chairman, and good morning, everyone. It's been a privilege to join
the Westpac Board as a Non-Executive Director, and today I seek your support for my election to
the Board.
Since joining Westpac in March, it's become clear that the organisation has entered an exciting
new phase of transformation and growth. Leveraging a strong financial foundation and robust
risk culture, your Board and management are driving change for better customer outcomes and
improved long-term performance.
I'm very pleased to have the opportunity to support Westpac's strategic direction by bringing
more than 30 years of global financial services experience and proven governance expertise
across both public and private companies - company boards.
My executive career included CEO roles in Japan and Australia, alongside senior roles in
corporate and project finance, capital markets, treasury and organisational culture. In my
current capacity as Chair of Export Finance Australia, I work closely with Australian and
international governments to provide strategic finance to help secure the economic resilience
and security of Australia.
This experience has deepened my understanding of risk management, regulatory engagement,
and strategic capital allocation. These are all capabilities which are relevant to a bank operating
in a complex, highly regulated and globally connected environment. I also serve on the Australia
Japan Business Co-operation Committee and hold Non-Executive Director positions at Persol
Holdings Company Limited and Australia Post.
During my tenure as Chair of AMP Limited and AMP Bank, I led governance improvement during
a period of complex transformation.
As the Chairman mentioned earlier, subject to my election today, the Board intends to appoint
me Chair of the Remuneration Committee at the conclusion of today's AGM. My focus will
remain on keeping remuneration aligned with performance outcomes and strategic priorities,
MUFG Corporate Markets
A division of MUFG Pension & Market Services
supported by strong governance and accountability. I will also work closely with my fellow
directors to apply disciplined oversight that safeguards Westpac's stability through this period
of transformation, while driving sustained and sustainable growth, and long-term value for our
shareholders. Thank you for your consideration and support.
Steven Gregg: Thank you, Debra, well-spoken. I must say thank you to all the directors who
spoke, all high-quality people, and I am delighted, as is the rest of the Board, that these
directors are on your Company's Board of Directors.
Ladies and gentlemen, I would now like to invite Mr Kyle Robertson from Market Forces to speak
to the meeting on resolution in item 5. I would just like to note that Kyle has been kind enough to
come into Westpac and talk with our people, particularly Fiona Wild, and I must say they've
been very constructive discussions, so thank you, Kyle. But if I can hand it over to you, please,
before we go to questions to the general audience.
Kyle Robertson: (Market Forces) Thank you, Chair and the Board, and greetings to shareholders
present in this room and online. I'm speaking on the resolution at item 5B, customer transition
plan approach and climate commitments.
Westpac proudly claims to be the first Australian bank to have committed to managing its
business in line with the goals of the Paris Agreement. For years, the science on what is required
to achieve the Paris Goals has been clear. The world needs to rapidly reduce fossil fuel
production, the single largest source of greenhouse gas emissions. For a financial institution
like Westpac, the implication of this has also been clear for some time.
It is essential to stop funding companies increasing their fossil fuel production. Three and a half
years ago, Westpac announced that from 2025, it would no longer provide finance to upstream
oil and gas companies without credible transition plans aligned with the goals of the Paris
Agreement. Current CEO Anthony Miller said at the time, that if a company lacked a plan to
transition its business, adjust its model, or exit what it was doing to ensure that we get to net
zero, it would not be provided with any type of financial support.
It was a critically important policy for Westpac to deliver on its climate commitments, and
perhaps, more importantly, a clear signal to the fossil fuel industry that business as usual would
result in a loss of financial support from one of the world's major commercial banks.
Yet here we are at the end of 2025, and rather than delivering on this critically important
commitment, Westpac has instead opted to put itself in a position to continue funding
companies expanding fossil fuels indefinitely.
How did this happen? Well, just months before this longstanding policy was due to come into
effect, Westpac took the opportunity to weaken its transition plan requirements in a clear effort
to accommodate clients which have absolutely no intention of transitioning away from coal, oil,
and gas. Upstream fossil fuel clients are now no longer required to have plans to reduce Scope
3 emissions in line with the goals of Paris, despite it accounting for up to 90% of their emissions
profile.
The vast majority of these emissions come from the coal, oil, and gas these companies sell to
their customers. In essence, Westpac has changed its policy to make it possible to continue
financing companies expanding coal, oil, and gas in a climate crisis.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
We are now 10 years on from Paris. Emissions from fossil fuels have continued to reach all-time
highs consistently over the last decade, with a new record due to be set in 2025. This has been
allowed to occur in no small part, due to the enormous amounts of debt provided to the fossil
fuel industry by the world's major commercial banks over the last decade. By continuing to
finance fossil fuel expansion, banks like Westpac are enabling a handful of companies to trigger
catastrophic and irreversible climate collapse.
Westpac would know what its clients are doing and continues to support them anyway. Earlier
this year, Westpac took part in a $12.9 billion loan to BP, around the same time the Company
announced that it was abandoning its renewables diversification strategy and pursuing up to 20
oil and gas expansion projects by 2030.
In June, Westpac loaned over $85 million to Woodside, a Company which just two months
earlier sanctioned one of its biggest ever LNG projects, the Louisiana LNG development, in the
United States. This decade alone, Woodside will be spending almost US$30 billion on new oil
and gas projects. Apparently, this hasn't been enough to make Westpac reconsider its support.
Finally, in November, just a month after its requirement for transition plans came into effect,
Westpac acted as a co-manager on a $1.5 billion bond for Santos, a Company pursuing up to
three oil and gas expansion projects, and just announced plans to begin drilling in one of
Australia's biggest gas fracking developments, the Beetaloo sub-basin.
Last month, the UN warned that the world is heading for warming of up to 2.8 degrees, based on
planned levels of fossil fuel production. It's worth dwelling on what such catastrophically high
levels of warming will look like. We will see more extreme climate events like bushfires, floods,
droughts, and longer-term chronic issues like coastal erosion and sea level rise.
Australians would be all too familiar with the events like Black Summer bushfires and the 2022
flooding events on the eastern seaboard, which will become more common and more severe if
the world warms to the levels it's projected to.
It's not clear why our bank continues to jump through hoops for a minuscule portion of
customers that represent less than 1% of our lending portfolio, yet whose expansion plan so
blatantly puts into jeopardy the stability and security of the other 99% of our clients. This
weighting of support for irresponsible and reckless fossil fuel clients is not in shareholders' best
interests.
If Westpac is committed to the goals of the Paris Agreement, as it says it is, it should be
withdrawing financial support to clients that fail to present a credible transition plan just like it
said it would over three years ago. We strongly urge all shareholders to vote in favour of this
resolution, not only for a better planet, but for a better future for our bank. Thank you.
Steven Gregg: Okay. Thank you, Mr Robertson. Point's taken. I'll now take questions on all items
of business. We request that shareholders' questions that are asked today are relevant and to
the items of business at hand or the management of Westpac. Questions on customers or
personal matters will not be addressed during this meeting.
Where you have a banking question, one of our customer representatives will contact you
separately. Senior management and Evelyn Halls, Westpac's customer advocate, are also
available to meet shareholders outside in the foyer after the AGM.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
If you wish to ask a question, please respect that we want to allow as many shareholders as
possible the opportunity to participate today. I'll accept up to two consecutive questions or
comments from each shareholder before moving to a question from the next shareholder.
All questions, ladies and gentlemen, should be directed to me in the first instance. I may refer
the question to another person for response, if appropriate. If you'd like to ask a question in the
room, please move to one of the microphones or request a roving microphone, if you are joining
via the webcast. Please submit your questions now. Can I take the first question, please?
Number one, yes.
Moderator: Mr Chairman, I would like to introduce Mr Michael Sanderson.
Steven Gregg: Thank you.
Michael Sanderson: (Shareholder) G'day Board.
Steven Gregg: Mr Sanderson.
Michael Sanderson: (Shareholder) Mr Sanderson. Kia ora to those funny talking people. I notice
Winston is still running the company over there. Can you put the mic up please? Is that better? I
suppose one thing that Westpac can take from today is you're not ANZ. They're having their
Westpac moment this year.
To put you on warning, I've got four questions for general business and one for each of the other
items. I'll stick to the protocols. SaferPay, SafeCall, SafeBlock and in-app scam reporting are
described in the Annual Report as digital innovations that, and I quote, help to further reduce
reported customer losses by 21% and prevented $360 million in potential losses. Yet nowhere
does Westpac disclose the base number for those figures they relate to.
If 21% reduction is worth $360 million, my back-of-the-envelope calculation suggests scam
exposure of around $1.7 billion, with customers losing roughly $1.35 billion. Are those ballpark
figures wrong? Will you disclose the total amount that customers actually lost in digital scams?
How much was lost to digital scams versus non-digital scams? Would it be true to say the scam
is not digital, rather digital banking is the scam?
Steven Gregg: Mr Sanderson, as Anthony mentioned in his report, this is a very important part of
our business. We've spent over $500 million on scam prevention through various things, and we
see ourselves as the market leader in this. As to the exact numbers, we don't disclose those for
privacy reasons. But Anthony, have you any observations on that, please?
Anthony Miller: Well, I'd acknowledge that in this digital age, the format in which people are
prosecuting scams against customers of the bank are via that digital channel. What that
highlights is that actually we have a role to play in helping protect our customers. But more
importantly, an entire ecosystem needs to work collectively to deal with it, and so therefore, the
telcos, who obviously facilitate the communication via digital channels. Likewise, the social
media platforms, which are really important contributors to where scams are coming from, all
have a role to play in helping us mitigate and minimise scams.
You've called it out. Digital has facilitated a lot of scams. The industry is working very hard, but
it's an ecosystem defence if we're going to succeed here.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Michael Sanderson: (Shareholder) All right, I'll take that. My second question. Westpac told the
recent HEC committee that many customers still have to present concession cards or attend a
branch. Westpac closed more than 400 branches since 2015, including at least 100 regional
branches.
Westpac only recently paused further regional closures while promoting digital transformation
and committing to regional prosperity and digital inclusion in your 2025 reports. How many
concession and other vulnerable customers now cannot reasonably provide physical evidence
because their local branch has been closed or is hours away? What are the concrete non-in-
person verification methods beyond the vague claim that we can identify payments is Westpac
using to prove eligibility without travelling or posting documents?
Steven Gregg: Mr Sanderson, the whole branch discussion is an interesting one. We are in fact
opening branches at the moment as well as closing ones that are not economic. As of today, we
have 620 branches, we have 3,000 outposts with our bank post relationship, and we have 6,500
ATMs where people can access Westpac services. We've put a moratorium on regional branch
closures until 2030, and we're seeing the benefit of having some of those reopened in certain
country towns. But I'm going to hand it to Anthony to talk about exactly how it's working with
people with concession cards.
Anthony Miller: I just want to acknowledge it's a very good question and it is the challenge that's
in front of us. 96% of what people are doing with the bank is digital, is online. Everyone is pretty
much moving in that direction and so, therefore, the challenge for us is, how do I provide the
service that customers need where and how they need to be served, whether that be in person,
on phone or digitally? And so, that's the work we're doing.
In terms of processes by which we check a concessional card, I'll have to take that one on
notice in terms of just where our work program is on that. But the idea and the work we're doing
in terms of regional Australia is trying to make sure, through combination of the branches we
have, the partnership we have with Bank@Post, the ideas that we're now introducing, which is
to have bankers visit towns and be available in that town to help customers in these particular
situations, is all part of the work we're doing to say, how do we find a better solution for the
customers of Westpac so that they get served where and how they want to be served? That's
work that's underway.
We're experimenting, as I said, with bankers in towns. We're reopening service centres in Moree
and other towns. To the extent that those propositions work, we will continue to expand and go
after that throughout Australia.
Michael Sanderson: (Shareholder) Ok, I'll leave it at that. I've got other questions on that matter
but let someone else have a go.
Steven Gregg: Great. Thank you. We have a question over here, please. Thank you.
Moderator: Mr Chairman, I would like to introduce Ms Natasha Lee.
Steven Gregg: Thank you.
Natasha Lee: (Shareholder) Thank you, Mr Chairman and Board.
Steven Gregg: Thanks, you're welcome.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Natasha Lee: (Shareholder) Good to see you again, Steven. I've got a couple of questions which
I'll give now, and I'll come back to others later. As far as your UNITE, one best way philosophy
technology-driven program, I just want a bit of clarification. I understand that you, along with all
the other banks, are looking to simplify services and you're getting rid of or updating legacy
systems.
The concern is that with AI-driven technologies, there probably tends to be a move to
pigeonhole customers and not all customers are necessarily going to fit into that. I don't know
whether you have voice recognition technology. But obviously people from non-English
speaking backgrounds or other things like speech impediments have trouble with those
technologies.
I know you did say that you do have that sort of human element where the people behind it are
still going to be there. But that part of it, I think we just need clarification and assurance that all
the customers' needs are going to be catered for. On a similar point, you've got your different
brands, Westpac, St.George, BankSA, and Bank of Melbourne. Are we going to lose the
differences between those banks and pushing everything together under UNITE? Or how are we
going to distinguish and use for marketing the individual characteristics of those other brands?
Steven Gregg: Natasha, I'll have a go at this, and again I'll ask Anthony to pipe in. UNITE is a very
major project for this organisation. It's going to take another three, three and a half years to
complete, and it is essentially a simplification program where we are taking out too much -
we've got a lot of good systems in Westpac, but we've got too many systems, so we're going to
simplify it down to a more manageable number.
It is going to reduce the risk in the system and improve the quality of the service we can provide.
Amongst all of that, we've got to look into the AI revolution as well to see how that fits into a
more simplified and better-quality proposition for our clients and our bank. All of this is in
discussion at the moment within the bank, so it's live and current, as we say. Yes, we'll look into
voice recognition. That's where AI is particularly good - voice recognition to serve a broad range
of communities, those who are non-English speaking as well as obviously those that are, so we
take that point on notice.
Anthony Miller: Look, it's an excellent question. There's a lot in that question. I would just say
the whole focus on UNITE is, as the Chairman's identified, which is to consolidate the way we
do things into one way on one digital or one technology stack. But the whole purpose of it is,
therefore, to ensure that we can serve our customers better and more efficiently and more
consistently.
Then tools like AI are tools that we intend to use for the very challenge you've just set out, which
is that there may be someone with language issues or inability to connect with the Company.
How does the AI tool help us deliver on that? You've thrown the challenge out, which is what
we're working on, and which is why it's going to take us three years to consolidate everything
onto one system, is to make sure that we do it in a way where all the customers we have are
served where and how they want to be served, whether that be digitally, whether that be in
person, or whether that be virtually. That's the work, and that's why it's 36 more months from
here before we get there.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: With regard to the branch discussion – oh, the other brand discussion, I should
say, Natasha, we have some wonderful brands within Westpac, and we've just got to look at that
brand equity, what it means to our clients and how it fits into the greater tech system before we
make any decisions. But we'll look at that over the next two to three years.
Natasha Lee: (Shareholder) Okay. Thank you. The other question concerns trading with China.
As you appreciate that China is the major customer of Australia. From what I understand is that
the Chinese government, or Chinese companies, are pushing for payments in Chinese renminbi
rather than other currencies like US dollars. What steps or preparations are being made at
Westpac to allow overseas transactions to be settled in Chinese Yuan or renminbi?
Steven Gregg: Do you want to have a go at that?
Anthony Miller: Really good question. Maybe one of the more important topics that we as an
executive team are working on, which is the way payments are made, whether it be domestically
and now in particular how they're made internationally is rapidly evolving. All of a sudden,
alternative currencies, where classically the international exchange rate is really effective
through the US dollar, there's increasingly situations where customers may need to pay or
receive in Chinese renminbi or in other currencies.
The challenge or the work we're undertaking is how do we make sure that we support our
customers such that they can receive and pay in the currency that they want. You heard me
speak about Westpac One, which we're just piloting now. Its capability is such that it allows us
to provide that solution to our customers as we deliver that over the next 36 months.
Natasha Lee: (Shareholder) Okay, thank you.
Moderator: Mr Chairman, I'd like to introduce Mr Brendan Hyde.
Steven Gregg: Thank you very much. Welcome, Mr Hyde.
Brendan Hyde: (Shareholder) Thank you. I'm hoping this is not too trivial. I'm a customer of both
St.George and Westpac, of course. I'd like to comment that really personal attention that you do
get when you go to one of the banks there. You've banked at other banks and it's just
impersonal. I always feel they're very helpful and personal. I wanted to make that comment. It's
a real commendation. I'm of another generation. I think they call us dinosaurs. I like to have
everything in a manila folder that's a hard copy, and I wanted to commend - I hope that cheques
still keep going for as long as you can. They are very useful when you've got to transfer over
$100,000 for real estate or buying shares. I know they’re going to end soon, but it's very useful to
be able to have cheques just for that.
Look, I'd like to comment on a little glitch that's been going on for two years with a major
account of mine with the term deposit, just trying to get a hard copy of it. Unfortunately, it was
opened up by the email, the e-system. The bank has continually tried to help me. I've had
continual applications into the very helpful staff. They all say, don't worry, we've all fixed it.
We've turned it off. You'll get a hard copy. But you never do. It's been going on for two years. Even
this morning, I got an email saying, we're not going to send you a hard copy on your renewal
term deposit. I just wanted to bring your attention there is some little computer glitch that needs
to be fixed.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Thank you, Mr Hyde. Two good questions, and I'm verging on being a dinosaur
myself, so I do associate with that. Not quite there yet. With regard to cheques, I'm sorry to say
it's probably a dying breed, unfortunately. Like you, I have chequebooks. But I think we'll find
over the next few years it'll be legislated out of existence in this country. I think you ought to use
it while you can, because probably in the next five or so years it might not be there. With regard
to your glitch on your statements, I'm sorry about that. Let's see if we can fix that. I might ask
Evelyn to see if she can chat with you after this event so you can get some action there. Thank
you for that.
Anthony Miller: Thanks, customer of both St.George and Westpac. That's gold dust, so thank
you.
Moderator: Mr Chairman, I'd like to introduce Robert Caterson.
Steven Gregg: Thank you. Welcome.
Robert Caterson: (Shareholder) Thank you for listening to me. My question is that at the present
time, Westpac sponsors two major sports in this country at the present time, one being the NRL
and one being cricket. The question I have with the NRL sponsorship, do you actually look at,
say, the state of origin jersey where our logo is presented next door to a gambling organisation
and an alcohol organisation?
Do we have in place the same amount of financial sponsorship to domestic violence charities
or assistance groups, gambling awareness groups and these sort of groups? Because I believe
that the NRL is quite well served, not just by Westpac, but a lot of other gambling organisations
that influence the game in a negative manner.
We've seen a lot of activity - you know, media, and I'm not sort of quoting - that's not in the
public domain now - things like money laundering, game fixing, you know, players that
misbehave all the time. I don't think our logo, our very respected logo, should be next door or
presented next door to a lot of these gambling organisations.
Our governments have failed because they've been influenced by these gambling organisations,
and the hotel industry to a large extent, and we need a lot of corporate support to look after our
community.
Now, it's useless giving hardship support to families that have been affected by gambling. Same
with alcohol. We see a lot of domestic violence happen because, you know, people have over
gambled. Same with alcohol, and we need to desperately do something to change this culture.
My second question is with respect to the dividend performance of this Company. Now, I've
been here - this would be my fourth meeting, asking the same question. What happened to the
2020, and I know there's a couple of directors here, of our interim dividend? Westpac, along with
ANZ in the same year, deferred that dividend. Now, my understanding of deferment means there
is a dividend there and you're going to pay it.
In the same year, ANZ paid that dividend in October at 30 odd cents. Now, I'm yet to receive any
notification of where that dividend was cancelled. When you look at this bank's performance in
terms of its other peers such as the NAB and ANZ, they've raised their dividends and we've had -
MUFG Corporate Markets
A division of MUFG Pension & Market Services
with respect to Anthony Miller, my mind is quite open to his performance, but the previous two
CEOs have not performed and brought the dividend standard up to what Gail Kelly did.
You know, Westpac's dividends were above 90 cents a share. The other banks have brought their
dividends up to pre-COVID levels. This bank hasn't. I noticed on the big screen there that we had
a 1% increase in the dividend. Well, that is not good enough. Can I have answers to my
questions, please?
Steven Gregg: Sure, Mr Caterson. Let me have a go at the NRL to start with. I'm a supporter of
the NRL in a number of my capacities, and it's, I think, a wonderful organisation. But like all
organisations, it has to do with these sort of issues. None of us like to see hardship that
emanates from anything, be it gambling or alcohol. They are acutely aware of that, and they are
onto it. But it's a legal form of, I guess, recreation activity in this country and we aren't going to, I
guess, go against that.
We are aware of it, though. But I think as an organisation that it's worth supporting and is close
to our customer base in the states that we operate in predominantly, it's an extremely good
avenue for us to sponsor. I'm very aware of your comments and I respect those, and none of us
want to see a hardship like that. But I think the NRL is up to speed on dealing with it.
With regard to the dividends, if I could just make a couple of comments, I'll look into that for you
if I may. This year we're paying $0.77 a share, $1.53 for the full year. That's a 75% payout. It is
close to the top end of our range. I think right at the moment, my number one priority and the
Board's number one priority is the safety of this organisation, and that's why the dividends are
where they are. They're full, but they're not as high as you may like them. But our aim at the
moment is to keep this organisation safe and secure, with the level of capital we have,
particularly in the context of a big expenditure program coming on Board for the next two or
three years. When we get through that, the aim is to have a much more efficient organisation
which can then lean back more heavily into paying higher dividends. So, I hear you.
With regard to the ‘20 dividend that was apparently deferred. Let me look into that as to what we
actually said then and what it means. But I do thank you for your conversation and your
questions. Thank you.
Robert Caterson: (Shareholder) It won't help. Previously - I don't know whether you're still doing
it - but share buybacks don't really help either.
Steven Gregg: No, I understand that, and I understand the value of franking credits.
Robert Caterson: (Shareholder) It doesn't help me because I don't want to sell my shares. I just
want the shares to perform a lot better, thank you.
Steven Gregg: Good. Okay, thank you.
Moderator: Mr Chairman, I'd like to introduce Ms Carol Limmer.
Steven Gregg: Thank you, Ms Limmer. Thank you.
Carol Limmer: (Australian Shareholders’ Association, Representative) Carol Limmer from the
Australian Shareholders’ Association, and I hold 786 proxies, which is about 4.5 million open
votes, which is quite a high Westpac shareholder. First off, I've got a couple of compliments on a
MUFG Corporate Markets
A division of MUFG Pension & Market Services
positive note. The Annual Report and Notice of Meeting explanatory notes considered very
comprehensive, thank you. Also, I mentioned that I attended the recent sustainability market
update, and there was plenty of opportunity for people present to ask questions, and the
answers given to attendees by various executives were good, so thank you for that.
Steven Gregg: Thank you.
Carol Limmer: (Australian Shareholders’ Association, Representative) But on a negative note,
the changed arrangements with the hybrid meeting where non-attending shareholders cannot
vote at the AGM makes it more difficult for retail shareholders to participate fully in their
Company's AGM. They lose the ability to listen to the meeting, decide an issue, and then vote.
They've got to vote beforehand. Could you speak about the reasoning behind the decision, and,
specifically, what is the benefit to the Company that justifies the detriment to shareholders?
Steven Gregg: Thanks for that question, Carol. Yes, we have changed it this year, and the reason
is one of both cost and efficiency. But also, in our experience over the last few years, there's
been minimal online voting, almost none, and no telephone questions in the recent years. It was
a facility we provided, but no one was taking it up on it, so we just felt it would be best for
efficiency's sake just to change the style of the meeting, no more than that. Thank you for your
kind words too. Management are very good at these presentations. Thank you.
Moderator: Mr Chairman, I'd like to introduce Mr Lewis Gomes.
Steven Gregg: Thank you.
Lewis Gomes: (Shareholder) Thank you, Mr Chairman, and good morning, directors and
shareholders. I appreciate, and I think we all appreciate, that Westpac's finally dealing with its
technology upgrade. This has been a long-standing issue. We've been waiting years for action.
We're pleased that it's finally happening through the UNITE program. I think it was the CEO
mentioned in his speech this morning eight initiatives completed and 51 across the four
businesses, and a promise to keep us informed as to progress.
I'd like to know what the expected cost of this program is overall and how long it will take to
implement. Now, I think you answered that question in relation to Natasha's question. You said
three and a half years. When I looked at the Annual Report, page 17, it advises the total
investment to spend, and I'm assuming it was for FY25, was $1.9 billion, of which 34% was on
UNITE. Hence, UNITE expenditure, roughly $650 million for FY25, if I've interpreted it correctly.
I'm not sure whether we multiply $650 million by three and a half times for three and a half
years, or quite what the number is. But can you give us an indication as to what the total cost
will be? I think with your regular reporting, which we're keen to understand just how that will
take place, I think it's really important that we, as shareholders, have confidence that this
program is working, that it will deliver. Because as you would know, we've seen other banks
promising to significantly upgrade their systems, and it just hasn't worked. It's been too
complicated. Mr Chairman, either through you or the CEO, if you can give us some assurance
about the overall spend and your confidence in actually delivering on your promises? Thank you.
Steven Gregg: Sure. That's a very good question. Thank you for that. Now, you can't quite
extrapolate the first year for the three and a half years, and I'll get Anthony to talk to the exact
numbers in a minute, but it's more like $3.5 billion over the three and a half to four years period.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
UNITE is a terribly important project for us, and, like most people, I'm acutely aware that a lot of
these projects often run over time and over budget, so we're working very hard to ensure that
that doesn't happen. We have Accenture advising the team on the project. We have McKinsey
providing assurance on the delivery of the project, and we have a Board subgroup, which is
comprised of Andy Maguire, Nerida Caesar and Peter Nash, who sit on your Board, overseeing
that as the Board representative. We take it very seriously. Anthony will speak in a minute to just
how we're progressing with that and the rigour that we are undertaking it.
Anthony Miller: Yes, no, great question. This is the challenge and opportunity that sits in front of
myself and the leadership team. Yes, it has to be done. We're very clear about the outcomes
that we need to deliver as a result of UNITE. I just want to sort of emphasise that what UNITE's
about is we have some very good technology in Westpac, but we have a duplicative set of
technology and systems and processes.
What we're doing is identifying the one best way of doing mortgages, deposits, other processes
for our customers, and making sure we do that one way on the one target technology stack that
we have inside the Company, and then, as a result of that, that means we can shut down and
remove duplicated systems, products, processes. That will help us reduce the costs to run and
further reduce the cost in how we change and manage the Company going forward. We've got
those outcomes very clear in front of us.
With the plan that we have in front of us, we think we will expend - approximately 40% of our
annual investment budget will be allocated to getting UNITE done. With our current work plan
and some really good progress, we think that we'll be delivering the outcomes and completing
the program in FY29. My goal would be that it's in the first quarter of calendar year 2029 that you
will see us advising that the project is broadly completed, all those duplicate systems are shut
down, and we start to enjoy the benefits of a simpler, faster and easier Company to run with
costs and outcomes for customers.
Lewis Gomes: (Shareholder) Thank you.
Moderator: Mr Chairman, I would like to introduce Mr Paul Fanning.
Steven Gregg: Thank you. Welcome, Paul.
Paul Fanning: (Shareholder) Thank you. Thank you, Anthony, and welcome to the Board. Thank
you, also, Steven, or both of you, for your addresses today. I really have a bit more than two
questions. I might jam a third one in. Whoever writes the financial highlights from the market
release, paragraph 3, it's ambiguous. Now, I would like to think that probably someone in
investor relations is actually writing this, but it's clouded with ambiguity. Now, clearly this is not
good.
The first page of your financial highlights for your FY25 release is not really very good at all.
That's this page there if you want to see it. You probably don't have that document with you.
There's basically confusion against really what the level increases of deposits and loans are
across the different banking divisions. I would like to think that when these reports get written,
someone actually verifies them and naturally really thinks, well, is this logical? Does it really
make sense? I've been to many AGMs in the past and I raise issues which are right to the core of
the business.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Can someone please look into that and perhaps do a little bit more vetting when you put these -
this is probably more a small investor release and to try and get it fixed for the future. I'm happy
to discuss in detail, Anthony, with you or with Steven after the meeting because we really need
to cut the chase.
Anthony Miller: Well, thanks for the question and appreciate you've taken the time to read the
materials published in detail, so thank you. I'm lucky that we've hired the best CFO in the
industry who now works at Westpac. He's here today, Nathan Goonan. What I will do is invite
you, after this morning's session, to sit down with Nathan because any feedback in relation to
how we've disclosed to our shareholders what we're doing and how we're going about it, if you're
not happy with it, we're pretty keen to hear that feedback.
Paul Fanning: (Shareholder) Well, can I have a talk to both of you later also, perhaps the three of
you?
Anthony Miller: Yes.
Paul Fanning: (Shareholder) I think we really need to get the messaging out much clearer.
Anthony Miller: That's very fair, of course, Paul.
Paul Fanning: (Shareholder) Okay, two other things. One is page 52 of the Annual Report on
corporate governance. I'm known to go to different AGMs, be they banks or elsewhere, and the
Board Skills Matrix, I would like to see it actually defined by the particular director. Now, what I
do depict is that under the guise of technology, digital and data, the skill matrix seems to be a
bit light on. From what I see, financial and strategy is good, which it should be, but we're moving
in a technology paradise, and we have so many scams, and the bank is working hard on their
technology.
But really, if the Board directors don't really have a clear understanding of technology data and
digital concepts, which is what this table is suggesting, I would like to say, well, who do we
have? Perhaps, like other companies who are emerging, , we need to define them by name of
director.
Steven Gregg: Yes. Well, my view on that a little bit is we can probably give a bit more detail as to
the number of directors and how it transpires into their, I guess, their expertise, but I don't think
it's helpful to name directors in that sphere.
Paul Fanning: (Shareholder) Why?
Steven Gregg: Because I don’t think it serves any purpose for you to look down and point at
individual directors. I think you need to know that there’s the quality on the table for each of
those skills, but naming directors, I don’t think serves a purpose, is my view, but I hear you.
Thank you.
Paul Fanning: (Shareholder) I'll throw a third question. In regard to Board election, Pip
Greenwood - and Pip might like to respond to this directly through the Chair - Pip, I noticed that
you're currently a Chair of Westpac New Zealand and you're about to be appointed to the
Westpac parent Board. Is this normal corporate governance to have a director of a subsidiary
company also as a director on the parent company?
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: I'll take that one, Paul. Yes, it is. Over the last 20 years, I mean, Westpac has
previously had the Chairman of the Westpac New Zealand business on our Board, main Board. I
think you'll find two or three of the Australian big four have the Chair of their New Zealand
operation on their main Board. It's very common practice.
Paul Fanning: (Shareholder) Okay, thank you, that's my question for the moment.
Steven Gregg: Thanks for your questions there, I look forward to you having a chat with Nathan
afterwards. Thank you.
Moderator: Mr Chairman, I have another question from Mr Kyle Robertson.
Steven Gregg: Thank you.
Kyle Robertson: (Market Forces) Good morning again.
Steven Gregg: Good morning.
Kyle Robertson: (Market Forces) My question is for Anthony Miller. In 2022, Anthony, as Head of
Westpac's Institutional Bank, you introduced a new policy which stated that Westpac would
only finance upstream oil and gas companies with credible transition plans in place by 2025. A
credible transition plan was defined as one aligned with the 1.5-degree goal of the Paris
Agreement, included the client's Scope 1, 2, and 3 emissions, and was based on the best
available science.
Quotes attributed to you at the time stated that oil and gas are at the epicentre of what we need
to solve to reduce our use of fossil fuels. Another quote regarding the policy said that Westpac
was publicly putting down a stake in support of global efforts to get to net zero with this policy.
The article is still up on Westpac's website today. Another quote attributed to you stated that, if
you don't have a plan that stacks up that's credible and scientifically backed to transition your
business, to adjust your model, or exit what you're doing to ensure we get to net zero, then you
will not be supported, whether that be debt or equity or banking.
But here we are in 2025. You are now the CEO of the bank and within months of assuming this
role, and just a few months before this policy requirement was due to come into effect, it was
dramatically watered down. What Westpac has in place now is not even close to the science-
based and Paris aligned commitments that the bank introduced back in 2022. My question is,
given that you made these public statements and enthusiastically introduced this policy three
years ago, why was it watered down before it even came into effect?
Steven Gregg: Kyle, why don't I take that first and I'll ask Anthony to comment in a minute if we
could. I think you'll find that the level of disclosure we have, the way we're looking at our client
base at the moment is a material improvement on how it was then. We are more open about
what we're doing. As you're aware, we are the largest financier to renewables in this country, by
far. We have zero lending to thermal coal. Sustainable financing is up 37% just on this year
alone.
We as a bank have reduced our Scope 1, 2 emissions by 89% in the last four years. I think you'll
find that when you go through and look at our plan for how we define whether our companies
and our clients should be supported or not is very rigorous. There are four tenets for it. There's
targets, strategy, capital outlay, and governance. We require all the companies in this country
MUFG Corporate Markets
A division of MUFG Pension & Market Services
that we bank to fulfill that. They have to have a plan that leads to a well under Paris aligned two
degrees by 2050. You know that. We've gone through this in some detail.
One of the things we won't do as a Company is abandon our clients, though. As you're also
aware, less than 0.1 of 1% of our total exposure is to upstream oil and gas companies. As a
Company, I'm very comfortable where we're at and how we're approaching it, and the rigor that
we have in looking at our companies. We also ask all our companies - our clients to look at their
Scope 3 as well, and to have a credible plan there. They need to have something where it is
disclosed how they're looking at it, their ambition, and their plan to get there.
We can't do much more than that. What we are simply not going to do is debank clients that we
believe are fulfilling those requirements. In the current paradigm where gas particularly is an
energy source that not only government, but an email as of yesterday has discussed that this
country and the world needs to transition, to debank clients that fit in those categories you're
talking about, I don't think makes a huge amount of sense.
I'm terribly sympathetic to what you're saying, but I think the practical nature of how we're
looking at it, I think, is how we ought to look at it. Just before you answer, Anthony, any
observations from you?
Anthony Miller: Oh, look, thanks, Chair. I think you've addressed most of the points I'd
emphasised. But since we announced that target we'd set ourselves in 2022, our exposure to oil
and gas extraction is down 55%. It's less than 0.1% of the entire exposure the Company has.
We're working really hard at it. But I think everyone needs to understand the transition is hard.
The transition is going to be more complicated than simply putting a target on a page and then
feeling really good about yourself.
The simple fact is, is that we've got to work with the community and we've got to work with the
country. As energy demand has gone up, unfortunately, the amount of renewable capacity in the
system has not kept up with the increase in energy demand. Therefore, as a result, more gas is
needed. As Australia's oldest bank, our job is to support the country and we're supporting the
country in terms of the transition. As we continue with that effort, things will continue to evolve
and change, but it's all about doing the right thing by the community, right thing by our
customers and the right thing by the country.
Kyle Robertson: (Market Forces) Can I just go back to a point that you said, Steven, in particular,
which I think is actually pretty interesting admission. You said that we won't debank our clients,
but that's what you said you would do three years ago. It sounds like there isn't a threshold that
a company could breach for Westpac to say...
Steven Gregg: No, Kyle, what I said was we won't debank our clients if they meet the criteria that
we are asking them to meet.
Kyle Robertson: (Market Forces) Which is a less rigorous criteria than was set in 2022.
Steven Gregg: Well, I think you'll find that it's actually more rigorous in terms of what we require
them to undertake. We've stated that and listed that out.
Kyle Robertson: (Market Forces) I'm curious as to how it's more rigorous when the current
requirement is for Scope 1 and 2, which is 10% of their emissions profile. You've now omitted
MUFG Corporate Markets
A division of MUFG Pension & Market Services
the previous requirement for Scope 3, which was 90%. How can you possibly sit here today and
say that it was more rigorous than what it was in 2022? 2022 was a very, very clear definition of
what a credible transition plan was, and it was very clear that it had to be aligned with the goals
of the Paris Agreement.
Anthony Miller: I would just interject on one point, which is we do require these customers to
have a Scope 3 plan. We require them to set out clearly for us what they intend to do on Scope
3, they need to disclose it to us, they need to have an ambition, and we appraise and assess that
in determining whether they are genuine in what they need to do and how they can contribute to
the transition everyone needs to undertake. So, we do include Scope 3.
Kyle Robertson: (Market Forces) Okay. Do you accept that if a company is expanding fossil fuels,
it doesn't have a credible transition plan?
Anthony Miller: What is unfortunately the fact, and I know it's difficult in terms of - because
people want otherwise. But energy demand has continued to increase. The capacity to solve
that energy demand with more renewable power generation, it just simply hasn't grown as fast.
Now, just for the record, 89% of what we lend is to renewables. We're very committed and are
the largest provider of renewable financing in the country. But the fact is, is the demand of
energy has grown. It's grown faster than what renewable energy has been able to do to solve for
that. As a result, in the context of the transition, the best alternative is gas, and that is why the
gas equation is still a very important one for Australia. I know back in 2022 the goals were a
structural reduction in gas demand over time. Guess what? It's a structural increase in demand
for gas over time because energy demand has increased and the amount of renewables is not
meeting that demand. We just need to keep working hard at it.
Kyle Robertson: (Market Forces) Final point I'll make is, when you talk about the transition, it
sounds like you're very much referencing an Australian context when a lot of your clients, the
vast majority of gas projects they want to develop are for export, where they will be exported to
economies in Asia, where the goal is to lock in base load gas power aligned with catastrophic
levels of warming. It is not, for the most part, related to the energy transition in Australia.
Steven Gregg: I think you'll find gas is a transitional power throughout the world, Kyle, it's not just
Australia. Countries that it's exported to will use it as well for that purpose. If you go to
Singapore, for example, a question was asked of one of the very big sovereign funds there, what
is your view on the gas? They looked at us like we're idiots. We said, well, why are you asking that
question? Without gas, Singapore does not exist. You'll find that gas is a transitionary energy
source in a lot of the parts of the world, not just Australia.
Kyle Robertson: (Market Forces) Thank you.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I would like to introduce Morgan Pickett.
Steven Gregg: Thank you. Welcome, Mr Pickett.
Morgan Pickett: (Market Forces) Thank you. Thank you, Chair. I'll keep this short and sweet
because I think you've spoken a lot to these points with Kyle, but I just wanted to clarify. If
Westpac does approve a customer's climate transition plan and issues finance to that customer
MUFG Corporate Markets
A division of MUFG Pension & Market Services
from October 1, does this mean that the bank has determined that customer to be aligned with
the goals of the Paris Agreement?
Steven Gregg: Yes, broadly it does.
Morgan Pickett: (Market Forces) Broadly? Or yes it does? Yes or no, really?
Steven Gregg: Well, the Paris Agreement, as you know, is not just one thing. It's a whole range of
targets. But what we are saying is they have to align with the Paris Agreement to be well under
two degrees of reduction. Yes, that is what they have to have a plan to achieve.
Morgan Pickett: (Market Forces) That includes their Scope 3 emissions?
Steven Gregg: Scope 3 emissions are a different thing altogether, as you know, even by the Paris
Agreement.
Morgan Pickett: (Market Forces): Well, that's right. Let me quote the UN Secretary-General,
Antonio Guterres, who said last year, net zero plans that exclude Scope 3 emissions, those from
burning fossil fuels, are incomplete. Now is the time to fast-track, not backtrack. The time for
ambition and transparency, not greenwashing. I don't think he wrote this specifically for
Westpac, but it's almost as if he did. Scope 3 emissions do typically represent 90% of an oil and
gas company's or producer's total emissions.
Steven Gregg: Well, as we've said, we've asked - all these clients we are lending to have to, on
the Scope 3 basis, have a plan of action that is satisfactory to us. I think it's naïve to think that
they're going to be able to change in a short period of time or are going to get out of their
business altogether, and that we're going to influence that. But they've got to, for us, have
disclosures, they've got to have an ambition to reduce it, and they've got a plan that we can look
at. We do take it very seriously in a practical sense.
Morgan Pickett: (Market Forces) Funny that you mention ambition, given that Anthony Miller just
said that it's one thing to have an ambition written on paper. That's not the reality. Ambition is
such an empty word. I can have an ambition to stop smoking by 2050, but smoke enormous
amounts of cigarettes before that time, and you're going to continue to support that. But I guess,
do you have any climate scientists advising you on the change in this policy?
Anthony Miller: Chairman, we've actually been lucky to hire the number one sustainability
officer in the country, Fiona Wild. She's got a PhD in climate change, Morgan. If you want to
discuss climate change, speak to my Chief Sustainability Officer. She's got a PhD in the subject.
Steven Gregg: She’s sitting right here at the front.
Anthony Miller: She's exceptional, and she'll bring the science to the discussion.
Morgan Pickett: (Market Forces) You have no other scientists advising you on your policy ahead
of the [unclear]?
Steven Gregg: We have the best in the country, Morgan, and you're most welcome to speak to
her. Thank you.
Morgan Pickett: (Market Forces) Thank you for your time.
Steven Gregg: Thank you for your words. Okay.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Moderator: Mr Chairman, I would like to introduce Ms Megan Ivory.
Steven Gregg: Thank you, Ms Ivory. Welcome.
Megan Ivory: (Shareholder) Hello and thank you. I'm here and I'm a bit nervous, so I apologise in
advance. I'm here because my grandfather was the CEO of St.George when he retired, so I'm a
St.George customer and a Westpac shareholder, thanks to his work.
I don't really have a question because I don't know how to phrase this in a way that would be
meaningful. But everything that's been said about climate change, I can't sleep worrying about
this planet. I appreciate the work that has been done by Westpac on renewables. I don't
appreciate being groaned at and sighed at by a bunch of people who don't have as long to live
with the legacy of the decisions we make now.
You are doing great work in renewables, but if you cannot defund companies that are putting
carbon into the atmosphere, then you cannot be saying that you are living up to your Paris
commitments. I lose sleep constantly over these issues because I have lost friends in bushfires,
I have watched houses be lost to floods, and just because you don't care doesn't change the
reality of the world that we live in. I am devastated, and I don't want a response because I don't
want to be patronised, and I don't want some kind of obfuscation. I want it noted that you, right
now, have a chance to change the world for the better, and I would love to see that happen.
Steven Gregg: Ladies and gentlemen, thank you for your comments and we'll take those on
board. Thank you. Glad you've got a long history with the Company too. I appreciate that.
Moderator: Mr Chairman, I would like to introduce Mr Robert Kennelly.
Steven Gregg: Thank you.
Robert Kennelly: (Shareholder) Thank you very much, Mr Chairman. Thank you for the meeting.
One wonders whether we might have done climate change to death, but I would like you to have
the last word, Mr Chairman. Why has the Board decided not to support 5A? If you've answered
that question with the previous questions, I accept that. But is there any part of 5A which you
haven't covered yet, which you found, as a Board, is unsatisfactory, despite many of your
shareholders putting it forward. I have one other question, Mr Chair.
Steven Gregg: Let me answer that one first. We are very clear that the constitution of Westpac
enables us to manage the Company in the way it should be managed. We do not need to change
the constitution to address all the issues that have been raised today or that we have to deal
with every day of the year. You will note that last year, when this resolution was put up, it had a
34% or 35% vote for it. This year it is at 14%.
I think you will find that the reason for that is a lot of the shareholders in your Company, both
institutional and retail, recognise two things. One is that we are managing the Company well,
given the constitution that we operate under. Secondly, the changes we have made to our
climate transition plans, and in fact address a lot of the issues that have been raised. We're very
proud of what Fiona has enabled us to do in terms of making it much more granular, specific
and I think practical in how we deal with it. I'm very comfortable with not supporting it and I think
you'll find most of your shareholders are supporting that view.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Robert Kennelly: (Shareholder) Thank you, Mr Chairman. My last question is - I don't know how
relevant it is, I ask you to explain how relevant it is - a notice of formal demand. Do you have
one, a copy available to you, Mr Chairman? I’m happy to give you this one.
Steven Gregg: I can’t say I have one right here now.
Robert Kennelly: (Shareholder) Well, I will bring it up. My question, Mr Chairman, is to what
extent is this document relevant to shareholders?
Steven Gregg: Perhaps I can read it, if you don't mind, in the spirit of getting the meeting to move
along, to talk to you after it, because I haven't read it yet. How about we deal with it afterwards?
Thank you.
Robert Kennelly: (Shareholder) Thank you, Mr Chairman.
Moderator: Mr Chairman, I'd like to introduce Reem Babo Mata.
Steven Gregg: Thank you. Welcome, sir.
Reem Babo Mata: (Shareholder) Good morning, everyone here. I'll be very brief. I'm not going to
read reports from the pages and pages of the things which are very insignificant to the bank. But
my question is, I heard from a number of people that the hard-working Westpac employees are
not given any pay rises this year by most of the people, whereas we have got CPI of at least 3%
to 4% official, but unofficially the price rises are much higher, harsher. Will this not demotivate
the hard-working employees and will this not drive out the talented employees to our
competitors? In this way, are we not at a disadvantage as a bank?
Steven Gregg: Thank you for that. I must say, I was struggling to hear. My hearing is not
particularly good. Did you get that?
Anthony Miller: Yes. First of all, thanks for the question. You're right. This is a people business
that we're in, and so having employees who feel supported, feel well managed, who feel
encouraged to be their best and do their best every day is really important if we're going to be
the Company we want to be. I would flag that there is, as part of the enterprise bargaining
agreement that we have in place with our workforce, a pay rise issue. There's a pay rise next year
and there's a pay rise thereafter as a result of that agreement, so there is pay rises in the
Company.
It's really important that actually from where I sit and where our leadership team sits that we
continue to improve the performance of the Company so we can do two things. We can reward
our employees for that performance, and we can also reward our shareholders with increased
dividends. I know that was a question thrown earlier. But I do acknowledge that employees are
the key, and we are looking to make sure we do good for them.
Moderator: Chairman, I would like to introduce Mr Jonathan Moylan.
Steven Gregg: Thank you. Welcome, sir.
Jonathan Whelan: (Shareholder) Thank you, Chair, and thank you, CEO, for your presentations
earlier today. Mr Miller, you mentioned in your opening address that Westpac was removing its
requirement for no deforestation, and we understand from positive engagements with your
MUFG Corporate Markets
A division of MUFG Pension & Market Services
team that the bank is now moving to a risk management approach. Could you explain what risks
deforestation poses to Westpac's customers and to the bank?
Anthony Miller: Thanks for the question. The removal of the no deforestation approach was
because our customers and the entire ecosystem in which they operate made very clear to us
that this was of no value. This was not adding value. It wasn't helping them in any way. When we
speak to our customers, and they're all exceptional in how they go about it, managing their land
really well and making sure their property, their farming property, is sustainable and is
constantly being improved is foundational to how they run their properties.
Importantly, for a lot of the industry, the target markets in which they want to sell their produce
does require really high-quality land management practices. Equally, there's a whole host of
legislation and regulation in the country already which prescribe what you can and cannot to do
with your land. When we went through all of that and spent two years talking to everyone who's
involved in that, it was clear that the deforestation approach that we suggested didn't add value,
and so, therefore, we listened to the customers, and we pulled it back.
But as we think about how we finance and support people, we do need to be confident that
they're thinking about this risk, that they understand that it's vital that you manage your land
appropriately. More importantly, your end customer who wants to buy your produce just needs
to be confident you're managing the land appropriately. We feel that through the risk lens, this is
how it's being addressed.
Jonathan Moylan: (Shareholder) Thank you, that was helpful. Just to understand the risk
management process a little bit further, to use an example, imagine - we've had recently some
very positive changes that have come through under federal environmental law clarifying when
and where deforestation can occur. I would absolutely agree with you that the vast majority of
producers in Australia are already deforestation-free for their own reasons, for their own
interests. The scale of the problem that's caused by really a minority of the book would
introduce a risk management process.
If there was, for example, an instance where someone was going to clear endangered Brigalow
woodland and lead to potential downstream flooding risk that could potentially impact on the
value of residential mortgage-backed securities, where there are unmitigated climate risks, for
example, and potentially even triggers at a federal level that could lead to compliance risks and
so on, if after the process of engaging with that customer through your risk management
process, you determined that the customer's going to continue clearing that ecosystem
regardless, what would be the bank's calculus on what to do next as part of that risk
management process?
Anthony Miller: So, there's a lot in what you've just set out, but when we look at a customer and
we decide, will we lend money to this customer, we do want to understand, are they complying
with the law? Are they developing and growing a produce that is saleable into the marketplace?
So, it comes back to something very fundamental. Is this good risk that we should deploy the
shareholders' capital into? This is the question that sits in front of us.
So, if we go through a process and it's clear that they are clearing land in a way that's
inconsistent with the law, that suggests that their property isn't developing produce that can be
sold to markets that they want to access, then that means they're probably not the risk that we
MUFG Corporate Markets
A division of MUFG Pension & Market Services
would like to partner with. Now, it's a question of reviewing with them, going through with them
what they're doing, but something as fundamental as you need to comply with the law would
obviously indicate to you that we would have to think seriously about them from a risk
perspective.
Jonathan Moylan: (Shareholder) Thank you.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I would like to introduce Mr Ben Gallen.
Steven Gregg: Thank you. Welcome, Mr Gallen.
Ben Gallen: (Finance Sector Union, Representative) Thank you, Chair. Yes, my name is Ben
Gallen. I am here today representing our Finance Sector Union members across the Westpac
Group. At a recent House of Representatives Economics Committee, you responded, Mr Miller,
to questions about the impact of artificial intelligence. You said that AI may replace some roles,
but the workforce will evolve, as we have seen with the digitalisation program. You said that how
Westpac equips, invests and trains its people will be a profound element in how we adapt to this
change.
I also acknowledge the comments you made this morning regarding the important role of
Westpac bankers in the future work of the organisation. Loyal and experienced Westpac
employees continuously tell us that they themselves want to be part of Westpac's response to a
changing industry. However, recent digitalisation changes in retail banking and implementation
of the UNITE program have seen hundreds of experienced employees made redundant rather
than retrained and upskilled.
How do you reconcile this with these public sentiments to invest in your existing workforce, and
what assurance can you give that future change of any type will not default to job cuts over
upskilling?
Anthony Miller: Thanks for the question, and thanks for working at Westpac. I appreciate that
the Company's prosperity is anchored around having the best people. So, I just want to
acknowledge that. It's too easy to try and distil this down to a simple point. No AI will take jobs.
As you would expect, as industry and markets evolve, the kind of jobs that we need evolve. So
therefore, there will be jobs that will no longer be required in the Company but, more
importantly, there will be new jobs created in the Company.
Just to give the facts, put the facts in the room, we have approximately 35,000 people at
Westpac. 5,200 people came into the Company last year and 5,600 people left the Company as
a result of different skills and different roles that we need. So, AI both complements that
change, challenges us on that change, but I think also will be a really positive additive to the
Company because it should be, when we use it properly - when we train everyone to use it
properly - it should make their jobs easier. It should make their jobs more satisfying. It should
mean that they're not worried about mundane tasks, they're able to do more enjoyable,
invigorating tasks.
So, I think it's a positive for the Company, and to the extent that roles you called out are no
longer necessary, contemporaneous with the announcement of those roles changing, we also
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A division of MUFG Pension & Market Services
flagged that 200 new roles have been created, and we've had a number of those people
repositioned and retrained. That's the big challenge for us as a Company and for the country is,
how do we constantly invest in people and train them and upskill them so that the next
opportunities, in the Company or outside the Company, they're ready for? So, I accept your
challenge that that's what we've got to solve at Westpac.
Ben Gallen: (Finance Sector Union, Representative) Thank you for that. Yes, to follow up with
that, I think that's the point that we would want to continue to discuss with Westpac, and that is
to move away from any sense of replacing roles to actually investing in those current people.
Anthony Miller: That's a real focus for us, which is to invest in our people and obviously get the
outcomes we should get from investing in our people, getting those new skills, new roles
developed, role-ready - roles in place.
Ben Gallen: (Finance Sector Union, Representative) Thank you.
Moderator: Mr Chairman, I'd like to introduce Ms Isobel Fish.
Steven Gregg: Thank you. Welcome, Isobel.
Isobel Fish: (Shareholder) Thank you. Thank you, Anthony, Board and fellow shareholders for
once again having the opportunity to attend our great Company's AGM and, as a proud Westpac
employee and union member of 13 years, share the experience of the workers who generate our
profits. Anthony, when you took over leadership, union meetings and chats were buzzing with
colleagues sharing wonderful stories of their experiences with you. I'd like to note that we liked
and appreciated Pete, and we were excited to have you as our leader.
Over the last 12 months under your leadership, we've been told to take action now as we strive
to become number one. We started the year off strong with a pretty unfortunate number one,
finally beating CBA and becoming number one of the big four with the largest gender pay gap.
WGEA data released in February of this year shows the finance industry continues to trend
downwards with an industry-wide gap now 22%.
CBA, AMZ and NAB have all reduced their gender pay gap, while we have increased ours to
29.3%. We have increased ours by not taking action now, and no indication of that changing. We
want to be an employer of choice but I'm left wondering, is this a strategy just for the boys? How
do we as women of Westpac, who have a 29.3% gender pay gap, look at Westpac as an
employer of choice? In an email received by all employees on 3 September, Anthony, you told us
you were committed to building a great place to work. You're committed to backing us with real
opportunities to grow, succeed and own our future in the three key areas of career growth,
finances, and wellbeing.
So, we might have the best rate of the majors across all Westpac products, and a market-
leading LMI waiver, but how do women who work for this organisation afford to buy a house
when they make $0.70 to the male $1.00? What we want is real opportunities to succeed in our
careers and our lives, to have the same promotional opportunities that are afforded to the men
who work here.
So, we might not be able to change the cultural norms where women are still more likely to be in
part-time roles as they take on the bulk of the caring duties, but we can make it easier for them
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A division of MUFG Pension & Market Services
to succeed at work. So, men make up 76% of the top-quartile of earners at Westpac, even
though women make up 55% of our workforce. So, I ask, will you commit to setting a target for
the number of part-time jobs available at the highest level at Westpac?
Anthony Miller: Thanks. Anyway, I know you work in the SMEs section, so thank you. Small
business is key for us, so keep going, please.
Isobel Fish: (Shareholder) You're welcome.
Anthony Miller: Look, it's really important that we are a place where people want to come and
work, and that they can be their best and they feel supported, and so I accept your frustration
and challenge. I would just flag a couple of things. 29.3% is now 28.1%, so we have made
progress, but that's not really worth celebrating in the sense that - at least we're moving, okay?
We understand we need to go after it. The second thing is, 50% of the leadership team is
women. Three of the four revenue divisions in the bank are led by fabulous women, and so we're
actually changing the Company top to bottom.
So, you're right, we need more women in senior roles, which would then just simply solve that
mathematical equation that you've pointed to, which is that pay gap. Equally, what I need to do
is also work out how we can create more roles for women in areas where it's heavily male, and
that skews that calculation you've described, which is technology. Then the final, I think, I do
acknowledge, is creating an environment where - the simple fact is that, because of the nature
of the responsibility, most women are the caregivers at home. The part-time roles that we have
at the bank make a lot of sense for them, adds a lot of value to their life. So, I don't want to just
change that so that I can change the score and we can all feel good that I've got a lower gap than
what you see.
So, I hear your challenge. I accept the challenge. We're underway, we're doing what we think
makes sense and it will tie into, progressively, change, but the very fact that the ET is configured
as it is, the fact that the executive leadership group is 49% women, highlights to you that I'm very
serious about how we go after this.
Isobel Fish: (Shareholder) Thank you. Thank you also for doing your research on me. That makes
me feel good. In 13 years with this Company, I know one thing's true. If it's important, it's
measured. We set targets and attract around the things that we value, the things that we think
are important, and the things that we think are going to make this organisation grow and
succeed. We're measured against these targets. We're held accountable to achieve these
targets. Without targets, without reporting, we just don't exist.
So, if this Company sees reducing the gender pay gap as important, we'll have targets in place.
When I addressed the Board at last year's AGM, Anthony, Pete did throw you under the bus and
said that you were working on targets for the coming year. These targets should form talking
points of our leadership meeting, and they should be held accountable for achieving them. So,
what target did you set for the February 2026 WGEA data release?
Anthony Miller: So, we'll have to talk to you about that outside the room.
Isobel Fish: (Shareholder) When would we be doing that?
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Anthony Miller: Because we've set targets - it's a five-year plan. It's not possible to simply,
quickly, and boldly change that outcome, and so we have got a progressive plan of how do we,
over the next five years, deliver a significant reduction in that pay gap as identified by the WGEA
calculation? First things first, what I can do immediately, and what we have been able to do
immediately, is make sure the construct of our executive team is reflective of that, which is 50%
women.
That's what we're doing as we go about our senior leadership group, and we're building that
team and building that team out. We're making sure that it has that 49% women. So, we have
got clear goals, and we have got a clear incremental plan that we are going after to deliver a
much lower gender pay gap calculation using the WGEA formula within five years.
Isobel Fish: (Shareholder) Thank you. So, just to clarify, last year when I asked Pete what our
WGEA gap would be by 2030, he said we can't look five years out, but you're saying we are now
looking five years out?
Anthony Miller: No, so what Pete said, we can't wait five years out. We have a plan for where we
get to in five years, and I need to deliver, and we have an ambition of how we deliver that each
year progressively to get to where we need to get to in five years' time.
Isobel Fish: (Shareholder) Okay. If you want to get your people to contact my people, we can
have a chat about it after. Thank you.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I would like to introduce Amanda Richman.
Steven Gregg: Thank you.
Amanda Richman: (Shareholder) Amanda Richman, Australian Ethical. Australian Ethical holds
around 5.5 million Westpac shares as of the end of November, in addition to holding Westpac
bonds. In the paper this morning, Westpac was quoted as saying gas has an important but
decreasing role as we transition. If Westpac accepts that to be the case, will Westpac assess
whether its fossil fuel clients' projects are consistent with that decreasing role, because right
now, it seems that your lending criteria doesn't necessarily distinguish between a company
developing gas for needed energy security and affordability and one developing gas based on
demand forecasts that are well in excess of what transition scenarios require? So, it seems that
when it comes to determining who gets financed and on what terms, you'd be treating them
identically.
If you're genuinely committed to managing the incredibly difficult challenge of balancing
between decarbonising and energy affordability, would Westpac consider introducing a
determinative lending criterion that assesses alignment of clients' fossil fuel production plans
with the bank's commitment to an orderly and sensible transition pathway?
Anthony Miller: So, we have a target that we've set ourselves a number of years ago in terms of
where we will be in oil and gas by 2030. We're on track with that. We've had a 55% reduction in
our exposure to oil and gas extraction over the last three years. So, we are methodically working
through our plan to deliver that target we've set ourselves, but what I think we need to continue
to grapple with - and I'm glad you used the words difficult transition - is making sure that the
MUFG Corporate Markets
A division of MUFG Pension & Market Services
transition is fair and equitable, and it isn't the case that people unfairly pay higher prices for
energy when there is a rational, reasonable way to ensure we still get to where we need to get to,
but it does include the use of gas over the next five, 10, 15 years to deliver that.
Amanda Richman: (Shareholder) I feel, just to reiterate, or explain, the financed emission cap,
well and good, but that doesn't answer the question of who you're financing within that cap. So,
I'm asking, would Westpac consider a determinative lending criterion that distinguishes
between an oil and gas company that is producing gas that provides that energy security versus
an oil and gas company that is engaging in projects that are only feasible if you're assuming a
level of demand well in excess of that transition pathway?
Steven Gregg: If you don't mind, let's take this on notice. As it stands at the moment, we don't
lend to new greenfield gas projects, but we are lending to companies that have existing projects
and are expanding. As to the definition of where that gas is going and how it's being used, we
don't look at that so specifically. Why don't we take it on board and come back to you on that if
we could.
Amanda Richman: (Shareholder) Thank you, Chair.
Steven Gregg: Pleasure.
Amanda Richman: (Shareholder) May I just ask a question on deforestation as well? Anthony, in
your address you said that, while Westpac has abandoned its deforestation commitment - you
might not have used those words - the bank is still committed to its sector targets. Does
Westpac account for land use change emissions when assessing emissions exposure to this
sector?
Anthony Miller: That's a really good question. I'm going to have to take a moment to check with
my Chief Sustainability Officer on that, because the answer is I believe we do, but you're asking
about a highly specialised, highly scientifically orientated calculation that we're working with.
So, I'd rather take that on notice and have you speak to my Chief Sustainability Officer on that.
Amanda Richman: (Shareholder) May I just ask an easier question on deforestation, then? What
due diligence processes and capabilities do you have in place to identify land clearing events so
that you can then assess whether a client is engaging in illegal deforestation or - forgive me for
being a bit cheeky - are you just hoping they'll tell you?
Anthony Miller: So, we enter into a range of due diligence and engagement with our customers
to understand what they're doing. It's not a hope matter. We have developed a geospatial tool
which allows us to examine clearing that has or hasn't occurred on property. We work with our
customers because it's no good us just policing with something like that. We've got to work in
partnership with them. Importantly, good customers understand their obligations. So, the
regulations, the law that requires deforestation is very clear, and so good customers solve for
that as well.
Amanda Richman: (Shareholder) Thank you very much for your time.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I would like to introduce Lachlan Wells.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Thank you.
Lachlan Wells: (Shareholder) Hello, everybody.
Steven Gregg: Welcome, Lachlan.
Lachlan Wells: (Shareholder) Thank you, Mr Gregg. Before my question, I just want to address a
comment that was made earlier by Mr Anthony Miller about gas being a transition fuel. This is
exactly the argument that I would make if I was investing in a gas business, but I would strongly
encourage you, Mr Miller, to take note of the advice of the International Energy Agency. You can
read the World Energy Outlook, and you can ask ChatGPT to summarise it for you.
They are forecasting a significant glut of LNG supply in the coming years, and the indication is
that if Australia doesn't export gas to our partners in Asia, then they are able to source that gas
from the United States and from Qatar, who can deliver gas at significantly cheaper prices than
Australia. So, it just doesn't seem like this argument really holds up, given the advice from this
objective third party. So, I would really encourage you to take that into consideration, rather than
just taking the advice - what the gas companies are saying.
So, my question is to Mr Steven Gregg, the Chairman. Regarding Scope 3 emissions, previously
in your climate plan you said that these would be - these must go down in a - these must be
Paris-aligned. There must be a Paris-aligned transition plan for Scope 3 emissions. In the latest
plan, clients just have to have a plan to reduce Scope 3 in general. Another change from last
year to this year is that previously customer transition plans had to be aligned to the 1.5-degree
goal of the Paris Agreement, and now it's the 2-degree goal of the Paris Agreement.
Earlier you said that you believe it's a material improvement on last year. I'm just wondering,
how is it a material improvement in these two respects?
Steven Gregg: Towards Scope 1 and 2, if we could please, just to start with, I think the words
we're using is well below the 2 percent, and this is something that's been currently put out
globally. We are really just trying to match with what is being required globally. You probably
ought to be aware that the vast majority of those clients that are into heavily carbon-based
industries we require and look for 1.5, but just as a general overview we're saying well below 2
percent.
With regard to Scope 3, it's much more complicated, as you know, in terms of how they can
control it versus how they control Scope 1 and 2. What we're simply asking on Scope 3 - and we
take this into account in terms of how we rate them, in terms of how we bank them - that we ask
them to make disclosures on it, have an ambition that is sensible on how they're going to reduce
it, and a plan that can demonstrate that. That's what we're asking of our clients at the moment.
If they haven't got that, then we'll work with them to get that. That's how we're approaching it.
Lachlan Wells: (Shareholder) So I'm just wondering why you asked for that requirement in the
first place, then.
Steven Gregg: Sorry, I didn't understand that.
Lachlan Wells: (Shareholder) I mean, I'm just wondering why previously you required Scope 3
emissions to be Paris-aligned.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Well, I may have misspoken in terms of Paris-aligned. Certainly, Scopes 1 and 2 is
Paris-aligned. Scope 3 is more of a reduction plan we're looking at.
Lachlan Wells: (Shareholder) Okay. I mean, it does seem to me that it is a watered-down plan
from what it was last year. I don't see evidence that it's a more rigorous requirement that you're
asking your customers.
Steven Gregg: Well, we think it is, and we think working with the clients to ensure that they are
moving along that way is the way to go, rather than just debanking people or saying, you're not
meeting with anything, therefore we're not going to finance you.
Lachlan Wells: (Shareholder) Okay, I'll ask one short, brief question on this to wrap up. If you are
confident about this, then why not join the Science Based Targets Initiative?
Steven Gregg: So, join the science-based...
Lachlan Wells: (Shareholder) Science Based Targets Initiative, so you can actually demonstrate
this to climate-focused investors like myself.
Steven Gregg: Oh, I think we're as open as any bank is in this country about how we disclose
things and the criteria. Clearly, we're not going to disclose information about individual
companies. That's a privacy issue and a confidentiality issue. In terms of how we review it, I
think that's pretty open.
Lachlan Wells: (Shareholder) Oh no, I'm just asking why Westpac itself isn't a signatory to the
SBTI.
Steven Gregg: Oh, I see.
Lachlan Wells: (Shareholder) Because other banks are, and it would be a great tool that you
could use to demonstrate to investors that you are willing to...
Steven Gregg: Why don't we take that on board if we could? It's a good point. Why don't we take
that on board? I'll speak to Anthony and Fiona about it to see what our view might be and come
back to you on that if we could.
Lachlan Wells: (Shareholder) Okay.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I'd like to introduce Carol Limmer.
Steven Gregg: Thank you. Thank you, Carol.
Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. Mr Chairman,
I've got two topics on which I would like to ask questions. The first one is the Panorama
platform. We note Westpac's intention to now retain the Panorama platform and to invest
further capital to upgrade its capabilities. Given the dated legacy of Panorama and the rapid
growth of new platforms developed by non-bank companies such as HUB24 and Net Wealth,
can Westpac catch up with the new entrants, and will the cost and effort required be worth the
investment? I've got a couple of other questions, but perhaps that one first.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Sure. Thank you. I think we can. We've just undertaken a large migration from one
system to the other system, which is more current. The guys are doing a wonderful job at
improving the performance of it. It is a very large business, and I think it's a business that's very
core to what Westpac does. So, yes, we would hope it does catch up with the other players in
the market.
Carol Limmer: (Australian Shareholders’ Association, Representative) Right. What is the
estimated cost of upgrading Panorama, and over what timeframe?
Steven Gregg: I'm sorry, I'll defer to Anthony on that one.
Anthony Miller: In terms of what Panorama does today, it's a very capable platform and it has a
very large market share and is delivering a really effective service for all the advisors that use
that platform. What we need to do in relation to that platform is invest in adding some new
capabilities, and we have a plan over the next two or three years to do that. In terms of costing,
one of the things we are doing first is to make sure that all of the other platforms that we have
within our portfolio are consolidated onto the Panorama platform, which we will have
completed over the course of the next six months.
Then we have an investment program over the next two years thereafter to uplift Panorama to
offer those extra capabilities that ensure we can really compete aggressively with those two
entities you named.
Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. On page 115
of the Annual Report, it gives net wealth management income of $476 million, up 10% on FY24.
There's no indication of margin or profit for wealth management. Another one. What measures
does Westpac take to ensure it avoids accepting flawed products such as we have recently
seen with First Guardian and Shield?
Anthony Miller: So, certainly the work that the team does in BT that operates the Panorama
platform is around making sure that investment propositions meet a certain standard in terms
of their performance, and that they deliver what they say they're meant to deliver. So, the
process is one where we want to see those investment products that we do, if you will, facilitate
on the platform - they need to have some form of track record. We need to make sure that a
number of the agencies that assess and appraise whether that investment product is
performing have provided their assessment.
So, there is quite a bit of due diligence undertaken and discipline set around what products will
be allowable on the platform. So, I think we have got that pretty right, albeit the lessons of the
last 12 months tell you that you can't work hard enough, and there's always more to do, and we
continue to challenge ourselves about what we can do to make sure that we protect users of
Panorama from products that we've seen haven't been working over the last 12 months.
Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you. The other
topic I've got a question in relation to is Q3 segment performance. Note on page 21 of the
Annual Report that each of consumer, institutional and New Zealand increased net profit over
FY25 by 7% to 15%. However, business and wealth net profit decreased by 7% due to increased
operating expenses and impairment charges and lower NIM. Given Westpac's aspiration to grow
business and wealth at greater than system rates, what is the outlook for future profits from this
business sector?
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: I'll have a go at this one very quickly, and I'll pass it to Anthony who's a bit closer
to it than me. It's going very well, Carol. Business and wealth is one of the great prospects for
Westpac, and under new leadership it's showing great signs of growth. Part of the reason that
NIM declined marginally was that our business writing was higher than our deposit-taking,
which means that there's a bit of a margin contraction, but it's a good sign in a way that people
are buying our product and growing very strongly.
A lot of the cost of UNITE is going into business and wealth, so the cost base is going up a little
bit, but it's for the future. I'm very positive that that segment of our business is a growth area and
under great leadership now, and so I've got a lot of confidence that we'll get there on that.
Anthony Miller: Yes, I think the Chairman's nailed it. What has happened in these last 12 months
is, we simply did a lot more investment in business and wealth to set that division up for the next
24, 36 months. So, costs were up because we were investing in the business, because it is a
great business that deserves that investment and will deliver the right uplift in return for
shareholders over the next two or three years.
Carol Limmer: (Australian Shareholders’ Association, Representative) Thank you.
Steven Gregg: Thank you.
Moderator: Mr Chairman, I would like to introduce Ms Natasha Lee for a second question.
Steven Gregg: Thank you. Natasha.
Natasha Lee: (Shareholder) Right, thank you. It has previously partially been picked up by a
previous speaker, but whilst your nominations are all well-qualified people, I note that on the
skills matrix, as previously said, only two directors were highly skilled in technology, digital and
data, but also only two were experienced in environment and social matters. Whilst you have
fairly good female representation, I'm not sure that you're really capturing the sort of skills and
diversity which are needed for the Board, and in particular other forms of diversity where you're
not really reflective of the Australian community and possibly life experiences on that.
Whilst you will defend your selection for nominees, I think this is probably more of a comment,
but do you have anything you want to add on that?
Steven Gregg: Sure. Let me answer if I may. I'm very proud of this Board, Natasha, in that it's, I
believe, got the most banking experience on the board of any of the big Australian banks, and
just about everybody on this Board has had very significant financial services experience, and
as a bank, that's vital. I think in terms of some of the criteria, be it sustainability, environmental
or IT, there's actually a lot of experience on the Board.
I think the guys were being a bit tough on themselves when they mark themselves down
because they weren't necessarily from a tech background, but most Board members at
Westpac have been through multiple tech reinstations, re-organisations, so they've got a lot to
lean into on UNITE, for example. In terms of a broader view on the Australian society, I'm always
open to thinking about that and talking to you about that, because you make a good point on
that one, yes.
Natasha Lee: (Shareholder) Okay, no, thanks. I just wanted to emphasise that and make sure
that the Board is mindful in the nomination process.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Absolutely.
Natasha Lee: (Shareholder) As far as remuneration, whilst the CEO was awarded some 83% on
short-term variables, I do feel that that is a little bit generous, given that a number of targets
were missed. I think that it's sort of - you might say it's only missed slightly, but to my thinking
the overall result - and I have read the report and I understand the process, but I don't agree with
the logic that the rating was a bit higher than what I think is justified by the result. If I could ask a
question about - whilst it's great that you've increased - well, you've doubled the commitment to
supporting women in business, and this has gone to $1 billion. What particular criteria are you
looking at?
Are we looking at micro-lending, as you're probably aware that in general women are better at
managing businesses and on the financial side of things, if I may say so myself? Is this the full
range of businesses that women are involved in, or is it particular segments or niche markets?
Steven Gregg: There's two answers to your question. I'll deal with the first one first, which is the
remuneration levels, and then I'll get Anthony to have a go at the second one. It's a very rigorous
process at Westpac in terms of how the scorecards are put together, the criteria, and how
people get measured. I think, for the first time in many years, Westpac's been fairly honest and a
little bit tough on itself in terms of how they were remunerated for the performance they
generated.
Most people were given a bit of a wake-up call, and things were marked down a little bit here
and there to demonstrate that we are really demanding performance from our top team, which
will filter through the bank. So, Anthony, for example, was marked down because costs were
higher than we thought, I think perhaps a little bit unfairly given the fine work he's done, but
nevertheless we had to be honest with ourselves and how we looked at that. So, any scorecard,
I think, is a fairly blunt instrument, in that it's a very binary sort of outcome depending on
targets.
The Board has to show judgment on how we look at that, which we do, around the edges of what
we've agreed with the market that we'll do. So, as time goes on, these things evolve, but I think
to date I'm very happy with where that score has landed for the top team. With regard to the
second part of your question, Anthony, you might have a go at that one.
Anthony Miller: Certainly. We have been delighted with the outcomes in terms of that financing
of those entrepreneurial women. They are both start-ups and scale-up businesses, and the
performance has been exceptional. As you rightly say, women tend to be exceptional managers
and very disciplined, and so we do like the returns that have been generated there. We are very
pleased with it, and we're going to do more, and we'll continue to expand that offering as fast as
we can, because it's certainly a high-quality business and they're high-quality customers. We're
looking forward to growing with them.
Natasha Lee: (Shareholder) Okay, thank you very much.
Steven Gregg: Thank you, Natasha.
Moderator: Mr Chairman, I would like you to introduce Mr Stephen Mayne.
Steven Gregg: Thank you. Welcome, Stephen. Haven't seen you for a while.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Stephen Mayne: (Shareholder) Good afternoon, Chair. I've only been here for the last hour. I was
at the Myer meeting. Apart from mentioning the 14% vote on 5B, have you disclosed the proxies
on any other items today thus far at the meeting or anywhere else?
Steven Gregg: It was on 5A, and we put up a slide that had all the voting on all resolutions up
front. To be honest, we took a lead from your requests that we do that.
Stephen Mayne: (Shareholder) Right, okay. Have there been any online questions? I've been
here for an hour and there's been...
Steven Gregg: There will be a few online questions. We're getting through the room first, and
then there'll be a few online questions, yes.
Stephen Mayne: (Shareholder) Now, Anthony mentioned that we've hired the best CFO in the
country, and we've got the best sustainability officer in the country. I would just like to make the
comment that you are certainly not running the best AGM from a process point of view. You may
need to hire someone with a PhD on AGM process and transparency.
You should have disclosed the proxies to the ASX, not just flashed them up once, to have more
timely disclosure. You shouldn't have banned online voting today at the meeting. You shouldn't
have abandoned the agenda. You don't do that at Board meetings. You don't walk into a Board
meeting and say, there's nine items on the agenda here. Has anyone got a question on anything?
That's what you've done today.
So, it's co-mingled a whole bunch of important issues. There should be general business and
the accounts at the start. There should be a section on the directors. There should be a section
on remuneration, and then there should be the climate debate, but you've deliberately chosen
not to do that, and you've caused angst in the room because climate questions have been co-
mingled with others. You've reduced focus on rem and directors.
So, I'd ask you next year just to follow the agenda, reintroduce online voting because
participation rates have crashed to below 2% since the move away from paper. You should also
be disclosing the headcount data. Myer did that this morning with the proxies. Eleven hundred
shareholders voted. You can see the fors and againsts. So, are you going to disclose the
headcount data voluntarily like many other companies do - ASX, Qantas, you name it. Many of
them do it. I've also requested that, but you haven't done that before.
Then I guess my main complaint is actually the fact that you're running a premature AGM. So,
nominations closed, I think, on 23 October for the Board, but you didn't release the results until
11 November or something. So, how is it good practice to close off Board nominations before
the existing directors have even revealed how they've performed for the year? So, I've asked you,
this is the equivalent of a 30 June company having their AGM on 11 September. We are so
premature, that's the equivalent.
Now, most companies are so disorganised that on Friday, 28 September - the last possible day,
because companies have five months to have an AGM - there were more than 200 listed
companies that waited until the last possible day, because there's a whole lot of things to
organise and you've got to get the process right, the sequencing right about revealing your
performance and then calling for nomination.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
So, you've got until the end of February to have your AGM, so I'm specifically asking you to delay
next year's AGM. Ideally, have it in Melbourne during the Australian Open, but just tick that box
of not closing off nominations before you've revealed how you've performed. Will you commit to
follow the agenda next year? Probably two very specific questions. Will you put up your own
climate transition plan resolution next year? There's a lot of interest in the debate, so don't just
sit back and wait for shareholders to put it on the agenda. You put it on the agenda, as many
companies do, and then treat it with respect by allowing a discreet debate when we get to that
item and follow the agenda like you do in Board meetings.
I guess the last couple of points is, has David Cohen, one of our newest directors, sold all of his
Commonwealth Bank shares? What was it that that caused the material protest vote, I think
against Peter Nash? So, which of the proxy advisors recommend against, and what were the
issues that caused that particular protest vote or any other protest votes? I wasn't here when
you flashed it up. You haven't disclosed the proxies to the ASX. At its heart, the AGM is an
election results announcement event where you reveal the results, because 99% of the votes
are cast 48 hours before the meeting, and then we get together and have a discussion on what it
means.
What was the problem with Mr Nash? Why was there 14% against the climate? You haven't
made that particularly helpful, and so I think next year, you've got a long way to go to be best in
Australia, like you're best in Australia on the sustainability recruitment and your CFO. So, which
of those best-practice reforms will you embrace? I look forward to your answers on those
specific questions, particularly about the climate transition vote next year put up by you, Mr
Cohen's CBA shareholding, and the reasons behind the protest vote against Mr Nash.
Steven Gregg: Okay, thank you for all of that. Let me just start by saying it's a shame you weren't
here for the beginning of the meeting, Mr Mayne, because you would have got a better handle on
exactly what we're doing and why, where and how. I think this is actually the right way of doing
this event, and I'll explain why. Online voting is almost minuscule now. It doesn't serve a
purpose. So, we did want to streamline the event this year, enable people who wanted to come
and wanted to vote and participate to do so. People can ring in, they can ask questions, they can
vote in many different ways.
Secondly, it is not our climate plan we're putting up. It is actually Market Forces' climate plan
they're putting up, and we have engaged with them during the year. We quite enjoy the
discussion. It's at times robust, but a very constructive way of going forward with things. With
regard to the voting, we're actually taking a leaf from your book, and we actually put all the proxy
votes and all the votes up front so people can see them. You weren't here. If you were here, you
would have seen them. We had a great discussion about that.
As to the unhappiness in the room because the discussion was mingled, that is simply not true.
You weren't here. It was a discussion I think that was very broad-based and very fair. So, we will
continue doing this if I think it makes sense. Everybody can ask a question in this room. Nobody
is going to be stopped. Everybody is going to be given a full answer. Everybody can have a
discussion afterwards. We think it is extremely well run.
With regard to the various voting, if you were here, you would have seen that we got 99% on just
about everything. With regard to Peter - who I must say is a valued colleague and performs
extremely well on this Board - there was a view, because of what happened at another
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A division of MUFG Pension & Market Services
organisation, that there would be a protest vote. I can't look at other organisations as I look at
this Board and how we give support to directors who are actually performing incredibly well. If
you wanted to ask a question at that time, you could have. You still can. So, we're not closing off
any of the discussions on that.
With regard to the timing of the AGM, I think having an AGM halfway through the year nearly, in
February, is not appropriate. We'll have it, as we always have, at this time of the year, where we
can get people to come along before Christmas. They can have a good discussion, nothing's
being hidden, questions can be asked and they will be answered. Now, I'm just going to try and
remember what else you had to say there.
With regard to David's CBA shares, I honestly don't know whether he's sold any or not. David,
have you sold your CBA shares, or - you probably still hold them.
David Cohen: I'm happy to talk to that. Stephen, no, I have not sold all of them. Under the long-
term incentive plans at CBA, I'm still getting some shares. I sell them as I get them.
Steven Gregg: That's fine.
Moderator: Mr Chairman, I'd like to introduce Mr Paul Fanning.
Steven Gregg: Paul, thank you again.
Paul Fanning: (Shareholder) Steven, back to financial metrics of the Company, three points I
want to raise now. Franking income pool, NIM and cost-to-income ratio. I'll deal with franking
income first. Franking income pool is running down. It seemed to be well-hidden in the annual
report, and I think the CFO would probably know exactly where it is, but I couldn't find it.
One of the sell-side analysts has reported that maybe Westpac does not have sufficient franking
credits to provide full franking on future dividends in the next six months or 12 months. We need
to know what that pool is, i.e. ANZ only partially frank dividends. Now, we have a New Zealand
division of Westpac that's doing reasonably well, so I can understand there'd be non-franked
income coming in from New Zealand.
Net interest margin. I wonder where you really want to get net interest margin down to. Anthony,
you did speak about this before, but I think really you probably want to come up with a better
number. Can you see a 2.0% pass for net interest margin? Admittedly, it would be across all
business units. Three, your cost-to-income ratio, 53.04% on FY24, a pretty abysmal increase, I
would have thought. Again, you've been hammered with this from the analysts, and I'm
hammering it again now for the benefit of retail shareholders in this room. We need to know, can
you get cost-to-income ratio down to, say, 47%, i.e. Commonwealth Bank, for example.
We had a very loyal staff member saying that we want to be the top bank, get up where CBA is.
One of your own staff members, just before. So, they are my three questions, very much on
financial metrics, but if you can please give responses. Thank you.
Steven Gregg: Let me try the franking credits one first if I may. Westpac actually, believe not, has
around $3 billion of franking credit available in the pool, give or take, and it's by far the largest
balance of all the Australian banks. When we look at dividend policy, it will always, as far as I
can see, have a franking credit element to it. We won't be partially franking our dividends. The
MUFG Corporate Markets
A division of MUFG Pension & Market Services
issue is more, how do we get those franked dividends back to you, or franking credits back to
you, as a shareholder, because they are worth more in your hand than in the bank's hand.
With regard to NIM, NIM has held up pretty well this year, and it's a function of a whole range of
things that go into margin, but it's generally held up about where we thought it would. It's a
whole range of issues, including the interest rate cycle, the cost-to-income ratio, as you rightly
point out, and a whole range of issues. Deposit growth versus lending growth, they all contribute
to NIM. So, at this stage, it is pretty decent. Our idea is to hold it there or improve on it, but it's a
function of how well the Company does.
With regard to expense, I'm going to let Anthony tackle that, because there's no question that
our expense ratio is not as good as it should be, and a large amount of the focus of the Company
in the next three to five years is going to be on getting that down.
Anthony Miller: Yes, so we very much - as I said out in my opening remarks, it's about investing
to set the Company up for the future. So, our costs were up. They were up 9%, and you're right to
say, gee, that's an increase that's unsustainable and unacceptable. That's the right challenge.
Those costs are up because we're investing in UNITE and we're expensing UNITE at
approximately 75%. Secondly, we're adding bankers, because we need to have more people in
the role of meeting customers, doing more for customers, delivering services and, obviously,
generating income and outcomes with customers.
We also had a stack of extra costs we decided to bring forward, which is the restructuring
charge that we took, and again we expensed that. So, that was all about just being honest with
the fact that we needed to make some changes to ensure that we have a run cost that should
improve over time. The final thing I would say is that the purpose of UNITE is to set us up such
that we can lower the structural run cost of the Company so we can have a cost-to-income
ratio, and our aspiration is better than the average of our peers. That is why we are going after it.
Paul Fanning: (Shareholder) Thank you. Just a supplementary point on your response to cost-
income. Where would you really like to see the cost-to-income ratio? Would you like to see it at
45% or 46%?
Anthony Miller: Where would I like to see it? We have got an aspiration to get it below the
average of our peers.
Paul Fanning: (Shareholder) Well, yes, that is a bit arbitrary, isn't it?
Anthony Miller: No, it requires a substantial amount of work, a substantial amount of
investment, and it's going to be a challenge to get there. That's what we've set ourselves to go
after, and it's the goals we're delivering now by approximately 2029.
Paul Fanning: (Shareholder) I can guarantee you, these sort of questions, probably from me, will
be here next year too.
Anthony Miller: No, that's entirely appropriate.
Paul Fanning: (Shareholder) Thank you very much.
Steven Gregg: Can I take the next question, maybe online, if we have no more questions in the
room?
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Moderator: Mr Chairman, we have an online question from John Sabljak.
Steven Gregg: Thank you.
Moderator: Is there a reason why Westpac has elected to disenfranchise those attending online
when compared to those attending in person by not providing online voting when this facility is
available?
Steven Gregg: Thank you for the question. I think we have actually covered that one two or three
times already. It is not about disenfranchising shareholders at all. It is just that we felt that there
was so little interest in it in times gone by that it did not have a real value this time, but we can
have a look at that if need be. Any other questions there?
Moderator: Mr Chairman, we have another question from John Sabljak. You have indicated that
McKinsey's and Accenture are involved in oversight and advice on the UNITE program in
February 2021. McKinsey settled with 47 US states, five territories and the District of Columbia,
paying US $573 million to resolve investigations into its role in the opioid crisis. In December
2024, the US Department of Justice announced a five-year deferred prosecution agreement
under which McKinsey agreed to pay the US $650 million to resolve criminal charges over its
role in the turbocharging OxyContin sales.
Steven Gregg: I guess that's a statement rather than a question. The role that McKinsey plays is
one of assurance on this UNITE program, nothing to do with what happens in the States, nothing
to do with the opioid crisis. They are a very fine firm, and we use the best people we can for that
process.
Moderator: Mr Chairman, we have an online question from T Yeo. WBC EPS and ROE for the
current and last year are noted as follows. Current EPS, $2.04. Current ROE, 9.5%. Question.
Can you share with us what the estimated EPS and ROE would be when the enhancement
projects are completed in 2029?
Steven Gregg: I'll give that to Anthony to answer in a second, but we can't predict what that will
be. That's not in our position, to make forward statements on that sort of thing. Hopefully, it will
be a great success, but Anthony?
Anthony Miller: The goal is that we improve the return on tangible equity, so ROTE. We've got a
very clear goal where we want to be by the end of 2029. We also have a very clear goal around
what we want to achieve from a cost-to-income ratio, which I have outlined is ahead of the peer
group average. The outcome from that is that I would like to see earnings per share improve.
ROE is a slightly different construct which we do not need to go into, but I think the right metric
is we are going to improve return on tangible equity, and the outcome of getting the cost-to-
income where we want to get it to is that we should be able to improve earnings per share.
Moderator: Mr Chairman, we have an online question from Lynette McCurdy. It is reported that
Westpac is to provide a $1.54 million bond for Santos. Is this correct? If so, why is this
happening when you claim to support climate action and the Paris Agreement? Fossil fuel
expansion is increasing Australia's worsening bushfires, floods and heatwaves. Just last
weekend, the fires in New South Wales and Tasmania have burnt many homes and a firefighter
has died. It's time to stop funding fossil fuel companies like other banks are doing.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Steven Gregg: Thank you for the question. I think we have actually covered the answer to this,
two or three times now, so I won't provide a lot of detail except to say that it's a company that we
have financed before. It is all part of their program for expanding their gas supply, and that is all
part of what is within the remit of the arrangement we have with them.
Moderator: Mr Chairman, we have an online question from Craig Caulfield. How is AI uncovering
fraud in loan applications, and do staff get rewarded for finding and filtering out loans with
incorrect inputs that would otherwise be approved? ANZ confirmed at an earlier AGM that some
2,000 loan applications were identified with incorrect data. How does Westpac compare to
ANZ?
Anthony Miller: Thank you for the question, and it's a good one. The way we are working on and
what we're seeing in terms of success from AI is around its ability to help us move through
enormous amounts of data and identify patterns, or exceptions to patterns we would otherwise
like to see, which then indicates further inquiry is needed. Then the human steps in and does
the extra work needed to determine if something mischievous, such as a fraud or otherwise, is
ongoing. I do not have the exact number of what we are identifying, but we certainly recognise AI
is helping our people do a better job, a faster job and a more consistent job at identifying fraud
and scams. That's something that we're very focused on.
Moderator: Mr Chairman, we have another question online from Craig Caulfield. Seven years on
from the Banking Royal Commission, a key recommendation from Commissioner Hayne has
not been enacted. A national scheme for farm debt mediation would be a win-win for both
banks and farmers, simplifying muddy and complex laws differing between states. Will the
Chair and the CEO lobby to undertake to genuinely introduce a national farm debt mediation
scheme via the ABA? Do you agree our farmers need to be respected, and form a growth
opportunity for Westpac to pick up some turf from NAB and CBA?
Anthony Miller: I certainly agree with you that the agricultural sector, the farming community, is
a tremendous opportunity, and we are looking to grow. I think our growth in the loan book in the
agricultural sector last year was in the order of 22%, so we are very focused on what we can do
there. In terms of that legacy outcome from the Hayne Royal Commission, I will take that on
notice. What we're very focused on is making sure that we partner really well with the farming
customers that we have and working with them to make sure that their financing structure is
such that it's sustainable through the cycle and through particular challenges like drought and
other that gets in the way.
So, I think we've got that right, and I think what you're seeing in the marketplace in terms of how
active and competitive it is in the agricultural sector, that actually it is right and we are getting
the balance right as an industry. I will take on notice that question around farm debt mediation
and where we are as an industry post the Royal Commission.
Steven Gregg: I think it is important to note that you rightly say it should be done via the ABA, so
why don't we touch base through that forum? Thank you.
Moderator: Mr Chairman, we have another online question from Craig Caulfield. Deep banking
experience is too dilute in many bank boards today. I applaud the selection committee on Mr
Cohen's appointment, given no other potential Director has the deep experience he brings to
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Westpac from his years at CBA. ANZ's loss is Westpac's gain. I'm interested to know whether
ANZ approached you, Mr Cohen, to take on the CEO role when Shayne Elliott left.
Steven Gregg: I think there are a few presumptions in that question, and I'm not quite sure it's
appropriate that we answer them here. So, how about we just park that, if you don't mind, and if
you feel strongly about it, I'll be very happy to have that conversation offline. Thank you.
Moderator: Mr Chairman, we have an online question from Rita Mazalevskis. The Annual Report,
page 44, re material risk categories. Number 9, financial crime risk. For the '24-'25 financial
year, what was the risk appetite measure and percentage and final risk rating for the volume of
high to very-high financial crime risk ratings across Westpac's business? For number 10, cyber
risk, the risk appetite measure for risk for Westpac's or its third parties' data or technology
where inappropriately accessed, manipulated or damaged. What measure for the '24-'25
financial year was there for control effectiveness and supplier security?
Anthony Miller: Both excellent questions, both very detailed questions. I'll literally have to come
back to you on that. We do have detailed metrication of control systems and what we look for in
financial crime and cyber, but they're very specific questions and I'll have to come back to you
with the specifics on that.
Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. For
transparency and customer assurance for Westpac's end-to-end process for handling customer
reports of financial statement fraud, please clarify who within Westpac assesses and escalates
the matter, who the reviewing authority is, what investigative actions are undertaken, and what
Westpac's standard approach to communicating the findings back to the customer is.
Anthony Miller: Well, that's a lot in that question, and I think I reflect on perhaps some
experience or history you have in relation to that. Again, I'll come back and set that all out for
you. So, I believe we have your contact details, and I'll come back to you with the answers to
those very specific questions.
Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. Page 3 of the
risk factors report states, our operations depend on the secure processing storage and
transmission of information on our systems and those of external suppliers, and our assets may
face security breaches such as unauthorised access and employee misconduct and external
and internal threats, which can also impact customers. What is Westpac's process if it fails to
measure its regulatory and legal obligations with these actions or...
Anthony Miller: Again, I note that you're coming at this with some specificity reflecting perhaps
previous connection with the Company. We're very focused on actually data, storage of data,
the use of data, and then when we move data around in the Company, across systems, how we
do that in a way that's safe. The obligations we have to people in terms of protecting that data
and ensuring privacy is maintained is one that is a very, very serious obligation, and we do take it
such that we have the right resources and the right systems around it.
Again, if it's the case that we haven't met the standard we've set ourselves, then there are often
obligations on us to report that to both the regulator and to the customer, and that's what we do.
So, in relation to any and all breaches, we have a framework around what we need to do in
response to that breach.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Moderator: Mr Chairman, we have another online question from Rita Mazalevskis. Chair, could
you please confirm what investigatory powers Westpac has to investigate internal and external
fraud?
Anthony Miller: Again, a question which goes to an area where we do have the resources, and
we importantly have the skill and team in place to undertake those investigations as needed.
We do it in a way where we must follow a framework which protects, internally, people, protects
data, and then also, most importantly, protects our customers and their data as we hold it
inside the Company. So, we do have those investigatory powers, but we have to follow those by
making sure we maintain a discipline around the data that our customers have with us and
respecting that.
Steven Gregg: Okay. If I may make a suggestion, if we go to questions in the room for a while,
and give online - come back in a few minutes. Any other questions in the room that people
would like to ask?
Moderator: Mr Chairman, I have another question from Mr Michael Sanderson.
Steven Gregg: Thank you.
Michael Sanderson: (Shareholder) Thank you, Board, for the way you're sitting around waiting for
questions, rather than manage us out. I've just got an observation about dinosaurs. If predicted,
the climate goes the way it is, I suggest we as a species are all dinosaurs, irrespective of age. To
my question, Westpac announced a moratorium on regional branch closures until 2030 and is
now piloting a new community banking service where mobile bankers periodically occupy
council buildings in towns like Dungog, Bulahdelah - I'm going to get my head around that one -
and Manilla, rather than opening full branches.
Westpac's closure of Coober Pedy, Tom Price, and Carnamah left these towns with no bank,
exposing their customers round trips of 1,080, 560 and 240 kilometres respectively. Your new
proposed fake branches and regional service centres are in locations that already have bank
branches. Why hasn't Westpac established fake branches in Coober Pedy, Tom Price,
Carnamah, Wogan Hills, Mannum, Yankalilla, Tailem Bend and Kapunda, where Westpac has
left those towns completely bank-less?
Will you admit that these fake branches are more about political optics rather than restoring real
banking service? Just a related observation. You readily debank Coober Pedy, but you're
resistant about debanking a fossil fuel company.
Anthony Miller: They're not fake branches. The way the banking industry is evolving is - the way
customers want to interact with us is constantly evolving, being now at a point where 96% of
what they do is online. Therefore, we've just got to keep working out, what's that balance
between online, in-person-to-person and virtual? So, those areas where we're reopening are
designed to make sure we get that balance right. We got it wrong in the context of closing Moree,
and thus we've reopened.
We're now continuing to do the work to look at where we are across regional Australia to
address concerns where people feel they don't have access as a customer of Westpac to a
Westpac service, whether that's online, in a branch or version of physical connection, or online.
So, we're just working through that. To the extent that we identify as we do that work, that there's
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A division of MUFG Pension & Market Services
more we can do and that there's places we can go back to and it makes sense to go back, then
we will do it.
Of course, we're also undertaking work such as putting mobile bankers into towns to help
address that need for some customers, rightly, who need human-to-human, person-to-person
connection and service. We're working to try and solve that. So, it's about ongoing work to try
and get that balance right.
Michael Sanderson: (Shareholder) Why didn't you put the fake branches in towns where you've
debanked? Why have you put them in towns that already have banking facilities?
Anthony Miller: I've laid out for you what we're doing, which is methodically working through
where we can provide the service that our customers want, and if it's the case that a town where
we've exited, it makes sense for us to have a point of presence that serves the community there
in a way that makes sense, we'll do it.
Michael Sanderson: (Shareholder) Okay, I don't accept the explanation, but we'll leave it at that.
I'm going to skip to my question on CEO equity grant, seeing we've got your attention. The CEO -
sorry, Chair. This item asks us to approve $3.5 million equity grant to the CEO. At the recent
House Economics Committee, Mr Miller said Westpac was willing to take on more exposure to
gas. He described critical minerals and gas as a major part of transitioning. Peer-reviewed
research I have provided to Westpac shows that gas has a 25% to 275% higher life-cycle
emissions than coal.
Why should shareholders trust the CEO to grasp climate change science and risk? Is he just
echoing the political narrative on gas? Will he withhold, or will you - I'm talking about Westpac
here - withhold this equity grant until Mr Miller corrects the parliamentary record on gas and the
rules about financing gas expansion? Will Westpac acknowledge on the record that recent peer-
reviewed research finds exported LNG to have between 25% and 275% higher life-cycle
emissions than coal? Will Westpac correct the record to state that we do not need more gas, we
need fewer exports?
Steven Gregg: A whole range of questions in that one. If I can just answer it maybe this way, our
view on gas as a transition fuel is echoed by the current government and by the AEMO, which is
an independent authority, as to a very valid and the most efficient form of a transitionary energy
fuel. On that basis, and with that background, and with all the advice we're getting from our
various people like Fiona and the like, it is something that we will continue to fund in reasonable
levels.
How Anthony's long-term equity plan is a function of that is not really that current. He gets paid
for running a great company, and his long-term plan is a function of how the Company performs
over a longer period of time. They aren't linked. So, a whole range of questions there, but that's
how we look at it.
Michael Sanderson: (Shareholder) You're not prepared to correct the parliamentary record?
Steven Gregg: I wasn't there. I didn't hear that.
Michael Sanderson: (Shareholder) I was there.
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Anthony Mller: First of all, I will ask you to speak to my Chief Sustainability Officer, because I
think what you've posited is not necessarily what I've been briefed on by a range of science and
other experts. Secondly, I'm relying upon AEMO. I'm relying on the Australian Government. I'm
also relying upon a whole host of other work that gas is the most efficient of the fossil fuels in
terms of carbon emissions relative to coal, relative to oil. So, therefore, I think I'd like to
understand the science you're drawing on to make that representation. I'll wait for advice from
Fiona as to whether I then need to correct anything I may have said.
Michael Sanderson: (Shareholder) I'll be back next year to quiz you on it. I have six more, but
we'll let other people go.
Steven Gregg: Why don't we let other people have a chat now? Thank you.
Moderator: Mr Chairman, I have another question from Mr Stephen Mayne.
Steven Gregg: Great, thank you.
Stephen Mayne: (Shareholder) So, Chair, would you be able to put the proxy slide back up, if
that's possible? Someone commented to me before and said it was flashed up for 20 seconds
and they didn't see the figures either.
Steven Gregg: Yes, I think we can. Let's try and do it.
Stephen Mayne: (Shareholder) All right. Anyway, a couple of other things. Look, I was at the Myer
AGM this morning. Early disclosure of the proxies. Visitors could come in. Bags weren't
confiscated. I was sitting six doors down from the billionaire, Solomon Lew. It was a good,
friendly AGM. I came here. I had to hand in my bag. I had to get security checked. I mean, there
are no bank robbers here. You don't need to double up with both taking bags and then doing
security, and you've banned visitors. I don't understand why you've banned visitors. So, you
seem to be a little bit paranoid or defensive on security.
So, just a couple of responses to what you said earlier. So, it wasn't 99% on all resolutions. It
was - there was a 14% protest vote against the Board's recommendation on 5B, as you can see.
Steven Gregg: As I said to you - just to correct you, please, before you go on - I said it's 97% to
99% on everything, except for that one resolution, which was put up by Market Forces.
Stephen Mayne: (Shareholder) But there's 40% against Peter Nash.
Steven Gregg: And Peter Nash, that's right.
Stephen Mayne: (Shareholder) So don't just say, I understand there was an issue with another
organisation. Could Peter please explain the situation to the shareholders? Could you also tell
us which of the proxy advisers recommend against? Because that's one of the biggest ever votes
against an independent director of an Australian bank. I don't think it should be glossed over
with dismissive sort of 99% accept. That's an enormous protest vote. We need some details.
Steven Gregg: Were you here when Peter gave his talk? I can't remember. Were you here in the
room when Peter - no. Well, sir, I hear what you're saying. I have a lot of respect for your
observations, but I think it might be helpful, if you don't mind me saying, that you come to all the
meeting so you can see how all the meeting transpires, including speeches by Peter and myself
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in the various talks we gave about - say, in Peter's instance. By the way, I'm very happy that Peter
talks to you now about it, if you like.
Stephen Mayne: (Shareholder) There's a lot of I'll talk to you after the meeting going on today.
That's a common fob-off tactic. When you just dismissively said, something to do with another
organisation, that's code for CVs don't matter for directors. CVs do matter for directors. Under
our compulsory super system, every working Australian is forced to be exposed to the
performance of our professional director class. If something happens at one company and it
causes people to vote against at another company, it should be explained.
I don't know which company it is. Is it Jones Lang? Is it Mirvac? I think the company should be
named and Peter should speak, because you've been quite dominating in handling all of the
questions. Peter should speak as to what the issue is. Did he speak to the proxy advisors? Did
he try and persuade institutions? Has he disclosed anything? What's the issue here? Just finally,
where's next year's AGM? Do you know that? Is it already organised?
Steven Gregg: We do tend to try and rotate it, but for cost reasons and to try and show
shareholders that we are looking into the cost of running AGMs, we held it in Sydney this year. It
was going to be in Adelaide this year, but we're here. We'll see how it goes for next year.
Stephen Mayne: (Shareholder) So, you haven't organised next year's yet?
Steven Gregg: No, we haven't.
Stephen Mayne: (Shareholder) Right, so you could do what ASX did. So, I raised with ASX that
they were having a premature AGM, and they delayed it from September to October to satisfy
that criteria about not prematurely closing off nominations. So, if you haven't booked a venue,
I'd ask you to do that. Just finally, in relation to the question of the disenfranchisement of the
online voting, you said it's not taken up very much. I think the best way - we need some data.
You're very data driven. So, if you just tell us how many of our shareholders voted for and
against, then we can see how well you've done in getting out the vote.
At Qantas, it's less than 1%. We wouldn't cop that in federal elections. We're at 93%. So, how
hard have you tried to get shareholders to vote? I would say not very, given that you've banned
online voting today. So, give yourself a target of 3% turnout next year. I guess the final question,
which I've asked at a few AGMs is, could Anthony provide a brief summary of how busy and what
he does straight after the two half-year results. Broker lunches, institutions, fund managers,
analysts, often it's a week-long festival of talking to the big end of town.
How does that compare with the amount of time and effort you put into your retail
shareholders? Because frankly, banning online voting, banning visitors, not disclosing how
many of us vote for and against so our sentiment can be made public, not disclosing the votes
before the AGM - although that's not particularly related - I think there's a fair contrast between
the time and effort into the big end of town and how you're looking after retail. There's a few
specific things that you can do.
If you did an AGM in Melbourne during the Australian Open, I guarantee you'd probably get twice
as many shareholders there. Who wants a pre-Christmas AGM? We're all exhausted after the
main AGM season. We just want to have a rest, and then all you banks rush them out before
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Christmas because you know people are too busy to come. That's one of the things you like
about it.
So, show us the numbers on how many are here, how many voted, and then take seriously the
governance suggestion. I would like to hear from Anthony and from Mr Nash on those two
specific points. Thank you.
Steven Gregg: Anthony, why don't you just give a very brief - I mean, very brief, about how the
time is spent up.
Anthony Miller: You'll forgive me, this is my first year in the role. So, the way we went about this
year was quite a few meetings after each set of results, shared the workload in the first half with
Michael when he was CFO, and shared the workload with Nathan in the full-year results. So, we
see a whole suite of investors and brokers through one-on-ones and group events. We do try to
make sure also that we are actively involved in public events such as Chamber of Commerce
gatherings, so we are very much putting ourselves into a market environment where people can
ask questions, people can ask what our results are, and we can talk about what we are doing
and what we are not doing.
To the extent that you feel, retail investors, there is more we can do in the context of post-result
activity, Nathan and I are always looking at what more we can do and how can we better
communicate with our owners. Ultimately, we know we work for you as owners, and so
therefore we'll work on what we can do better.
Steven Gregg: Thanks. That's good. With regard to the online voting system, what we'll do is
come back to you with actually how many people voted last year and used that facility to vote,
because I think it's a fair question. As you know, everybody's welcome here, and as you're aware
- because I'm sure you've been to a lot of big bank AGMs - often they are a bit robust in terms of
how they are handled, so that's why there is security there, not to keep people like you out. So,
you understand that. We don't need to go into that.
With regard to Peter's vote and how he is, I'm happy he speaks now to the audience, if you like.
All I would say is that I've - and yes, I'll be honest with you, I have spoken with a lot of the
shareholders and a lot of the proxies about it, and I'm not really in a position, and I don't think
it's fair on Peter either, to talk about what happened at that other organisation, because that's
their business, not our business. The fact that they voted - proxies, some shareholders decided
to vote against Peter, is their prerogative. It's entirely their view.
Why they do it, when actually they should be looking at how he performs on the Westpac Board
and his tenure and contribution, I think I find confusing. Pete, would you mind just giving us a
couple of minutes just on - it was ASX, just to be clear. I know you went to that board, that AGM.
Peter Nash: I'm happy to make a few comments. Earlier on in the meeting I did talk to the
contribution that I have made over the years to Westpac, and the strong position Westpac finds
itself in today as being the most important aspect of my performance in relation to Westpac. It's
clear, and I would acknowledge that there has been concern from some investors around my
time on the board of ASX, which has faced its challenges. It would not be appropriate for me to
engage in a discussion at this meeting about those challenges and how they've been addressed.
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What I would say is that a number of shareholders reached out to have a discussion with me
about various aspects of my non-executive roles and how they combine to enhance my
experience at Westpac. They were discussions I had with any investor that reached out, and
they were valuable discussions and have contributed in part to where the voters ended up
today.
Steven Gregg: Thanks, Peter. Good. I'd be very happy to have a discussion with you afterwards,
Stephen, on all those issues you raised, because I think they had some good points there. As I
said, without sounding like a broken record, I'd love you to come to the entire meeting next time
if that's possible. Okay, sir.
Moderator: Mr Chairman, I have another question from Mr Michael Sanderson.
Michael Sanderson: (Shareholder) With your indulgence, I have a question for each of the
directors that are being elected or re-elected. I'd like to get them all off my chest in one go if I
could.
Steven Gregg: That's fine. That's absolutely fine.
Michael Sanderson: (Shareholder) Chair, Westpac's own governance rules say directors must
be independent and free of any business or other relationship that could materially interfere
with, or could reasonably be perceived to interfere with, their independent judgment. Mr Nash is
a former national chairman of KPMG and now chairs Westpac's Audit Committee. KPMG is now
Westpac's external auditor for the 2025 financial year. Proxy advisors ISS and CGI Glass Lewis
both have recommended voting against his re-election.
How can Mr Nash credibly maintain that he is independent in these circumstances? Will
Westpac commit that he either not be re-elected or, at a minimum, step down from the Audit
Committee and from any oversight of KPMG audit? Does Mr Nash represent transformation or
more of the same?
Steven Gregg: Why don't I take that, if you don't mind? I've got a fully detailed answer for you.
Peter is without question independent and absolutely expresses his independence and
demonstrates at every Board meeting. He was at KPMG eight or nine years - he left KPMG eight
years ago. At what stage do you say to somebody they are independent? I would suggest to you
he's well and truly outside KPMG and well and truly independent.
With regard to the appointment of KPMG as the auditor this year, it was after Pricewaterhouse
were, I guess retired from their role after 55 years as the auditor. We just felt it was prudent to
change auditor. In that regard, we put a subcommittee of the Board together to run a process to
determine which auditor should take over. Peter was not part of that process. He was not on
that committee. He was recused from any involvement at all, not because he wasn't
independent, but because I think the optics would suggest that people could take a view on
that.
Michael Ullmer, who's a very fine Director and very experienced executive, was the chair of that
committee, which I sat on as well. KPMG gave a very fine presentation, and they deserved it
purely on merits, for no other reason. Peter is a very fine Director, and I have absolutely no
hesitation in suggesting he stays on the Board and performs his duty. Furthermore, the tenure of
Westpac's Board is very young. It's only two and a half to three years because of various
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changes and turnover. Peter's been on the Board for now six or seven years, and that buys a lot
of corporate knowledge and corporate history. I think as a firm of this scale and size goes
through its transformation, it needs to have people of that ilk on its Board.
So, Peter's a fine individual. He's incredibly well qualified. There aren't many people in this
market that are qualified to be a chairman of a bank audit committee, and he is one of them. So,
I'm very proud he's on the Board, and you as shareholders should be very, very grateful that he's
serving on the Board.
Michael Sanderson: (Shareholder) Can you explain why ISS and CGI Glass Lewis voted against
him?
Steven Gregg: I can absolutely explain why they're saying it, I just happen to disagree with what
they're saying, I've had a discussion with ISS particularly on this. It was a very unusual
conversation where they tended to agree with me. Why they voted is their business.
Michael Sanderson: (Shareholder) Okay. Thank you. Next one, Chair. Westpac is still rebuilding
trust after a $23 million anti-money laundering breaches and a record AUSTRAC penalty. You
ask us to elect David Cohen to Westpac Board Risk Committee. Mr Cohen was CBA's Chief Risk
Officer when AUSTRAC hit that bank with its own record anti-money laundering penalty. Mr
Cohen also admitted serious risk failings to the Royal Commission.
How can you possibly claim he strengthens Westpac's risk governance? Will you withdraw the
Board's recommendation for his election, or at least rule out his appointment to the Risk
Committee? To finish, does Mr Cohen represent a transformation or more of the same?
Steven Gregg: Well, firstly, I'm absolutely not going to withdraw the recommendation of him to
be on the Board. He's, again, a very experienced individual and a great contributor. I think as life
is, you want people who've seen it all, good, bad and ugly. You don't want directors who have
not seen anything. Having someone of David's quality and background on this Board is
invaluable. Speaking with the regulators that oversee us - and there's about three or four of them
- they are all, to a T, delighted that David is on our Board.
So, there's absolutely no way that I'm going to suggest anything other than he stays on the
Board, but stays on the Risk Committee as well, and the learnings that he may have gleaned
from his past lives and from the time at Westpac can only stand us in good stead.
Michael Sanderson: (Shareholder) Chair, Westpac claims zero tolerance for bullying,
discrimination and sexual harassment, and says leaders must create a safe and inclusive
workplace, yet you ask us to elect Pip Greenwood, who was senior leader, chair and interim
CEO of Russell McVeagh when its toxic, alcohol-fuelled culture and serious sexual harassment
failures were exposed.
How can you possibly reconcile Ms Greenwood's leadership record with the values you say
govern Westpac? Will you withdraw the Board's recommendation for her election, or at least
rule her out of any role overseeing people, risk culture or risk conduct? Does Ms Greenwood
represent transformation or more of the same?
Steven Gregg: Ms Greenwood, in my experience, is an exemplary Director - also has exemplary
experience in the New Zealand market, which is important to this Board. As to her oversight of
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her previous work, I'm not aware of that. I'd be very happy to look at that, but I just don't think it's
relevant to how Westpac operates. We have a zero-rated - Pip is a fine Director, and again, she
shows nothing but purely ethical motives in every respect. So, I find it unusual that you raise
this. So, we will be absolutely backing Pip to be on this Board.
Michael Sanderson: (Shareholder) Chair, Westpac is still rebuilding trust after a $23 million anti-
money laundering breaches and a record AUSTRAC penalty. You now ask us to elect Debra
Hazelton to the Board and to your remuneration committee. At AMP she was on the Board that
promoted Boe Pahari despite prior sexual harassment complaint and payout. As AMP chair, she
presided over turmoil, a protest vote against pay, and major value destruction.
How can you claim this track record will strengthen Westpac governance and culture? Will you
withdraw the recommendation for her election or at least rule her out joining the remuneration
committee? Just to clarify, is Ms Hazelton still on the board of Australia Post? Yes. I just want to
add to that, does she see any conflict where there's a proposal that Australia Post host a public
bank, and is she in contact with Anika Wells or Katy Gallagher, the shareholders?
Steven Gregg: Let me answer the second question first. Whenever there's any discussion at the
Westpac Board that in any way refers to or includes Australia Post, she recuses herself and
leaves the room, so there's no conflict there. With regard to your first point, I think it's very
interesting, having known that organisation quite well over the years, and a number of the
directors on that board, and seeing the turmoil that AMP went through, I think one of Debra's
great strengths is that she was brought in to sort it out.
She was brought in on the board and promoted to the chair of AMP and did an exemplary job at
bringing a very ethical view on the people there and on the practices there. I think when I looked
at Debra's background there and her ability to massage a difficult series of conflicted issues
there and difficult issues to get an outcome that was sensible for shareholders and sensible for
the firm, it showed real skill and real leadership.
To have somebody on our Board with that background, who understands turmoil and how to
deal with it calmly and thoughtfully, is extremely valuable, so Debra, like all the other directors
on this Board, has a huge amount to offer. She is absolutely a valued member.
Michael Sanderson: (Shareholder) Okay. Well, I've got two more, but just in parting, wouldn't
Stephen Mayne make a good independent director?
Steven Gregg: Well, he's got to turn up to the meetings first, right?
Moderator: Mr Chairman, I would like to introduce Mr Freeman Tseng.
Steven Gregg: Thank you.
Freeman Tseng: (Shareholder) Good afternoon, Chair. My wife and I are customers and
shareholders of Westpac for many years. I just have a question that might be important for the
retirees like us, that we would like to share our experience with you and hope that the bank can
look at it and improve their performance. The question is, when we apply for credit card with the
bank, we do it online nowadays, and when we put in the application, reject.
I just want to share with you that when we apply for the credit card, the question about retiree,
tick, although we have the equity enough to live the rest of our life and we do a good credit
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rating, but whenever we tick retired, no pay slip, we've been rejected straight away. Now, is this a
policy for the bank, not welcome retiree applying for credit card? Yes or no?
Anthony Miller: First of all, thank you for being a customer and a shareholder of the bank. I
apologise for what you've just outlined, and I would invite you to connect with our Head of
Consumer Bank, who is Carolyn McCann, just sitting down there. You've really called out
something that we acknowledge we need to get better at, which is the prescription of one type
of policy to solve for what various customers need often does not work that well. So often, when
people apply for a credit card, it is very focused on income and salary, et cetera, but if someone
is retired, then clearly it is a different construct.
We have not, if you will, got that balance right, so I apologise for that. We do definitely want your
business. We definitely want you to stay a customer and shareholder of the bank, and I'd invite
you to meet Carolyn after this meeting, because we'd like to do better by you.
Freeman Tseng: (Shareholder) Because our experience is, normally in the family we have
primary cardholder and secondary cardholders. Even my friend has experience. His partner
passed away. She's the primary cardholder. Whenever that happened, his credit card has been
discarded, and he no longer can apply for credit card because he's retired. As a result, a lot of
things become very difficult for life for him, although he has many investments, house and
super. All are good, good credit rating.
But I think if the bank can look at this kind of - particularly online nowadays, whenever you tick
the box, you're in that category, and that category could become discriminative against certain
kinds of people, although they are still able to pay the credit card, easy, monthly, but that
becomes a hindrance for retirees.
Anthony Miller: No, it's very fair. As I said, a customer matter. Please see Carolyn, and we'll
definitely look to address that.
Freeman Tseng: (Shareholder) Thank you.
Steven Gregg: Appreciate the feedback there. Okay, in the room please, and then we'll go to the
last couple online. Thank you.
Moderator: Mr Chairman, I'd like to introduce Dr John Hill.
Steven Gregg: Thank you, Dr Hill.
John Hill: (Shareholder) Mr Chairman, you may be aware that our family holds a very substantial
number of Westpac shares, possibly more than the whole Board put together. I have been
concerned about the discussion about climate change, which is a scientific furphy. The reason I
say that, if you listen to any physicist or any scientist, it makes no sense. I can only make several
small points as to what has happened to the Earth's climate over the last thousands of millions
of years.
Now, the first point is, the Earth has been cooling for 4,000 or 5,000 years at least, since the last
- second point is, since the last ice age which commenced about 10,000 years ago and reached
a depth of about 3,000 years ago, and raised to a peak about 1,000 years ago when the
temperature of the Earth appeared to be significantly higher - and I'll repeat that, significantly
higher - than it is today. After that time, we went into a mini ice age and the temperature of the
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earth fell until about 1300 or 1400, so much so that the Thames had frozen up and people could
ski on the Thames - ice skate on the Thames. The Earth has been rising in temperature ever
since.
Now, the next observation is, quite clearly human activity has virtually nothing to do with the
amount of carbon dioxide in the atmosphere. The last point I make is a fairly sophisticated
physics point, and that is, the Earth gets heat from the Sun by radiation during the daytime and
loses heat during the night. The amount of heat absorbed is to the fourth power of the
differential in absolute temperatures between the Earth and the Sun, and at night it loses
temperature at the fourth power of the absolute temperature - the difference of the fourth power
of the Earth and the absolute temperature, which is absolute zero at night.
To make a long story short, as the temperature rises, the amount of heat lost by the Earth at
night increases dramatically, and that's why the climate moves so slowly and so silently that we
should not be concerning ourselves completely with the climate change scarers.
Steven Gregg: Thank you for your thoughts, sir. Appreciate that. Thank you. One more question
in the room. Thank you.
Moderator: Mr Chairman, we have a couple more questions from Mr Michael Sanderson.
Michael Sanderson: (Shareholder) Two more, all over.
Steven Gregg: Okay, Mr Sanderson.
Michael Sanderson: (Shareholder) This one relates to the remuneration report. Chair, after
Westpac paying $1.3 billion in penalties for anti-money laundering breaches, Westpac admitted
to 11 years of wage underpayments to almost 47,000 staff and is still remediating past
misconduct. How can you ask us to endorse rising bonuses and long-term incentives for the
new Chief Executive and his team in this remuneration report? Why should shareholders
approve it before executive pay clearly reflects accountability for these failures?
Steven Gregg: Shall I have a go at that one first? You've got one more after that, haven't you?
Michael Sanderson: (Shareholder) I've got one more.
Steven Gregg: Yes, we have had an underpayment issue, which dates back six years to -
actually, six or seven years, from 2018-2019, and we've been working through that remediation
since then. I think it's very inappropriate and unfair to penalise management today, who have
been appointed today, for that. It is their job to fix that and sort that out, and to deal with the
authorities to make sure we have a good outcome there. I am looking at performance today, and
the management team are all current, and we will judge them on how they are acting and how
they perform.
Michael Sanderson: (Shareholder) Okay, thank you. This is a bit long, it's a techo question, and
I'm not a very good reader. Here we go. The Australian Government guarantees ordinary people's
bank deposits through deposit insurance, meaning it promises to protect depositors' money if
the bank gets into trouble. It also sets and enforces capital rules to ensure the bank holds
enough high-quality assets to safely cover their deposits and other liabilities. So, under this
framework, the government guarantees deposits for the public, removing the need for them to
ask for collateral, certifies the bank as safe and sound under its own capital rules.
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However, at the same time, the RBA - which is part of the public sector - requires Westpac to
pose government securities as collateral when it lends to Westpac. Does the Board regard this
structure as effectively saying, we trust Westpac enough to guarantee the public's deposits, but
we don't trust Westpac enough for our own central bank to lend to Westpac without extra
collateral? Doesn't this collateral requirement then become redundant and potentially harmful,
especially in a crisis when banks need rapid access to central bank funding but may lack the
required collateral?
Could the Board explain whether it regards this requirement as necessary and consistent with
existing deposit guarantee and capital adequacy framework, and whether Westpac has raised
any concerns with the RBA or the government that it may make the system less stable in times
of stress?
Steven Gregg: A detailed and technical question. I think the first couple of observations, then
I'm going to hand it to Anthony to take us through it. This is all part of quite a sophisticated
ecosystem between the government and the banks - and the Reserve Bank particularly, and,
say, big four banks mainly - to protect the economic system and the capital system of this
country. It works in terms of borrowing, in terms of flows of cash and adequacy. It's also part of
our four pillars process. Where the banks are given certain protections, they've got to deliver
certain things.
So, to answer your question, yes, it does work, and no, it is not a comment on the adequacy of
the banks. As we stated very early on, Westpac has the highest level of Tier 1 capital in this
country, some of the highest in the world, and that's how I like to see it. It's safe and secure for
the shareholders, and we have a very close relationship with the Reserve Bank, and it works
well. Anthony, have you got a few thoughts?
Anthony Miller: The liquidity rules are set by APRA, so not the Reserve Bank. The liquidity rules
are set such that, based on the number of deposits we have, there are certain liquidity
requirements that we must have at all times. We also then have arrangements with the central
bank, the Reserve Bank of Australia, to ensure that in certain circumstances, if incremental
liquidity is needed, we can go to the Reserve Bank, hand over collateral in exchange for cash, for
liquidity.
So, the Reserve Bank mechanism is one which is universally used by all central banks around
the world, which is a liquidity lender of last resort to the banking system. The standards at which
we set up our liquidity profile, the amount of liquids we have, the range of sources of liquids that
we have, is prescribed by APRA, and so that's the framework we run to. We are fortunate, and
respect and appreciate very much the deposit guarantee scheme in this country and also
acknowledge that that is a scheme that is used in many other jurisdictions around the world, so
there's no unusualness to what we have in place here in Australia.
Michael Sanderson: (Shareholder) Do you think there's a case to simplify the rules around
banking generally?
Anthony Miller: I would never dispute the idea that something can be made simpler, but I do
think that the system we have in place, particularly as it relates to the liquidity rules as
prescribed by APRA here in Australia, and the way we interact and work with the lender of last
resort, the Reserve Bank, are elegant and have been proved to be very, very effective.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Michael Sanderson: (Shareholder) They still favour the four major banks to their advantage, and
to the disadvantage of the smaller banks. Would you agree?
Anthony Miller: No, I don't agree with that, but that's a version of events.
Michael Sanderson: (Shareholder) Okay, thank you very much.
Steven Gregg: Thank you.
Michael Sanderson: (Shareholder) Thanks for your time.
Steven Gregg: Pleasure. Thank you for all your questions there. Folks, we have just a few more
questions online, if we can please read those out.
Moderator: Mr Chairman, we have a question from Craig Caulfield for the auditor. I understand
the auditor plays a role in assessing whistleblower submissions. How many whistleblower
cases did the auditor investigate this year? How do this year's numbers compare with recent
years?
Steven Gregg: I will ask Kim to answer that, but they don't assess whistleblower activity. Kim.
Kim Lawry: Thank you, Chairman, and it's not in relation to the execution of the audit either. So,
due to whistleblower protection, we cannot disclose anything in relation to whistleblower
complaints. Also, we also weren't the incumbent auditor last year, so also don't have any
comparative statistics to share.
Steven Gregg: Thank you, Kim.
Kim Lawry: Thank you.
Steven Gregg: Thank you.
Moderator: Mr Chairman, we have an online question from Kym Holman. If shareholders are
able to vote at the meeting in person, why doesn't Westpac currently support online direct
voting during the meeting? This would enable online shareholders an opportunity to hear the
discussions and presentations at the AGM before voting, therefore supporting shareholders that
live outside Sydney and a more informed decision process.
Steven Gregg: This has been raised a number of times, and we will look into this for next year.
We have only not gone through with it this year because of the cost and the lack of take-up, but
we will take it on board. Thank you.
Moderator: Mr Chairman, we have an online question from John Sabljak. Accenture was
involved with the recent technology upgrade at the Bureau of Meteorology. The original contract
was for $31 million. Amendments pushed the contract value to around $78 million for
Accenture's part. Are these the best two organisations to be involved in your UNITE program?
Steven Gregg: Well, firstly, I really can't comment on what's gone on at the Bureau of
Meteorology. It doesn't sound like it was well handled, but that's nothing to do with us, and I'm
not really capable of commenting on that. All I can see is that they're playing a very fine role in
our UNITE program, and that's all we can really comment on there.
MUFG Corporate Markets
A division of MUFG Pension & Market Services
Moderator: Mr Chairman, I have an online question from Sutitiuh. To the CEO and CFO, with
regards to the standardisation of platforms within Westpac, can you advise whether this will
mean that Westpac will standardise deposit pricing? At the moment it appears the bank has no
coherent deposit pricing policy, with the Westpac WA Commercial Bank offering a 12-month
term deposit rate of 4.85%, while the institutional bank is offering a 12-month rate of 4.64%.
How does the bank expect to control NIM when customers can play off each section of the bank
for the best deposit deal?
Anthony Miller: We have a coordinated approach to pricing deposits. What I would also
acknowledge, however, is that there will be instances where different businesses or different
sectors will be more attractive and so, therefore, there will be more competition, and you may
have to pay more than you would otherwise pay in another sector for that particular deposit. We
have and are very focused on a very coordinated, very aligned price around deposits, but we
need to recognise that we're in a competitive market where there's a lot of banks targeting
different sectors, different segments of the market, and so thus you will see instances where
pricing is a little bit different in that environment.
Steven Gregg: Thank you. Thanks, Anthony. A good answer to that one. Folks, that's the end of
the online questions. If there are any other questions in the room - or are we - we're done there.
Okay. Ladies and gentlemen, that completes the business of the meeting. The polls will close in
15 minutes on all resolutions. The results will be available later today and can be obtained by
visiting the ASX announcements platform on the Westpac website. For your convenience,
please remain seated until directed to vacate your seats. The MUFG staff will collect completed
voting cards, which should be placed in one of the ballot boxes.
I now declare the meeting closed, subject to the finalisation of the polls. Last comment. Firstly,
thank you for coming along today. It is a big commitment of your time. It is important to us that
you are heard. It has been a wonderful year for this Bank, and you should be very proud of the
achievements. I wish to see you next year. Have a great Christmas and break. Thank you.
[END OF TRANSCRIPT]
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