#12022 FULL YEAR FINANCIAL RESULTS FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2022 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Presentation and Investor Discussion Pack Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 42 for definition. Results principally cover the 2H22, 1H22 and 2H21 periods. Comparisons of 2H22 versus 1H22 (unless otherwise stated). Westpac GROUP#2Westpac 2022 Full Year Results Index 2022 Full Year Results Presentation 3 Investor Discussion Pack of 2022 Full Year Results 36 Overview 37 Results 39 Customer franchise 43 CORE 48 50 60 Sustainability Earnings drivers Revenue Expenses Impairment charges Credit quality and provisions Australian mortgage credit quality Capital, Funding and Liquidity Segment results Consumer Business 61 68 88 65 55 69 80 86 97 99 100 Westpac Institutional Bank 101 Westpac New Zealand Specialist Businesses Economics Appendix Contact us Disclaimer 102 106 108 124 137 138 Westpac GROUP#3Peter King Chief Executive Officer Westpac GROUP#4FY22 Steady progress. Well advanced on Fix and Simplify strategic priorities Solid Financial Performance Core earnings growth across all banking segments in 2H22 $ Strong balance sheet heading into more challenging outlook ՄՌ Positioning Westpac for the future Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#5FY22 Earnings snapshot. FY21 FY22 Change FY22 - FY21 Reported net profit $5,458m $5,694m 4% Dividends per share (interim and final) $1.18 $1.25 6% Cash earnings1 $5,352m $5,276m (1%) Notable items² ($1,601m) ($1,292m) (19%) Cash earnings basis excluding notable items Revenue $20,374m $19,895m (2%) Net interest margin 2.02% 1.87% (15bps) Expenses ($10,936m) ($10,170m) (7%) Core earnings Impairment (charge)/benefit $9,458m $9,725m 3% $590m ($335m) Large Cash earnings excluding notable items Return on equity³ $6,953m $6,568m (6%) 9.8% 9.3% (46bps) 1 Cash earnings is a measure of profit generated from ongoing operations for further detail see page 42 and 125. 2 References to notable items in this document include provisions related to estimated customer refunds, costs and litigation; write-down of assets and accelerated branch closure costs; and asset sales/revaluations. 3 Return on equity is cash earnings divided by average ordinary equity. 5 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#6FY22 Core earnings1 growth of 3%. 9,458 515 Down 79% 9,725 109 ■Contribution of businesses sold 9,616 8,943 ■Excluding notable items and businesses sold Up 8% 1 Excluding notable items. FY21 6 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack FY22 Westpac GROUP#7Fix Priority - reducing risk. Customer Outcomes & Risk Excellence (CORE) program on track1 Sep-21 Design Implement Embed Mar-22 Sep-22 az Addressing past issues 14 major customer remediation programs closed in FY22 with $567m returned to customers, 8 major programs remain open 76% 99% 100% Settled 7 regulatory proceedings Resolved 2 class actions, subject to court approval 40% 63% 87% Upgraded financial crime system and capability 6% 9% 32% 1 Percentages based on Westpac's assessment of completed activities. 2 Section 95 of the Reserve Bank of New Zealand Act 1989. 7 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack APRA liquidity overlay removed Progress on New Zealand s952 program Westpac GROUP#8Simplify Priority - moving to further simplify banking. of Portfolio simplification 3 businesses exited in FY22 Geographic simplification 27 2 Banking simplification Co-located branches 150 8 Total of 7 business exits completed 2 businesses under agreement to divest 3 Asian offices closed Asian offices no longer operating Enabled self service for 285 requests 47 applications decommissioned Products reduced more than by Digital mortgage launched 400+ processes and paper forms digitised Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#9Movements in core earnings by segment. FY22 FY21 ($m) 124 98 (406) 232 26 466 9,725 9,458 (273) Up 3% FY21 core earnings ex Consumer Business WIB notable items NZ (A$) ex businesses sold 2H22 1H22 ($m) - 9 SB ex businesses sold Group Businesses Businesses sold FY22 core earnings ex notable items 452 84 37 37 (334) (39) 5,136 310 4,589 Up 12% 1H22 core earnings ex Consumer Business WIB notable items NZ (A$) ex businesses sold SB ex businesses Group Businesses Businesses sold sold Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 2H22 core earnings ex notable items Westpac GROUP#10Consumer - better franchise performance. Australian mortgages ($bn) Performance Improved mortgage growth • Growing main bank relationships • Margin 17bps lower on year, up 7bps over 2H22 455.7 Up 1% 458.4 Up 2% 467.6 • Expenses¹ down 3% over the year Credit quality in good shape Sep-21 Mar-22 Sep-22 Simplification and digital Completed Westpac app roll-out for consumers • Personal financial management features launched • New security features released Eliminated 112 fees Core earnings excluding notable items ($m) 2,495 Up 13% 2,642 2,332 Down 7% 1 Excluding notable items. 10 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 2H21 1H22 2H22 Westpac GROUP#11Business - sustainable growth. Net loans ($bn) Performance Significantly higher core earnings • Benefit from 157% deposit to loan ratio and · higher deposit spreads Margin 7bps lower on year, up 74bps over 2H22 Expenses¹ down 12% over the year • Reduction in Fix projects Simplification and digital . Banker productivity improved – lending settlements increased 52% • Increased use of digital lending application form • Simplified annual reviews ~18,000 next generation merchant terminals • Piloting 'Tap on Phone' capability 1 Excluding notable items. 11 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 78.4 Up 3% 80.9 Up 5% 84.9 Sep-21 Mar-22 Sep-22 Core earnings excluding notable items ($m) Up 90% 956 504 371 Up 36% 2H21 1H22 2H22 Westpac GROUP#12WIB - deepening relationships. Performance • Reset the business model, reduced risk • Loans up 26%, >80% to existing customers Core earnings much higher, ROE up Expanding carbon trading desk Net loans ($bn) 12 67.7 Up 9% Up 15% 85.2 74.0 Sep-21 Mar-22 Sep-22 Simplification and digital 35,000 hours of manual work saved from process reengineering New online FX pricing calculator Core earnings excluding notable items ($m) Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 492 Up 17% 576 353 Up 39% 2H21 1H22 2H22 Westpac GROUP#13NZ - reset in progress. Performance Lending up 5% over the year • Broad based growth • Margin flat on year, up 5bps over 2H22 • Leading participant in sustainable transactions1 in NZ Net loans (NZ$bn) 92.6 Up 2% 94.0 Up 3% 96.8 Sep-21 Mar-22 Sep-22 Simplification and digital Completed sale of NZ life insurance Core earnings excluding notable items (NZ$m) • Products for sale down 16% Improved IT system stability • Launched 'Verify Now' - secure digital onboarding Progressing s95 program 1 Sustainable finance transactions refers to green, social, sustainability, sustainability-linked and re-linked loans and bonds. 13 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 679 Up 2% 692 Up 6% 736 2H21 1H22 2H22 Westpac GROUP#14Revised cost target of $8.6bn by FY24.1 Expenses, ex Specialist Businesses ($bn) 11.8 We are committed to reducing costs by FY24 ■Notable items • We revised our FY24 Target as 1.7 ■Ongoing & Fix - Inflation2 higher than initially assumed - Persistence of some regulatory and 9.7 compliance costs beyond FY23 0.3 Revised target³ excludes - Specialist Businesses segment - Acquisitions or notable items 10.1 9.4 8.6 Specialist Businesses ($m)4 FY21 FY22 Revenue 1,949 322 Expenses 1,478 1,047 FY21 FY22 FY24 Target 1 The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. They have been based upon management's expectations and beliefs concerning future developments and their potential effect on Westpac. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements and statements of expectation. Except as required by law, Westpac is not responsible for updating, or obliged to update, any matter arising after the date of this presentation. The information in this page is subject to the information in Westpac's ASX filings, including in its 2022 Full Year Financial Results and elsewhere in this presentation. 2 Inflation expected to fall from current level of around 7.3%, to closer to 3% by FY24. 3 Also excludes any significant rise in expenses from uncertain or not fully scoped matters. 4 Includes notable items 14 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#15Becoming a net-zero, climate resilient bank. Reducing our direct operational emissions Reduced scope 1 and 2 direct operational emissions by 70% since 20161 Reduced scope 3 supply chain (non-financed) emissions by 29% since 20161 Reached equivalent of 52% of our electricity consumption from renewables Maintained carbon neutral certification2 in Australia since 2012, in NZ since 2019 • Helping customers transition to net-zero Joined Net-Zero Banking Alliance (NZBA) Set interim 2030 financed emissions lending targets for five sectors Engaging customers on their transition plans, building banker capability • Supported WIB and WNZL customers across 69 sustainable finance transactions³ Largest bank lender to greenfield renewable energy projects in Australia over the past 5 years4 Collaborating for impact Participated in the Australian Industry Energy Transitions Initiative Joined the TNFD5 Forum supporting development of a nature-related disclosure framework Participated in APRA's Climate Vulnerability Assessment Reporting based on global sustainability frameworks. including TCFD, GRI and SASB6 1 Against 2016 baselines. 2 Certification is obtained for Westpac's Australian and New Zealand direct operations under the Australian Government's Climate Active Carbon Neutral Standard for Organisations and the New Zealand Toitū net carbonzero certification respectively. Further information can be found on the Sustainability Performance Reports page on our website. 3 Sustainable finance transactions refers to green, social, sustainability, sustainability-linked and re-linked loans and bonds. 4 Based on IJGlobal and Westpac Research data. 5 Taskforce on Nature-related Financial Disclosures. 6 Taskforce on Climate-related Financial Disclosures, Global Reporting Initiative and Sustainability Accounting Standards Board, since 2017. 15 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#16Fully franked final dividend - 64cps. Payment considers Medium term outlook for return and growth Sustainable payout ratio range -60-75% Final dividend yield Shares issued 6.2%¹, fully to satisfy DRP franked 8.8%¹ Dividends per ordinary share (cents) 2H 1H Dividend payout ratio (%) 118 Up 6% 125 64 Cash earnings 60 FY21 FY22 81 83 Cash earnings 58 61 62 67 (ex notable items) 31 FY20 FY21 FY22 1 Based on 30 September 2022 closing price of $20.64. 16 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#17Michael Rowland Chief Financial Officer Westpac GROUP#182H22 results summary. 7 Strong core earnings momentum • • Core earnings excluding notable items up 12% on 1H22 Costs down 2%, FTE 3% lower Revenue¹ up 5%, higher margins . Margin ex Treasury & Markets up 10bps . CET1 capital ratio 11.3%, pro forma² 11.4% • Balance sheet strong · LCR and NSFR well above regulatory minimums Proactive on funding – higher deposits, well timed wholesale issuance - Stressed exposures to TCE³ 1.07%, down 3bps Mortgage 90+ day delinquency 0.69%, down 13bps Credit quality in good shape • Provisions to credit risk RWA 1.3% 1 Excluding notable items. 2 Following the divestment of superannuation and Advance Asset Management expected in 1H23 of approximately 10bps. 3 TCE is total committed exposure. 18 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#19Notable items and simplification impacts. Contribution of businesses sold¹ Notable items ($m after tax) 1H22 2H22 ($m) FY21 1H22 2H22 Core earnings 515 74 35 Remediation and litigation (65) (68) Cash earnings 389 57 16 Write-down of assets & accelerated branch closure costs (154) (129) Included in businesses sold FY21 1H22 2H22 General Insurance Lenders Mortgage Insurance Asset sales / revaluations 213 (1,089) Vendor Finance Motor Vehicle Finance & | Novated Leasing Total cash earnings impact NZ life insurance (6) (1,286) Australian life insurance 1 Contribution of businesses sold in respective period. For detail on the contribution of business under sale agreement and presented as Held for Sale refer to Westpac's 2022 Full Year Financial Results Announcement Section 5 Note 8. 19 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#20- 2H22 Cash earnings ($m) 2H22 – 1H22. 3,095 6 3,101 $45m reduction from businesses sold 564 (117) 100 (57) (124) 3,467 (1,286) Core earnings up 12% Up 12% Down 30% 2,181 1H22 1H22 notable items 1H22 ex notable income income Net interest Non-interest Expenses Impairment Tax & NCI¹ charges 2H22 ex notable 2H22 notable 2H22 items items items 1 NCI is non-controlling interests. 20 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#21Movement in lending ($bn). 11.2 (2.1) (0.3) (1.8) 739.6 10.5 (1.4) 3.9 719.6 Up $2.8bn in NZ$ 710.8 Up $20bn or 3% Sep-21 Mar-22 Mortgages Owner occupier Mortgages - Investor¹ Business Institutional New Zealand Personal (ex Auto) Auto Sep-22 (in A$) Improved risk profile of the portfolio over last 5 years (Sep-17 to Sep-22) Total Loans (%) 11 17 4 2 11 Other consumer 16 Institutional ■Business ■Mortgages 68 71 • More mortgages, less other consumer lending I/O² mortgages 14% of Australian mortgages (Sep-17 46%) • Owner occupied 66% of Australian mortgages (Sep-17 56%) · Sold wholesale dealer and vendor financing books Sep-17 Sep-22 1 Includes line of credit. Investor mortgages are up $0.8bn under APRA definition in the Monthly Authorised Deposit-taking Institution Statistics. 2 I/O is interest only 21 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#22Australian mortgages - improved growth. Mortgage lending flows ($bn) 458 6 33 (17) (12) 468 Mar-22 New lending ex refinance Net refinance Mortgage time to right (days)1 Third party Proprietary Up 2% Property sale and other Paydown Sep-22 Mortgage growth (major bank system multiple²) 1.1x 11.7 1.0x 9.6 9.9 7.6 8.1 6.3 0.4x Sep-21 Mar-22 Sep-22 2H21 1H22 2H22 1 Based on time from application start (for 1st party) or application submitted (for 3rd party) to unconditional approval and is the median time for applications approved within the month, this chart represents the exit rate. 2 Comparison to major bank system, adjusted for the acquisition of Citibank by NAB, from APRA Monthly Authorised Deposit-taking Institution Statistics. 22 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#23Margins up. Net interest margin (% and bps) 1.85 24bps 0.15 (9bps) (5bps) 4bps 1.70 Cyclical impact from rate lag effects 2bps (6bps) Obps Treasury & Markets impact on NIM NIM excl. Treasury & Markets (5bps) Exit margin 1.85%¹ 1.90 0.10 1.80 1H22 Loans Customer deposits Funding Capital & other Liquid assets Treasury 2H22 & Markets Term debt issuance and maturity profile² ($bn) Tractor rate (%, bps) . Capital $51bn: 3yr hedge 322 Term wholesale funding Issuance TFF3 FLP4 43 2 35 31 Maturities 5% -Tractor • Deposits $65bn: 4yr hedge 88 40 -3 year swap rate (spot) 4% 22 2 12 3% 18 12 18 42 2% 26 21 21 1% 13 FY20 FY21 FY22 FY23 FY24 0% Sep-19 Sep-20 Sep-21 Sep-22 1 Exit margin refers to margin for the month of Sep-22 excluding Treasury & Markets. 2 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. Contractual maturity date for hybrids and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. Perpetual sub-debt has been included in >FY27 maturity bucket. Maturities exclude securitisation amortisation. 3 Term Funding Facility. 4 NZ Funding for Lending Programme. 5 Tractor is the blended average rate earned on hedged capital and low rate deposits. 23 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#24Margin drivers – ex Treasury & Markets. Westpac - 2H22 movement - Interest rates > • 3yr swap rates increased ~150bps Lending (14bps) Deposits 25bps² Liquidity (6bps) Hedged balances ~5bps Compression from competition, switching and mix (9bps) • Rate lag impact (5bps) ⚫ At call and term deposit spreads improved • Rate lag impact 4bps Increase in liquid assets portfolio • Higher cost of funding liquid assets > Capital Deposits Industry – 1H23 considerations¹ Tailwinds - Impact of higher rates still to fully flow through on deposits Higher earnings on capital and hedged deposits Roll-off of lower spread fixed rate mortgages Headwinds × Deposit mix impact * Highly competitive mortgage environment * Wholesale funding costs higher, including from phase-out of CLF 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 138. 2 Excludes impact of hedged deposits. 24 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#25Non-interest income down 4%.1 Net fees¹ • • Higher provisions for credit card customer remediation Increased scheme fees and reward costs driven by higher spend 2% Wealth1 5% Trading and other¹ • Higher duration cash managed revenue 845 813 827 97 116 371 111 360 354 162 172 165 232 265 248 312 302 303 2H21 1H22 2H22 WIB Consumer Business Other 2H21 1H22 2H22 17% Lower DVA² as credit spreads widened Market volatility drove lower customer demand and losses on revaluations and hedges One-off in 1H22 - General Insurance distribution milestone payment $25m 414 401 343 75 62 139 39 373 340 223 (34) (59) 2H21 1H22 2H22 ■Trading DVA Other 1 Excludes the impact of notable items and income for businesses sold. Income for businesses sold includes General Insurance, Lenders Mortgage Insurance, Vendor Finance, Motor Vehicle Finance & Novated Leasing, NZ life insurance and Australian life insurance; prior figures have been aligned to current presentation for comparability. 2 Derivative valuation adjustments. 25 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#262H22 - 1H22 expenses ($m). 26 5,366 (231) 5,135 1H22 452 (368) Mainly increase in wages and variable reward 1H22 notable 1H22 ex notable Ongoing expenses items items (3) (121) (48) (12) 5,035 Down 2% ex notable items Up 1% Cost reset Investment benefits Fix ex Fix Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack SB ex Impact of businesses businesses sold sold 390 5,425 2H22 ex notable 2H22 2H22 items notable items Westpac GROUP#27Credit quality metrics improved. Stressed exposures as a % of TCE1 Watchlist & substandard 90+ day past due and not impaired Impaired 1.91 Australian mortgage delinquencies (%) 4.0 3.0 2.0 30+ day delinquencies 90+ day delinquencies 0.85 1.36 1.0 1.20 1.08 1.10 1.05 0.49 1.07 0.0 0.55 0.55 0.56 0.48 0.34 0.39 1.21 0.75 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Australian unsecured delinquencies (%) 0.40 0.43 6.00 0.80 4.75 0.68 0.56 0.51 3.50 2.25 0.26 0.15 0.14 0.17 0.19 0.14 0.13 1.00 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Mar-22 Sep-22 1 TCE is total committed exposure. 27 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack - 30+ day delinquency 90+ day delinquency 2.79 1.60 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Westpac GROUP#28Impairment provisions - 2H22. Total impairment provisions¹ ($m) Overlays Stage 1 CAP2 Stage 2 CAP2 Stage 3 CAP2 Stage 3 IAP³ ● 4,999 • 4,675 Overlays lower • COVID-19 released Construction reduced New mortgage overlay 4,625 647 . Some overlays reflected in 700 modelled economic scenarios 3,922 1,136 788 171 818 791 1,601 1,578 1,258 Total CAP: $4,174m 841 1,685 Total CAP: $4,173m . . • 1,131 989 943 947 832 501 412 # Sep-19 Sep-21 Mar-22 452 • Sep-22 CAP² (ex overlays) higher • • Portfolio growth Weaker economic forecasts Reassessed severity for business portfolio Downside weight unchanged at 45% Credit quality metric improved IAP³ lower Small decrease, mainly institutional 1 Excludes provisions for debt securities. 2 CAP is Collectively Assessed Provision. 3 IAP is Individually Assessed Provision. 28 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#29Credit impairment charge / (benefit) composition. ($m). Individually assessed provisions 144 Write-backs New IAPS & recoveries 466 46 97 123 (194) (203) (138) (166) Collectively assessed provisions Write-offs direct Other movement in CAP 318 296 218 228 (640) (777) (10) (17) (218) (372) Total 196 139 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 29 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#30Changing credit cycle in perspective. 30 • Portfolio quality improved Lower risk in portfolio Stress lower Higher serviceability thresholds since 2015 Material rise in property prices over last five years Most customers well prepared Mortgages - - - 68% ahead of repayments - Offset balances remain high Actual losses $2m in 2H22 Only 1% of portfolio with dynamic LVR >90% - Extensive analysis of portfolios Unemployment at generational . Well provisioned Provision balances 18% higher than pre COVID-19 levels 45% weight to downside. (5% to upside) $700m in overlays Resourcing support teams for higher stress lows Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#31Capital within operating range. CET1 capital ratio operating range of 11.0 – 11.5% from 1 January 2023. CET1 Capital (%, bps) 11.33 Mar-22 73bps (45bps) (38bps) (12bps) 18bps 11.29 Cash earnings Dividend RWA Other Divest- ments Sep-22 IRRBB RWA ($bn) Other capital considerations 43 43 4 5 Platforms sale ■Optionality and basis risk ■Repricing and 28 yield curve risk 3 20 20 17 11 ■ Embedded 16 loss/(gain) 2 19 21 21 14 8 (4) Tyro Payments (potential acquisition) Basel III revisions1 . Work continues on a potential sale 18 Oct 2022 announced preliminary - discussions on potential 100% acquisition Discussions continue No certainty on any transaction Finalisation expected to add to CET1 capital ratio from 1 Jan 2023 Sep-21 Mar-22 Jun-22 Sep-22 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 138. 31 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#321H23 Considerations.1 Net interest income • Non-interest income Expenses . Credit quality Reporting simplification . • System credit growth expected to slow - targeting growth around major bank system Exit margin² excl. Tsy & Markets for Sept 2022 -1.85% Headwinds on margin with pressure from competition and higher wholesale funding costs Full period impact of business exits (FY22 impact $135m) Markets income difficult to predict 1H23 costs (ex notable items) expected to be 0% - 2% lower Regulatory/compliance costs expected to remain elevated FY24 cost target revised to $8.6bn³ Expect some deterioration in credit metrics Well provisioned and positioned for changing environment Stop reporting cash earnings – statutory profit only Changing the way we manage hedges to reduce the impact of fair value adjustments Will continue to disclose large and infrequent items 1 The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. They have been based upon management's expectations and beliefs concerning future developments and their potential effect on Westpac. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements and statements of expectation. Except as required by law, Westpac is not responsible for updating, or obliged to update, any matter arising after the date of this presentation. The information in this page is subject to the information in Westpac's ASX filings, including in its 2022 Full Year Financial Results and elsewhere in this presentation. 2 Exit margin is net interest margin excluding Treasury and Markets for the month of September 2022. 3 Subject to exclusions and assumptions outlined on page 14. 32 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#33Peter King Chief Executive Officer Westpac GROUP#34FY23 - Solid outlook, some uncertainty. Most customers Unemployment to return to well prepared Credit growth expected historic levels to ease Housing prices likely to decline further Effects will be uneven Australian economic forecasts¹ Cash rate GDP Dec-22 Dec-23 3.10% 3.85% 3.4% 1.0% Terms of trade 4.6% (11.0%) Unemployment rate 3.3% 4.5% Inflation 7.9% 4.1% Credit growth 8.4% 2.7% Housing price forecasts from Apr-22 peak (8%) 1 Forecasts from Westpac Economics. 34 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack (16%) Westpac GROUP#35FY22 Steady progress. Well advanced on Fix and Simplify strategic priorities Solid Financial Performance Core earnings growth across all banking segments in 2H22 $ Strong balance sheet heading into more challenging outlook ՄՌ Positioning Westpac for the future 35 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#36Investor Discussion Pack Fix. Simplify. Perform. Westpac GROUP#37Overview Westpac GROUP#38Westpac Group at a glance. Westpac NEW ZEALAND W Australia's first bank and oldest company founded in 1817 Repositioning business portfolio to focus on banking Australia's 3rd largest bank and 37th largest bank in the world, ranked by market capitalisation¹ Strong market share in key products Our brands • Capital ratios are in the top quartile globally • Credit ratings² AA- / Aa3 / A+ Joined the Net-Zero Banking Alliance and supporting the transition to a net-zero economy by 2050 Overview bank SA +BT RAMS TM st.george Bank of Melbourne Key statistics at 30 September 2022 Key financial data for FY22 Customers³ 12.7m Reported net profit after tax $5,694m Cash earnings $5,276m Australian household deposit market share4 20% Expense to income ratio? 56.8% Australian mortgage market share5 21% Common equity Tier 1 capital ratio (APRA basis) 11.3% Australian business credit market share5 15% Return on equity7 Total assets 7.5% $1,014bn New Zealand deposit market share6 18% New Zealand consumer lending market share6 18% $944bn $72bn 1 30 Sep 2022 Source: S&P Capital IQ, based in US$. 2 S&P Global Ratings, Moody's Investors Service and Fitch Ratings respectively. All three credit rating agencies have Westpac Banking Corporation on a stable outlook. 3 Customer numbers related to businesses sold, held for sale or in run-off at 30 Sep 2022 have been excluded. 4 APRA Banking Statistics, September 2022. 5 RBA Financial Aggregates, September 2022. 6 RBNZ, September 2022. 7 Cash earnings basis. 8 Based on share price at 30 Sep 2022 of $20.64. Total liabilities Market capitalisation³ 38 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#392H22 cash earnings. Results Change 2H22 - 1H22 Cash earnings 2H22 – 1H22 ($m) NIM1 excluding Treasury and Markets up 10bps from higher deposit spreads offsetting lower lending spreads, AIEA² up 3% from lending and increased liquid assets Lower income following the sale of businesses, lower markets trading income Predominantly due to the loss on the completion of the sale of Australian life insurance 1H22 2H22 ($m) ($m) (%) Net interest 8,028 8,577 7 income Non-interest 1,931 465 (76) income Expenses (5,366) (5,425) 1 Core earnings 4,593 3,617 (21) Impairment 3,095 6 3,101 (139) (196) 41 benefit/(charge) Tax and non- controlling (1,359) (1,240) (9) interests (NCI) Cash earnings 3,095 2,181 (30) Add back notable 6 1,286 Large items (after tax) Cash earnings 3,101 3,467 12 ex notable items Reported 3,280 2,414 (26) net profit items Exiting businesses, simplification benefits and completion of some Fix programs, average FTE³ down 5% 564 (117) 100 (57) (124) 3,467 (1,286) Up 12% ex notable items Down 30% 2,181 1H22 Add back notable items 1H22 ex notable income Net interest Non-interest Expenses Impairment Tax & NCI income 2H22 ex Notable 2H22 charges notable items items 1 Net interest margin (NIM). 2 Average interest-earning assets (AIEA). 3 Full time equivalent (FTE). 39 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#40FY22 cash earnings. Results Change FY22- FY21 (%) Cash earnings FY22 - FY21 ($m) 8% AIEA growth mostly from liquid assets. Average loans up 4%. NIM down 15bps due to lending competition and higher liquid assets Loss of income from businesses sold, lower markets trading income, partly offset by higher fee income Moved from impairment benefit in FY21 to an impairment charge in FY22, impairment charge/gross loans at 5 bps FY21 ($m) FY22 ($m) Net interest 16,714 16,605 (1) income Non-interest income 4,324 2,396 (45) Expenses (13,283) (10,791) (19) 1,601 766 (925) 6,953 19 (518) 5,352 Core earnings 7,755 8,210 6 Impairment 590 (335) Large benefit/(charge) Tax and non- controlling (2,993) (2,599) (13) interests (NCI) Cash earnings 5,352 5,276 (1) Add back notable 1,601 1,292 (19) items (after tax) Cash earnings 6,953 6,568 (6) ex notable items Reported net profit FY21 5,458 5,694 4 Add back notable items FY21 ex notable items 40 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Costs down 7% due to benefits of simplification, completion of some Fix initiatives, businesses sold and lower amortisation, average FTE down 5% Down 6% ex notable items Down 1% 273 6,568 (1,292) Net interest Non-interest Expenses Impairment Tax & NCI income income charges 5,276 FY22 ex notable Notable items FY22 items Westpac GROUP#41FY22 financial snapshot. Results Change Change Change Change FY22 FY22 - FY21 2H221H22 FY22 FY22 - FY21 2H221H22 Earnings¹ Balance sheet Earnings per share (cents) 148.0 1% (27%) Total assets ($bn) 1,014 8% 5% Common equity Tier 1 (CET1) 11.29 Core earnings ($m) 8,210 6% (21%) (103bps) (4bps) capital ratio (APRA basis) (%) CET1 capital ratio Cash earnings ($m) 5,276 (1%) (30%) 17.57 (60bps) 21bps (Internationally comparable 2) (%) Return on equity (%) 7.50 (5bps) (247bps) CET1 capital ($m) 53,943 Flat 3% Dividend (cents per share) 125 6% 5% Risk weighted assets (RWA) ($bn) 478 9% 4% Expense to income ratio (%) 56.79 Large Large Average interest-earning assets ($bn) 887 8% 3% Net interest margin (%) 1.87 (17bps) 5bps Loans ($bn) 740 4% 3% Customer deposits ($bn) 613 6% 2% Credit quality Impairment charge to average Net tangible assets per share ($) 17.2 2% Flat 5 13bps 1bp gross loans (bps) Funding and liquidity Impaired assets to gross loans (bps) 20 (10bps) (3bps) Customer deposit to loan ratio (%) 82.9 121bps (65bps) Impaired provisions to impaired assets (%) 48.0 (6ppts) Flat Net stable funding ratio³ (%) (NSFR) 121 (4ppts) (4ppts) Total provisions to credit RWA (bps) Collectively assessed provisions to credit RWA (bps) 128 (12bps) (2bps) 116 (1bps) Flat Liquidity coverage ratio (%) (LCR) Total liquid assets 5 ($bn) 132 3ppts (5ppts) 258 13% 6% 1 All measures are on a cash earnings basis. 2 Internationally comparable methodology aligns with the APRA study titled 'International Capital Comparison Study' dated 13 July 2015. 3 NSFR is reported on a spot basis. 4 LCR is reported on a quarterly average basis. 5 Total liquid assets represent cash, interbank deposits and assets eligible for existing repurchase agreements with a central bank in limited circumstance. 41 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#42Cash earnings and reported net profit reconciliation. Cash earnings¹ policy Westpac uses a measure of performance referred to as cash earnings to assess financial performance at both a Group and segment level To calculate cash earnings, reported net profit is adjusted for: Material items that key decision makers at Westpac believe do not reflect our operating performance Items that are not normally considered when dividends are recommended, such as the impact of economic hedges Accounting reclassifications between individual line items that do not impact reported results Westpac will no longer be reporting on a cash earnings basis from 1 October 2022. Details on the implication of these changes will be announced before the 1H23 result Reported net profit and cash earnings ($bn) ■Reported profit Cash earnings 8.1 8.1 6.8 6.8 FY18 FY19 2.3 2.6 FY20 Results Change Change FY22 FY22-FY21 2H221H22 ($m) (%) (%) Cash earnings 5,276 (1) (30) Cash EPS (cents) 148.0 1 (27) Reported net 5,694 4 (26) profit Reported EPS (cents) 159.9 7 (24) Reported net profit and cash earnings adjustments ($m) FY21 FY22 5,458 5,694 Reported net profit 5.7 5.5 5.4 5.3 Fair value (gain)/loss on economic hedges (138) (470) Ineffective hedges 32 32 52 52 Cash earnings 5,352 5,276 FY21 FY22 1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash items reflected in net profit determined in accordance with AAS (Australian Accounting Standards). The specific adjustments outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary shareholders. All adjustments shown are after tax. For further details refer to page 125. 42 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#43Customer franchise. Customer franchise MFI share 1,2 ■Westpac ■St.George brands Customer satisfaction (CSAT)² -Westpac St. George brands Peers Net Promoter Score (NPS)² 15.6% 15.7% 16.4% 16.3% 5.4% 5.2% 5.3% 5.3% 10.2% 10.5% 11.0% 11.0% Consumer 7.6 7.6 6654 -Westpac St.George brands Peers 6.3 5.4 3.5 1.1 -0.1 1H21 2H21 1H22 2H22 ■Westpac ■St.George brands ■ Peers Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 29.0% 14.4% 11.7% 16.3% 5.3% 11.0% -Westpac St.George brands Peers - -Westpac St.George brands Peers 7.1 Peer 1 Peer 2 Peer 3 Westpac Group Customer numbers³ (#m) ■Australian banking Business -3.6 7.7 7.4 7.3 7.3 6.8 New Zealand ■Other4 12.8 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 12.7 12.6 12.7 1.2 1.1 1.0 1.0 -Westpac Peers 1.3 1.3 1.3 1.3 -8.3 -11.4 -22.9 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 -Westpac 10.3 10.3 10.3 10.4 Sep-20 Sep-21 Mar-22 Sep-22 New Zealand Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 70 66 65 62 2222 Peers 227 32 31 23 16 Charts may not add due to rounding 1 Main Financial Institution for Consumer customers. Data at August 2022. 2 Refer page 136 for details of the metric provider. 3 Customer numbers related to businesses sold, held for sale or in run-off at September 2022 have been excluded from all periods. 4 Other includes WIB, Westpac Pacific and Platforms customers. 43 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Westpac GROUP#44Continued migration to digital. More digital Less physical Australian branches (#)1 At 30 September 2022 we had 27 co-located branches Australian ATMs (#) 1,399 1,352 1,270 1,153 1,071 931 891 851 781 732 Digitally active customers³ (#m) 5.48 5.31 5.24 5.15 5.09 Down 7% Down 6% Up 3% Customer franchise Accounts with eStatements Number (#m) eStatements (%) 64 62 60 58 55 13.5 11.9 12.3 12.7 11.2 Up 6% Down 16% Down 14% Up 5% Up 10% Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Call Centre Volume (#m) 4.3 Branch OTC² transactions (#m) Increase in branch volume due to re-opening after COVID-19 restrictions Digital Sales³ - Consumer Sales (#m) Digital transactions 3,4 (#m) 42 45 Sales (%) 45 43 41 356 3.9 3.8 12.9 334 12.5 316 0.37 298 11.7 11.5 0.33 0.32 277 0.32 11.1 0.30 3.4 3.3 Up 3%% Down 12% Up 3% Down 2% Up 17% Up 15% 2H21 1H22 2H22 Up 7% Up 13% 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 2H20 1H21 1 Includes all points of presence including Advisory, Community Banking Centres and Kiosks. Kiosks have been restated in comparatives. Co-located branches refer to a single branch location where more than one brand operates. Each co-located branch is considered two points of presence. 2 Over the counter. 3 Refer to page 136 for definition. 4 Digital transactions include all payment transactions (transfer funds, Pay Anyone and BPAY) within Westpac Live and Compass, excluding. Corporate Online and Business Banking online. 44 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#45Investing in the Westpac digital experience. Business Merchant services Financial tips 887229674 You can apply for an Unsecured Business Loan TACK by &cacy Find out more Label Congratulations Josephine, you're approved Nice work! You've shared your details You've told us about your financial situation We've done the maths and confirmed that you can afford this loan We will be in touch to cover off the finer details and answer and questions you may have. 9:41 Categories wome June 2022 -$3,075.41 Total seres hon alle account 2:11 Cash flow 2012 nor June 2022 Income $3,028.15 Customer franchise $6,103.56 Categories Expenses -83,075.41 -$1,500.00 Rent 487% -5883.20 +Travel Highlights Last 12 months * Westpac app functionalities · • • • Market leading user experience and best in class search and navigation features1 Enhanced self serve capabilities New app for business customers with tailored features Business Hub centralises business functions where users can approve payments and view transactions Simplified payment and authorisation processes allowing users to check, review and authorise payments Improved, <2 second log-on speed 38% increase in mobile only active customers since iOS launch² 39 average monthly app sessions per customer in Sep-22 Digital Mortgage • · Launched capability to provide unconditional home loan approval for selected refinance customers Capabilities include = Automated valuation and title search Electronic verification of identity Auto-verification of income using transactional data Simplified required customer financials and auto verification Automated full approval decision Expansion of capability to continue in FY23 - including making available for more customers and loan types 1 Forrester Research: Digital Experience Review TM - Australian Mobile Banking Apps, Q3 2022. 2 iOS launch in Feb-21. Personal Financial Management • • Launched embedded personal financial management features in the Westpac app Over 720,000 users interacted with this feature since launch in Sep-22 Provides customers with greater insight into their spending based on transaction account data and tools to enable customer to track their spending Key functions, helping customers manage their finances, include Transaction categorisation Cashflow analysis Spending insights Further features to be launched in FY23 45 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#4646 Investing in the Westpac digital experience. Face ID W SAV Reader toy 요 Customer franchise EFTPOS Now Next generation smart terminals • Improved experience for merchants and their customers with Portability for ease of use Digital receipts features to support accessibility Android-based operating system offering integrated apps to support industries, such as retail and hospitality Currently in pilot with new applications, LitePOS (point of sale), cloud-based POS integration app (MX51) and customer loyalty Rolled-out 18,000 new terminals (EFTPOS Now and Connect) EFTPOS Air • • Launching EFTPOS Air, 'Tap on Phone' technology, turning a NFC-enabled Android phone into a payment terminal via an app no additional hardware required - A fast, simple, and cost-effective method of accepting in-person payments for small businesses Flat fee structure, no lock in contract Simple set up approved online and begin taking payments via the app Email receipts and invoices Live sales analytics and reporting Same day business settlement Expanding availability across small business customers from Jan-23 Safety and security Dynamic CVC used by ~13,000 customers per day, reduces card fraud by 80% versus cards with static CVC Biometric fraud detection being used, resulting in better customer experience and less identity theft Real-time blocking of potentially questionable online merchants, ~$58m for 204,000 customers blocked since Jan-22 Progressively rolling-out advanced customer behavioural tool to help combat remote access scams Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#47Our cyber security protection. • Significant increase in our cyber Employees Customers Core Security dddi 208 Suppliers Customer franchise • investment and capability since 2014 Common cyber threats drive increasing threat volumes Participate in and support 12 cyber information sharing communities including with governments and industry participants Monthly investigation of >1,800 alerts or suspicious events 2 Blocked 1.4m malicious or spam emails per month Blocked >700k attack attempts on our internet-facing applications in Aug-22 Responded to and removed >800 =1&T= == =- == ddd 888 phishing sites impersonating Westpac this year =-&T= =--= == == በ System Security Data 11 Monitoring, intelligence and networks Employees We have controls around who we hire; how their access is granted; and monitoring of system use Customers Dedicated controls that seek to protect customers from fraud, including multi- factor authentication Suppliers Subject to security reviews, limited access to our systems and data, and continual performance monitoring System security Integrated approach to security of our systems, e.g. design reviews, patching and secure development Core security Core security capabilities across all systems, e.g. malware prevention, firewalls, email security Monitoring, intelligence and networks 24/7 monitoring for indications of attacks and control weaknesses. Threat detection supported by cyber threat intelligence and information sharing partnerships 47 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#48Customer Outcomes and Risk Excellence (CORE) Program. CORE activities progress1 Sep-21 Mar-22 Sep-22 CORE program in place to address enforceable Design 76% 99% 100% undertaking with APRA signed December 2020 • Aims to strengthen risk Implement 40% 63% 87% governance, improve accountability and enhance risk culture Embed 6% 9% 32% • Board, CEO and Executive accountability Quarterly independent assurance by Promontory Australia 350 activities across 19 workstreams CORE 100% of Embed activities targeted to be complete ~95% of Implement activities targeted to be complete Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2021 2022 2023 1 At 30 September 2022. Completed activities finalised by Westpac. Activities may still be subject to Promontory Australia review. 48 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#49CORE program: Measuring progress towards five target states. CORE We are a well-run 1 business where risk is actively managed A simplified organisational 2 construct with clear accountabilities Three lines of defence 3 is understood and embedded Our people understand 4 risks and proactively manage them Key employee survey results (% score out of 100) "People constructively challenge..." "Clear in how expected to manage risks" 93% 76% 89% 69% Issues raised by first line risk management (Not 2nd or 3rd lines) (%) 74% 67% Sep-20 Sep-22 High-rated issues (No. of open issues) 233 116 Sep-20 Key controls requiring improvement (%) Sep-22 10.8% 10.2% Sep-20 Improved data quality Sep-22 management (Rating out of 5) 4.38 2.64 We're known for 5 execution excellence and getting it done Sep-20 Sep-22 Sep-20 Sep-22 Sep-20 Sep-22 49 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#50Our commitment to sustainability. FY22 progress. Sustainability · Helping when it matters most Supported 1,600+ customers impacted by floods in NSW and QLD with a natural disaster relief package Protecting vulnerable customers 61,000+ gambling blocks applied to customer credit and debit cards 48,000+ transactions blocked containing abusive messages 42,000+ customers assisted by our specialist vulnerability teams Making banking more accessible: awarded first place by the Australian Network on Disability on their Access & Inclusion Top Performers 2021-2022 list Financial education resources accessed by 210,000+ customers through Davidson Institute Assisted 10,000+ Indigenous and remote Australians since 2019 through our Indigenous Connections call centre • Backing a stronger Australia and NZ Over $3.8 billion in new lending 1 to climate change solutions² since 2020 Westpac Scholars Trust³ awarded 100 new scholarships with 640+ active scholars supported since 20154 Introduced a new climate-focused funding priority for selecting scholars Introduced a loan for hybrid and electric cars $20.7m spent with diverse suppliers, including $8.8m with Indigenous-owned businesses Collaborating for impact Joined Net-Zero Banking Alliance (NZBA) and set five 2030 financed emissions sector targets Member of TNFD5 Forum and initiated analysis to identify sectors that are highly dependent on nature or that have a high impact on nature Safer Children, Safer Communities program over $20 million committed in funding to over 50 child safeguarding organisations since commencement of the program ($18.7m paid since 2021) and support for International Justice Mission (IJM) in the Philippines to help rescue 174 victims of exploitation6 Released our fifth Reconciliation Action Plan (RAP): Recognised by Reconciliation Australia at the highest Elevate level RAP leadership project on Free, Prior and Informed Consent (FPIC) to improve our capability in this area and to use our voice to raise awareness Note: See footnotes on page 132. 50 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#51Our plan to become a net-zero, climate resilient bank. • Progress Joined NZBA in July 2022 Set interim 2030 financed emissions targets for five sectors in our lending portfolio, in accordance with our NZBA commitment 01 Net-zero, climate resilient operations • Sustainability Agreements in place to source the equivalent of 100% of our Australian electricity consumption from renewable energy sources¹ by 2025, and planning underway to achieve this same milestone for our international footprint by 2025 • Continue to maintain carbon neutral certification² for our Australian and New Zealand direct operations Updated Climate Change Position Statement and Action Plan (Climate Action Plan) WESTPAC BANKING CORPORATION ABN 33 007 457 141 Climate Change Position Statement and Action Plan estpac GROUP • Continue to support employee and supply chain emissions reductions 02 Supporting customers' transition to net-zero and to build their climate resilience • Engaging with customers and supporting them in their transition • Become transition partner of choice Commencing engagement with agribusinesses on climate change impacts on farm productivity and the role of adaptation measures to improve climate resilience 03 Collaborate for impact on initiatives towards net-zero and climate resilience • Work with governments, industry organisations and/or community partners to improve outcomes to transition to net-zero and build climate resilience • Participated in the Australian Industry Energy Transitions Initiative (AIETI) Founding member of the Australian Sustainable Finance Institute (ASFI) Note: See footnotes on page 132. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 51 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#52Net-zero, climate resilient operations. Progress Sustainability Westpac Group Operational GHG4 Emissions5 (tCO2-e) Before carbon offsets Targets Reduce Scope 1 and 2 GHG emissions by 85% by 2025 and 90% by 2030 against 2016 Reduce Scope 3 supply chain GHG emissions¹ by 35% by 2030 against 2016 70% reduction since 2016 Thousands 29% reduction in 2022 250 200 29% reduction since 2016 12% reduction in 2022 150 Maintain carbon neutral certification Maintained carbon neutral certification² 100 Source equivalent of 100% of global electricity consumption from renewable sources by 2025 52% in 20223 50 50 2016 Baseline ■Scope 1 and 2 GHG emissions ■Scope 3 supply chain (non-financed) GHG emissions 2030 Target - Updated target baselines and Scope 3 supply chain ambition – we will report on these new targets from FY23 • Scope 1 and 2 direct operational absolute emissions reduction target updated to 64% by 2025 and 76% by 2030, relative to a 2021 baseline Scope 3 supply chain (non-financed) absolute emissions reduction target updated to 50% by 2030, relative to a 2021 baseline Note: See footnotes on page 132. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 52 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#53Supporting customers' transition to net-zero. • Sustainability FY22 highlights Largest bank lender to greenfield renewable energy projects in Australia over the past five years1 Achieved over $1.9 billion in new lending² to climate change solutions³ Continued to discuss climate change with WIB customers as a regular part of our engagement, particularly in sectors that have high emissions or significant transition risk Supported WIB and Westpac New Zealand (WNZL) customers across 69 Sustainable Finance transactions with a total volume of $108 billion4 WNZL supported nine customers with Sustainability-Linked Loans - Sustainability Coordinator5 for seven and the Sole Sustainability Coordinator or Green Bond Advisor on all four inaugural Green and Sustainability Bond issuances Investing in the opportunity Building banker capability ~3,000 employees completed ESG fundamentals training 1,100+ employees completed half-day training in partnership with Monash University and ClimateWorks Mobilising sustainable finance Finance for low carbon transition and new scalable technologies First sustainability-linked loan in manufacturing sector in Australia6 Extending our product suite Introduced a loan for hybrid and electric cars Partnered with fintech Cogo to help customers track carbon footprint? WNZL piloted new Sustainable Agribusiness Loan³; expanded loan offerings to enable customers to make their homes warmer, drier and/or more energy efficient Expanded Carbon Trading Desk capability in Australia⁹ Note: See footnotes on page 132. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 53 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#54Targets set for five sectors in our lending portfolio. Sector targets in line with our NZBA commitment. Sustainability For details on our targets and target-setting approach refer to our 'Net-Zero 2030 Targets and Financed Emissions - our methodology and approach'. We continue to integrate and operationalise our targets into our processes and lending decisions. Sector Extractives - Upstream oil and gas² 2030 Financed Emissions Reduction Target¹ 23% reduction in Scope 1, 2 and 3 absolute financed emissions by 2030 (relative to 2021 baseline) We have updated our upstream oil and gas position to support this target Our position provides • We will only consider directly financing greenfield oil and gas projects that are in accordance with the IEA NZE scenario³ or where necessary for national energy security4 We will continue to provide corporate lending where the customer has a credible transition plan in place by 2025 We will work with customers to support their development of credible transition plans prior to 2025 FY21 Baseline 7.5 MtCO2-e (absolute financed emissions) Extractives - Thermal coal mining6 Zero lending exposure to companies with >5% of their revenue coming directly from thermal coal mining by 2030 $216.7m (TCE at 30 Sep 2021) Power generation? Industrials - Cement production³ 0.10 tCO2-e/MWh for Scope 1 and 2 emissions intensity by 2030 0.57 tCO2-e/tonne of cement for Scope 1 and 2 emissions intensity by 2030 0.26 tCO2-e/MWh (emissions intensity) 0.66 tCO2-e/tonne cement (emissions intensity) Australian commercial real estate (large customers with office properties)⁹ Note: See footnotes on page 133. 62% reduction in Scope 1 and 2 emissions 10 intensity (kg CO2-e/m² net lettable area) by 2030 (relative to a 2021 baseline) for Australian large customers with office properties Baseline and progress to be disclosed in FY23 The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 54 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#55Understanding our financed emissions. Our approach to reporting our estimated financed emissions. - Refer to our 'Net-Zero 2030 Targets and Financed Emissions – our methodology and approach' disclosure on our website for more information on our financed emissions analysis, including data sources, assumptions and limitations. Westpac's estimated financed emissions¹ intensity (FY22; kg CO2-e per $ for in-scope exposures) Mining Sustainability Westpac's estimated financed absolute emissions¹ (% of FY22 total absolute emissions for in-scope exposures) Includes 2.103 Upstream oil and gas and Thermal coal mining Transport and storage 3% Property (excluding secured CRE and Residential mortgages) 1% Secured commercial real Includes Manufacturing 0.444 Cement production Includes Utilities 0.313 Power generation Agriculture 0.176 estate (CRE) 3% Residential mortgages 8% Utilities 9% Transport and storage 0.075 Other (non-emissions intensive sectors)² 0.036 Secured commercial 0.023 real estate (CRE) Includes Australian commercial real estate (large customers with office properties) Agriculture 10% Property (excluding secured CRE 0.018 and Residential mortgages) Residential mortgages 0.007 Total Portfolio 0.052 Other (non-emissions intensive sectors) 2 12% 100% Mining 32% Manufacturing 22% Note: See footnotes on page 133. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 55 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#56Climate-related metrics. TCE exposure to customers in the Energy Sector Value Chain ($bn)1. - Sustainability our methodology and approach' For more information, refer to our 2022 Sustainability Index and Datasheet and 'Net-Zero 2030 Targets and Financed Emissions disclosures. Apart from Thermal coal in FY22, definitions used for sectors in the Energy Sector Value Chain currently differ from those used for our 2030 sector targets and financed emissions reporting. Mining and extraction Transport Electricity generation6 00 M Oil and gas refining FY22 FY21 FY20 Oil and gas extraction² 1.87 1.84 2.22 FY22 FY21 FY20 Gas Coal FY22 FY21 FY20 0.54 0.58 0.67 Oil and gas refining FY22 FY21 0.64 0.58 FY20 2.02 Oil and gas exploration² 0.00 0.33 0.56 Black coal 0.18 0.19 0.27 Metallurgical Rail 0.79 0.30 0.28 0.13 0.29 0.21 Brown coal 0.05 0.03 0.03 coal Metallurgical Liquid fuel 0.06 0.12 0.12 coal in Port 0.35 0.32 0.44 0.15 0.02 0.03 diversified miners³ Hydro 0.98 1.26 1.30 LNG terminal5 0.69 0.52 0.57 Thermal coal4 0.20 0.22 0.30 Other renewables 2.35 2.23 1.89 Update on variance between FY21 and FY22 • Distribution and retail FY22 FY21 FY20 Oil and gas 2.58 2.10 1.32 Electricity and gas networks6 3.48 3.80 4.53 Electricity and gas retailers 0.97 1.01 0.77 The energy sector is critical in the transition to a 1.5°C-aligned net-zero emissions economy and we have a role in supporting this change. Customers and transactions in these sectors are assessed using Westpac's ESG Credit Risk Policy, which includes our Climate Action Plan commitments This year, movements in customer exposures have partly been due to commodity prices and exchange rate movements, particularly where exposures are mostly in US$, such as the Oil and Gas sector . In future, we aim to modify our reporting of Energy Sector Value Chain exposure to align with reporting progress against our 2030 sector targets Note: See footnotes on page 133. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 56 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#57Physical and transition risk metrics. Analysis suggests that overall potential risk exposures are likely to be low. Potential physical risk¹ exposure in our Australian mortgage portfolio² (%) % represents proportion of our Australian mortgage portfolio that may be at risk under these climate change scenarios² Sustainability Potential transition risk exposure to 2030 and 2050 in our Australian business and institutional lending portfolio³ (%) % represents proportion of our lending portfolio that may be at risk under these climate change scenarios³ RCP 2.6 RCP 8.5 1.5°C 2°C 3.4% Current 3.6% 2050 3.4% Current 4.1% 2050 0.9% 2030 2.2% 2050 0.6% 2030 1.7% 2050 We used Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) scenarios for the analysis RCP2.6 represents a lower warming scenario indicative of 2°C warming by 2100 RCP8.5 represents a higher warming scenario indicative of 4°C warming by 2100 Note: See footnotes on page 133. We analysed scenarios of how the Australian economy and major industry sectors might perform when constrained in line with transition pathways 1.5°C represents a rapid decarbonisation scenario 2°C represents a decarbonisation scenario The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 57 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#58Comprehensive sustainability reporting. A suite of disclosures for more information and depth. 58 WESTPAC 2022 ANNUAL REPORT Westpac backed Human Rights Position Statement and 2023 Action Plan Westpac GROUP 2022 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Sustainability Supplement estpac GROUP Modern Slavery Statement FY21 WESTPAC BANKING CORPORATION ABN 33 007 457141 WESTPAC BANKING CORPORATION AB 33 QU 157 1 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Climate Change Position Statement and Action Plan Net-Zero 2030 Targets and Financed Emissions Our methodology and approach Simpler, stronger bank. estpac GROUP Westpac GROUP Available at westpac.com.au/sustainability Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack estpac GROU Westpac GROUP 2022 Sustainability Index and Datasheet This Sustainabity Index and Dateshee outlines our key non-inancial performance information and alignment to global sustariability reporting frameworks for the financial year 2022. Our progress against key non-financial performance formation is summarizedforthe last three yeers unless there stator. This document accompanise our 2002 sustainability disclosures and formspat of our reporting suite Sustainability Westpac GROUP Westpac Group Reconciliation Action Plan April 2022-September 2025 WGROUP Westpac GROUP#59Strengthening diversity and inclusion. Building a workforce that reflects the diversity of our customers. Sustainability Targets Gender Equality Maintained 50% Women in Leadership1 for 6 consecutive years In FY23, reporting will focus on women in Senior Leadership which includes the Executive Team, General Managers and their direct reports (excluding administrative or support roles) FY22 progress: 44 % Females Sep-22 Target Target met Westpac Board 40 40:40:202 Executive Team 45 40:40:202 General Managers 39 40 +/-2% Senior Leadership 48 50 +/-2% Women in Leadership 50 50 +/-2% Westpac workforce 55 50 +/-2% Parental policy – increased paid parental leave to 16 weeks and introduced special paid leave and support for pregnancy loss Diversity, Equity & Inclusion Building a workforce where our people feel valued, respected and safe • • • • Group-wide inclusion and diversity survey - 35% employees participated with 74% employees reporting high levels of inclusivity in the workplace Cultural diversity leadership shadowing program delivered with 150 mentoring matches #1 Employer for accessibility in Australian Network on Disability's Access & Inclusion Index GLOBAL LGBTIQA+ Ally program launch and renewed partnership with Out For Australia Defence Reserves Leave policy includes leave for domestic emergencies and natural disasters • 10,000+ members in 10 Employee Action Groups Indigenous Representation Focusing on Meaningful Careers Third Elevate RAP³ released June 2022 (fifth RAP in total) - one of four focus areas is Meaningful Careers Indigenous Senior Leader appointments – Director Indigenous Engagement & Strategy to lead implementation of the RAP and National Manager Indigenous Banking focused on our offering to Indigenous customers 43 internship and 72 traineeship placements of Aboriginal and Torres Strait Islander people in FY22 Aiming to increase % representation of employees who self identify as Aboriginal and Torres Strait Islander. Target of 1.5% by September 2025 Development and mentoring initiatives: Nearly 1,000 Jawun Professional secondments since 2001 Echo Mentoring supporting Indigenous employees Gender equity - reviewed pay equity and improved pay transparency 1 Women in Leadership refers to women in leadership roles across the Group. It includes the CEO, Group Executives, General Managers, senior leaders with significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below General Manager, and Bank and Assistant Bank Managers. 2 40% women, 40% men and 20% of any gender. Westpac Board includes CEO. Executive Team excludes CEO. 3 Reconciliation Action Plan. 59 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#60Earnings drivers Westpac GROUP#61Sep-21 12 Composition of loans¹ (% of total) 4 11 Composition and movement in lending. $744bn Australian lending (CBB, $bn) Up 2% Up 3% 63 63 ■Australian business ■Institutional Australian other consumer New Zealand mortgages New Zealand business/others Other overseas 9 4 724 ■Australian mortgages 715 56 (47) 21 467 456 458 (12) 11 0 563 544 550 Mar-22 New lending: mortgages Repayment: mortgages New lending: business loans Repayment: business loans Net consumer finance Sep-22 Sep-21 Mar-22 Sep-21 Australian mortgage lending ($bn) Up 2% Up 3% Fixed mortgages Variable mortgages Mar-22 63 Movement in gross loans ($bn) Consumer Business Up 4% WIB Up 3% New Zealand² Institutional onshore lending movements ($bn) Charts may not add due to rounding. 1 Gross loans. 2 In A$. The large difference between the NZ$ and A$ movement is due to a -6% change in the exchange rate over the period; September 2022: 1.1354, March 2022: 1.0759. 3 Includes Group Businesses and Specialist Businesses, for gross loans excluding businesses sold and from run-off. 4 Includes business mortgages. 61 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP Sep-22 Sep-21 Mar-22 Net financing flow 4 1 6 69 Up 16% Up 26% Net structured finance flow Other Sep-22 80 60 Up NZ$2.8bn 11 (2) (2) 744 Other Sep-22 Revenue#62Sep-21 Mar-22 Term deposits Customer deposit movements ($bn) Savings Up 9% Transaction Offset accounts 19 Composition of deposits (% of total) Composition and movement in deposits. 550 ■Households 240 247 252 217 $613bn ■Businesses 55 26 191 207 217 199 ■Institutional Customer deposits ($bn) ■Term deposits 580 ■Savings ■Transaction 601 613 Down NZ$0.5bn 25 (18) 4 601 1 613 12 580 601 4 (1) (4) 1 613 580 Up 4% Up 4% Sep-22 Sep-21 Customer deposits ($bn) 142 134 137 162 Mar-21 Sep-21 Mar-22 Sep-22 Charts may not add due to rounding. 1 In A$. The large difference between the NZ$ and A$ movement is due to a ~6% change in the exchange rate over the period; September 2022: 1.1354, March 2022: 1.0759. 2 Includes Group Businesses and Specialist Businesses. 62 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP Mar-22 Consumer Business Up 9% WIB New 1 Zealand Other Sep-22 Revenue#63Net interest margin. Net interest margin (% and bps) Revenue Treasury & Markets impact on NIM NIM excl. Treasury & Markets 28bps Obps 2bps (6bps) (5bps) 1.85 (14bps) 24bps 0.15 (9bps) (5bps) 4bps ¦ 1.70 Cyclical impact from 1.90 0.10 1.80 Exit margin 1.85% rate lag effects 1H22 Loans Customer Funding Capital & other Liquid assets Treasury 2H22 deposits & Markets Australian mortgage new lending (%) Australian deposits¹ by interest rate bands ($bn) Wholesale funding credit spreads² (bps) ■Variable Fixed ■Mar-22 Sep-22 400 180 20 20 30 11 37 52 36 59 300 140 130 39 80 80 70 70 80 63 48 48 200 89 61 100 1H20 2H20 1H21 2H21 1H22 2H22 100 60 60 0 20 ≤25bps 26≤50bps 51≤75bps 76bps+ Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 1 Excludes mortgage offset balances. 2 Wholesale funding credit spreads reflect a blend of A$ and US$ 5-year FRN. 63 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#64Non-interest income.1 Revenue ■Fees Non-interest income by type ($m) ■Wealth management ■Trading Other Non-interest income by segment ($m) ■WIB Consumer ■Business SB NZ GBU 1,652 Up 2% Down 4% 1,613 Up 2% Down 4% 1,574 1,541 1,652 1,574 1,613 18 3 1,541 75 145 139 62 32 36 131 123 35 453 128 339 262 281 385 348 379 373 378 360 354 371 174 174 163 166 258 263 324 288 803 813 845 827 687 626 588 551 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 Net fee income ($m) Wealth management ($m) ■WIB ■Consumer ■ Business ■ Other Trading and other ($m) ■ Trading ■ DVA ■ Other Up 4% Down 2% Down 2% Up 5% 471 Up 3% Down 17% 414 845 803 813 827 378 18 360 371 401 343 354 54 75 109 97 116 110 62 139 172 172 162 165 39 220 232 265 248 399 373 340 223 302 312 302 303 1H21 2H21 1H22 2H22 1H21 2H21 1H22 2H22 1H21 2H21 (34) (59) 1H22 2H22 1 Excluding notable items and businesses sold. Income for businesses sold includes General Insurance, Lenders Mortgage Insurance, Motor Vehicle Finance & Novated Leasing, Vendor Finance, NZ life insurance and Australian life insurance; prior figures have been aligned to current presentation for comparability. 64 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#65Expenses. Expense movements 2H22 - 1H22 ($m) FTE (#) 390 5,366 5,425 (231) 38,823 (3) (597) 5,135 84 (121) (48) (49) (12) 5,035 Down $100m or 2% 1H22 reported Notable items 1H22 ex- Ongoing notable expenses items Investments (ex. Fix) Fix Specialist Businesses Businesses sold 2H22 ex- notable items Notable items 2H22 reported Mar-22 BAU Expense movements FY22 - FY21 ($m) 13,283 (2,347) Expenses 33 33 (734) 37,476 Down 1,347 or 3% Investments Fix Specialist Sep-22 (ex. Fix) one-off Businesses Headcount (#)1 Change Sep-22- 10,936 11 (300) 621 10,791 Sep-21 Mar-22 Sep-22 Mar-22 (320) (84) (73) 10,170 Direct² 43,447 41,088 40,208 (2.1%) Down $766m or 7% Third party³ 19,357 17,442 17,812 2.1% FY21 reported Notable items FY21 ex- notable items Ongoing expenses Investments (ex. Fix) Fix Specialist Businesses Businesses sold FY22 ex- notable items Notable items FY22 reported Total 62,804 58,530 58,020 (0.9%) 1 Headcount refers to number of people. 2 Direct includes people employed directly by Westpac including permanent and temporary staff, and contractors. 3 Third party includes consultants and processing services. 65 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#66Investment and capitalised software. Investment spend mix ($m) ■Perform Simplify 1,720 2,019 Fix Expenses Investment spend ($m) FY21 FY22 Expensed 1,222 883 1,987 Capitalised¹ 797 1,104 Total investment spend 2,019 1,987 1,431 1,312 1,049 Capitalisation of investment increased with higher spend on platforms and infrastructure Down 8% due to completion of several initiatives 283 244 378 Up 55% using digital to simplify and automate activities 388 FY20 344 297 Down 14% as investment directed to Fix & Simplify FY21 FY22 1 Includes capitalised software, fixed assets and prepayments. 66 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#67Select cost reset targets.1 Expenses Metric • Sale of non-core businesses Portfolio simplification Completion of sales FY20 baseline 1 under sale agreement FY22 7 completed 2 under sale agreement FY24 target 11 transactions completed8 • Mortgages processed on digital origination platform² 32% 82% 100% Business simplification • Consumer sales via digital³ • Branch transactions4 • Number of products5 42% 43% 70% 29 million 23 million ~40% less 1,191 805 ~450 • Offshore locations6 8 7 4 Organisational simplification • Reduce third party and contractor spend >$200m per annum? · Reduce head office roles - more than 20% >$200m >$200m p.a (12%) (20%) 1 The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. They have been based upon management's expectations and beliefs concerning future developments and their potential effect on Westpac. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements and statements of expectation. Except as required by law, Westpac is not responsible for updating, or obliged to update, any matter arising after the date of this presentation. The information in this page is subject to the information in Westpac's ASX filings, including in its 2022 Full Year Financial Results and elsewhere in this presentation. 2 Percentage of home loan applications through digital mortgage origination platform for 1st party lending (excluding RAMS). FY24 target refers to both 1st and 3rd party across Consumer and Business. 3 Refer to page 136 for definition. 4 Reduction to FY24 represents decrease on baseline. 5 Includes products for sale and not for sale across Australia and New Zealand, except for institutional products which are for sale only. 6 Represents international locations excluding New Zealand and Westpac Pacific. 7 $200m is based on savings from volume and rate management, and includes consulting engagements. 8 There are two remaining businesses in Specialist Businesses: Platforms and Westpac Pacific. At this point, the sale of Westpac Pacific appears unlikely in the short to medium term. 67 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#682H22 impairment charge of $196m. Impairment charges ($m) Individually assessed New IAPS 466 283 144 97 123 Write-backs & recoveries (147) (194) (203) (166) (138) Collectively assessed Write-offs direct Other mvmts in CAP 940 438 366 318 296 218 228 Impairment charges Total 139 196 (10) (17) (218) (372) (640) (777) 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 2H20 1H21 2H21 1H22 2H22 Impairment charges and stressed exposures (bps) 100 Impairment charge to average loans annualised (lhs) ......Stressed exposures to TCE (rhs) 80 60 60 60 40 40 20 20 Long run average impairment charge to average loans annualised (Ihs) 400 300 200 100 -20 -100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 68 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP 0#69Credit quality and provisions Westpac GROUP#70Provisions for expected credit loss. Key ratios Sep-21 Mar-22 Sep-22 Provisions to gross loans (bps) 70 65 62 Stage 3 CAP ■Stage 1 CAP ■ Stage 3 IAP Total provisions for expected credit losses1 ($m) ■Overlay ■Stage 2 CAP Impaired asset provisions to impaired assets (%) 54 48 48 COVID-19 6,159 Collectively assessed provisions to credit RWA (bps) 117 116 116 708 Expected credit loss¹ (ECL) ($m) $1.6bn in provisions above the base case economic scenario 4,625 2,983 Credit quality 6,680 3,922 171 4,999 Overlays reduced 1,032 4,675 4,625 as some factors 647 now reflected in modelled 700 1,136 provision 788 outcomes 841 818 2,247 791 1,601 Reported probability-weighted ECL 100% base case ECL 100% downside ECL 1,578 1,685 1,258 Higher stage 2 reflecting changes in modelled provision outcomes Base case Downside Forecasts for base case economic scenario² Trough/ 1,561 1,131 2022 2023 peak³ 989 943 947 Small decrease, GDP growth 3.4% 1.0% (6%) mainly in institutional 832 Unemployment Residential property prices 3.1% (6.5%) 4.4% (7.8%) 11% 611 412 501 452 exposures (27%) Sep-19 Sep-20 Sep-21 Mar-22 Sep-22 1 Excludes provisions for debt securities. 2 Forecast date is 19 September 2022. 3 These KEls represent trough or peak values that characterise the scenarios considered in setting downside severity. 70 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#71Provision cover by portfolio category. Exposures as a % of TCE Credit quality Provisioning to TCE (%) Sep-21 Mar-22 Sep-22 ■Fully performing portfolio 91.65 92.10 87.73 Stage 1 reduction driven by changes to modelled outcomes Stage 1 provisions 92.25 Fully performing portfolio Small cover as low probability of default (PD) 0.09 0.10 0.09 Stage 2 provisions (includes portfolio overlays) Non-stressed increase in but significant Non-stressed but significant increase in credit risk credit risk 5.99 Stage 2 increase driven 11.19 7.25 by changes to modelled outcomes Lifetime expected loss based on future economic conditions 2.16 1.92 1.35 6.40 Watchlist & substandard Watchlist & substandard 0.85 Still performing but higher cover reflects deterioration 9.80 10.95 11.05 0.49 Stage 3 provisions 0.40 0.43 90+ day past due and not impaired 90+ day past Reduction in Stage 3 due and not 0.80 impaired 0.68 0.56 0.51 reflects improvement in 90+ day mortgage delinquencies In default but strong security 10.57 10.62 11.07 Impaired assets Impaired 0.26 0.19 0.14 0.13 Sep-20 Sep-21 Mar-22 Sep-22 In default. High provision cover reflects expected recovery 54.43 48.03 47.97 Chart does not add to 100 due to rounding. 71 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#721.24 2.17 1.60 Credit quality metrics improved. Stressed exposures as a % of TCE Watchlist and substandard 90+ day past due and not impaired¹ Impaired Deterioration mostly due to downgrade of one large customer in Australian business to watchlist Reduction from 13bp decrease in mortgage 90+ day delinquencies 1bp improvement from write-offs and customer upgrades, primarily in Australian business and institutional portfolios 1.91 Sep-21 0.85 1.36 1.24 1.20 1.20 2,254 0.85 1.08 1.10 1.05 1.07 0.99 0.49 1,955 0.55 0.71 0.65 0.40 0.43 0.54 0.35 0.31 0.26 0.33 0.48 0.58 0.25 0.34 0.39 0.44 0.27 0.20 0.22 0.26 0.15 0.14 0.17 0.56 0.55 0.80 0.68 0.56 0.51 0.19 0.14 0.13 Sep-15 Sep-16 Sep-17 72 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Sep-18 Sep-19 Sep-20 Sep-21 Mar-22 Sep-22 Movement in stress categories (bps) 136 (5) (12) (1) (8) 110 (1) (1) 4 107 Impaired 90+ dpd not impaired¹ Substandard Watchlist Mar-22 Impaired New and increased gross impaired assets ($m)² 1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes. 2 Includes exposures that are managed on a facility by facility basis. чou pap +06 impaired¹ Substandard 1,555 1,317 1,240 1,029 1,069 921 836 430 Westpac GROUP 1H 2H 1,761 Watchlist Sep-22 Credit quality#73Portfolio composition. Total committed exposure (TCE) by risk grade at 30 September 2022 ($m) Standard and Poor's risk grade¹ AAA to AA- A+ to A- BBB+ to BBB- BB+ to BB BB- to B+ <B+ Mortgages Other consumer products TCE TCE at 30 September 2021 Exposure by region² (%) Credit quality Australia NZ / Pacific Asia Americas Europe Group % of total 207,929 22,192 1,145 13,890 568 245,724 20% 37,923 5,509 1,275 4,386 6,474 55,567 5% 66,313 11,996 2,922 4,033 1,413 86,677 7% 77,537 14,135 554 166 116 92,508 8% 51,964 7,391 282 284 391 60,312 5% 6,482 1,936 34 8,452 1% 536,374 66,866 603,240 51% 29,827 1,014,349 3,595 33,422 3% 133,620 6,212 22,759 8,962 1,185,902 959,067 86% 132,925 5,974 21,092 6,224 1,125,282 11% <1% 2% <1% 100% Loan composition at 30 September 2022 (% of total) Housing Business ■Institutional ■Other consumer 16 71 Total loans $744bn 1 Risk grade equivalent. 2 Exposure by booking office. 11 73 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack No direct exposure to Russia or Ukraine Westpac GROUP#74Loan portfolio composition. Exposures at default¹ by sector ($bn) Finance & insurance² Government admin. & defence Property³ ■Sep-21 ■Mar-22 ■Sep-22 Wholesale & retail trade Agriculture, forestry & fishing Services Manufacturing Property services & business services Transport & storage Utilities Construction4 Accommodation, cafes & restaurants Mining Other 0 50 100 150 200 250 Top 10 institutional exposures to corporations and NBFIs5 (% of TCE) Credit quality 1.2 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1.0 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Mar-22 Sep-22 Top 10 institutional exposures to corporations & NBFIs at 30 September 2022 ($m) S&P rating or equivalent AA- BBB A+ BBB A A 0 500 1,000 1,500 2,000 Clearing house membership 2,500 3,000 1 Exposures at default is an estimate of the committed exposure expected to be drawn by a customer at the time of default. Excludes consumer lending. 2 Finance and insurance includes banks, non-banks, insurance companies and other firms providing services to the finance and insurance sectors. 3 Property includes both residential and non-residential property investors and developers and excludes real estate agents. 4 Construction includes building and non-building construction, and industries serving the construction sector. 5 NBFI is non-bank financial institutions. 74 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#750.4 0.2 0.0 220 Property Credit quality across sectors. Corporate and business stressed exposures by industry sector ($bn) 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 Increase driven by downgrade of one exposure to watchlist Accommodation, cafes & restaurants Stress to TCE by sector Accomm., Wholesale & retail trade 1 Services includes education, health & community services, cultural & recreational and personal & other services. 75 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Agriculture, forestry & fishing Property services & business services Services Manufacturing Construction Property & Sector Property cafes & restaurants Wholesale & Agriculture, business Transport & Finance & retail trade forestry & fishing services Services1 Manufacturing Construction storage Mining Insurance Utilities Mar-22 (%) Sep-22 (%) 2.1 7.6 3.1 3.7 3.6 2.8 2.7 5.5 1.7 0.6 0.1 0.2 2.1 6.8 3.0 3.6 3.2 4.1 2.9 5.4 2.0 0.6 0.1 0.2 Transport & storage Westpac GROUP Mining Finance & insurance Utilities ■Sep-21 Mar-22 ■Sep-22 Credit quality#76Sectors in focus: accommodation, cafes and restaurants; construction. Accommodation, cafes and restaurants Credit quality 22 5 ■Fully Secured Sep-21 Mar-22 Sep-22 Portfolio security composition³ (TCE) (%) Portfolio by sub-sector (TCE) (%) Total committed exposure (TCE) ($bn) 9.6 9.9 10.2 5 ■Accommodation Lending ($bn) 8.2 8.1 8.4 22 As a % of Group TCE 0.85 0.85 0.86 23 ■Partially Secured Unsecured 34 % of portfolio graded as stressed 1,2 12.38 7.64 6.76 38 88 ■Pubs, Taverns and Bars ■Cafes and Restaurants ■Clubs (Hospitality) % of portfolio impaired² 0.94 0.68 0.56 Construction 0 73 Sep-21 Mar-22 Sep-22 Portfolio security composition³ (TCE) (%) Portfolio by sub-sector (TCE) (%) ■Building Construction TCE ($bn) Lending ($bn) 11.2 11.2 11.5 23 6.7 6.8 7.1 As a % of Group TCE 1.00 0.96 0.97 % of portfolio graded as stressed 1,2 18 5.51 5.46 5.37 % of portfolio impaired² 0.86 0.80 0.78 0 ■Fully Secured ■Partially Secured 59 6 ■ Unsecured 27 17 LO 00 8 22 22 15 ■Non-Building Construction ■Site Preparation Services ■Building Structure Services ■Installation Trade Services ■Building Completion Services Other Construction Services 1 Includes impaired exposures. 2 Percentage of portfolio TCE. 3 Fully secured: Secured loan to collateral value ratio ≤ 100%, Partially secured: Secured loan to collateral value ratio > 100%, but < 150%, Unsecured: Secured loan to collateral value ratio > 150%, or no security held. 76 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#77Commercial property Sectors in focus: commercial property. TCE ($bn) Lending ($bn) Sep-21 Mar-22 Sep-22 8 70.0 74.3 76.1 6 51.7 56.5 60.0 4 6.22 6.40 6.42 As a % of Group TCE Median risk grade (S&P equivalent) BB+ BB+ BB+ 2 % of portfolio graded as stressed 1,2 2.16 2.06 2.07 % of portfolio impaired² 0.21 0.16 0.07 Commercial property portfolio composition (TCE) (%) Mar-12 Sep-12 Mar-13 Commercial property exposures % of TCE and % in stress Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Commercial property as % of TCE (lhs) Commercial property % in stress (rhs) Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Region Borrower type ■NSW & ACT ■ VIC 14 27 ■ QLD O 44 9 31 ■ SA & NT ■Investors & developers <$10m ■Developers >$10m 38 13 ■Investors >$10m Sector 4 11 28 ■Commercial offices ■Residential ■Retail 10 ■WA ■Industrial 41 6 ■NZ & Pacific 7 ■Diversified property 24 20 ■ Corporate groups and property ■Institutional trusts >$10m ■Other 1 Includes impaired exposures. 2 Percentage of commercial property portfolio TCE. 77 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP Mar-22 Sep-22 0 20 18 16 14 12 10 8 6 4 Credit quality#78Sectors in focus: Australian agriculture; mining including oil & gas; retail trade. Australian agriculture Credit quality Mining (incl. oil and gas) Retail trade Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 TCE ($bn) 13.0 13.4 13.7 TCE ($bn) 8.4 8.4 7.9 TCE ($bn) 14.0 12.5 11.9 Lending ($bn) 10.5 10.6 10.7 Lending ($bn) 3.6 3.4 3.1 Lending ($bn) 8.6 8.3 8.6 As a % of Group TCE 1.15 1.16 1.16 As a % of Group TCE 0.75 0.72 0.66 As a % of Group TCE 1.24 1.08 1.00 % of portfolio graded as stressed 1,2 3.30 1.96 2.73 % of portfolio graded as stressed 1,2 1.73 0.60 0.62 % of portfolio graded as stressed 1,2 3.68 3.69 3.79 % of portfolio in impaired² 0.41 0.40 0.24 % of portfolio in impaired² 0.17 0.14 0.11 % of portfolio impaired² 1.55 1.42 1.46 8 5 6 5 Australian agriculture portfolio by sub-sector (TCE) (%) 52 0 Mining portfolio by sub-sector (TCE) (%) Retail trade exposure by sub-sector (TCE) ($bn) ■Sep-21 ■Mar-22 ■Sep-22 ■Grain ■Beef & Sheep 24 ■Horticulture 12 33 33 ■Dairy Oil and gas 6.2 5.9 5.8 ■Metal ore Decrease mostly due to sale of wholesale dealer book ■ Cotton ■Fishing & Aquaculture 13 21 ■Services to Agriculture Mining services ■Iron ore Coal 4.2 3.6 3.7 3.4 2.9 2.7 ■ Viticulture 18 ■ Other 32 Other ■Forestry & Logging ■Poultry Personal and household goods retailing Motor vehicle retailing and services Food retailing 1 Includes impaired exposures. 2 Percentage of portfolio TCE. 78 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#79Australian consumer finance. Australian consumer finance portfolio¹ Australian consumer finance delinquencies (%) Credit quality Sep-21 Mar-22 Sep-22 6.00 90+ day delinquencies - 30+ day delinquencies 5.00 Lending ($bn) 13.4 12.8 11.7 4.00 As a % of Group loans 1.9 1.8 1.6 3.00 30+ day delinquencies (%) 3.22 3.06 2.79 2.79 2.00 90+ day delinquencies (%) 1.73 1.64 1.60 1.60 1.00 90+ day delinquencies down 4ps over the period, reflecting 17bps improvement in portfolio, partly offset by 13bps from contraction in portfolio (mostly auto) 0.00 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Australian consumer finance portfolio ($bn) 6.0 6.4 6.4 ■Sep-21 Mar-22 Sep-22 In run-off 13.2 12.8 11.7 Australian consumer finance portfolio balance ($bn) ■Performing loans ($bn lhs) 90+ day delinquencies balance ($bn rhs) 2250 15 3 2 4.8 4.0 3.0 2.4 2.4 2.3 10 1 5 0 0 Credit cards Personal loans Auto loans 2 (consumer) Total consumer finance Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 1 Does not include margin lending. 2 Loans to customers through dealers in Specialist Businesses. These loans will be run-down over their contractual term. 79 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#80Australian mortgage delinquencies. Australian mortgage delinquencies (%) Australian mortgage portfolio Sep-21 Mar-22 Sep-22 Total portfolio 30+ day delinquencies (bps) 220 147 121 4.0 Total portfolio 90+ day delinquencies, including impaired mortgages (bps) 107 88 75 3.0 Investment property loans 90+ day delinquencies (bps) 109 89 75 15 Interest only loans 90+ day delinquencies (bps) 82 66 49 2.0 Customers in hardship¹ including 6mth serviceability 196 75 53 period (by balances, bps) 1.0 Consumer properties in possession (number) 224 201 224 0.0 Impaired mortgages (by balances, bps) 6 5 5 Australian mortgage hardship1 balances (% of portfolio) GN 1.0 0.5 0.0 2.5 2.0 1.5 90+ day delinquencies Mortgage credit quality 30+ day delinquencies COVID-19 deferrals 1.21 0.75 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Australian mortgage 90+ day delinquencies by State (%) NSW/ACT WA ■Non-COVID-19 support ■COVID-19 support 3.0 2.0 0.53 1.0 VIC/TAS SA/NT QLD ALL 0.0 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 1 Financial hardship assistance is available to customers experiencing temporary financial difficulty, including changes in income due to illness, a relationship breakdown or natural disasters. Hardship assistance often takes the form of a reduction or deferral of repayments for a short period. Customer requesting financial hardship assistance, excluding those seeking COVID-19 related support, must provide a statement of financial position and an assessment is made regarding the customer's eligibility. 80 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#81Australian mortgage portfolio Sep-21 Mar-22 Sep-22 balance balance balance 2H22 flow¹ Total portfolio ($bn) 455.6 458.3 467.6 56.4 Australian mortgage portfolio composition. Mortgage credit quality Australian mortgage portfolio and 2H22 flow by product and repayment type (%) ■Sep-21 (Portfolio) Owner occupied (OO) (%) 63.7 64.8 65.8 70.8 ■Mar-22 (Portfolio) ■Sep-22 (Portfolio) 68 60 62 63 Investment property loans (IPL) (%) 33.8 33.4 32.6 29.2 ■2H22 Flows Portfolio loan/line of credit (LOC) (%) 1.9 1.7 1.6 0.1 Variable rate / Fixed rate (%) 62/38 60/40 63/37 89/11 22 23 22 17 12 11 10 12 Interest only (I/O) (%) 15.8 14.2 13.5 16.4 2 2 2 0 4 3 3 3 Proprietary channel (%) 52.8 52.7 51.8 43.6 LOC IPL-I/O IPL-P&I OO-I/O OO-P&I Chart does not add to 100 due to rounding. First home buyer (%) 9.6 10.4 10.1 8.2 Mortgage insured (%) 15.8 15.4 14.7 12.2 2H22 Sep-21 Mar-22 Sep-22 flow1 Average loan size² ($'000) Customers ahead on repayments including offset account balances (%) By accounts 74 74 74 By balances³ 68 68 68 Mortgage losses net of insurance 27 28 2 ($m, for 6 months ending) Annual mortgage loss rate 4 (bps) 2 1 <1 277 280 286 443 33 29 29 سل 21 20 10 1 Australian fixed rate mortgage expiry schedule ($bn, every 6 months to) 57 2 1 2 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Sep-25 Mar-26 Sep-26 Mar-27 Sep-27 Chart does not add due to rounding. 1 Flow is new mortgages settled in the 6 months ended 30 September 2022. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Sep-21 and Mar-22 re-stated for classification changes between 'On time' and '<1 month' ahead categories. Loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 4 Mortgage loss rates for March balances are annualised, based on losses for the 6 months. Mortgage loss rates for September are actual losses for the 12 months ending. 81 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#82Australian mortgage portfolio loan-to-value ratios. Mortgage credit quality Australian housing loan-to-value ratios (LVRs) (%) 100 90 99 80 70 65 60 50 640 40 26 20 26 20 3210 ■2H22 drawdowns LVR at origination ■Portfolio LVR at origination ■Portfolio dynamic LVR 39 45 1 171515 11 1212 667 1 0 20.5 N/A / 0.6 80<=90 90<=95 95<=100 >100 Sep-21 Mar-22 Sep-22 balance balance balance 0 0<=60 60<=70 70<=80 Chart does not add to 100 due to rounding. Australian mortgage portfolio LVRS Serviceability assessment creates a buffer for borrowers Loans are assessed at the higher of or The customer rate, including any life-of-loan discounts, plus the serviceability buffer of 3.0% (up from 2.5% in October 2021) The minimum assessment rate, called the "floor rate”, currently 5.05% • Interest only (I/O) loans are assessed based on the residual principal and interest (P&I) term using the applicable P&I rate, plus a 3.0% buffer • Fixed rate loans are assessed on the variable rate to which the loan will revert after the fixed period, plus a 3.0% buffer Applicant gross income band (2H22 drawdowns, % by approved limits) ■Owner Occupied ■Investment Property 33 33 46 LVR at origination (%) 73 73 73 7 3 Weighted averages² Dynamic LVR1 (%) 50 47 49 49 <75k LVR of new loans³ (%) 71 71 10 70 82 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 9 5 12 0 Chart does not add to 100 due to rounding. 1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source CoreLogic. 2 Weighted average LVR calculation considers size of outstanding balances. 3 Average LVR of new loans is on rolling 6 months. 75k to 100k 100k to 125k 125k to 150k 12 150k to 200k 20 20 16 200k to 500k >500k Westpac GROUP 17 7#83Mar-17 Australian mortgage portfolio repayment buffers. Offset account balances¹ ($bn) Linked to I/O mortgages Mortgage credit quality Australian home loan customers ahead on repayments² (% by accounts) 36 37 39 39 39 Sep-17 Mar-18 ■Linked to P&I mortgages 51 53 33 46 48 40 41 42 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Australian home loan customers ahead on repayments² (% by balances) ■Sep-21 Mar-22 ■Sep-22 21 1 Behind 30 31 30 On time 18 19 19 16 15 16 656666 < 1 Mth < 6 Mths < 1 Yr < 2 Yrs >2 Yrs 53 211 Behind 25 25 25 Sep-21 Mar-22 ■Sep-22 33 33 33 15 15 15 14 14 15 656 6 66 On time < 1 Mth < 6 Mths < 1 Yr < 2 Yrs >2 Yrs Chart does not add to 100 due to rounding. Loans 'on time' and <1 mth ahead (% of balances) 49 49 48 19 19 19 23 23 22 Investment property loans – incentive is to keep repayments high for tax purposes ■Accounts opened in the last 12 months 11 9 10 13 10 11 8 8 8 ■Loans with structural restrictions on repayments e.g. fixed rate ■Residual - less than 1 month repayment buffer Sep-21 Mar-22 Sep-22 Chart does not add to 100 due to rounding. Chart does not add due to rounding. 1 Includes RAMS from September 2020 onwards. 2 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. Includes mortgage offset accounts. 'Behind' is more than 30 days past due. 'On time' includes up to 30 days past due. Sep-21 and Mar-22 re-stated for classification changes between 'On time' and '<1 month' ahead categories. 83 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#84Australian mortgage portfolio underwriting. Credit policy at September 2022 Income Credit Score & • Credit Bureau Expenses Serviceability assessment • Genuine savings deposit requirements Security LMI • • • • • • • • • • • Verified via payslips, tax returns or salary credits, with other supporting documentation such as PAYG payment summaries or ATO Statements (minimum standards apply) Shading of at least 20% applies to less certain income sources i.e. overtime, bonuses Bespoke application scorecards segmented by new and existing customers Credit and score override rates tracked and capped Credit bureau checks required Assessed as the higher of a borrower's HEM¹ comparable expenses or HEM, plus any expenses that are not comparable to HEM (e.g. private school fees, life insurance) HEM is applied by income bands, post settlement postcode location, marital status and dependants 17 expense categories used, aligned with Melbourne Institute guidelines and LIXI standards For serviceability assessment, loans are assessed at the higher of The customer rate, including any life-of-loan discounts, plus the serviceability buffer of 3.0% (up from 2.50% in October 2021), or The minimum assessment rate, called the "floor rate", currently 5.05% (from October 2020, previously 5.35%) For I/O Loans, serviceability is assessed on a P&I basis over the residual term Fixed rate loans assessed on the variable rate to which the loan will revert after fixed period All existing customer commitments are verified Review Westpac Group accounts and Comprehensive Credit Reporting (CCR) to identify customer commitments Limits apply to higher debt-to-income lending; above 7x referred for manual credit assessment Credit card repayments assessed at 3.8% of limit or balance whichever is higher Minimum 5% proof of genuine savings for higher LVR loans (typically LVR >90%). Any Home Owners Grants are not considered genuine savings LVR restrictions apply depending on location, property value and nature of security Restrictions on high-density apartments based in postcode defined areas (generally capital city CBD's) and properties in towns heavily reliant on a single industry (e.g. mining, tourism) Mortgage insurance for higher risk loans, such as LVRS >80%. Special package policy waivers apply for certain professionals and Westpac staff Mortgage credit quality Australian mortgage portfolio by year of origination (% of total book) Calendar year 1 1 1 1 1 2 3 4 5 6 7 7 7 Pre-2006 ◉N 2006 | 2007 2008 2009 → - OLON 2011 2012 10 23 18 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Australian mortgage portfolio by insurance profile² (%) 6 80 O 15 Insurance not required (Low risk profile including loans <80% LVR) Not insured >80% LVR (Special package policy waivers apply for certain professionals and Westpac staff) Insured³ (>80% LVR) Chart does not add to 100 due to rounding 1 HEM is the Household Expenditure Measure, produced by the Melbourne Institute. 2 In Second Half 2021 Westpac Lender's Mortgage Insurance Limited was sold to Arch Capital Group. The sale was completed on 31 August 2021. Westpac has entered into a 10-year exclusive supply agreement for Arch to provide lenders mortgage insurance to the Group. 3 Includes loans where LMI applies to >70% LVR loans, for example, single industry towns. 84 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#85Australian interest only and investment property lending. Interest only (I/O) lending by dynamic LVR1 and income band (% of total I/O lending) 60 24 Applicant gross income bands ■<$100k $100k-$250k ■>$250k Mortgage credit quality Investment property portfolio by number of properties per customer (%) 24 6 21 N 0 ■1 2 4 65 ■ 5 ■6+ 30 28 14 11 13 6 8 <=60% 3 4 60%<=80% Dynamic LVR bands (%) >80% Chart does not add due to rounding. Chart does not add due to rounding. Investment property lending (IPL) portfolio Sep-21 Mar-22 Sep-22 Investment property loans ($bn) 154 153 152 Scheduled I/O term expiry² (% of total I/O loans) 10 portfolio $63bn (13.5% of portfolio) at 30 September 2022 LVR of IPL loans at origination (%) 72 71 71 Weighted LVR of new IPL loans in the period (%) 70 70 70 averages 22 19 18 Dynamic LVR1 of IPL loans (%) 50 47 49 14 15 12 Average loan size³ ($'000) 318 321 326 0<1 Yr 4<5 Yrs 5<10 Yrs 0.3 10 Yrs+w Customers ahead on repayments including offset accounts4 (%) 90+ day delinquencies (bps) Annualised loss rate (net of insurance claims) (bps) 61 61 60 60 109 89 75 2 2 1 1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source CoreLogic. 2 Based on outstanding balance. Excludes line of credit loans, I/O loans without date (including bridging loans and loans with construction purpose) and 1/0 loans that should have switched to P&I but for the previously announced mortgage processing error. 3 Includes amortisation. Calculated at account level where split loans represent more than one account. 4 Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 85 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#86Capital, funding and liquidity Westpac GROUP#87CET1 capital ratio 11.3%, pro forma¹ 11.4%. Capital, funding and liquidity Level 2 CET1 capital ratio movements (%, bps) Key capital ratios (%) Sep-21 Mar-22 Sep-22 Largely due to non-credit RWA, mainly IRRBB2 Capitalised software and other deductions Divestments mainly includes sale of Australian life insurance Level 2 CET1 capital ratio 12.3 11.3 11.3 Additional Tier 1 capital ratio 2.3 2.1 2.1 Tier 1 capital ratio 14.6 13.4 13.4 73 (45) (38) 11.33 10 (9) 18 11.29 11.39 Tier 2 capital ratio 4.2 4.3 5.0 (3) Total regulatory capital ratio 18.9 17.7 18.4 Risk weighted assets 437 460 478 (RWA) ($bn) Leverage ratio 6.0 5.6 5.6 Level 1 CET1 capital ratio 12.6 11.2 11.3 Down 4bps Mar-22 Cash Dividend RWA earnings ex notables De- FX ductions trans- and lation other impact Divest- ments Sep-22 Future Pro forma asset Sep-22 sales1 Internationally comparable ratios4 Leverage ratio 6.6 6.1 6.0 (internationally comparable) CET1 capital ratio 18.2 17.4 17.6 (internationally comparable) 1 Reflecting announced exits relating to Superannuation and the Advance Asset Management business, 10bps (subject to divestment completion occurring) and some separation costs realised in FY22. Related divestment costs have impacted CET1 ratio for 30 September 2022. 2 Interest rate risk in the banking book (IRRBB). 3 The dividend reinvestment plan (DRP) for the 2022 interim dividend was satisfied by the purchase of existing shares by a third party. For the final 2022 dividend, new shares will be issued to DRP participants as Westpac is in discussions on a potential acquisition of Tyro. Shares will be issued with no discount to the market price. 4 Internationally comparable methodology aligns with the APRA study titled 'International Capital Comparison Study' dated 13 July 2015. 87 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#88Risk weighted assets. Risk weighted assets (RWA) ($bn) 15.1 1.2 (0.8) 477.6 • 460.0 2.4 (0.3) 436.7 3Q22: $15.8bn 4Q22: ($0.7bn) Up $17.7bn¹ or 3.8% Sep-21 Mar-22 Credit risk risk Market IRRBB Operational Other Sep-22 risk Movement in credit risk weighted assets ($bn) Improved credit quality metrics, partly offset by an overlay for the mortgage RWA floor Growth in mortgages, corporate and business lending 359.7 357.3 (4.1) 4.7 1.3 0.5 362.1 Capital, funding and liquidity • • RWA up $17.7bn over 2H22 IRRBB RWA up $15.1bn (36bps impact on capital) mainly from a higher regulatory embedded loss from increased market rates, in particular in 2 and 3 year swap rates. An embedded loss occurs as Westpac's equity is invested over a three year investment horizon compared to the regulatory investment term of one year Credit RWA increased $2.4bn (6bps impact on capital) mainly from higher exposures across residential mortgages and corporates IRRBB RWA¹ ($bn) Embedded loss/(gain) Optionality and basis risk Repricing and yield curve risk 3y Swap rate (in %) 4.05 11 12 1.28 16 3.63 43 43 2.60 236 27 20 157 17 Up $2.4bn or 0.7% 3 0.52 19 24 21 13 10 8 (4) (1) Sep-21 Mar-22 Credit quality Lending Counterparty FX Sep-22 credit and translation mark-to-market Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 1 Chart may not add due to rounding. risk 88 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#89CET1 capital ratio operating range. Capital, funding and liquidity 10.5% Unquestionably strong benchmark Unquestionably strong buffer (2.5%) Capital Conservation Buffer (2.5%) and D-SIB (1.0%) Minimum Prudential Capital Requirement (4.5%) CET1 capital ratio of 11.29% at Sep-22 Operating range 11.0% -11.5% Buffer 0.75% Countercyclical capital buffer (1.0%) Capital Conservation Buffer (3.75%) and D-SIB (1.0%,) Minimum Prudential Capital Requirement (4.5%) CET1 capital operating range We will seek to operate with a CET1 capital ratio of between 11.0% and 11.5% (including to account for dividend payments) in normal operating conditions under the new capital framework from 1 January 2023 On 29 November 21, APRA finalised its capital framework, increasing the top of the CET1 capital ratio level for Domestic Systemically Important Banks (D-SIBS) from 8% to 10.25% from 1 January 2023 Under the new framework, the capital conservation buffer increases from 2.5% to 3.75% and a base level for the countercyclical capital buffer (CcyB) of 1.0% was introduced. The D-SIB buffer of 1% continues to apply APRA indicated that it expects the D-SIBS will likely operate with a CET1 capital ratio above 11% in normal operating conditions from 1 January 2023 Current APRA requirements¹ New APRA requirement from 1 Jan-231 1 Noting than APRA may apply higher CET1 capital ratio requirements for an individual authorised deposit-taking institution (ADI). 89 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#90Regulatory capital changes. Implementation Change Details • Progressive implementation from 1 January 2022 to 1 July 2028 Capital, funding and liquidity Current and finalised by RBNZ Capital Review 1 Jul 2028 1 Jan 2023 1 Jan 2024 1 Jan 2023 APRA's revisions to the ADI capital framework CPS 190 Financial Contingency Planning CPS 900 Resolution Planning Leverage ratio 1 Jan 2024 and 1 Jan 2026 Loss Absorbing Capacity (LAC) 1 Jan 2024 1 Jan 2025 APS117 - IRRBB APS116 - Market Risk IRB banks (including WNZL) subject to an 85% output floor of RWA required under the standardised approach applicable from 1 January 2022 and an increased IRB scalar of 1.2 (from 1.06) effective 1 October 2022 D-SIB Total capital requirements increasing to 18% by 1 July 2028. Includes Tier 1 capital requirement of 16% of which 13.5% must be CET1 capital Existing capital instruments that contain contractual non-viability triggers are no longer fully eligible as capital, with the qualifying amount being phased-out over the implementation timeline APRA's final capital standard includes • Increasing the CET1 capital requirement for D-SIBS from 8.0% to 10.25% through higher regulatory buffers, capital conservation buffer (to 4.75% from 3.5%)¹ and base level countercyclical capital buffer of 1.0% Adjustments to RWA calculations for certain assets (residential mortgages, non-retail lending) Implementing a 72.5% output floor to limit the capital benefit for Advanced ADIs relative to Standardised ADIS RWA for New Zealand subsidiaries to be determined under RBNZ rules at the consolidated group level APRA has released two draft prudential standards for consultation for banks to Develop plans to respond to financial stress Prepare for resolution with limited adverse impacts on the community and financial system, in the event of their failure Proposed minimum 3.5%. At 30 September 2022, our leverage ratio was 5.6% APRA requires D-SIBS to lift the total capital ratio by 4.5% of RWA, comprising 3% by 1 January 2024 and by a further 1.5% by 1 January 2026, to a minimum total capital ratio of for D-SIBSs of 18.25% At 30 September 2022 our Tier 2 capital ratio was 5.0% and our total capital ratio was 18.4%. Any additional total capital required is expected to be met through additional Tier 2 capital, likely to be offset by a decrease in long-term wholesale funding Non-traded: standardising aspects of the calculation of IRRBB capital to reduce volatility over time and variation between ADIS Traded: APRA is yet to commence consultation on Fundamental Review of the Trading Book 1 Includes 1% D-SIB buffer. 90 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#91Internationally comparable capital ratio reconciliation. Capital, funding and liquidity APRA's Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported capital ratios by Australian banks. In July 2015, APRA published a study that compared the major banks' capital ratios against a set of international peers¹. The following details the adjustments from this study and how Westpac's APRA Basel III CET1 capital ratio aligns to an internationally comparable ratio. Westpac's CET1 capital ratio (APRA basis) Equity investments 11.3 Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA's requirements Balances below prescribed threshold are risk weighted, compared to a 100% CET1 deduction under APRA's requirements 0.1 0.4 Interest rate risk in the banking book (IRRBB) APRA requires capital to be held for IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB 1.4 Deferred tax assets Residential mortgages Unsecured non-retail exposures Non-retail undrawn commitments Specialised lending Currency conversion threshold Capitalised expenses Loss given default (LGD) of 15%, compared to the 20% LGD floor under APRA's requirements. APRA also applies a correlation factor for mortgages higher than the 15% factor prescribed in the Basel rules LGD of 45%, compared to the 60% or higher LGD under APRA's requirements Credit conversion factor of 75%, compared to 100% under APRA's requirements Use of internal-ratings based (IRB) probabilities of default (PD) and LGDs for income producing real estate and project finance exposures, reduced by application of a scaling factor of 1.06. APRA applies higher risk weights under a supervisory slotting approach, but does not require the application of the scaling factors 2.0 0.7 0.5 0.6 Increase in the A$ equivalent concessional threshold level for small business retail and small to medium enterprise corporate exposures 0.2 APRA requires these items to be deducted from CET1. The BCBS only requires exposures classified as intangible assets under relevant accounting standards to be deducted from CET1 Internationally comparable CET1 capital ratio Internationally comparable Tier 1 capital ratio Internationally comparable total regulatory capital ratio 1 Methodology aligns with the APRA study titled "International capital comparison study", dated 13 July 2015. 0.4 17.6 20.6 27.8 91 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#92Well placed on internationally comparable. Common equity Tier 1 ratio (%)¹ 20% 15% Capital, funding and liquidity 10% 5% 0% ANZ CBA NAB Westpac, 17.6% Danske Bank Nordea Unicredit Bank of Montreal NatWest Morgan Stanley Norinchukin Bank Rabobank BPCE Toronto Dominion Bank ING Group Lloyds UBS Leverage ratio (%)¹ 9% Lo Lo No co to 00 00 0 0 3% 2% 4% 5% 6% 7% 8% 1% 0% Norinchukin Bank ICBC China Merchants Bank Bank of China China Construction Bank Agricultural Bank of China BBVA Rabobank Credit Suisse ANZ Westpac, 6.0% UBS CBA NatWest Unicredit Goldman Sachs HSBC NAB Lloyds Bank of Montreal Intesa Sanpaolo ING Group Barclays BPCE Sumitomo Mitsui Nordea Mitsubishi UFJ Santander Danske Bank Commerzbank Royal Bank of Canada Standard Chartered Toronto Dominion Bank Deutsche Bank CIBC Scotiabank Mizuho FG Societe Generale BNP Paribas Credit Agricole SA JPMorgan Chase Sumitomo Mitsui Standard Chartered Commerzbank HSBC Credit Suisse China Construction Bank Barclays ICBC Royal Bank of Canada Deutsche Bank Societe Generale Intesa Sanpaolo BBVA China Merchants Bank Santander BNP Paribas Bank of America Mizuho FG CIBC Citigroup Scotiabank Bank of China Credit Agricole SA Agricultural Bank of China Mitsubishi UFJ Wells Fargo 1 Comparison group comprises listed commercial banks with assets in excess of A$700bn and which have disclosed fully implemented Basel III ratios or provided enough to estimate. Based on company reports/presentations. Ratios at 30 June 2022, except for Westpac and ANZ which are at 30 September 2022, NAB at 31 March 2022 and Bank of Montreal, Scotiabank, Royal Bank of Canada, CIBC and Toronto Dominion are at 31 July 2022. Leverage ratio is on a transitional basis. Where accrued expected dividends have been deducted and disclosed, these have been added back for comparability. US banks are excluded from leverage ratio analysis due to business model differences, for example from loans sold to US Government sponsored enterprises. NAB has not disclosed an internationally comparable leverage ratio since September 2017. Shows ratios at the last reporting date, which may take account of measures taken in response to COVID-19. 92 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#93Sep-18 Sep-19 Chart does not add to 100 due to rounding Balance sheet funding. Maintained a high level of customer deposit funding in FY22. Funding composition (%) By residual maturity Capital, funding and liquidity Customer deposits and net loans ($bn) Wholesale onshore <1yr1 Customer deposits Net loans Customer deposits to net loans ratio (%) 5 7 57 6 65 6 Wholesale offshore <1yr1 79.8 81.6 83.5 82.9 6 Wholesale onshore >1yr Wholesale offshore >1yr Securitisation 4 5 CO 6 6 5 Equity² 690 711 720 740 580 601 613 550 12 12 10 8 8 83 63 63 63 65 95 8 ∞ -ō Customer deposits 9 +7 816 11 1 Mar-21 Sep-21 Mar-22 Sep-22 65 55 65 55 Customer deposits 70% of total funding excluding equity Net stable funding ratio (%) 1.8 0.7 125 1.0 (0.2) 121 (4.2) (3.5) Sep-20 Sep-21 Sep-22 93 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 1 Includes long term wholesale funding with a residual maturity less than or equal to 1 year. 2 Equity excludes FX translation, available-for-sale securities and cash flow hedging reserves. Mar-22 Capital Retail & SME Deposits Corporate & Institutional Deposits Wholesale funding and other Residential Mortgages ≤35% Risk Weight Other loans, liquids & other Westpac GROUP Sep-22#94Liquidity coverage ratio 132%. CLF reduction almost complete. Liquidity coverage ratio¹ (LCR) (quarterly average, $bn) September qtr 2021 LCR 129% 174 March qtr 2022 LCR 137% Capital, funding and liquidity Liquidity coverage ratio¹ (quarterly average, %) September qtr 2022 LCR 132% 4 137 197 28 191 16 (8) (5) (1) 5 132 37 144 134 34 10 137 90 36 12 169 96 96 145 Includes removal of net cash outflow overlay 31 13 2 176 Mar-22 Qtr HQLA CLF Customer Wholesale Other flows Deposits funding Sep-22 Qtr 101 Net cash outflows Liquid assets Net cash outflows Liquid assets Net cash outflows Liquid assets Net cash outflows (NCOs) Liquid assets Other flows² Committed Liquidity Facility (CLF) Wholesale funding High Quality Liquid Assets (HQLA) Customer deposits Westpac CLF phase-out ($bn) 37.00 27.75 30/09/2021 1/01/2022 18.50 1/05/2022 9.25 1/09/2022 0 1/01/2023³ 1 LCR is calculated as the percentage ratio of stock of liquid assets over the total net cash outflows in a modelled 30 day defined stressed scenario. Liquid assets include HQLA as defined in APS 210, RBNZ eligible liquids and CLF eligible securities. 2 Other flows include credit and liquidity facilities, collateral outflows and inflows from customers. Other flows also includes the net cash outflow overlay. Effective 1 January 2021, the Group was required to increase the value of its net cash outflows by 10% for the purpose of calculating LCR, in response to action taken by APRA for breaches of Westpac's liquidity requirements predominantly relating to WNZL. The overlay was removed from 1 September 2022. 3 Per APRA updated guidance, the CLF will now cease to exist by 1 January 2023 instead of 31 December 2022. 94 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#95Long term wholesale funding. $43 billion in new term funding, including $4 billion pre-funding. Term debt issuance and maturity profile1 ($bn) Capital, funding and liquidity 37 Issuance Maturities 43 40 38 32 32 34 35 31 12 29 29 18 FY22 term debt issuance² (%) By program (%) 5 26 26 14 Charts may not add due to rounding. By currency (%) Senior bonds 334 Covered bonds 13 ■Securitisation 52 ■Tier 2 capital ■ Hybrid 41 FY25 FY26 21 24 FY27 32 32 24 24 >FY27 ■Funding for Lending Programme (NZ) ■Term Funding Facility (Aus) ■Subordinated debt ■Senior/Securitisation ■ Hybrid ■Covered bond By tenor (%) ■ AUD 21 ■ USD 36 33 33 ■ EUR ■GBP ■ 3 years ■4 years ■ 5 years ■ NZD ■>5 years 36 10 ■ Other 1 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. Contractual maturity date for hybrids and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. Perpetual sub-debt has been included in >FY27 maturity bucket. Maturities exclude securitisation amortisation. 2 Data excludes Funding for Lending Programme which allows eligible banks to borrow directly from the RBNZ at the official cash rate (OCR). It started on 7 December 2020 and ran until 6 June 2022 for the initial allocations, and will run until 6 December 2022 for the additional allocations. 95 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#96Tier 2 capital issuance and maturities. Well positioned to meet LAC requirements. Westpac Tier 2 issuance and calls/maturities 1,2,3 (notional amount, A$bn) 14.0 12.0 10.0 Issuance 1 Maturities FY23 issuance expected to be approx. $4-5 billion¹ subject to market conditions Capital, funding and liquidity 8.0 12.8 6.0 4.0 6.2 5.2 2.0 4.2 3.2 3.1 2.2 2.3 0.0 FY19 FY20 FY21 FY22 1.2 FY23 1.4 FY24 FY25 FY26 FY27 >FY27 Loss Absorbing Capacity (LAC) Requirements (%) ■Tier 2 LAC 6.5 5.0 4.5 3.0 5.0 Westpac September 2022 2.0 January 2024 Requirements 2.0 January 2026 Requirements Westpac Tier 2 capital¹ (notional amount, %) By format4 By currency4 23 O 77 ■Callable 14 4 6 32 FO ■ Bullet 72 USD ■AUD Domestic ■AUD EMTN ■ EUR ■JPY ■ SGD Chart does not add to 100 due to rounding 1 Excludes Westpac New Zealand Limited. RBNZ Tier 2 does not count for APRA TLAC requirements. 2 Represents A$ equivalent notional amount using spot FX translation at date of issue for issuance and spot FX translation at 30 September 2022 for maturities. 3 Securities in callable format profiled to first call date. Securities in bullet format profiled to maturity date. 4 Represents A$ equivalent notional amount using spot FX translation at 30 September 2022. 96 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#97Segment results Westpac GROUP#98Segment¹ contributions. Segments FY22 cash earnings ($m) Consumer Business WIB NZ² Specialist Businesses Group Businesses Group Net interest income 8,985 3,027 1,110 2,106 474 903 16,605 Non-interest income 612 329 1,139 397 (152) 71 2,396 Expenses (4,689) (1,896) (1,181) (1,072) (1,047) (906) (10,791) Core earnings 4,908 1,460 1,068 1,431 (725) 80 68 8,210 Impairment (charges)/benefits (201) (143) (85) 25 67 2 (335) Tax & non-controlling interests (1,416) (399) (296) (381) (65) (42) (2,599) Cash earnings 3,291 918 687 1,075 (723) 28 5,276 Cash earnings contribution 62% 18% 13% 20% (14%) 1% FY22 notable items ($m) Consumer Business WIB NZ² Specialist Businesses Group Businesses Group Net interest income (1) (1) Non-interest income 118 (1,011) (893) Expenses Core earnings Impairment charges Tax and non-controlling interests (66) (66) (365) (190) (621) 117 (1,376) (190) (1,515) 19 Cash earnings impact (47) 1 Refer to segment descriptions, page 135. 2 NZ in A$. 150 54 54 223 117 (1,226) (136) (1,292) 98 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#992H21 1H22 Consumer 2H22 performance. Cash earnings ($m) AIEA up 1%, NIM up 7bps from higher deposit spreads, partly offset by lower loan spreads Simplification initiatives, organisational redesign and completion of some regulatory projects One-off payment received in 1H22 in relation to a distribution agreement for general insurance Large turnaround due to a CAP charge reflecting a changed economic forecast 1,780 1,646 115 (255) 231 (36) Up $46m or 3% Down $1m or flat Net interest income Non-interest income Operating expenses Impairment charges Tax and NCI Consumer Change Key financial metrics 2H21 1H22 2H22 on 1H22 Revenue ($m) 4,985 4,701 4,896 4% Net interest margin (%) 2.27 2.09 2.16 7bps Expense to income (%) 50.6 50.4 47.4 (300bps) Customer deposit to loan ratio (%) 57.6 59.3 59.1 (18bps) Stressed exposures to TCE (%) 0.98 0.81 0.68 (13bps) Mortgage 90+ day delinquencies (%) 1.07 0.88 0.75 (13bps) 1,692 (47) 1,645 Key operating metrics Main financial institution 1 (%) Change 2H21 1H22 2H22 on 1H22 15.7 16.4 16.3 (10bps) Active digital banking customers² (#m) 5.24 5.31 5.48 3% Active new Westpac app 1.7 2.5 2.7 8% customers³ (#m) 2H22 ex-notable items Notable items 2H22 Branches (#)4 ATMs (#) 99 1 Refer page 136 for metric definitions and details of provider. 2 Includes all brands, consumer and business customers. 3 Users of the new Westpac app only, includes consumer and business customers. 4 Includes all points of presence including Advisory, Community Banking Centres and Kiosks. Kiosks have been restated in comparatives. Co-located branches are considered two points of presence. There are 27 co-located branches open for all Westpac brands customers. Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP 851 781 732 (49) 1,270 1,153 1,071 (82)#1002H21 1H22 542 239 Business 2H22 performance. Cash earnings ($m) Simplification, organisational redesign and completion of risk and compliance programs AIEA up 5%, NIM increased 74bps from higher deposits spreads, partly offset by lower loan spreads Net interest income Non- interest income 68 381 3 Up $440m or 184% Operating expenses Impairment charges 100 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Tax and NCI Change Key financial metrics 2H21 1H22 2H22 on 1H22 Impairment benefit from release in overlays no longer required, partly offset by the changed economic forecast Revenue ($m) 1,625 1,486 1,870 26% Net interest margin (%) 3.69 3.33 4.07 74bps Expense to income (%) 71.7 66.1 48.9 Large 173 (185) Customer deposit to loan ratio (%) 164.0 166.4 157.1 Large 679 Stressed exposures to TCE (%) 5.90 5.07 5.05 (2bps) 2H22 1 Refer page 136 for metric definitions and details of provider. 2 Share of sales made digitally for eligible products. Refer page 136 for metric definitions. Change Key operating metrics 2H21 1H22 2H22 on 1H22 Main financial institution 1 (%) 20.6 21.5 21.7 Up 20bps Customer satisfaction¹ (rank) - Westpac Brand =#2 =#1 =#2 Down 1 Customer satisfaction - SME1 =#2 =#1 =#2 Down 1 (rank) Westpac Brand Digital sales2 (%) 31 28 29 1ppt Westpac GROUP Business#101WIB 2H22 performance. Westpac Institutional Bank Change Cash earnings ($m) DVA charge and lower customer markets income, partly offset by higher non-customer markets income AIEA up 13%, NIM increased 17bps from deposit spreads and balance sheet growth: loans up 15% and deposits up 11% Higher staff expenses, payments and technology investments and uplift in ESG capabilities Lower impairment charge due to lower IAP, higher write-backs and less impact from overlays Key financial metrics 2H21 1H22 2H22 on 1H22 Revenue ($m) 1,084 1,069 1,180 10% Net interest margin (%) 1.24 1.17 1.34 17bps Expense to income ratio 67.4 54.0 51.2 (279bps) (ex notable items (%)) Net loans 67.7 74.0 85.2 15% Customer deposits 99.3 104.7 116.6 11% 148 (37) (27) 31 (40) Customer deposit to loan ratio (%) 146.6 141.5 136.8 (Large) 381 306 Stressed exposures to TCE (%) 0.64 0.20 0.35 15bps Change Key operating metrics 2H21 1H22 2H22 on 1H22 Up $75m or 25% Customer revenue¹ ($m) 1,073 1,127 1,236 10% (831) Derivative valuation adjustment (DVA) ($m) 44 (29) (59) 103% Trading revenue (non-customer) ($m) 25 45 34 34 50 64 88% 2H21 1H22 Net interest income Non-interest income Operating expenses Impairment charges Tax and NCI 2H22 Other² (58) (63) (61) (3%) Revenue per average FTE ($'000) 426 415 455 10% 1 WIB customer revenue is lending revenue, deposit revenue, sales and fee income. 2 Other includes bank levy and capital benefit. 101 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#102102 2H21 430 New Zealand 2H22 performance.1 Change Cash earnings (NZ$m) Key financial metrics 2H21 1H22 2H22 on 1H22 Loss of income following the sale of NZ life insurance Increased regulatory, risk and compliance expenses, and higher technology resilience costs Revenue (NZ$m) 1,218 1,389 1,320 (5%) Net interest margin (%) 1.94 1.98 2.03 5bps AIEA up 4%, NIM up 8 bps from higher deposit spreads Increase in impairment benefit due to improved credit metrics Expense to income (%) 48.9 40.6 45.0 Large Customer deposit to loan ratio (%) 82.0 83.4 80.5 (292bps) 635 (131) 90 (16) (30) Stressed exposures to TCE (%) 1.19 1.14 0.97 (17bps) 7 (18) 537 (7) 530 504 Up $33m or 7% Down $105m or 17% 1H22 Add back notable items 1H22 ex-notable items Net interest income Non-interest income Operating expenses Impairment charges Tax and NCI 1 In NZ$ unless otherwise noted. 2 Refer to page 136 for details of metric definition and provider. Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 2H22 ex-notables Notable items 2H22 Key operating metrics Customers (#m) Sep-21 Mar-22 Sep-22 Change Mar-22 1.33 1.35 1.37 1% Branches (#) 116 114 115 +1 ATMs (#) 464 446 439 (7) Consumer NPS2 +14 +10 +7 (3) Business NPS2 (14) (6) +1 +7 Agri NPS2 +13 +33 +20 (13) Funds (NZ$bn) (spot) 12.0 11.7 10.9 (7%) Westpac GROUP New Zealand#103New Zealand balance sheet. Net loans (NZ$bn) 1.0 96.8 1.8 94.0 92.6 Up 3% Deposits (NZ$bn) 75.9 New Zealand 0.9 (1.4) 78.4 77.9 Down 1% Sep-21 Mar-22 Consumer Business Sep-22 Sep-21 Mar-22 Consumer Business Sep-22 Loans (NZ$bn) and % of total Customer deposits (NZ$bn) and % of total Up 2% Up 2% Up 3% Up 2% Up 3% Down 1% 97 ■Business 91 93 94 78 78 ■Personal 74 76 Transaction Savings Term deposits Mortgage 32 31 31 32 1 1 1 33% 58 61 62 64 1% O 26 25 24 26 32% 41% 21 22 21 22 66% 29 28 30 32 27% Mar-21 Sep-21 Mar-22 Sep-22 103 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Mar-21 Sep-21 Mar-22 Sep-22 Westpac GROUP#104New Zealand business exposures. Business stressed exposures as a % of business TCE 5.5 4.4 ■Impaired 90+ day past due and not impaired ■ Watchlist & substandard 3.3 3.1 5.0 2.6 4.0 2.0 3.0 1.5 2.9 2.2 1.6 1.3 0.1 0.1 0.1 0.5 0.3 0.3 10.1 0.3 8:3 0.2 0.1 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 00 Business TCE by industry sector % 6 CO 6 5 4 33714 10 14 27 27 16 ■Finance & insurance New Zealand ■Agriculture, Forestry and Fishing ■ Property ■Government administration & defence ■Trade ■Manufacturing ■ Utilities ■Services ■Transport & storage Property & business services ■Construction Accommodation, cafes & restaurants Other industries Chart may not add due to rounding. Agribusiness¹ portfolio Milk price (NZ$ kg Ms) Sep-21 Mar-22 Sep-22 Westpac Economics forecast TCE (NZ$bn) 10.6 10.6 10.5 Agriculture as a % of total TCE 7.7 7.4 7.2 9.30 9.25 % of portfolio graded as 'stressed'² 5.7 6.1 4.8 7.14 7.54 6.35 % of portfolio impaired 0.13 0.08 0.03 2018/19 2019/20 2020/21 2021/22 2022/23 1 Includes forestry and fishing. 2 Includes impaired exposures. 104 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#105New Zealand consumer portfolio. Mortgage 90+ day delinquencies¹ Mortgage portfolio Sep-21 Sep-22 (%) 0.6 0.5 Total portfolio ($bn) 60.9 63.8 0.4 0.3 Owner occupied (OO) (%) 72.3 73.3 0.2 0.1 Investment property loans (IPL) (%) 27.7 26.7 0.0 0.0 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Broker introduced (%) 46.7 50.1 Proprietary channel (%) 53.3 49.9 Mortgage portfolio LVR2 (% of portfolio) Sep-22 0.12 Fixed/Floating split (%) 88/12 90/10 94% of mortgage portfolio has an LVR less than 80% 0.10 0.08 53% Interest only (I/O) (%) 20.4 17.9 0.06 0.04 Origination LVR 22% 19% 8.5 8.6 80-90% (%) 0.02 4% 2% 0.00 Origination LVR 2.4 2.3 >90% (%) 0<=60 60<=70 70<=80 80<=90 90+ 105 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 1 In May 2019 we made changes to the reporting of customers in hardship to align to the method used by APRA. 2 LVR based on current loan property value at latest credit event. 0.22 1.0 10 Sep-13 0.0 00 Mar-14 2.0 Sep-14 Unsecured consumer 90+ day delinquencies¹ (%) 3.0 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Mortgage loss rates (%) 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22 Westpac GROUP 0.01 Sep-22 1.03 New Zealand#1062H21 56 Specialist Businesses 2H22 performance. Cash earnings ($m) Reduction in transitional service payments related to businesses sold and lower life insurance income Lower income from reduced auto finance balances following sale and run-down of auto finance portfolio 114 246 (10) (23) Lower expenses from simplification, lower investment spend and divestment of businesses Specialist Businesses Change Key financial metrics 2H21 1H22 2H22 on 1H22 Average funds ($bn) 223.8 224.9 209.5 (7%) Spot funds ($bn) 227.4 222.9 198.8 (11%) Platforms deposits ($bn) 6.1 5.7 6.8 19% Platform FUA share 18.8 18.3 17.8 (9) (50bps) (3) 257 (1,112) (exc. Corp Superannuation) 1 (%) Margin lending ($bn) 1.5 1.5 1.3 (13%) 132 Up $11m or 4% 45 Auto finance loans ($bn)² 10.6 8.8 7.1 (19%) Westpac Pacific loans 1.4 1.3 1.4 8% (855) Down $987m or Large Loss on completion of the sale of Australian life insurance 1H22 Add back notable items 1H22 ex-notable items Net interest income Non-interest income Operating expenses Impairment charges Tax and NCI 106 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 2H22 ex-notables Notable items 2H22 1 Plan For Life, 30 June 2022. 2 Reduction reflects -$1bn of wholesale dealer loan book to Angle Finance (in 1H22) and run-down of remaining Auto Finance portfolio (2H22). Financials excluding notable items and businesses sold 2H21 1H22 2H22 Change on 1H22 Operating income ($m) 596 615 605 (2%) Operating expenses ($m) (383) (350) (303) (13%) Core earnings ($m) 213 265 302 14% Net profit ($m) 124 207 241 16% Westpac GROUP#107BT Panorama. Specialist Businesses Panorama Platform Increased Panorama capabilities Improved mobile app functionality, with BT Panorama winning Best Mobile Platform and Best Client Portal for the fourth consecutive year¹ Expanded digital capability Delivered client fee consent functionality Added 24/7 virtual assistant to the mobile app - Launched real time workflow tracking for advisors Platform updates and feature improvements based on adviser and member feedback BT ranked #1 platforms business with 17.8% share, excluding corporate superannuation Panorama FUA was $95.9bn with net flows for FY22 of $1.9bn. Market volatility across equity and bond markets had an adverse impact on FUA FUA on BT Panorama³ ($m) Investors on BT Panorama³ (#) ■FUA Investors 250,809 ■BT Wrap migration 104,779 105,012 234,948 236,741 ■BT Wrap migration 95,891 49,593 115,369 Down 9% Up 6% 31,240 67,109 Down 8% Up 7% Sep-20 Mar-21 Active advisers on BT Panorama (#) Sep-21 Mar-22 Sep-22 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 SMSF funds on BT Panorama (#) 6,034 6,059 6,142 25,320 26,003 23,528 3,524 3,017 14,118 12,310 Up 1% Down 10% Sep-20 Mar-21 Up 2% Sep-21 Mar-22 Sep-22 Sep-20 Mar-21 Sep-21 Down 7% Mar-22 Sep-22 1 Investment Trends Platform Competitive Analysis and Benchmarking Report, December 2021. 2 Plan For Life, 30 June 2022. 3 Migration from BT Wrap to Panorama was completed in June 2021. 4 Advisers and SMSF funds that have been migrated from BT Wrap are not shown separately. 107 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#108Economics Westpac GROUP#109Australian and New Zealand economic forecasts. Economics Key economic indicators (%) 2021 2022 2023 Calendar years at November 2022 Q3 Q4 Q1 Q2 Q3F Q4F Q1F Q2F 2020 2021 2022F 2023F World GDP1 -3.0 6.0 3.2 3.0 Australia GDP2 4.1 4.5 3.3 3.6 6.7 3.4 3.0 2.2 -0.7 4.5 3.4 1.0 Unemployment - end period 4.6 4.7 4.0 3.8 3.5 3.3 3.4 3.8 6.8 4.7 3.3 4.5 CPI headline - year end 3.0 3.5 5.1 6.1 7.3 7.9 6.9 6.0 0.9 3.5 7.9 4.1 Interest rates - cash rate 0.10 0.10 0.10 0.85 2.35 3.10 3.60 3.85 0.10 0.10 3.10 3.85 New Zealand GDP2 -0.4 3.0 1.0 0.4 5.0 2.5 3.3 2.0 0.3 3.0 2.5 1.6 Unemployment - end period 3.3 3.2 3.2 3.3 3.3 3.3 3.5 3.6 4.9 3.2 3.3 3.8 Consumer prices 4.9 5.9 6.9 7.3 7.2 6.2 5.7 4.9 1.4 5.9 6.2 4.1 Interest rates - official cash rate 0.25 0.75 1.00 2.00 3.00 4.25 4.75 5.00 0.25 0.75 4.25 5.00 Sources: IMF, RBA, Statistics NZ, Westpac Economics Private sector credit growth (% ann) Housing Australia Total credit Australia Business Australia Total credit New Zealand Key economic indicators (%) 2020 2021 2022F 2023F at November 2022 % ann Australia Credit growth 25 Total year end 1.7 7.2 8.4 2.7 20 Housing-year end 3.5 7.4 6.5 3.6 15 Business year end 0.8 8.4 13.0 2.0 10 New Zealand Credit growth 5 0 - Total year end 3.3 7.5 4.9 3.2 -5 Housing-year end 8.3 10.5 4.9 2.8 -10 Business-year end -2.7 3.6 5.3 4.3 Sep-08 Sources: RBA, Statistics NZ, Westpac Economics 1 Year average growth rates. 2 Through the year growth rates. 109 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac f'casts Sep-10 Sep-12 Sep-14 Sep-16 Sep-18 Sep-20 Sep-22 Sources: RBA, Westpac Economics Westpac GROUP#110Global market backdrop. Central banks responding aggressively to inflation. Fed Funds and RBA Cash Rate (%) % 9 Cash Rate Fed Funds (midpoint) % 0 Global inflation (ann %) ann% 20 8 7 6 5 4 3 2 1 0 Nov 92 Nov 98 h Westpac f'casts to Dec-23 15 10 5 5 2 0 0 -5 Nov 04 Nov 10 Nov 16 Nov 22 Sep-60 Sources: Bloomberg, RBA Westpac Economics Global supply chains (index, monthly) Sep-70 Australia G7 Economics ann% 20 * CPI inflation; 'G7' is GDP- weighted avg of US, EU, Japan, UK and Canada. 15 10 5 0 -5 Sep-80 Sep-90 Sep-00 Sep-10 Sep-20 Sources: ABS, IMF, Macrobond, Westpac Economics Consumer inflation expectations¹ (ann, %) Index Index ann% 52.5 Global Supply Chain Pressure Index (Ihs) 850 9 container freight rates (rhs)^ 52.0 700 80 A 2017 avg 100 7 51.5 550 6 51.0 400 5 50.5 250 4 50.0 100 3 49.5 -50 2 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Oct-97 Sources: Bloomberg, Macrobond, Westpac Economics 110 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Oct-01 Oct-05 Australia G7 * 3mth avg Oct-09 ann% 6 latest 8 month 7 6 < 3 2 Oct-13 Oct-17 Oct-21 Sources: ABS, IMF, Macrobond, Melbourne Institute, Westpac Economics Westpac GROUP#111RBA tightening cycle to continue. Labour market remains key risk to policy. CPI inflation (%) % Core CPI, %qtr Job vacancies (% of labour force) and Unemployment rate (%) Core CPI, avg RBA %yr 7 9816543210 -1 Sep-06 Sep-10 Sources: ABS, RBA, Westpac Economics Wages (%) ann% 5 4 Headline CPI %yr Westpac f'casts to Dec -23 Sep-14 Sep-18 Westpac f'casts to Dec-23 RBA's 3 target: >3% ann% Economics 1896543210 % 3.5 3.0 Vacancies* (ABS survey), Ihs -Unemployment rate, rhs %^ -3 ^ scale reversed 2.5 13 2.0 1.5 59 7 1.0 9 0.5 ABS survey suspended between May '08 & Nov '09 11 -1 0.0 Sep-22 Mar-89 Mar-97 Mar-05 Mar-13 Mar-21 Sources: ABS, Westpac Economics Dwelling & energy prices (% contribution to CPI) %yr ■Auto fuel 8 Electricity & gas 6 ■Dwellings & rent ■Household goods st 4 ■Household services 2 Australia's household debt servicing ratio² (%) terminal Westpac f'casts 22 % % 22 20 Westpac fcasts cash rate: to Dec-23 4.5% 22 22 20 4.0% 188 18 3.85% 16 16 14 12 10 14 2 0 12 1 1 -2 T 10 Jun-97 Jun-02 Jun-07 Jun-12 Jun-17 Jun-22 Sources: ABS, Westpac Economics Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Sources: ABS, Westpac Economics Sep-02 Sep-07 Sep-12 Sep-17 Sep-22 Sources: RBA, ABS, Westpac Economics 1 'G7' is GDP-weighted avg of US, EU, Japan, UK and Canada. Based on 1yr ahead expectations where available. 2 Mortgage repayments, owner occupied loans as % of household disposable income of owner occupiers. 111 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#112Australian economy: slower growth expected in 2023. Higher rates and high inflation to impact. Australia's growth mix (ppts, annual) Economics Australia's GDP profile (index) ppts annual contributions to GDP growth, year end ppts annual Index 6 6 pre COVID-19 forecast current forecast Index 112 112 LO 5 4.5 5 ■2020 ■2021 ■2022f ■2023f Dec 2019 100 4 3 3.4 4 108 108 3 104 104 21 2 1.0 100 100 1 96 0 0 Westpac 96 f'casts to -1 -1 92 92 -0.7 Dec-23 -2 -2 88 Consumer Housing Business Investment Public Net exports GDP Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 88 Jun-24 Sources: ABS, Westpac Economics Household deposits ($bn) and Household saving ratio (% of income) $bn 1800 1400 1000 Household deposits (Ihs) Household saving ratio (rhs) Sources: ABS, Westpac Economics Confidence: consumers and businesses 30 % of income 28 20 32 net bal. index 130 Business (lhs) Consumer (rhs) 120 24 20 10 110 16 0 100 12 -10 90 8 4 -20 80 Mar-20 off scale: -68.2 0 -30 70 Sep-08 Sep-11 Sep-14 Sep-17 Sep-20 600 200 with -200 Jun-92 Jun-97 Jun-02 Jun-07 Jun-12 Jun-17 Jun-22 Sources: ABS, Westpac Economics 112 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Sources: Westpac MI, NAB, Westpac Economics Westpac GROUP#113Commodities: demand shifting, supply remains tight. Terms of Trade at record high in 2Q22. Australian commodity prices (index) Economics Terms of Trade (index) 2012-100 2012-100 index 320 Westpac f'casts to Dec-23 520 140 Iron ore 270 Thermal coal Met coal Brent 470 Wool boom 420 120 1950/51 index Westpac estimate 3Q22 67% above long run avg 140 120 370 220 320 100 100 170 270 Historic average 220 80 00 80 120 170 120 60 60 70 70 40 40 20 20 Dec-50 Dec-60 Dec-70 Dec-80 Dec-90 Dec-00 Dec-10 Dec-20 Oct-14 Oct-16 Oct-18 Oct-20 Oct-22 Sources: Westpac Economics, Bloomberg, ABS Australian export composition1 ($bn) Sources: ABS; Westpac Economics Australian export destinations¹ ($bn) Australian exports to China1 ($bn) Mfg/Other, 50 Other, 45 Mfg/Other, 3 Rural, 13 Iron ore, 117 Rural, 43 NZ, 10 Europe, 12 Services, 16 US, 19 China, 145 Services, 71 Total $435bn Coal, 43 Asia, rest of, 65 Other resources, 75 LNG, 36 Korea, 23 Japan, 44 Goods exports $363bn Other resources, 9 Total $160bn LNG, 10 Coal, 16 Iron ore, 93 Sources: ABS, Westpac Economics Sources: ABS, Westpac Economics 1 All figures show $bn exports in 2020, note that figures may not sum due to rounding and other small differences in source data. 113 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Source: DFAT, ABS, Westpac Economics Westpac GROUP#114Australian housing market. Entering a significant correction phase; stabilisation expected late 2023. Australian dwelling prices (%, 3 month annualised) 40 35 30 25 20 15 10 5 0 -5 -10 -15 -20 Oct-14 Oct-15 Sources: CoreLogic, Westpac Economics Macro-prudential measures ♦rate cuts ◇rate hikes Oct-16 2019 election COVID-19 'Delta' Macro- prudential measures Economics Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 Dwelling prices (% change over period) Westpac Economics dwelling price forecasts (annual %) Last 3 mths Capital city Pop'n (to Oct-22) Last 12 mths (Oct-22) Last 5 years (to Oct-22) Capital city Sydney Pop'n avg* 2020 2021 2022f 2023f 2024f 5.4m 6.3 2.7 25.3 -10 -8 1 Sydney 5.4m Down 5.3% Down 8.6% Up 9.7% Melbourne 5.1m 5.0 -1.3 15.1 -8 -10 1 Melbourne 5.1m Down 3.1% Down 5.6% Up 4.3% Brisbane 2.6m 4.9 3.6 27.4 2 -6 3 Brisbane 2.6m Down 5.4% Up 8.4% Up 36.0% Perth 2.1m 1.1 7.3 13.1 2 -4 3 Perth 2.1m Down 0.7% Up 4.0% Up 18.2% Australia 26m 54 5.1 1.8 20.9 -6 -8 2 Sources: CoreLogic, Westpac Economics average last 10yrs 114 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Sources: CoreLogic, Westpac Economics Westpac GROUP#115Australian housing market. Slowdown in activity in response to higher rates. Mortgage interest rates (%) % Housing finance approvals by segment ($bn) 9 8 do ∞ 76 543 % $bn Value of housing finance Variable* 3 year fixed 18 1876 54 First home buyers 16 Upgraders 14 Investors 321 2 12 10 8 6 4 2 Sep-06 Economics Sep-10 Sep-14 Sep-18 Sep-22 Sources: ABS, Westpac Economics Residential property: sales vs listings 2 21 0 Standard, owner occupied, including discount - Nov 2022 is Westpac estimates assuming rates rise in line with RBA's 25bp cash rate increase 0 0 Oct-12 Oct-14 Oct-16 Oct-18 Oct-20 Oct-22 Sep-02 Oct-08 Oct-10 Sources: RBA, Westpac Economics Auction clearance rates (monthly, %) % 95 % '000s Sydney Melbourne 95 31 85 75 65 55 ми 85 29 75 65 32222 New listings (Ihs) 33 27 25 55 21 45 45 latest 19 35 week 35 Monthly, capital cities combined, 17 Seasonally adjusted by Westpac seasonally adjusted by Westpac, smoothed 25 25 15 Oct-12 Oct-15 Oct-18 Oct-21 Oct-12 Oct-15 Oct-18 Oct-21 Oct-10 Oct-12 Oct-14 Source: CoreLogic, Westpac Economics Sources: APM, CoreLogic, Westpac Economics 115 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack $bn 18 16 14 12 10 8 642 O 0 Sales (lhs) '000s 35 30 - 25 20 15 Oct-16 Oct-18 Oct-20 Oct-22 Westpac GROUP#116Australian housing market. Rental market continues to tighten. Affordability: Australia (%) % 35 -Sydney Melbourne 2017 peaks Westpac f'casts to Dec-23 % 55 35 30 30 25 25 20 20 15 10 Sep-87 Sep-93 Sep-99 30 30 25 Economics Rental vacancy rates (% quarterly, annual average) % 8 Sydney - Melbourne 7 6 00 5 20 Share of average income required to raise a deposit over 5yrs and pay mortgage over first 5yrs for purchase of median-priced dwelling 2 15 1 10 0 Sep-05 Sep-11 Sep-17 Sep-23 Sep-97 Sources: CoreLogic, ABS, RBA, Westpac Economics Housing-related consumer sentiment Sep-02 Perth Brisbane latest month 8 (where available) 7 Sep-07 CO 6 LO 4 3 2 2 1 0 Sep-12 Sep-17 Sep-22 Sources: REIA, REINSW, REIV, SQM Research, Westpac Economics Dwelling stock and population: ann change '000s index 160 'time to buy a dwelling' (lhs) index house price expectations (rhs) 200 500 180 400 140 160 300 140 120 120 200 100 100 100 80 80 0 60 60 40 -100 Oct-08 Oct-10 Oct-12 Oct-14 Oct-16 Oct-18 Oct-20 Oct-22 1900 Sources: Melbourne Institute, Westpac Economics 116 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack '000s Govt & Westpac population -dwellings forecasts to Jun-24 500 M 400 300 200 100 0 -100 1940 1960 1980 2000 2020 1920 Sources: ABS, Australian Government, Westpac Economics Westpac GROUP#117The Australian economy. Population 26 million. Australian population NT 250k QLD WA 5.3m 2.8m SA 1.8m NSW 8.2m ACT 453k VIC 6.6m TAS 567k Australian GDP and employment composition Output by sector 2021 - 22 (% contribution to GDP)1 9 0 11 19 7 9 0 8 8 ■Mining ■Manufacturing ■Construction Transport, Utilities ■Wholesale, Retail ■Agriculture Household services ■ Health Education Public administration ■Finance ■Business services Economics Relative size of States (Share of Australia, %)² ■GSP 32 31 32 NSW ■Population Employment ■ Exports 44 Australian employment by sector, Sep 2022 (%) A 7 26 26 23 20 20 20 18 18 16 11 8 11 11 677 3 2 2 2 1 Tasmania Victoria Queensland WA SA 26 16 6 2 15 12 6 12 ■Mining ■Manufacturing ■Construction Transport, Utilities Wholesale, Retail ■Agriculture Household services ■Health, Social Assistance Education ■Public Administration ■Finance ■Business services Sources: ABS, Westpac Economics 1 Real, financial years. 2 GSP, exports are for 2020-21; Population at March 2022; Employment at September 2022. 117 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#118New Zealand economic overview. Interest rates rising in response to firm economy activity and increasing inflation. Economics New Zealand GDP ($bn) $bn Consumer prices (% year) $bn %yr 80 9 80 Westpac forecasts %yr Westpac forecasts 8 8 15 75 75 70 70 Initial COVID-19 lockdown 'Red Traffic light' (Omicron) 6 70 10 65 65 65 59 3 Delta lockdown 2 60 60 и RBNZ target band 1 m 98765432-O 0 55 55 Jun-18 2005 2008 2011 2014 2017 2020 2023 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Sources: Stats NZ, Westpac Economics Unemployment rate (%) 8 7 CO 6 LO 4 % 3 2 2006 2008 Sources: Stats NZ, Westpac Economics Official Cash Rate (%) % % 8 6 Westpac forecasts 7 5 6 4 5 3 4 2 3 1 2 0 2011 2014 2016 2019 2022 2010 Sources: Stats NZ, Westpac Economics 118 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 2012 Westpac forecasts % 0 LO 4 3 2 1 0 2014 2016 2018 2020 2022 2024 Sources: RBNZ, Westpac Economics Westpac GROUP#119New Zealand economic activity. Demand has remained firm in recent months. Manufacturing conditions (index) and Service sector conditions (index) Residential dwelling consents (annual, total) Annual total Index 70 Index Initial COVID-19 lockdown Delta lockdown 70 30000 60 60 25000 20000 50 50 15000 40 40 40 40 30 Service sector conditions Manufacturing conditions 10000 30 5000 20 2017 2018 2019 2020 2021 2022 Source: BusinessNZ 20 20 0 2004 Source: Stats NZ Monthly retail spending $ mil 7000 6000 5000 4000 3000 2000 Total Core (excl. Fuel) Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Source: Stats NZ 119 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Auckland Rest of NZ Economics Annual total 30000 25000 20000 15000 10000 5000 2007 2010 2013 2016 2019 2022 Job advertisements (index) Index Index $ mil 7000 225 225 200 200 6000 175 175 150 150 5000 125 125 100 100 4000 75 75 50 50 3000 25 25 2000 0 0 2008 2010 2012 2014 2016 2018 2020 2022 Source: MBIE Westpac GROUP#120New Zealand inflation and interest rates. Demand and supply pressures widespread, interest rates to continue pushing higher. Inflation (% yr) Strong demand and shortage of supplies Economics 15 15 %yr %yr % of business highlighting 8 100 a lack of demand as a 8 CPI excluding food, energy and vehicle fuels constraint % of business highlighting a lack of supplies as a constraint 25 20 Headline inflation 80 00 6 4 RBNZ target band 6 60 4 40 40 2 20 10 10 LO 5 0 0 0 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 2020 2005 2008 2011 2014 2017 2020 Source: Stats NZ Source: NZIER 2 Unemployment rate (%) and Wage inflation (% year) Mortgage interest rates (%) % yr % -Unemployment rate (rhs) 10 5 -Wage inflation (lhs) 7 8 OCR 10 -Two-year mortgage rate Floating rate 8 4 6 3 سر 6 6 CO 5 4 + 2 4 2 2 1 3 0 2 0 0 2005 2009 2013 2017 2021 2010 2012 2014 2016 2018 2020 2022 Source: Stats NZ Source: RBNZ 120 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#121New Zealand exports. Economics Commodity price strength expected to be sustained, services exports recovery in train. NZ export commodity prices (index) Farmgate milk price ($/kg Ms) Index = 100 in 1986 Index = 100 in 1986 450 450 $/kg Ms 12 400 400 10 350 350 300 300 8 250 250 6 200 200 150 150 4 100 100 2 50 Dairy Forestry products -Meat, skins and wool 50 0 0 0 T T T T ד 2001 2005 2009 2013 2017 2021 2003 2006 2009 Source: ANZ Source: Fonterra, Westpac Economics International visitor numbers ('000) '000 400 300 200 100 2015 мими 2017 Source: Stats NZ, Westpac Economics $/kg Ms Forecast 12 10 8 6 4 2 0 T T T 2012 2015 2018 2021 2024 New Zealand dollar (index) '000 NZD exchange rate Forecast 400 1.00 0.90 300 0.80 0.70 200 0.60 0.50 100 0.40 NZD/USD (Ihs) -NZD/EUR (Ihs) -TWI (rhs) 0 0.30 2019 2021 2023 2005 2010 2015 Sources: RBNZ, Westpac Economics 121 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Index 85 Forecast 80 75 70 65 60 55 50 2020 2025 Westpac GROUP#122New Zealand housing market. The housing market is cooling as interest rates rise. Monthly house sales and prices (% yr) Economics New Zealand dwelling prices (index) Sales %yr Index Index 14,000 12,000 Sales (lhs) House prices (rhs) 40 2750 30 Auckland Canterbury 2750 10,000 20 2250 2250 Wellington 8,000 10 Other regions 1750 1750 6,000 0 4,000 1250 1250 -10 2,000 0 -20 750 750 2004 2007 2010 2013 2016 2019 2022 2007 2009 Source: REINZ 2011 2013 2015 Sources: REINZ, Westpac Economics 2017 2019 2021 House prices (nationwide, index) Dwelling prices (% change over period) 220 %yr 50 Annual % change (Ihs) 40 Level (rhs) 30 20 Last 3 mths Index = 1000 in 2005 4000 Region Pop'n (to Sep-22) Last 12 mths (to Sep-22) Last 5 years (to Sep-22) Westpac forecasts Auckland 1.7m Down 6.0% Up 11% Up 24% 3000 Wellington 0.5m Down 4.2% Down 17% Up 47% 2000 10 0 Canterbury Nationwide 0.7m Down 3.5% Flat Up 51% 5.1m Down 4.5% Down 8% Up 43% 1000 -10 Forecast (Annual %) Ave. past 10 years 2020 2021 2022f 2023f 2024f -20 0 2005 2009 2013 2017 2021 Nationwide 10% +17% +27% -11% -4% +1% Sources: QVNZ, Westpac Economics Sources: REINZ, Stats NZ 122 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#123The New Zealand economy. Population 5.1 million. Regional GDP Economy Total nominal GDP 2021: $350bn Northland, $8bn 4% of population Auckland, $111bn Bay of Plenty, $17bn 7% of population 33% of population Waikato, $26bn 10% of population Taranaki, Whanganui/Manawatu, $20bn 8% of population Tasman/Nelson, $5bn 2% of population West Coast, $2bn 1% of population Southland, $6bn 2% of population Gisborne/Hawke's Bay, $10bn 5% of population Wellington, $38bn 11% of population Marlborough, $3bn 1% of population Canterbury, $37bn 13% of population Otago, $13bn 5% of population 11 6 7 3 - Output 2022 sector shares of GDP (%) ■Primary industries ■Construction Electricity, gas, and water 10 9 ■Manufacturing ■Wholesale, retail and accommodation ■Transport 13 ■Financial and professional services 18 6 4 34 8 CO Economics ■Public administration ■Social services (incl. health and education) Other 10 NZ employment by sector (%) 6 ■Primary industries ■Construction Electricity, gas, and water ■Manufacturing ■Wholesale, retail and accommodation ■Transport ■Financial and professional services ■Public administration ■Social services (incl. health and education) 18 19 4 Sources: Stats NZ, Westpac Economics Nationwide GDP and employment figures are for the year to Dec 2021, regional figures are for the year to March 2020. Charts may not add to 100 due to rounding. 123 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Other Westpac GROUP#124Appendix and Disclaimer Westpac GROUP#125Appendix 1: Cash earnings adjustments and notable items. Cash earnings adjustment ($m) 2H21 1H22 2H22 Description Reported net profit 2,015 3,280 2,414 Net profit attributable to owners of Westpac Banking Corporation Fair value (gain)/loss on (184) (204) (266) economic hedges Appendix Fair value on economic hedges (which do not qualify for hedge accounting under AAS) comprise: The unrealised fair value (gain)/loss on foreign exchange hedges of future New Zealand earnings impacting non- interest income is reversed in deriving cash earnings as they may create a material timing difference on reported results but do not affect the Group's cash earnings over the life of the hedge. Westpac has ceased this activity, and at this stage no further adjustments will be recognised; and The unrealised fair value (gain)/loss on hedges of accrual accounted term funding transactions are reversed in deriving cash earnings as they may create a material timing difference on reported results but do not affect the Group's cash earnings over the life of the hedge The unrealised (gain)/loss on ineffective hedges is reversed in deriving cash earnings because the gain or loss arising from the fair value movement in these hedges reverses over time and does not affect the Group's profits over time Ineffective hedges (16) 19 33 Cash earnings 1,815 3,095 2,181 Notable items ($m) 2H22 Description Estimated customer refunds, payments, associated costs and litigation¹ (68) Write-down of goodwill, intangible and other assets1 (129) Asset sales and revaluations¹ Total notable items (1,089) (1,286) 1 For further information refer to Westpac's 2022 Full Year Results Announcement. $17m decrease in revenue mostly due to additional remediation provisions related to wealth products, $80m increase in costs from our Australian customer remediation program and an increase in litigation costs and provisions Write-down of assets from a reduction in corporate office space required. The write-down considers the capitalised value of the remaining term of the lease less likely sublease income, $118m in costs, $82m after tax. Expenses associated with the accelerated consolidation of branches, $66m in costs, $47m after tax This includes the loss on sale of Westpac Life Insurance Services Limited of $1,112m in non-interest income, $1,120m after tax. Expenses and revaluations associated with assets sales of $125m, $101m after tax, including those transactions announced in 2H22. A tax refund related to the sale of the Group's motor vehicle dealer finance and novated leasing business and vendor finance businesses 125 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#126Appendix 2: Cash earnings ex notable items.1 2H21 ($m) 1H22 ($m) 2H22 ($m) Change 2H22 1H22 (%) Net interest income 8,189 8,021 8,585 7 Non-interest income Appendix Change 2H22 2H21 (%) - 4 1,849 1,703 1,586 (7) (14) Net operating income 10,038 9,724 10,171 5 1 Expenses (5,700) (5,135) (5,035) (2) (12) Core earnings 4,338 4,589 5,136 12 18 Impairment benefit/(charge) 218 (139) (196) 41 Large Tax and non-controlling interests (NCI) (1,422) (1,349) (1,473) 9 4 Cash earnings 3,134 3,101 3,467 12 11 1 For further information refer to Westpac's 2022 Full Year Results Announcement. 126 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#127Appendix 3: Customer remediation. Appendix Milestones in FY22 . Paid or offered $567 million to approximately 2 million customers 14 major remediation programs were closed Provisions for customer compensation and associated costs Net provisions raised in FY22 for • Refunds associated with certain ongoing advice fees charged by salaried financial planners and authorised representatives Additional remediation for wealth products • Costs associated with the implementation and completion of remediation programs . Release of provisions related to Westpac New Zealand Provisions for customer refunds, payments and associated costs¹ ($m) $ Banking Wealth Implementation costs Cash earnings impact of above 1 Excludes provisions and costs associated with litigation. Notable items only. 2017 2018 2019 2020 2021 FY22 Total 94 122 362 144 (135) 2 589 75 15 | 146 802 208 251 51 1,533 62 232 196 195 32 32 717 118 231 977 384 218 60 60 127 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack 1,988 Westpac GROUP#128Appendix 4: Portfolio simplification progress. Appendix Transactions completed Announced Completed Zip Co Ltd. Oct 2020 Oct 2020 Coinbase Inc. May 2021 Westpac NZ Wealth Advisory Nov 2020 May 2021 Dec 2020 Divestment CET1 benefit (bps, $m¹) Realised 8bps, ~$350m Realised 7bps, ~$300m Westpac General Insurance Dec 2020 Jul 2021 Vendor Finance Aug 2020 Jul 2021 Westpac LMI Mar 2021 Aug 2021 Westpac Life-NZ- Limited Jul 2021 Feb 2022 Realised 12bps, ~$500m Realised 1bp, ~40m Realised 7bps, ~$300m Realised 7bps, ~$300m Motor Vehicle Finance Jun 2021 Mar 2022 Realised 8bps, ~$350m Westpac Life Insurance² Transactions announced Aug 2021 Announced Aug 2022 Realised 13bps, ~$500m Completion expected Advance Asset Management May 2022 First Half 2023 May 2022 Successor funds transfer (SFT) of Superannuation³ First Half 2023 Divestment benefits (should SFT of Superannuation and sale of Advance Asset Management complete) 71bps, ~$3,000m Expected 8bps, ~$350m Other operations within Specialist Businesses (a range of options under consideration) Platforms Westpac Pacific4 Auto Finance (in run-off) 1 The value of capital released also includes the benefit of lower RWA. 2 Reflects the CET1 capital impact upon completion in Second Half 2022. The accounting loss on sale in Westpac Life Insurance was included in Second Half 2021 notable items impacting the CET1 capital ratio (-4bps) for September 2021. 3 BT personal and corporate superannuation funds. 4 On 22 September 2021, Westpac announced that the previously announced proposed sale of Westpac Pacific to Kina Bank was terminated by mutual agreement. Following subsequent consideration of alternative options, a sale appears unlikely in the short to medium term. 128 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#129Appendix 5: Reinventure – investing in fintech businesses. - Appendix Westpac has committed $150m in fintech venture capital funds, managed by Reinventure Reinventure enables Westpac to access insights and adjacent business opportunities, both in Australia and offshore The model also helps Westpac to source commercial partnerships that create value for customers New business models MONEYME Digital financial service company offering credit products to tech- savvy Australian consumers and businesses doorsteps Helps home sellers make decisions about who they choose to sell their property <>zai Full stack payments platform ^ Auror. Uses data to shed light on high volume crimes, improving prevention and detection Kredivo Buy now, Pay Later A leading digital credit platform in Indonesia Valiant Business loan marketplace that matches SMEs to the best lender based on their characteristics and needs mx51 Empowering banks to connect seamlessly with merchants and their customers Hey YOU A payment app for customers when dining out or grabbing a coffee on the go Z zest A consumer digital lending platform ATHENA Providing digital mortgage broking New technology capabilities kasada Enterprise cyber security company that protects businesses from malicious bot attacks POLYCHAIN CAPITAL A fund of funds for cryptocurrency and blockchain technology Slyp Smart receipts that automatically link purchase receipts to customers' bank accounts IMMUTABLE Creating real-game assets for developers, using blockchain technology S Safewill Helping Australians create their wills online CODELINGO Enabling software development teams to scale processes and improve code quality InDebted Digitised debt collection, leveraging modern communications, automation and machine learning FORTE Pioneering a new asset class called Tradeable Income Based Securities (TIBS) frankieone Helps banks and fintechs make better decisions using a single API and dashboard to manage KYC/AML and fraud instant A one-click checkout platform transforming online transactions Data, Al and analytics BASIQ urious thing a⚫kin Flybits KEPLER ANALYTICS dataro Open Banking API platform that provides connectivity to over 100 financial sources across Australia and NZ Conversational voice-based Al for digital interviewing, powered by machine learning Al company that integrates neuroscience into their platform creating capability that not only manages complex problems but is able to form intrinsic relationships with humans Al-powered, context-as-a-service platform, to deliver personalised experiences to customers B2B platform for physical retail stores that provides insights through their Al engine and in-store sensors Data-science-as-a-service Al-powered donor scoring software for the NFP sector Logos are of the respective companies. 129 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#130Appendix 6: Sustainability. Industry recognition Sustainability indexes Appendix Inclusion and diversity recognition 2019 Member of the DJSI Indices Bloomberg Gender-Equality Index ENVIRONMENTAL QUALITYSCORE HIGHEST RANKED BY ISS ESG SOCIAL QUALITYSCORE HIGHEST RANKED BY ISS ESG▷ Achieved highest ISS QualityScore for Environment and Social dimensions Member of Dow Jones Sustainability Indices since 2002 Powered by the S&P Global CSA SUSTAINALYTICS Corporate ESG Performance Prime Rated Prime status of "C" by ISS ESG a Morningstar company RATED BY ISS ESG‣ Recognised by the Bloomberg Gender Equality Index for the 6th consecutive year RATED FTSE4Good At March 2022, Westpac has received an ESG Risk Rating of 24.2 from Sustainalytics and was assessed to be at Medium risk of experiencing material financial impacts from ESG factors1 Member of the FTSE4Good Index Series, of which Westpac has been a member since 2001 A Caren AWEI SILVER EMPLOYER carers + employers Accredited Carer Employer Activate Recognised as Silver Tier Employer in 2021 in the Australian Workplace Equality Index Awards Accredited as Level 1 Activate as a Carer Friendly Employer under the Carers NSW Carers + Employers Program in 2020 MSCI ESG RATINGS CCC A BB BBB AA AAA At 2022, Westpac has received an MSCI ESG Rating of A² global ESG monitor Ranked #1 in the ASX-50 and #2 in the world for transparency and effectiveness of our standalone sustainability Reporting, according to the 2021 Global ESG Monitor Report 1 Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. 2 The use by WBC of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of WBC by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI. 130 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#131Appendix 6: Sustainability. Key commitments and partnerships -> Signatory of: Appendix UNEP PRINCIPLES FOR FINANCE RESPONSIBLE INITIATIVE BANKING Principles for Responsible Banking Signatory 2019 PRI Principles for Responsible Investment Principles for Responsible Investment Signatory (2007) SUSTAINABLE DEVELOPMENT GOALS UN Sustainable Development Goals CEO Statement of Commitment (2016) PARIS 2015 UN CLIMATE CHANGE CONFERENCE Paris Climate Agreement Supporter (2015) °CMSI Climate Measurement Standards Initiative (CMSI) Industry Partner (since 2020) EQUATOR PRINCIPLES The Equator Principles Founding Adopter, First Australian Bank (2003) RE 100 CCDP RE100, an initiative of The Climate Group in partnership with CDP Member (2019) Climate Bonds Climate Bonds Initiative Partner FINANCE UNEP INITIATIVE UN Environment Program Finance Initiative Founding Member (1991) TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Financial Stability Board's Task Force on Climate-related Financial Disclosures Align with and support Climate Action 100+ Global vestors Driving Business Transition COMPANY 40:40 BIGNATORY Climate Action 100+ Signatory (BT Financial Group 2017) HESTA 40:40 Vision Signatory 2021 WE SUPPORT IN GLOBA COMPACT Commitment to United Nations Global Compact Signatory (2002), Global Compact Network Australia Founding Member (2009) 2021 GLOBAL INVESTOR STATEMENT TO GOVERNMENTS ON THE CLIMATE CRISIS. Global Investor Statement to Government on the Climate Crisis Signatory (BT Financial Group 2021) .:PRIIMontréalPLEDGE The Montreal Carbon Pledge Signatory (BT Financial Group 2014) The Valuable 500 The Valuable 500 Signatory 2021 Carbon Market Institute Carbon Markets Institute Corporate Member Australian Industry Energy Transitions Initiative Australian Industry Energy Transitions Initiative Partner (2022) Australian Sustainable Finance Initiative Australian Sustainable Finance Initiative Founding Member Carbon Neutral Climate Active ORGANISATION Carbon Neutral Certification Since 2012 (previously NCOS) Supply Nation Supply Nation (for Indigenous owned businesses) Founding Member (2010) Social Traders Unlocking business for good Social Traders (for social enterprises) (2016) United Nations Tobacco-Free Finance pledge Founding Signatory (2018) 131 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack TUN E WOMEN UN Women Partner 2021 Westpac GROUP#132- Appendix 6: Sustainability – footnotes. Our commitment to sustainability. Sustainability 1. Figure is cumulative since 2020. New lending represents the total of new and increases in lending commitments, excluding refinances. Taking us to over $3.8 billion towards our target of $15 billion by 2030 and achieving our target of $3.5 billion from 2020 to 2023. Total exposure to climate change solutions is $10.8 billion (TCE at 30 September 2022). 2. Lending and investment to climate change solutions is defined as the total direct and indirect financing of customers to the extent they are a) Involved in climate change solutions activities reported in total committed exposures at 30 September; or b) Undertake activities that are over and above what is considered to be business as usual in the relevant industry, and which produce a material net benefit to the environment. For further information on our definition of climate change solutions and climate change solutions activities refer to the Glossary section in our 2022 Sustainability Index and Datasheet. 3. Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac Scholars Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of the Westpac Group. Westpac provides administrative support, skilled volunteering, and funding for operational costs of Westpac Scholars Trust. 4. Active scholars refers to the total number of individuals who have been awarded a scholarship and have completed or are in the process of completing their degree or fellowship. 5. Taskforce on Nature-related Financial Disclosures (TNFD). 6. Committed funding includes future payments for grants that span over multiple years. Our plan to become a net-zero, climate resilient bank. 1. Predominantly through a virtual power purchase agreement with Bomen Solar Farm in NSW and through other sources including Westpac rooftop solar and Large-Scale Generation Certificates sourced and retired on behalf of Westpac by Lendlease for Westpac's Barangaroo commercial office tenancy supply. 2. Certification is obtained for Westpac's Australian and New Zealand direct operations under the Australian Government's Climate Active Carbon Neutral Standard for Organisations and the New Zealand Toitū net carbonzero certification respectively. Further information can be found on the Sustainability Performance Reports page on our website. Net-zero, climate resilient operations. 1. Excluding financed emissions. 2. Certification is obtained for Westpac's Australian and New Zealand direct operations under the Australian Government's Climate Active Carbon Neutral Standard for Organisations and the New Zealand Toitu net carbonzero certification respectively. Further information can be found on the Sustainability Performance Reports page on our website. 3. Predominantly through a virtual power purchase agreement with Bomen Solar Farm in NSW and through other sources including Westpac rooftop solar and Large-Scale Generation Certificates sourced and retired on behalf of Westpac by Lendlease for Westpac's Barangaroo commercial office tenancy supply. 4. Greenhouse gas (GHG). 5. 2022 figures include direct operations in Australia, New Zealand, Fiji, Papua New Guinea, Singapore, United Kingdom, China, Germany and the United States. Reporting boundary expanded since 2021 to include Singapore, China, Germany and the United States. 6. Update reflects change in baseline year from 2016 to 2021 only to align with our 2030 sector lending targets baseline. No change to level of ambition. This target is aligned with a 1.5°C pathway. 7. Revised Scope 3 supply chain (non-financed) emissions reduction target reflects change in baseline year from 2016 to 2021 and increase in ambition from a 'well-below 2°C degree' pathway to a 1.5°C pathway. Supporting customers' transition to net-zero. 1. Over the period 1 October 2017 to 30 September 2022. Based on IJGlobal and Westpac Research data. 2. Figure is FY22 result. New lending represents the total of new and increases in lending commitments, excluding refinances. Taking us to over $3.8 billion towards our target of $15 billion by 2030 and achieving our target of $3.5 billion from 2020 to 2023. Total exposure to climate change solutions is $10.8 billion (TCE at 30 September 2022). 3. Lending and investment to climate change solutions is defined as the total direct and indirect financing of customers to the extent they are a) Involved in climate change solutions activities reported in total committed exposures at 30 September; or b) Undertake activities that are over and above what is considered to be business as usual in the relevant industry, and which produce a material net benefit to the environment. For further information on our definition of climate change solutions and climate change solutions activities refer to the Glossary section in our 2022 Sustainability Index and Datasheet. 4. WIB and WNZL customers only across multiple currencies and jurisdictions; Sustainable finance transactions include green, social, sustainability, sustainability-linked and re-linked loans and bonds; Total value of Sustainable Financing provided by banks at financial close. This includes the full value of a loan provided and also includes the full value of bond issued for any Debt Capital Markets (DCM) transaction where Westpac is a Joint Lead Manager (JLM). 5. Westpac New Zealand (WNZL) was Sole Sustainability Coordinator for six Sustainability-Linked Loans and Joint Sustainability Coordinator for one Sustainability-Linked Loan. Overall, New Zealand borrowers executed NZD3.98bn of Sustainability-Linked Loans, of which approximately a quarter (NZD0.94bn) sits on WNZL's Balance Sheet (this includes all known or publicly disclosed transactions to 30 September 2022). 6. Acting as Joint Sustainability Coordinator and Lead Arranger. Based on publicly announced transactions in Australia to 12 September 2022. For more information, refer to the media release at https://www.westpac.com.au/about-westpac/media/media-releases/2022/12-september1/ . 7. Westpac will start to roll-out the carbon tracking capability to select retail customers from 2023. 8. The loan is the first of its kind to require a customer to meet all parts of the Sustainable Agriculture Finance Initiative (SAFI) guidance. This guidance includes practices to reduce emissions and improve long-term climate resilience. 9. Westpac believes reducing emissions should be a priority in achieving the transition to net-zero. Carbon offsets and credits are likely to play a role to supplement decarbonisation in line with climate science where there are limited technological or financially viable alternatives to eliminate emissions. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 132 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#133Appendix 6: Sustainability - footnotes. Sustainability Targets set for five sectors in our lending portfolio. 1. 2. 3. 4. 5. 6. 7. 8. 9. Financed emissions are the Group's Scope 3 emissions attributable to its lending portfolios. We aim to achieve these targets by 30 September 2030. Upstream oil and gas includes exploration, extraction and drilling companies, integrated oil and gas companies (that have upstream activities), and LNG producers. The scope does not include midstream and downstream companies. International Energy Agency Net Zero by 2050 (IEA NZE) scenario specifies that no new (greenfield) oil and gas fields are needed beyond those projects that have already been committed (i.e. approved for development) as of 18 May 2021. The IEA NZE scenario is the International Energy Agency's Net Zero by 2050: A Roadmap for the Global Energy Sector report, 2021. Where the Australian or New Zealand Government or regulator determines (or takes a formal public position) that supply from the asset being financed is necessary for national energy security. A credible transition plan should be developed by reference to the best available science and should include Scope 1, 2 and 3 emissions and actions the company will take to achieve GHG reductions by 2050 aligned with a 1.5°C pathway. Companies with >5% of their revenue coming directly from thermal coal mining (i.e. the production and sale of thermal coal). Adjacent sectors (including mining service providers) will be covered in other targets as appropriate. Transactional banking and rehabilitation bonds are excluded from our target. Companies that are electricity generators include customers with >10% revenue coming from power generation or >5% revenues from thermal coal electricity generation. Target excludes electricity transmission / distribution companies and Scope 3 emissions of electricity generators. Companies that produce clinker in-house. Target includes emissions generated from calcination in clinker production as well as fuel combustion and electricity consumption associated with the cement production process. Discrete borrowers with office properties comprising a majority of their portfolio and with commercial real estate TCE > $75 million within Specialised Lending - Property Finance (Investment only) and Corporate portfolios, as defined under Pillar 3 reporting. This excludes construction finance. 10. Base building operational Scope 1 and 2 emissions. Target excludes all Scope 3 emissions (e.g. tenant emissions from electricity and appliance use, construction, embodied emissions and corporate activities). Understanding our financed emissions. 1. 2. Financed emissions are the Group's Scope 3 emissions attributable to its lending portfolios. Refer to our 'Net-Zero 2030 Targets and Financed Emissions - our methodology and approach' on our website for more information on our financed emissions analysis, including data sources, assumptions and limitations. Sectors in our financed emissions analysis is based on ANZSIC codes. These sector definitions differ from those used for our 2030 sector targets and Energy Sector Value Chain reporting. Other (non-emissions intensive sectors) includes: accommodation; cafes and restaurants; construction; finance and insurance; property services and business services; services; trade; and undefined ANZSIC. Climate-related metrics. 1. 2. 3. 4. 5. 6. All figures in Energy Sector Value Chain diagram are TCE at 30 September 2022. WIB only. Refer to our 2022 Sustainability Index and Datasheet on our website for more information on our Energy Sector Value Chain reporting, including sector scope and definitions. Apart from Thermal coal in FY22, the definitions used for sectors in our Energy Sector Value Chain reporting currently differ from those used for our 2030 sector targets and financed emissions reporting. Oil and gas extraction and Oil and gas exploration sector boundaries are defined based on Australian and New Zealand Standard Industry Classification (ANZSIC) codes. For diversified miners, exposure to coal is apportioned by the percentage EBITDA contribution of coal in the miners' latest annual financial statements. Thermal coal exposure within diversified miners is immaterial. The definition and scope of Thermal coal has been updated for FY22 only to align with the definition used for our 2030 sector target. For metrics relating to Thermal coal in FY20 and FY21 the sector definition and scope is detailed in the Glossary section in our 2022 Sustainability Index and Datasheet. Metallurgical coal mining is all other coal mining. For Oil and gas extraction customers with LNG terminal operations, the exposures to LNG terminals are reported in the Transport category. Australia and New Zealand only. These activities include customers with operations in several sectors - TCE is attributed based on business segment contribution. Physical and transition risk metrics. 1. 2. 3. 'Higher risk' were locations where insurance may become more expensive or unavailable. Share of Australian mortgage portfolio at 31 August 2022 in locations identified as likely to be exposed to higher physical risks under RCP2.6 and RCP8.5 scenarios by 2050. The change in the exposure of the portfolio from that reported in the 2022 Interim Financial Results is driven by the recent refinement in the methodology used in the physical climate risk analysis. % of our current lending portfolio exposed to sectors which by 2050 may face relatively higher growth constraints under a 1.5°C scenario; at September 2022. The information on this page contains 'forward-looking statements' and statements of expectation reflecting Westpac's current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. 133 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#134Appendix 7: Definitions - credit quality. Appendix 90 days past due and not impaired Includes facilities where: Contractual payments of interest and / or principal are 90 or more calendar days overdue, including overdrafts or other revolving facilities that remain continuously outside approved limits by material amounts for 90 or more calendar days (including accounts for customers who have been granted hardship assistance); or An order has been sought for the customer's bankruptcy or similar legal action has been instituted which may avoid or delay repayment of its credit obligations; and The estimated net realisable value of assets/security to which Westpac has recourse is sufficient to cover repayment of all principal and interest, or where there are otherwise reasonable grounds to expect payment in full and interest is being taken to profit on an accrual basis. These facilities, while in default, are not treated as impaired for accounting purposes Stage 2: Lifetime ECL - performing Stage 3 Lifetime ECL - non-performing For financial assets where there has been a significant increase in credit risk since origination but where the asset is still performing a provision for lifetime expected losses is recognised. Interest revenue is calculated on the gross carrying amount of the financial asset For financial assets that are non-performing a provision for lifetime expected losses is recognised. Interest revenue is calculated on the carrying amount net of the provision for ECL rather than the gross carrying amount Provision for expected credit losses (ECL) Expected credit losses (ECL) are a probability-weighted estimate of the cash shortfalls expected to result from defaults over the relevant timeframe. They are determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts of future economic conditions Collectively assessed provisions (CAPS) Collectively assessed provisions for expected credit loss under AASB 9 represent the Expected Credit Loss (ECL) which is collectively assessed in pools of similar assets with similar risk characteristics. This incorporates forward- looking information and does not require an actual loss event to have occurred for an impairment provision to be recognised Impaired assets Includes exposures that have deteriorated to the point where full collection of interest and principal is in doubt, based on an assessment of the customer's outlook, cash flow, and the net realisation of value of assets to which recourse is held: Facilities 90 days or more past due, and full recovery is in doubt: exposures where contractual payments are 90 or more days in arrears and the net realisable value of assets to which recourse is held may not be sufficient to allow full collection of interest and principal, including overdrafts or other revolving facilities that remain continuously outside approved limits by material amounts for 90 or more calendar days; Non-accrual facilities: exposures with individually assessed impairment provisions held against them, excluding restructured loans; Restructured facilities: exposures where the original contractual terms have been formally modified to provide for concessions of interest or principal for reasons related to the financial difficulties of the customer; Other assets acquired through security enforcement (includes other real estate owned): includes the value of any other assets acquired as full or partial settlement of outstanding obligations through the enforcement of security arrangements; and Any other facility where the full collection of interest and principal is in doubt Individually assessed provisions (IAPs) Stage 1: 12 months ECL - performing Provisions raised for losses on loans that are known to be impaired and are assessed on an individual basis. The estimated losses on these impaired loans is based on expected future cash flows discounted to their present value and, as this discount unwinds, interest will be recognised in the income statement For financial assets where there has been no significant increase in credit risk since origination a provision for 12 months expected credit losses is recognised. Interest revenue is calculated on the gross carrying amount of the financial asset Stressed exposures Total committed exposures (TCE) Watchlist and substandard Watchlist and substandard, 90 days past due and not impaired and impaired exposures Represents the sum of the committed portion of direct lending (including funds placement overall and deposits placed), contingent and pre-settlement risk plus the committed portion of secondary market trading and underwriting risk Loan facilities where customers are experiencing operating weakness and financial difficulty but are not expected to incur loss of interest or principal 134 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#135- Appendix 7: Definitions – segments, earnings drivers, capital and Appendix liquidity. Segments Consumer Business WIB Westpac NZ Specialist Businesses Group Businesses or GB Earnings drivers Average interest- earning assets (AIEA) Cash earnings per ordinary share Core earnings Full-time equivalent employees (FTE) Consumer provides banking products and services, including mortgages, credit cards, personal loans, and savings and deposit products to Australian retail customers Business serves the banking needs of Australian small business, Agribusiness and Commercial customers Westpac Institutional Bank (WIB) provides a broad range of financial products and services to corporate, institutional and government customers Westpac New Zealand provides banking, wealth and insurance products and services for consumer, business and institutional customers in New Zealand Specialist Businesses comprises the operations that Westpac has decided to exit. The sale of Westpac Life Insurance Limited was completed in August 2022. In 2022, separate agreements were entered into to merge BT's personal and corporate superannuation funds through a successor fund transfer as well as the sale of Advance Asset Management. These transactions are subject to regulatory approval, and if granted are expected to complete in 2023. Other operations yet to be sold include the platforms. Special Businesses also manages Westpac Pacific which provides banking in Fiji and Papua New Guinea. The division operates under the Westpac, St.George, BankSA, Bank of Melbourne, and BT brands. Group Businesses includes support functions such as Treasury, Customer Services and Technology, Corporate Services and Enterprise Services. It also includes Group-wide elimination entries arising on consolidation, centrally raised provisions and other unallocated revenue and expenses The average balance of assets held by the Group that generate interest income. Where possible, daily balances are used to calculate the average balance Cash earnings divided by the weighted average ordinary shares (cash earnings basis) Net operating income less operating expenses A calculation based on the number of hours worked by full and part-time employees as part of their normal duties. For example, the full-time equivalent of one FTE is 76 hours paid work per fortnight Capital and liquidity Capital ratios Committed liquidity facility (CLF) High quality liquid assets (HQLA) Internationally comparable ratios Leverage ratio Liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) Risk weighted assets or RWA As defined by APRA (unless stated otherwise) The RBA makes available to Australian Authorised Deposit-taking Institutions (ADIs) a CLF that, subject to qualifying conditions, can be accessed to meet LCR requirements under APS210 Liquidity. APRA announced in September 2021 that ADIS subject to the LCR should reduce their CLF usage to zero by 1 January 2023. Assets which meet APRA's criteria for inclusion as HQLA in the numerator of the LCR Internationally comparable regulatory capital ratios are Westpac's estimated ratios after adjusting the capital ratios determined under APRA Basel III regulations for various items. Analysis aligns with the APRA study titled "International capital comparison study" dated 13 July 2015 As defined by APRA (unless stated otherwise). Tier 1 capital divided by 'exposure measure' and expressed as a percentage. 'Exposure measure' is the sum of on- balance sheet exposures, derivative exposures, securities financing transaction exposures and other off-balance sheet exposures An APRA requirement to maintain an adequate level of unencumbered high quality liquid assets, to meet liquidity needs for a 30 calendar day period under an APRA- defined severe stress scenario. Absent a situation of financial stress, the value of the LCR must not be less than 100%, effective 1 January 2015. LCR is calculated as the percentage ratio of stock of HQLA and CLF over the total net cash out-flows in a modelled 30 day defined stressed scenario The NSFR is defined as the ratio of the amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by APRA. The amount of ASF is the portion of an ADI's capital and liabilities expected to be a reliable source of funds over a one year time horizon. The amount of RSF is a function of the liquidity characteristics and residual maturities of an ADI's assets and off-balance sheet activities. ADI's must maintain an NSFR of at least 100% Assets (both on and off-balance sheet) are risk weighted according to each asset's inherent potential for default and what the likely losses would be in case of default. In the case of non-asset-backed risks (ie. market and operational risk), RWA is determined by multiplying the capital requirements for those risks by 12.5 135 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#136Appendix 7: Definitions - other. Appendix Branch transactions Branch transactions are typically withdrawals, deposits, transfers and payments Customer satisfaction or CSAT CSAT (Main Bank Service Satisfaction) (Westpac NZ) CSAT - overall consumer CSAT overall business CSAT SME Digitally active Digital sales Digital transactions MFI share Business MFI share The Customer Satisfaction score is an average of customer satisfaction ratings of the customer's main financial institution for consumer or business banking on a scale of 0 to 10 (0 means 'extremely dissatisfied' and 10 means 'extremely satisfied') Source: 3 month rolling Retail Market Monitor data (survey conducted by Camorra Research). Respondents are asked to rate the overall level of service they receive from their main bank (self-selected which ONE bank is their main provider of financial services) on a scale of 1 (Poor) to 5 (Excellent). The rating represents % of respondents who scored 4 (Very Good) or 5 (Excellent) Source: DBM Consultants Consumer Atlas, February 2020 - August 2022, 6MMA. MFI customers Source: DBM Consultants Business Atlas, February 2020 - August 2022, 6MMA. MFI customers, all businesses Source: DBM Consultants Business Atlas, August 2022 (2H22), February 2022 (1H22), August 2021 (2H21). MFI customers, Total SME businesses. Total SME businesses are those organisations with annual turnover under $5 million (excluding Agribusinesses) Australian consumer and business customers who have had an authenticated session (including Quickzone) on Westpac Group digital banking platforms in the prior 90 days Sales refers to digital sales of consumer core products only. Sales with a funded deposit or activation constitute a quality sale Digital transactions including payment and transfers that occur on Westpac Live and Compass platforms (excludes payments on other platforms such as Corporate Online and Business Banking Online) MFI share results are based on the number of customers who have a Main Financial Institution (MFI) relationship with an institution, as a proportion of the number of customers that have a MFI relationship with any institution Source: DBM Consultants Business Atlas, August 2022 (2H22), February 2022 (1H22), August 2021 (2H21), 12MMA. MFI Banking Group customers Consumer MFI share Net Promoter Score or NPS NPS Agri (Westpac NZ) NPS Business (Westpac NZ) NPS Consumer (Westpac NZ) NPS - overall consumer NPS overall business St.George (SGB) Brands Source: DBM Consultants Consumer Atlas, August 2022 (2H22), February 2022 (1H22), August 2021 (2H21), February 2021 (1H21), 6MMA. MFI Banking Group customers Net Promoter Score measures the net likelihood of recommendation to others of the customer's main financial institution for retail or business banking. Net Promoter ScoreSM is a trademark of Bain & Co Inc., Satmetrix Systems, Inc., and Mr Frederick Reichheld. Using a 11 point numerical scale where 10 is 'Extremely likely' and 0 is 'Extremely unlikely', Net Promoter Score is calculated by subtracting the percentage of Detractors (0-6) from the percentage of Promoters (9-10) 6 month Agri Market Monitor data (survey conducted by Key Research). Respondents are asked about likelihood to recommend their main business bank to business colleagues, friends or family on a scale of 1 (extremely unlikely) to 10 (extremely likely). Net Promoter Score is represents % of Promoters (recommend score of 9 or 10) minus % of Detractors (recommend score of 1 to 6) Source: 6 month rolling Business Finance Monitor data (survey conducted by Kantar TNS among businesses with an annual turnover of $5 to $150 million). Respondents are asked about likelihood to recommend their main business bank to business colleagues and associates on a scale of 1 (extremely unlikely) to 10 (extremely likely). Net Promoter Score is represents % of Promoters (recommend score of 9 or 10) minus % of Detractors (recommend score of 1 to 6) Source: 3 month rolling Retail Market Monitor data (survey conducted by Camorra Research). Respondents are asked about likelihood to recommend their main bank to family and friends on a scale of 1 (extremely unlikely) to 10 (extremely likely). Net Promoter Score is represents % of Promoters (recommend score of 9 or 10) minus % of Detractors (recommend score of 1 to 6) Source: DBM Consultants Consumer Atlas, February 2020 - August 2022, 6MMA. MFI customers Source: DBM Consultants Business Atlas, February 2020 - August 2022, 6MMA. MFI customers, all businesses SGB Brands (Consumer): St. George Bank, Bank of Melbourne, BankSA, RAMS, Dragondirect SGB Brands (Business): St. George Bank, Bank of Melbourne and BankSA 136 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP#137Investor Relations Team. Contact us. Andrew Bowden General Manager Investor Relations Louise Coughlan Head of Ratings Agencies and Analysis Andrea Jaehne Director, Ratings Agencies and Analysis Arthur Petratos Manager, Shareholder Services Jacqueline Boddy Head of Debt Investor Relations Catherine Garcia Head of Institutional Investors Rebecca Plackett Director, Corporate Reporting and ESG James Wibberley Senior Analyst Investor Relations W Investor Centre > Manage your shareholding >Dividend information > Westpac share information >Other Westpac securities > Financial information > ESG metrics > Westpac at a glance > Events and presentations >Fixed income investors >Contact Investor Relations >2021 annual reporting suite Home Personal Business Corporate About us Help About Investor Cerere INVESTOR CENTRE Information and help for Westpac securityholders and those considering investing in Westpac 2022 Interim dividend Fully franked paid on 24 June 2022 DRP price per share: $23.96 >Full announcement Share prices Check the latest share prices. >Latest chare price Get the latest Check the ASX announcements. >Announcements Latest news > Westpac market update-Wednesday 27 July 2022 >Westpac Capital Notes 9 issued, find- >2022 interim results announced Monday, 9th May >WBC notification to NYSE of intention to dalist Amarican Depositary Shares (PDF 90KB) Contact us Contact us Locate us Lost or stolen cards Register Online Banking Personal ▼ Sign in Contact our share registry Link Contact details Thinking about investing in Westpac > What you need to know about Westpac as a new investor > Company profile > Our history > Governance Investor Relations Contact For all matters relating to Westpac's strategy, performance and results +61 2 9178 2977 [email protected] westpac.com.au/investorcentre 137 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Share Registry Contact For all shareholding enquiries relating to: Address details and communication preferences Updating bank account details, and participation in the dividend reinvestment plan 1800 804 255 [email protected] investorcentre.linkmarketservices.com.au Westpac GROUP#138Disclaimer. Disclaimer The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. All amounts are in Australian dollars unless otherwise indicated. Unless otherwise noted, financial information in this presentation is presented on a cash earnings basis. Cash earnings is a non-GAAP measure. Refer to Westpac's 2022 Full Year Financial Results (incorporating the requirements of Appendix 4E) for the year ended 30 September 2022 available at www.westpac.com.au for details of the basis of preparation of cash earnings. Refer to page 42 for an explanation of cash earnings and Appendix 1 page 125 for a reconciliation of reported net profit to cash earnings. This presentation contains statements that constitute "forward-looking statements" within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward-looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include statements regarding our intent, belief or current expectations with respect to our business and operations, macro and micro economic and market conditions, results of operations and financial condition, capital adequacy and risk management, including, without limitation, future loan loss provisions and financial support to certain borrowers, forecasted economic indicators and performance metric outcomes, indicative drivers, climate- and other sustainability-related statements, commitments, targets, projections and metrics, and other estimated and proxy data. We use words such as 'will', 'may', 'expect', 'intend', 'seek', 'would', 'should', 'could', 'continue', 'plan', 'estimate', 'anticipate', 'believe', 'probability', 'indicative', 'risk', 'aim', 'outlook', 'forecast', 'f'cast', 'f', 'assumption', 'projection', 'target', 'goal', 'guidance', 'ambition', or other similar words to identify forward-looking statements, or otherwise identify forward-looking statements. These forward-looking statements reflect our current views on future events and are subject to change, certain known and unknown risks, uncertainties and assumptions and other factors which are, in many instances, beyond our control (and the control of our officers, employees, agents and advisors), and have been made based on management's expectations or beliefs concerning future developments and their potential effect upon us. Forward-looking statements may also be made, verbally or in writing, by members of Westpac's management or Board in connection with this presentation. Such statements are subject to the same limitations, uncertainties, assumptions and disclaimers set out in this presentation. There can be no assurance that future developments or performance will align with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially from those we expect or which are expressed or implied in forward-looking statements, depending on various factors including, but not limited to, those described in the section titled 'Risk factors' in our 2022 Annual Report available at www.westpac.com.au. When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events. Except as required by law, we assume no obligation to revise or update any forward-looking statements contained in this presentation, whether from new information, future events, conditions or otherwise, after the date of this presentation. Further important information regarding climate change and sustainability-related statements This presentation contains forward-looking statements and other representations relating to environment, social and governance (ESG) topics, including but not limited to climate change, net-zero, climate resilience, natural capital, emissions intensity and other sustainability related statements, commitments, targets, projections, scenarios, risk and opportunity assessments, pathways, forecasts, estimated projections and other proxy data. These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and assumptions in the metrics and modelling on which these statements rely. In particular, the metrics, methodologies and data relating to climate and sustainability are rapidly evolving and maturing, including variations in approaches and common standards in estimating and calculating emissions, and uncertainty around future climate and sustainability related policy and legislation. There are inherent limits in the current scientific understanding of climate change and its impacts. Some material contained in this presentation may include information including, without limitation, methodologies, modelling, scenarios, reports, benchmarks, tools and data, derived from publicly available or government or industry sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of such information. There is a risk that the estimates, judgements, assumptions, views, models, scenarios or projections used may turn out to be incorrect. These risks may cause actual outcomes, including the ability to meet commitments and targets, to differ materially from those expressed or implied in this presentation. The climate and sustainability related forward-looking statements made in this presentation are not guarantees or predictions of future performance and Westpac gives no representation, warranty or assurance (including as to the quality, accuracy or completeness of these statements), nor guarantee that the occurrence of the events expressed or implied in any forward-looking statement will occur. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Westpac will continue to review and develop its approach to ESG as this subject area matures. 138 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP