#1Presentation and Investor Discussion Pack 2021 INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2021 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Fix. Simplify. Perform. Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 35 for definition. Results principally cover the 1H21, 2H20 and 1H20 periods. Comparison of 1H21 versus 2H20 (unless otherwise stated). Westpac GROUP#2Westpac 2021 Interim Results Index 2021 Interim Results Presentation Investor Discussion Pack of 2021 Interim Results Overview Strategy Results Customer franchise Risk governance Sustainability Earnings drivers Revenue Expenses Impairment charges Credit quality and provisions Australian mortgage asset quality Capital, Funding and Liquidity Divisional results Consumer Business Westpac Institutional Bank Westpac New Zealand Specialist Businesses Economics Appendix Contact us Disclaimer 3 30 31 32 35 39 44 46 51 52 55 56 57 70 77 85 87 88 89 90 94 96 108 116 117 Westpac GROUP#3Peter King Chief Executive Officer Westpac GROUP#41H21 Results - Overview. Good progress on strategic priorities • . . • Mortgages - on track for major bank system growth in 2H21 Simplifying portfolio – 3 more sales Cost reset commenced CORE program expanded - financial and non-financial risk Cash earnings $3.5bn, up $1.9bn Cash ROE 10% $ Earnings . • Economy significantly better than expected last year Balance sheet strength Asset quality metrics improved CET1 capital ratio at 12.34% 1H21 dividend of 58 cents per share - 60% payout 4 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#51H21 Earnings snapshot. 1H20 2H20 1H21 Change Change 1H21-2H20 1H21-1H20 Reported net profit $1,190m $1,100m $3,443m 213% 189% Cash earnings¹ $993m $1,615m $3,537m 119% 256% Impairment (charge)/benefit ($2,238m) ($940m) $372m na na Cash EPS2 27.7c 44.7c 97.1c 117% 251% Return on equity³,4 2.9% 4.7% 10.2% 5.5ppts 7.3ppts Dividend per share 31cps 58cps 87% na Cash earnings excluding notable items 5 Core earnings $5,771m $5,100m $5,120m (11%) Cash earnings¹ $2,392m $2,835m $3,819m 35% 60% Cash EPS2 66.8c 78.5c 104.8c 34% 57% Return on equity3,4 7.1% 8.3% 11.0% 2.7ppts 3.9ppts 1 Cash earnings is a measure of profit generated from ongoing operations for further detail see page 35 and 109. 2 Cash EPS is cash earnings divided by weighted average ordinary shares. 3 Return on equity is cash earnings divided by average ordinary equity. 4 Cash earnings basis. 5 References to notable items in this slide include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. 5 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#6Refreshed executive team and new operating model. Executive team New to role New to Westpac Lines of Business operating model Mortgages Peter King Chief Executive Officer Scott Collary Chief Operating Officer Rebecca Lim Group General Counsel Les Vance Financial Crime, Compliance and Conduct Chris de Bruin Consumer & Business Banking Carolyn McCann Customer and Corporate Relations Jason Yetton¹ Specialist Businesses Anthony Miller Westpac Institutional Bank Consumer Banking Consumer finance Everyday banking Business Banking David McLean Westpac New Zealand Westpac Institutional Bank Consumer customer engagement Cash management Business lending Private wealth Business customer engagement Financial markets Corporate and institutional banking Global transaction services Insurance Specialist Finance Michael Rowland Chief Financial Officer Christine Parker Human Resources Specialist Businesses Platforms, Investments and Super Westpac Pacific Consumer banking and wealth David Stephen Chief Risk Officer Westpac NZ Corporate and institutional banking Treasury 1 Re-joined Westpac in 2020 after leaving in 2015. 6 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#7Our strategy. Purpose Markets, products, customers Helping Australians and New Zealanders Succeed Banking for consumer, business and institutional customers FIX Address outstanding issues Priorities • Risk management • Risk culture Customer remediation & pain points • IT complexity SIMPLIFY Streamline & focus the business Exit non-core businesses and consolidate international Reduce products, simplify customer offers Lines of Business operating model Transform using digital and data to enhance the customer experience PERFORM Sustainable long-term returns • Customer service - market leading Growth in key markets Reset cost base Enhance returns, optimise capital Strong balance sheet Values HELPS Helpful Ethical Leading Change Performing Simple 7 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#8Fix. Risk management and culture Capability and capacity Added over 100 resources for credit decisioning, risk reporting and stress testing CORE1 Program • • Integrated plan approved by APRA 7 April 19 Workstreams, clear accountability Multi-year timeframe - quarterly assurance reporting, published each half Financial crime program Capability and capacity 60% increase in team More than doubled people investigating and reporting on financial crime Progress Addressed matters identified in the AUSTRAC Statement of Claim Upgraded risk assessment methodologies and monitoring solutions 250% increase in customer reviews assessing high risks more frequently - 1 CORE is customer outcomes and risk excellence. 8 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#9Simplify. Portfolio and Geographic simplification Business sold Zip Co Ltd. Announced Completion targeted • Oct 2020 Vendor Finance Aug 2020 Oct 2020 Aug 2021 . Westpac Pacific Dec 2020 Dec 2021 • General Insurance Dec 2020 Westpac LMI Mar 2021 Sep 2021 Sep 2021 . Businesses to be sold Westpac Life Insurance Customers New Westpac app - faster and simpler Bringing 1,000 roles (including voice) back to Australia ~50% complete Removed over 100 consumer fees Combined Consumer & Business Banking leadership to - Simplify support Better utilise shared assets Improve the customer experience Auto Finance Superannuation, Platforms and Investments Geographic Closing five Asian offices - Mumbai and Jakarta complete Offshore locations: London, New York, Singapore. Opening in Frankfurt 9 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#10Perform Mortgages, change via Lines of Business. - Simplify processes Rolling quarterly mortgage applications¹ (indexed July-19 = 100) • Reduced forms and documents by 80 150 • 60 process and policy changes 125 100 Enhance credit decisioning 75 ~68% of mortgages are credit auto-decisioned 50 Jul-19 Increase digitisation ~70% of customers² accepting mortgage documents digitally • First party digital origination process rolled out³ third party origination in pilot Jan-20 Jul-20 Jan-21 Australian gross mortgage movement ($bn) 2.0 2.6 (3.5) (4.7) 2H19 1H20 2H20 1H21 1 Indexed to 31 July 2019. 2 1st party mortgages originated via the new mortgage origination platform. 3 1st party mortgages only. Excludes RAMS, Business Bank and Private Wealth. 10 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#11Perform competitive cost base.1 - - - Targeting $8bn by FY24. Continued investment – $3.5-$4bn over 3 years. Expenses ($bn)² Targeting a cost base of $8bn by FY24 12.7 Targets embedded in leader scorecards 0.9 ■Specialist Businesses . Expect to invest $3.5bn to $4bn over 3 years. Notable items Sources of improvement 2.5 ■Westpac continuing costs - Investment in Fix initiatives to reduce notable items 8.0 - Exit Specialist Businesses Simplify the business, improve processes and digitise 6.0 0.4 9.3 0.7 8.0 - Smaller head office FY20 4.9 1H21 FY24 Target 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 Future periods exclude potential notable items. References to notable items include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. Includes Westpac New Zealand. 11 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#121H21 fully franked dividend - 58 cps. Dividend considerations Dividends per ordinary share (cents) • Medium term outlook for return and growth 94 94 94 80 • Sustainable payout ratio ~60-65% • Dividend yield 4.8%1 Seek to neutralise DRP (arrange to purchase shares on market), no discount on DRP market price 58 COVID-19 31 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Capital considerations Dividend payout ratio (%) • Well above APRA'S CET1 "unquestionably strong" capital ratio Historic payout (FY17 - FY19)² 1H21 • Announced sales - 32bps Will reset preferred CET1 operating range once capital rules finalised Cash earnings 83 60 Effective (after DRP) 67 60 Cash earnings (ex notable items)3 77 56 1 At 31 March closing price of $24.41. 2 Average payout ratio in each half over period. 3 References to notable items in this release include (after tax) provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write- down of intangible items; and asset sales/revaluations. 12 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#13Michael Rowland Chief Financial Officer Westpac GROUP#141H21 earnings. Cash earnings ($m) 1H21 - 2H20 1,615 1,220 2,835 (59) 58 21 Core earnings up $20m 1,312 (348) 3,819 (282) 3,537 2H20 Up 35% More than doubled, up $1,922m 2H20 notable items 2H20 excl. 1 notable items 1 Net interest income Non-interest income Expenses Impairment charges Tax & NCI² 1H21 excl. 1H21 1H21 notable items 1 notable items 1 1 References to notable items in this release include (after tax) provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. 2 NCI is non-controlling interests. 14 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#15Notable items and simplification impacts. Notable items ($m after tax) 1H20 2H20 1H21 AUSTRAC proceedings (1,027) (415) Remediation and litigation (258) (182) (276) Intangible write-downs (46) (568) (199) Asset sales / revaluation (68) (55) 193 Total cash earnings impact (1,399) (1,220) (282) Impact of exits and simplification P&L contribution ($m)1 1H20 2H20 1H21 Net interest income 43 32 18 Non-interest income 124 59 27 Expenses (40) (41) (26) Core earnings 127 50 19 1 Contribution of businesses exited or simplified in respective period. 15 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Remediation higher in Advice and Specialist Businesses, lower in Business Settled historical disputes Write-off of LMI goodwill and write-down of capitalised software balances Revaluation of Coinbase, final gain from Zip sale and earnout from Vendor Finance sale Partly offset by losses on sale and transaction costs Exits and simplification includes • New Zealand wealth sale • Reduction in correspondent banking relationships • Exit of Energy trading International consolidation • Consumer fee simplification Westpac GROUP#16Lending dynamics. Loans ($bn) 693.1 T I 8.8 (6.4) I I Australian mortgages (3.3) I (3.9) 1.6 (0.6) 0.7 690.0 Sep-20 Mortgages - Mortgages - Business Owner occupier Institutional New Zealand Other Provisions Mar-21 Investor 1 Australian mortgage flows ($bn) Aust mortgage composition (% of total) 5 27 (16) Stock Stock Mar-20 Mar-21 Flow 1H21 (13) 441 444 Interest only 23 18 14 Fixed rate 23 23 32 32 37 13% First Home Buyers Investor Sep-20 New lending excl. Refinance Net refinance Property sale and other Paydown Mar-21 1 Includes Line of Credit. 16 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 38 38 35 55 26 26 Westpac GROUP#17Margins. Net interest margin (% and bps) 2Q21 NIM excl. Treasury, Markets & Notables: 1.97% Month of Mar-21 NIM excl. Treasury, Markets & Notables: 1.96% 2.03 1bp 2.04 (4bps) 6bps 2bps (2bps) 1bp 0.13 0.13 2.07 2bps 2.09 0.13 Treasury & Markets 0.13 impact on NIM 1.90 1.91 Up 3bps 1.94 1.96 ■NIM excl. Treasury & Markets 2H20 Notable items 2H20 excl. Loans notable items other Customer Funding Capital & Liquidity Treasury & 1H21 excl. deposits Markets notable items Notable¹ items 1H21 TD portfolio cost over benchmark 2 (%) Australian deposits 3 ($bn) Balances by interest rate (bps) 1.00% 0.75% 0.50% 257 Tractor rate (%) 4 • 1H21 tractor impact (3bps) 3% • 2% Similar impact expected in 2H21 Capital on 1yr hedge Capital: $54bn Deposits: $61bn 1% 0.25% 76 17 Tractor 60 11 3 year swap rate (spot) 0.00% ≤25bps Mar-18 Mar-19 Mar-20 Mar-21 26 51 76 ≤50bps ≤75bps ≤100bps 101bps+ 0% Mar-18 1 year swap rate (spot) Mar-19 Mar-20 Mar-21 1 References to notable items include; estimated customer refunds. 2 Benchmark is based on market rates with terms consistent with the duration of the term deposits. 3 Excludes mortgage offset balances. 4 Tractor is the blended average rate earned on hedged capital and low rate deposits. 17 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#18Non-interest income - up 3% excluding notable items.1 . Net fees¹ up $26m Higher cards from improved activity End of COVID-19 merchant waivers Other fees lower from simplification 3% Wealth & insurance¹ up $8m 1% Trading and other¹ up $24m 5% Higher insurance weather claims ($55m) Funds up from higher FUA Other income higher from revaluation of Life insurance liabilities Lower customer and non-customer income $34m positive DVA movement Other income higher as 2H20 included Mumbai FCTR loss 902 804 7782 269 148 181 277 300 249 6752 683 43 86 562 LO 5 140 259 203 447 471 439 18 10 10 499 453 429 417 356 348 356 373 394 1H20 2H20 Other fees ■Cards & merchants Business & institutional 1H21 1H20 2H20 Other Insurance Funds 1H21 (52) 1H20 2H20 ■ Other Trading 1H21 1 Excluding notable items. References to notable items in this slide include provisions related to; estimated customer refunds, costs and litigation; and asset sales/revaluations. 2 Total notable items in Non-interest income is unchanged. 2H20 has been restated to reflect $45m of notable items allocated to net fee income, this has now been allocated $30m to wealth management income and $15m to insurance income. 18 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#191H21 expenses. Down 9%, flat excluding notable items.1 Expenses ($m) 1H21-2H20 6,540 (1,283) 5,257 (99) 119 (35) 5,236 (6) Flat (down $21m) Down 9% 745 5,981 2H20 2H20 notable items 1 2H20 excl. notable items 1 Ongoing expenses Investment (ex. Risk & Compliance) Risk & Compliance COVID-19 1H21 excl. notable 1H21 notable 1H21 1 items items 1 References to notable items in this slide include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. 19 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#20Credit quality metrics improved. Stressed exposures as a % of TCE 1 3.20 2.17 2.07 Australian mortgage delinquencies and hardship (%, $bn) 4.0 Hardship balances $bn (RHS) ■ Watchlist & substandard 3.0 90+ day past due total % (LHS) 90+ day past due (dpd) and not impaired ■Impaired 2.0 1.0 8 00 6 4 2 1.91 0.0 0 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1.60 1.24 1.60 0.85 1.32 Australian unsecured 90+ day delinquencies (%) 1.24 1.20 1.20 0.85 1.05 1.08 0.75 0.99 0.62 2.50 0.46 0.71 0.55 0.65 0.35 0.56 0.55 0.54 0.80 0.31 1.92% 0.66 1.50 0.26 0.33 0.48 0.50 0.67 0.58 0.25 0.34 0.39 0.44 0.27 0.20 0.22 0.15 0.14 0.17 0.20 0.26 0.19 0.50 Sep-10 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Mar-20 Sep-20 Mar-21 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1 TCE is total committed exposure. 20 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#21Sep-20 Mar-21 2.8 16.0 6.2 2.9 14.6 4.8 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Property Accommodation, cafes & restaurants Stressed exposures to TCE by industry sector (%) 2 21 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 1 Services includes education, health & community services, cultural & recreational services and personal & other services. Wholesale & retail trade Agriculture, forestry & fishing Asset quality. Corporate and business stressed exposures by industry sector ($bn) Property & business services Services Manufacturing Construction ■Mar-20 ■Sep-20 ■Mar-21 Transport & storage 6.6 5.1 4.0 3.5 5.8 3.1 2.3 0.2 0.2 6.0 4.3 3.7 3.3 6.1 2.7 3.4 0.2 0.2 Westpac GROUP Mining Finance & insurance Utilities#22Credit impairment charge (benefit) composition. ($m) Individually assessed provisions New IAPS Collectively assessed provisions Total Write-backs & recoveries Write-offs direct Other movement in CAP2 351 283 144 (170) (147) (194) 1,619 438 438 366 318 (640) 2,238 940 (372) 1H20 2H20 1H21 1H20 2H20 1H21 1H20 2H20 1H21 1H20 2H20 1H21 1H20 2H20 1H21 1 IAP is individually assessed provisions. 2 CAP is collectively assessed provisions. 22 22 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#23Impairment provisions. Total impairment provisions1 ($m) Overlay Stage 1 CAP Provision coverage Stage 2 CAP ■Stage 3 CAP Provisions to Credit RWA Sep-19 Sep-20 Mar-21 109bps 171bps 159bps ■Individually assessed provisions (Stage 3) Provisions to TCE 37bps 58bps 51bps 6,159 5,788 708 IAP2 to Impaired assets 44.9% 41.5% 47.0% 5,508 795 958 1,032 Forecasts used in base case economic scenario ³ 1,019 3,922 853 171 At Sept 2020 At Mar 2021 818 2,247 2021 2022 2021 2022 2,317 1,806 GDP growth 2.5% 2.7% 4.0% 3.0% 1,578 Unemployment 7.5% 6.7% 6.0% 5.3% 1,561 1,327 1,051 943 412 606 Mar-20 611 Sep-20 564 Residential property price increase/(decrease) (0.4%) 7.5% 10% 10% Mar-21 Sep-19 1 CAP is Collectively Assessed Provision. 2 IAP is Individually Assessed Provision. 3 GDP and Residential property price growth is annual growth to December each year. Unemployment rate forecast is as at year end. Forecasts used for March 21 were determined in February 21. 23 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#24Capital drivers. CET11 capital ratio (% and bps) 20 82 20 11.13 Sep-20 Cash RWA earnings movement Risk weighted assets ($bn) 12 (1) 8 12.34 Expected divestment CET1 benefit (bps)³ Coinbase4 7 Vendor Finance Capital deductions and other FX translation impact Divestments Mar-21 Westpac Pacific5 6 General Insurance 12 437.9 (12.3) 0.7 2.9 (0.3) 428.9 Westpac LMI 7 Sep-20 Lower business and corporate stress; partly offset by Housing risk weight floor of 23.8% increased CRWA² $3.7bn Credit risk Market risk IRRBB Other Mar-21 1 Common equity tier 1. 2 Credit Risk Weighted Assets. 3 Pro forma benefit at March 21 for expected divestments and at 30 April for Coinbase. 4 Initial estimate, depends on final capital streamed up to the Group. 5 Impact reflects the remaining CET1 impact expected to occur in the 2H21 (mainly from the release of risk weighted assets upon sale). The accounting loss on sale in Westpac Pacific included in First Half 2021 notable items impacted the CET1 ratio for March 21. In total, the sale of Westpac Pacific is expected to add approximately 3bps to Westpac's Common Equity Tier 1 capital ratio. 24 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#25Targeting $8bn cost base by FY24.1 Cost target excluding notable items ($m) 2 Expenses (ex notables) expected to rise in FY21 compared to FY20. Targeting to reduce from FY22 onwards Pathway to $8bn Specialist Businesses Exit non-core businesses 10,161 FY20 Specialist Businesses Digitise & streamline Head office & organisational simplification BAU Investment Productivity 8,000 FY24 Digitise & streamline for customers ⚫ Digital focus, reduce products and cost to serve ⚫ Rationalise duplicate metro branches, smaller customised branches Reduce physical transactions Digitise sales and service Head office & organisational simplification Remove costs linked to Specialist Businesses Rationalise corporate footprint Lower support costs Reduce third party/contractor spend 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 All numbers exclude notable items. References to notable items in this slide include provisions related to AUSTRAC proceedings; estimated customer refunds, costs and litigation; write-down of intangible items; and asset sales/revaluations. Target includes Westpac New Zealand Limited. 25 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#26Select cost reset targets.1 Specialist Businesses Digitise & streamline for customers Head office & organisational simplification Metric Baseline • Exit non-core businesses 1 under sale agreement 1H21 4 under sale agreement FY24 7 transactions completed • Mortgages processed on digital origination platform² 32%2 62%2 100% • Consumer sales via digital³ 42% 41% 70% • Branch transactions³ 29 million 22% less4 ~40% less Products for sale5 891 839 ~345 . Offshore locations6 8 Reduce third party and contractor spend by >$200m per annum Reduce head office roles and corporate space - more than 20%7 6 4 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 2 Percentage of home loan applications through strategic platform for 1st party lending (excl. RAMS). FY24 target refers to both 1st and 3rd party across Consumer and Business. 3 Refer to slide 115 for definition. 4 Reduction in 1H21 represents decrease on 1H20. 5 Represents Australian Consumer, Business and Institutional products for sale. 6 Represents international locations excluding New Zealand and Westpac Pacific. 7 Corporate Space represents head office and operations and excludes branches and business banking centres. 26 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#272H21 Considerations.1 Lending Net interest margin • Maintain mortgage momentum Stabilise Business lending • Headwinds from competitive market continued flow through of low rates Non-interest income Expenses Asset quality Improved economic activity and consumer spending Impact of simplification to flow through FY21 expected to be higher than FY20 (excluding notable items) from: Seasonality of project spend – higher in 2H - Full period effect of higher FTE for Fix agenda Maintain focus on supporting customers. Improved outlook, some impact from wind back of government support 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 117. 27 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#28Peter King Chief Executive Officer Westpac GROUP#29Good progress - more to do. Economic outlook positive Latest1 End 2021 Forecasts GDP growth (1.1%) 4.5% Housing credit growth 4.1% 6.5% Business credit growth (2.6%) 2.5% Unemployment rate 5.6% 5.0% 2H21 Priorities Grow core businesses - Continue mortgage improvement. Grow at major bank system in 2H21 Apply mortgage success to business lending Specialist Businesses Complete Panorama migration - Progress asset sales and completions • Risk management - deliver on CORE program and improve risk management processes/culture Begin delivering on cost reset 1 Latest is December 2020 (GDP), March 2021 housing credit, business credit and unemployment. Sources: ABS, RBA, Westpac Economics. 29 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#30Investor Discussion Pack Fix. Simplify. Perform. Westpac GROUP#31Overview Westpac GROUP#32Westpac Group at a glance. Helping Australians and New Zealanders Succeed. In its 205th year, Australia's first bank and first company, opened 1817 Australia's 2nd largest bank and 24th largest bank in the world, ranked by market capitalisation¹ Well positioned across key markets with a service-led strategy focused on customers Supporting consumers and businesses in Australia and New Zealand • Unique portfolio of brands providing a range of financial services across consumer, business and institutional banking Capital ratios are in the top quartile globally, with sound credit quality Credit ratings2 AA- / Aa3 / A+ Continued sustainability commitment³ Key statistics at 31 March 2021 Operating divisions Consumer Business Westpac Institutional Bank (WIB) Westpac New Zealand Strategy WBC WBK listed on LISTED ASX & NZX NYSE Westpac bank SA st.george RAMS Bank of Melbourne Westpac bank SA st.george Bank of Melbourne Westpac New Zealand Key financial data for Half Year 2021 Customers 14.0m Reported net profit after tax $3,443m Cash earnings $3,537m Australian household deposit market share4 21% Expense to income ratio 55.4% Australian mortgage market share5 22% Common equity Tier 1 capital ratio (APRA basis) 12.34% Australian business credit market share5 15% Return on equity³ 10.2% New Zealand deposit market share6 18% Total assets $889bn New Zealand consumer lending market share Australian wealth platforms market share? 18% 18% Total liabilities Market capitalisation⁹ $817bn $90bn 1 31 March 2021 Source: S&P Capital IQ, based in US$. 2 S&P Global Ratings, Moody's Investors Service and Fitch Ratings respectively. Moody's Investor Services and Fitch Ratings have Westpac Banking Corporation on a stable outlook. S&P Global Ratings has Westpac on a negative outlook. 3 Awarded Silver - DJSI 2020 Year Book, Rated A - MSCI-ESG, Medium ESG Risk Band - Sustainalytics. 4 APRA Banking Statistics, March 2021. 5 RBA Financial Aggregates, March 2021. 6 RBNZ, March 2021. 7 Plan for Life 31 December 2020. All Master Funds Admin. 8 Cash earnings basis. 9 Based on share price at 31 March 2021 of $24.41. 32 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#33Portfolio simplification. Executing our FY21 strategic priorities. Businesses included in the Specialist Business division Strategy Business Unit Vendor Finance1 Business overview Supports third parties to fund equipment finance loans Status Entered sale agreement (held for sale) Announced 21st August 2020 Expected completion Second Half 2021 +BT Brands Businesses in Specialist Business division operate under the following brands: ◆BT Panorama ADVANCE ASSET MANAGEMENT Asgard Pacific General Insurance¹ Provides insurance solutions including Home and Contents Insurance and Landlord Insurance Entered sale agreement (held for sale) 2nd December 2020 Second Half 2021 Westpac st.george Bank of Melbourne Businesses held for sale $m 1H21 Westpac Pacific¹ Life Insurance Auto Finance Lenders Mortgage Insurance1 Superannuation, Platforms and Investments Banking in Fiji and PNG serving retail, business and institutional customers Provides Lenders Mortgage Insurance to Westpac Group for residential mortgages Manufacturer of life, TPD and income protection products Provides vehicle finance, dealer finance, business car leasing and novated leasing Provides superannuation, investment platforms for advised clients, multi-fund asset Entered sale agreement (held for sale) Entered sale agreement (held for sale) Under Under consideration Under consideration 7th December 2020 Second Half 2021 Net interest income 67 Non-interest income 100 18th March 2021 Second Half 2021 Expenses (48) Impairment (charges)/benefits 24 Tax and non-controlling interests (40) consideration Cash earnings contribution of businesses held for sale (ex notable items) 103 Loans management and a range of direct products for SMSFs and individuals Deposits CET1 Impact Once announced sales are completed, they are expected to add 25bps² to the CET1 capital ratio 1 Classified as held for sale in the Group's 2021 Interim Financial Results Announcement. 2 CET1 impact is based on RWAs at 31 March 2021. Impact at the time of sale can vary based on RWA movements. The 31 March 2021 CET1 ratio includes the accounting loss on sale in Westpac Pacific included in 1H21 notable items. 1,819 2,088 33 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#34Westpac New Zealand review. Strategy Westpac is reviewing the most appropriate ownership structure for its New Zealand operations. The business has been a valuable contributor for many years. The review is ongoing. $ Rationale for the review Contribution to Westpac Group • Banking is increasingly a local business 1H21 Cash earnings ex notables (%) BS11 operational separation limits synergies 5 Considerations Potential value uplift from two locally focused businesses Separation and independence costs Impact of RBNZ reviews Status Regulator engagement required Determining potential split of balance sheet in a demerger Progressing analysis 34 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Lending (%) 15 0 12 85 0 88 ■Group ex Westpac NZ ■ Westpac NZ ■ Group ex Westpac NZ ■ Westpac NZ Westpac GROUP#35Cash earnings and reported net profit reconciliation. Cash earnings 1 policy Westpac Group uses a measure of performance referred to as cash earnings to assess financial performance at both a Group and divisional level This measure has been used in the Australian banking market for over 15 years and management believes it is the most effective way to assess performance for the current period against prior periods and to compare performance across divisions and across peer companies To calculate cash earnings, reported net profit is adjusted for: Material items that key decision makers at the Westpac Group believe do not reflect the Group's operating performance Items that are not normally considered when dividends are recommended, such as the impact of treasury shares and economic hedging impacts Accounting reclassifications between individual line items that do not impact reported results profit Reported net profit and cash earnings ($bn) Results 1H21 Change Change 1H21-2H20 1H21-1H20 ($m) (%) (%) 3,537 119% 256% Cash earnings Cash EPS (cents) 97.1 117% 251% Reported net 3,443 213% 189% Reported EPS (cents) 94.5 210% 185% Reported net profit and cash earnings adjustments ($m) ■Reported profit Cash earnings 2H20 1H21 3.6 3.6 3.4 3.5 Reported net profit 1,100 3,443 3.2 3.3 Fair value (gain)/loss on economic hedges Ineffective hedges 581 46 (37) 48 1.6 1.2 1.1 1.0 Adjustments related to Pendal Group Treasury shares (32) 3 Cash earnings 1,615 3,537 1H19 2H19 1H20 2H20 1H21 1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash items reflected in net profit determined in accordance with AAS (Australian Accounting Standards). The specific adjustments outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary shareholders. All adjustments shown are after tax. For further details refer to page109. 35 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#361H21 cash earnings. 1H21 Change 1H21- 2H20 Change 1H21- 1H20 Cash earnings 1H21 - 2H20 ($m) ($m) (%) (%) Increased merchant revenue and higher wealth income Net interest 8,469 1% (2%) income AIEA down 2% partly offset by a 3bp increase in NIM Non-interest 2,330 25% 39% income Results Lower restructuring expenses, some COVID-19 expenses and timing of project spend partly offset by increased FTE for risk, compliance and volumes Impairment benefit from improved economic outlook and improved credit quality 1,312 (348) 3,819 (282) 3,537 1,220 2,835 (59) 58 21 Expenses (5,981) (9%) (3%) 1,615 Up 35% ex-notable items Core earnings 4,818 29% 15% Up 119% 2H20 Impairment 372 Large Large Add back notable items 2H20 ex- notable items Net interest Non-interest Expenses Impairment Tax & NCI income income charges 1H21 ex- notable items Notable items 1H21 benefit Tax and non- controlling (1,653) 39% 74% interests (NCI) Cash earnings 3,537 119% 256% Add back notable items (after tax) Cash earnings 1H21 - 1H20 ($m) 4,548 increase in FTE to support higher mortgage volumes, risk and compliance programs and COVID-19 related activities NIM down 9bps mostly from higher liquid assets and the low interest rate environment Impairment benefit from improved economic outlook and increased recoveries and write-backs 2,610 (532) 3,819 (282) 3,537 282 (77%) (80%) 1,399 2,392 (374) 55 (332) Cash earnings ex-notable items 3,819 35% 60% 993 Up 60% ex-notable items Reported net profit Up 256% 3,443 213% 189% 1H20 Add back notable items 1H20 ex- notable items income Net interest Non-interest Expenses Impairment Tax & NCI income charges 1H21 ex- notable Notable items 1H21 items 36 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#37Notable items in 1H21 and 2H20. Results 1H21 notable items Specialist Group Consumer Business WIB NZ2 Businesses Businesses Group 74 (3) 71 Non-interest income (3) 1 (5) 1 378 372 (106) (40) (37) (6) (336) (220) (745) (109) 35 (37) (14) (335) 158 (302) Impairment charges Tax and non-controlling interests 33 (10) 11 4 38 (56) 20 (76) 25 (26) (10) (297) 102 (282) In 1H21 and 2H20, the Group recognised certain costs/provisions known throughout this document as "notable items" which relate to the following: AUSTRAC proceedings¹ ($0 1H21, $415m 2H20) Costs associated with the AUSTRAC proceedings including for a Court penalty, legal costs and costs of the Group's response plan. There were no costs in 1H21 as the AUSTRAC proceedings have now been settled. Estimated customer refunds, payments, associated costs and litigation ($276m 1H21, $182m 2H20) Additional provisions were raised in 1H21 for: • Refunds for certain ongoing advice fees associated with the Group's salaried financial planners and authorised representatives Refunds to superannuation and investment customers not advised of certain corporate actions Costs associated with ending the Group's IOOF relationship • Litigation including settlement of historical matters Write-down of goodwill and intangible assets¹ ($199m 1H21, $568m 2H20) Write-down of goodwill associated with our LMI business along with a write-down of capitalised software. Asset sales and revaluations¹ ($193m gain 1H21, $55m loss 2H20) This includes the revaluation gain on the Group's stake in Coinbase, the gain on sale of the Group's holding in Zip Co Limited and earn out payments from the sale of the Vendor Finance business. Partly offset by a loss on sale of Westpac Pacific and transaction costs related to announced sales. ($m) Net interest income Expenses Core earnings Cash earnings 2H20 notable items ($m) Consumer Business WIB NZ2 Specialist Group Businesses Businesses Group Net interest income (34) (3) (37) Non-interest income 4 (3) (4) (305) 273 (35) Expenses (31) (106) 1 (653) (494) (1,283) Core earnings (27) (143) (6) (958) (221) (1,355) Impairment charges Tax and non-controlling interests 8 43 2 138 (56) 135 Cash earnings (19) (100) (4) (820) (277) (1,220) 1 For further information refer to Westpac's 2021 Interim Financial Results Announcement. 2 In AUD. 37 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#381H21 financial snapshot. Results 1H21 Change 1H21 - 2H20 Change 1H21- 1H20 1H21 1H21 - Change Change 2H20 1H21 - 1H20 Earnings¹ Balance sheet Earnings per share (cents) 97.1 117% 251% Total assets ($bn) 889.5 (2%) (8%) Common equity Tier 1 (CET1) capital Core earnings ($m) 4,818 29% 15% 12.34 121bps 153bps ratio (APRA basis) (%) CET1 capital ratio Cash earnings ($m) 3,537 119% 256% 18.08 158bps 227bps (Internationally comparable 2) (%) Return on equity (%) 10.19 Large Large CET1 capital ($bn) 52.9 9% 10% Dividend (cents per share) 58 87% N/A Risk weighted assets (RWA) ($bn) 428.9 (2%) (3%) Expense to income ratio (%) 55.4 Large Large Average interest-earning assets ($bn) 813.0 (2%) Net interest margin (%) Loans³ ($bn) 690.0 (4%) 2.09 6bps (4bps) Customer deposits³ ($bn) 550.3 (1%) 1% Credit quality Impairment benefit to average Net tangible assets per share ($) 16.60 6% 8% 11 Large Large gross loans (bps) Funding and liquidity Impaired assets to gross loans (bps) 30 (10bps) Customer deposit to loan ratio (%) 79.8 (39bps) Large Impaired provisions to impaired assets (%) 47 6ppts (3ppts) Net stable funding ratio4 (%) (NSFR) 123 1ppt 6ppts Total provisions to credit RWA (bps) 159 (12bps) 2bps Collectively assessed provisions to 142 (12bps) 2bps credit RWA (bps) (2%) 1 All measures on a cash earnings basis. 2 Internationally comparable methodology aligns with the APRA study titled 'International Capital Comparison Study' dated 13 July 2015. 3 Includes items classified as held for sale. 4 NSFR is reported on a spot basis. 5 LCR is reported on a quarterly average basis. 6 1H21 and 2H20 includes Term Funding Facility (TFF). 7 Total liquid assets represent cash, interbank deposits and assets eligible for existing repurchase agreements with a central bank. Liquidity coverage ratio 5,6 (%) (LCR) Total liquid assets ($bn) 124 (27ppts) (16ppts) 195.2 (12%) 38 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#39Customer franchise. MFI Share 1,2 Customer satisfaction (CSAT) 2 ■Westpac ■St.George brands ■Peers -Westpac St.George brands Peers 7.7 29.6% Consumer 7.6 7.5 7.4 7.3 Net Promoter Score (NPS) 2 -Westpac Customer franchise St.George brands -Peers 3.1 1.9 1.1 -0.8 -7.3 14.6% 15.6% 11.6% 5.4% 10.2% Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 -Westpac St.George brands Peers -Westpac St. George brands Peers Peer 1 Peer 2 Peer 3 Westpac Group Customer numbers (#m) ■Australian banking ■New Zealand Other Business 7.8 7.4 7.3 7.2 7.1 14.2 14.2 14.1 14.0 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 1.7 1.7 1.6 1.4 1.4 1.3 1.3 1.3 84321 1.6 -8.7 -10.2 -15.6 -17.0 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 11.2 11.2 11.2 11.3 Sep-19 Mar-20 Sep-20 Mar-21 New Zealand -Westpac Peers 78 75 74 67 -Westpac Peers 39 36 3320 24 16 34 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1 Main Financial Institution for Consumer customers. Data at 28 February 2021. 2 Refer page 115 for details of the metric provider. 39 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#40Helping Australians and New Zealanders Succeed. Customer franchise COVID-19 support Supported customers to defer over $70bn of lending via COVID-19 deferral packages helping over 200k customers Personalised support to customers exiting deferral packages and experiencing hardship - Provided Government Guarantee loans - $300m to ~2,500 customers in Australia NZ$65m to 229 customers in NZ Updated SME Government Guarantee loans launched April 2021 Helped 160k superannuation fund members through access to $1.9bn via early release scheme Customers provided packages ('000s) 178 29 Australia New Zealand 149 42 9 33 Mortgages 1 Insurance claims is before reinsurance. 2 Funds under administration. Business Natural disasters • • • Announced a $10m Flood Support Fund to provide emergency grants for eligible customers in flood-affected areas. This included: - $5,000 grants for businesses $3,000 grants for households Disaster relief packages provided to customers including deferrals Insurance claims of ~$110m¹ for ~4,600 customers in 1H21 for floods and storms $150k provided to The Salvation Army for flood support Helping customers . • $5.6bn of loans to first home buyers in 1H21 Migrated $11.3bn to new leading platform, with FUA² on Panorama $50bn Customers can block their cards to limit gambling online, since launch over 2,500 customers have enabled this feature Provided financial education and literacy programs and tools through the Davidson Institute Launched capability to auto-detect and block abusive language and enable customers to report abusive messages in banking text. Since launch we have filtered and blocked more than 5,000 messages New app launched making it faster and simpler for customers to bank with us Improved cyber protection including Security Wellbeing Check within our banking app Simplified fee and products, eliminated over 100 fees in 1H21 40 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#41Continued migration to digital. Australian ATMs (#) Less physical More digital Australian branches (#) Digitally active customers (#m) In FY20 we sold 740 non-branch ATMs to Prosegur 2,213 2,193 2,133 1,399 1,352 Customer franchise Accounts with eStatements Number (#m) eStatements (%) 62 60 971 955 5.15 55 57 931 929 5.09 52 889 4.99 5.04 4.90 10.3 10.7 9.6 9.8 8.9 Up 1% Up 2% Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Call Centre Volume (#m) Increased Westpac mobile app self-serve capability Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Branch OTC¹ transactions (#m) Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sales via digital (%) Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Digital transactions 2 (#m) 2H20 OTC transactions impacted by COVID-19 lockdown and restrictions 4.3 4.3 4.2 4.1 1H19 2H19 Down 9% Down 11% 1H20 2H20 3.9 1H21 18.6 17.7 16.5 1H19 2H19 12.5 12.9 Up 4% Down 22% 1H20 2H20 1H21 39 38 1H19 2H19 37 1H20 298 42 277 267 257 41 242 2H20 1H21 Up 8% Up 12% 1H19 2H19 1H20 2H20 1H21 1 Over the counter. 2 Digital transactions include all payment transactions (Transfer Funds, Pay Anyone and BPAY) within Westpac Live and Compass, excl. Corporate Online and Business Banking online. 41 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#42Mortgages: Digital capabilities delivered¹. 9:41 Discover 9:41 < W Sign out < Step 3 of 4 AFFORDABILITY CHECK-IN Great news, all good to submit REFINANCE CALCULATOR Use our calculator to see how much you could save when you switch your home loan from another bank to us. You could afford to borrow Apply online Request a call back My current loan Amount left. $1,528,159 Including LMI of $27,037 For the property 15 Example Road • New, search optimised calculators • Apply online 24/7 • • Property insights • Loan, feature and rate comparison tools • 9:41 Apply Track your application Your summary Step 1: Get conditional approval COMPLETED Step 2: Get full approval IN PROGRESS Sign out < Upload your financial documents Provide documents We'll review your financial documents 9:41 Sign out Accept your offer > What you need to do Customers know what they can afford • • • Pre-filled for existing customers Paperless application via branch / contact centres Upload photos of supporting documents at any point Auto-routing to available lenders for faster response . Understand maximum borrowing potential • • Clarity of repayments and buying costs Auto-verify using comprehensive credit reporting 1 Refers to 1st party origination platform and excludes RAMS, Private Wealth and Business. 42 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack • • • • 9:41 Customer franchise Use Sign out You've chosen a X year fixed rate of X.XX% p.a. Here you can read and accept your offer (the Loan Contract and any other documents listed directly below). How much would you like to fix? Your current balance is -$700,000.00 Fix entire loan Split loan and fix a portion Documents to review Download all Loan Contract The terms and conditions of the loan. Read document > New loan details Your current contracted monthly repayments are $XXXX.XX See all current loan details Fixed Option Home Loan Loan balance" -$750,000.00 2 years fixed at XXX% p.a. Indicative monthly repayments SXXXX.XX" Track status through to settlement Real-time notifications on key moments Accept loan documents online Settlements done digitally (PEXA) Switch to fixed rate for existing customers Westpac GROUP#43Customer remediation. Customer franchise Progressing customer refunds: Conducted extensive product, process and policy reviews Over $200 million in remediation payments have been made to over 570,000 customer accounts during the past six months following these reviews and regulator feedback Centralised the governance and reporting of remediation to ensure consistency and to speed up the process Substantial progress across Westpac, including ongoing advice and other wealth fees, National Consumer Credit Protection Act compliance and interest only products Provisions for customer refunds, payments and associated costs: Additional provisions of $241m raised in 1H21 including for: • • • • Refunds associated with certain ongoing advice fees charged by the Group's salaried financial planners and authorised representatives Refunds to superannuation and investment customers not advised of certain corporate actions Released provisions previously raised for customer refunds related to businesses provided a business loan instead of a consumer loan regulated by the National Consumer Credit Protection Act and the National Credit Code which were no longer required Costs associated with the implementation and completion of the remediation program Provisions for customer refunds, payments and associated costs 1 ($m) 2017 2018 2019 2020 1H21 Total Banking 94 122 362 144 (67) 655 Wealth 75 146 802 208 195 1,426 Implementation costs 62 62 232 196 113 603 $ Cash earnings 118 231 977 384 168 1,878 impact of above 1 Excludes provisions and costs associated with litigation. 43 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#44Strengthening risk governance and oversight. CORE Program; Integrated Plan delivery on track. Integrated Plan A comprehensive and integrated program of work designed to strengthen risk governance and frameworks, further clarify accountability and improve the Group's risk culture It outlines how we are strengthening risk governance across both financial and non-financial risk Comprises 19 workstreams, underpinned by 80 deliverables and 327 activities Group Executive accountability and outcomes linked to executive remuneration decisions Multi-year completion timeframe - with 90 day delivery schedule APRA-approved and independently assured by Promontory Australia, with regular reporting to be made publicly available Background and timeline 2018 Released Culture, Governance and Accountability self assessment (CGA self assessment), highlighting weaknesses in our management of non-financial risk. Included 45 recommendations 2019 Following AUSTRAC proceedings (December), APRA requested a reassessment (CGA reassessment) of the CGA self assessment. APRA also increased our operational risk capital add-on to $1 billion Activity progress Risk governance Of the 327 activities, 82 have been submitted to Promontory for assurance and of those, 46 have been closed¹. 2020 245 82 14% of total activities have been closed¹ Milestones 327 activities ■ Submitted ■Not yet due Released CGA reassessment (July), which reinforced findings and identified further issues. The CORE Program was established to incorporate and address these findings on non-financial risk. Following APRA's risk governance review, we entered into an Enforceable Undertaking with APRA to address deficiencies in risk governance (December) 2021 Expanded the CORE Program to improve financial and non-financial risk governance. Group Executive Financial Crime, Compliance & Conduct assigned responsibility for leading the CORE Program. Integrated Plan approved by APRA (April) 1 At 29 April 2021. Closed means the independent reviewer has assessed the activity as complete. 44 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#45CORE: Integrated Plan governance and oversight. Clear lines of accountability. Independent assurance by Promontory. CORE Program governance structure Board Board Risk Committee CEO Executive Team Steering Committee Group Executive Sponsor Approval of the Integrated Plan and material changes. Ongoing governance and oversight Primary Board-level oversight of the Integrated Plan Overall management accountability for risk governance and delivery of the Integrated Plan Responsible for oversight of the Integrated Plan delivery Accountable for CORE Program outcomes 19 CORE Program workstreams: Board risk governance Executive culture and capability Organisational design Risk governance Remuneration and consequence management 1 2 3 Risk culture 4 5 6 Risk roles and capability 7 8 Risk management framework 9 Transformation capability and delivery Non-financial risk reporting and JUNO functionality 10 End-to-end risk and control environment 45 Workstreams 11 Assurance All Group Executives are accountable for Divisional implementation. Each workstream has an accountable Group Executive (12) Compliance management 13 Conduct risk 14 Customer complaints 15 Technology risk governance Accountable for risk governance program CORE Program Team outcomes, key milestones and interdependencies tracking, change control and sequencing 16 Data risk governance 17 Credit risk governance Group Transformation Office Enterprise frameworks, reporting and portfolio oversight 18 Market risk governance 19 Liquidity risk and capital adequacy risk governance Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#46Committed to action on climate change. Sustainability Committed to managing our business in alignment with the Paris Agreement and a transition to a net zero economy by 2050. Progress and targets Participating in Focus areas Target Year Progress United Nations Environment Programme Finance Initiatives (UNEP FI) Principles for Responsible Banking New lending to climate change solutions $3.5bn 2023 $0.5bn in 1H21 • $15bn 2030 Australian Sustainable Finance Initiative • Thermal coal mining $0 exposure 2030 Total lending to coal mining of $0.5bn. 56% is to thermal coal mining1 Australian Business Roundtable for Disaster Resilience and Safer Communities Corporate Sustainability Working Group of the Australian Banking Association RE100 Electricity generation - portfolio 0.23tCO2-e/MWh 2025 0.25tCO2-e/MWh emissions intensity1,2 0.18tCO2-e/MWh 2030 Updated annually in November . Investor Group on Climate Change Oil and gas (extraction, production Establish sector 2023 criteria Updated scenario analysis. Developed internal assessment criteria1 85% reduction 90% reduction 2025 2030 Down 27% from 2016 baseline. Updated annually in November 35% reduction 2030 Updated annually in November and refining) Scope 1 & 2 emissions2,3 Scope 3 supply chain emissions - A proven track record in responding to climate change 1991 Founding member of the United Nations Environment Program (UNEP). 2003 One of nine founding signatories to Equator Principles. 2012 Commitment to carbon neutrality across our business. 2014 Signed Montreal Carbon Pledge and endorsed Global Investor Statement on Climate Change. 2016 2-degrees Climate Scenario Analysis. 2017 Signatory to Climate Action 100+. 2018 4-degrees Climate Scenario Analysis. 2018 TCFD disclosures published. 2019 1.5-degrees Climate Scenario Analysis. Climate Action 100+ Climate Leaders Coalition, New Zealand Sustainable Finance Forum of Aotearoa Circle, New Zealand 1996 First bank to join Australian Greenhouse Challenge. 2005 Relationship with Investor Group on Climate Change established. 2008 First Climate Change Position Statement. 2013 Second Climate Change Position Statement. 2015 Commitment to UN Sustainable Development Goals and Paris Climate Agreement. Commenced portfolio carbon reporting for BT MySuper portfolios. 2017 Third Climate Change Position Statement & Action Plan. 1 WIB only. 2 At 30 September 2020. 3 FY16 Scope 1 & 2 emissions baseline: 147,620 tCO2-e. 46 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 2020 Fourth Climate Change Position Statement & Action Plan. Westpac GROUP#47Climate-related disclosures - scenario analysis. Sustainability Transition risk - key points . • • Transition climate risk includes domestic and market changes when moving to a greener economy, which can result in changes to costs, income and profits, investment preferences and asset viability Our analysis of transition risk focuses on our current Australian Business and Institutional lending¹ and exposure to sectors which may face growth constraints under 1.5-degree and 2-degree scenarios² Approximately 1.2% of our current Australian Business and Institutional lending is exposed to sectors that by 2030 may experience higher risk³ in a transition to a 1.5-degree economy. Under a 2050 scenario this is 2.5% During the half, we undertook transition risk analysis, and developed internal assessment criteria for the oil and gas sector (extraction, production and refining)4. Our updated approach means we will: expect any new oil and gas exploration, production and refining customers, to whom we provide lending, to have publicly disclosed Paris-aligned business goals; support existing customers to develop Paris-aligned financing strategies; develop our approach and understanding of climate-related risk and opportunities in the oil and gas sector (including downstream segments) through engagement with our customers5; and continue to provide annual updates on our progress • Alignment with the TCFD • We continue to integrate the consideration of climate-related risks and opportunities into our operations. This includes alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), referenced in APRA's draft Prudential Practice Guide on Climate Change Financial Risks. Climate change-related risks are managed within the Group's risk management framework Participating in APRA's 2021 Climate Vulnerability Assessment TCFD Physical risk - key points • • • TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Physical climate risk refers to changes in climate and the frequency and magnitude of extreme weather events, with impacts including direct damage to assets or property Updated our approach to assessing the impact of extreme weather events under climate change scenarios on our Australian mortgage portfolio6,7 Focused on the Australian mortgage portfolio and exposure to locations that may face increased physical risk under an IPCC RCP8 8.5 Scenario Approximately 2.0% of the current Australian mortgage portfolio may be exposed to higher physical risk under an IPCC RCP 8.5 Scenario by 2050 1 Australian Business and Institutional lending, excludes retail, sovereign, and bank exposures. 2 For further information see Westpac's FY20 Sustainability Performance Report. 3 Sectors whose medium (2030) and long-term (2050) performance under a scenario deviated by more than one standard deviation below average GDP growth, were classified as 'may face relatively higher growth constraints'. 4 For further information see 2021 Interim Financial Results. 5 WIB customers only. 6 Excludes RAMS and Equity Access. 7 Considered riverine flooding, coastal inundation, forest fire, extreme wind and soil subsidence. 8 Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathway (RCP). 9 'Higher risk' were locations where insurance may become more expensive or unavailable. 47 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#48Climate-related metrics. Lending to climate change solutions ($bn, TCE) Electricity generation exposure (% of TCE)1 at 30 September 2020 10.1 10.0 9.1 9.3 7.0 i!!!! O Up 43% Sustainability Lending to electricity generation in Australia and New Zealand (% of total) 80% 70% ■Renewable energy 60% ■Gas 50% ■Black coal 40% $4.3bn ■Liquid Fuel 30% Renewable 20% ■Brown coal Non-renewable 10% 0% Sep-17 Sep-18 Sep-19 Sep-20 Mar-21 Climate change solutions exposure (% of TCE)2 at 31 March 2021 Mining exposure ($bn, TCE)³ 1.9 1.5 3.7 4.4 9.7 34.0 TCE $10bn FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Our scope 1 and 2 emission production 5 (tCO2-e 000's) ■Green buildings 10.3 ■Renewable energy 9.0 8.0 ■Mar-20 Sep-20 ■Mar-21 148 134 128 121 108 44.8 ■Low carbon transport 6.3 5.7 5.2 ■ Waste 3.3 2.8 Down 27% ■Forestry 2.3 0.7 0.5 0.5 Adaptation infrastructure ■ Other Total 2016 Baseline 2017 2018 2019 2020 Non-fossil fuel Oil and gas Coal - thermal & metallurgical 1 Exposures in WIB only. 2 Climate solutions definition is available in our 2020 Sustainability Datasheet glossary. 3 The reduction in lending to oil and gas extraction from September 2020 is mainly due to the consolidation of Westpac's international operations. 4 Lending to thermal coal mining is 56% of total coal mining in WIB. 5 FY16 Scope 1 & 2 emissions baseline: 147,620 tCO2-e. 48 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#49Respecting and advancing human rights. Progressing our Human Rights Position Statement and 2023 Action Plan. Salient human rights issues • Vulnerable groups may be impacted by misuse of our services by others Remote Indigenous populations may face challenges with access to banking services Information security and data privacy Labour and land-related rights for vulnerable groups subject to marginalisation, discrimination or exploitation Reducing work-related mental ill-health and supporting employee wellbeing remains a priority Discrimination and harassment can impact our diverse workforce Workers in our supply chain may face unfair wages and working conditions • • Progress in First Half 2021 Sustainability Supported customers at increased risk of vulnerability, with 18,000 customers receiving assistance through vulnerability specialist teams • Progressed program on financial crime risks • Progressed Safer Children, Safer Communities program Progressed implementation of our updated ESG Credit Risk Policy Reviewed our position on certain sectors to include further guidance on human rights risks Refreshed Indigenous Cultural Awareness training Supported the psychological health and safety of our workforce in response to COVID-19, including adapting to new ways of working Implemented an updated Responsible Sourcing Program and Code of Conduct Submitted and published FY20 Modern Slavery Statement Embedding our principles • • Updated the Sustainability Risk Management Framework, to better embed the risk to people and to the business Commenced work on our 2021-23 Reconciliation Action Plan to better align with UN Declaration on the Rights of Indigenous Peoples New risk appetite measures, to improve tracking, monitoring and reporting on human rights Our progress in taking action on human rights. 1991 Founding signatory of the UN Global Compact. 2016 Establish a Group- wide Human Rights Working Group. 2017 Second Human Rights Position Statement and Action Plan. 2021 Commenced reporting in accordance with the Australian Modern Slavery Act (2018). 49 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack First Reconciliation Action Plan (RAP) released. 2010 First Human Rights Position Statement and Action Plan. 2015 Commenced reporting Against UK Modern Slavery Act (2015). Determined our salient human Rights issues. 2018 Third Human Rights Position Statement and Action Plan. 2020 Westpac GROUP#50Diversity and inclusion. Diversity and inclusion strategy focused on 3 key pillars. Sustainability GENDER It starts with respect • • Elevated our Sexual Harassment Policy to a stand-alone policy aligned to the AHRC1 Respect@Work recommendations and industry best practice Updated policy on consequences in cases of sexual harassment New HelpLine launched to support our people and report issues and incidents of sexual harassment New training on sexual harassment developed Women in leadership² (%) . Targeting 50% women in leadership (49% March 21) Annual Board-determined measurable objectives set for gender diversity in our board, senior executives and workforce % women in leadership by category March 2021 • • CULTURAL DIVERSITY Seeking to better identify and understand the cultural diversity of our workforce Will use this information to develop policies, training and development to support our people Promote development through a Group-wide Leadership Shadowing Program Employee Action Group with over 1,000 members with 62 different cultural heritages that work to promote awareness and inclusion of cultural diversity Cultural Diversity LEADERSHIP Employee Action Group INDIGENOUS PARITY Updating our Reconciliation Action Plan (RAP) Refreshed our cultural competency training, enabling our people to better support indigenous customers Supporting indigenous customers with translator services available through our Indigenous Connection Team Improved banking accessibility for over 4,500 indigenous and remote Australians through Yuri Ingkarninthi, our Indigenous Connection Team Providing access to capital for indigenous businesses through our partnership with First Australian's Capital Hired 55 indigenous employees in 1H21 Board Senior executive 3 4 General workforce 30 41 56 1 Australian Human Rights Commission. 2 Refer slide 115 for definitions. 3 Refers to proportion of women in leadership in Group Executives and General Manager population. 4 Refers to % of women in total. 50 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#51Earnings Drivers Westpac GROUP#528 12 1 Composition of lending and deposits. Lending down 1% and deposits 1% lower over 1H21. Composition of lending (% of total) ■Aust. mortgages ■Aust. business Aust. institutional Aust. other consumer 13 64 ■New Zealand Other overseas Composition of deposits (% of total) 26 39 35 55 Mar-20 Down 1% Gross loans ($bn) Australian mortgage lending 4 ($bn) +NZ$2.5bn 42 (39) 724.9 446 441 444 698.7 5.1 (6.0) (3.9) 1.6 (0.5) 695.0 Sep-20 Consumer Down 4% Business Customer deposits1 ($bn) ■Term deposits ■Savings Transaction I! 52 52 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Mar-20 543.8 555.5 3.8 2.6 (11.9) 2.3 Sep-20 Consumer Up 1% Down 1% WIB +NZ$3.1bn New Zealand² Other³ (2.0) 550.3 Mar-19 1 Gross loans includes $1.8bn of held for sale assets, customer deposits includes $2.1bn of held for sale liabilities. 2 In AUD. 3 Includes Group Businesses and Specialist Businesses. 4 Gross loans. Business WIB Zealand² New Other³ Mar-21 41 Mar-21 Mar-20 Sep-20 Flat New lending Up 1% Net run-off Australian mortgage offset ($bn) 48 47 42 42 43 Up 3% Up 12% Sep-19 Mar-20 Sep-20 Mar-21 Westpac GROUP Mar-21 Revenue#5353 53 1H20 2H20 2.01 Notable items 0.12 2.13 Net interest margin. Up 3bps excluding Treasury & Markets and notable items. Net interest margin (NIM) movement (%) 0.13 0.13 2bps 2.09 2bps (2bps) 1bp 2.07 6bps 1bp 2.04 (4bps) 2.03 1.90 1.91 Margin ex Treasury & Markets items up 3bps and notable 2H20 ex. notable items Loans Deposits Funding Capital & other Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Liquidity 1H21 ex. notable items Notable items 1H21 0.13 0.13 Net interest margin (%) ⚫NIM NIM excl. Treasury & Markets 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Net interest margin by division (%) 1.96 1.94 NIM NIM ex. notables WIB 1H20 2H20 1H21 1H20 2H20 1H21 Consumer 2.33 2.41 2.39 2.33 2.41 2.39 Business 3.05 2.93 3.17 3.20 2.98 3.05 NZ 2.06 1.89 2.06 2.07 1.90 2.07 1.46 1.23 1.27 1.46 1.23 1.27 Westpac GROUP 1.96 2.09 Revenue#54Non-interest income. Non-interest income contributors ($m) ■Fees ■Wealth and insurance Net fee income1 (ex notable items) ($m) Revenue ■Trading ■ Other ■Facility fees ■Net transaction fees ■Other non-risk fee income 2,330 Up 11% Up 25% 1,988 Down 14% 1,865 582 Up 3% 16 1,675 947 443 251 902 10 453 101 61 778 804 429 499 57 75 700 481 278 595 491 469 344 378 829 755 837 700 355 372 359 369 2H19 1H20 2H20 1H21 2H19 Wealth management income¹ (ex notable items) ($m) 1H20 2H20 Insurance income 1 (ex notable items) ($m) 1H21 ■Funds Australia ■Other (incl NZ) 275 Down 1% 527 97 Up 15% 75 ■Life ■General ■LMI and NZ Up 85% Down 22% 259 66 203 480 140 422 416 69 30 110 66 106 72 76 14 430 392 350 370 112 117 120 94 2H19 1H20 2H20 1H21 (44) 2H19 1H20 2H20 1 2H20 has been restated to reflect $45m of notable items allocated to net fee income, this has now been allocated $30m to wealth management income and $15m to insurance income. 54 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 1H21 Westpac GROUP#5555 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 2H20 reported Notable items Expenses. Expense movements 2H20 – 1H21 ($m) 6,540 (1,283) 5,257 2H20 ex-notable items Ongoing expenses Down $21m or flat Investment (ex. Compliance) Risk & 745 5,981 (99) (6) 119 (35) 5,236 Risk & Compliance COVID-19 response 1H21 ex-notable items items Notable 1H21 reported 36,849 Investment spend mix ($m) Other technology ■Risk and compliance ■Growth and productivity Investment spend Capitalised software Mar- Sep- Mar- 1H20 2H20 1H21 ($m) ($m) 20 Expensed 296 384 417 Opening balance Additions 20 21 2,365 2,335 2,430 430 605 348 992 Amortisation 154 771 Capitalised 432 608 354 Other¹ 728 (393) (406) (384) (67) (104) (134) 106 96 Closing balance 2,335 2,430 2,260 470 336 401 Total investment 728 992 771 spend Average amortisation period 2.7yrs 2.7yrs 3.0yrs Other deferred expenses² 368 296 264 1H20 2H20 1H21 Investment spend expensed 41% 39% 54% Deferred acquisition costs Other deferred expenses 53 52 29 31 8 1 Includes write-offs, impairments and foreign exchange translation. 2 Deferred expenses principally relate to capitallsed costs in Specialist Businesses. It does not include insurance deferred acquisition costs (which are offset to revenue) or mortgage broker costs (which are offset to net interest income). Other deferred expenses at March 2021 were lower from a reclassification to assets held for sale. Westpac GROUP Sep-20 Risk and compliance FTE (#) 1,164 398 (69) 405 38,747 Up 1,898 or 5% COVID-19 response Investment (ex. Risk & Compliance) Other Mar-21 Expenses#56Impairment benefit in 1H21. Lower new IAPS, lower stress, better economic outlook. Impairment charges ($m) New IAPS Impairment charges Individually assessed Collectively assessed Total Write-backs & recoveries Write-offs direct Other mvmts in CAP 2,238 351 283 170 144 2H19 1H20 2H20 1H21 (170) (170) (147) (194) 2H19 1H20 2H20 1H21 535 438 438 318 940 1,619 I al (74) 461 366 (372) (640) 2H19 1H20 2H20 1H21 2H19 1H20 2H20 1H21 2H19 1H20 2H20 1H21 Impairment charges and stressed exposures (bps) - Impairment charge to average loans annualised (lhs) 80 60 60 60 40 40 ......Stressed exposures to TCE (rhs) 400 300 160bps 200 100 0 Westpac GROUP (11bps) -20 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 20 20 0 56 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack#57Credit quality and provisions Westpac GROUP#58Australian deferrals. Total mortgage deferral packages provided (% by balances) 92.4 ~149,000 accounts supported ($55bn in balances) 43 95 4.0 3.5 ■Returned to normal repayment or paid down ■Restructured Hardship ■Remain on deferral 0.1 Accounts in hardship following deferral represent 30bps of total Australian mortgage accounts (43bps by balance) Total business deferral packages provided (% by balances) ~33,000 business customers 4.0 95.0 supported 1.0 ($10bn in balances) 1 Excludes Auto loans. Credit quality • Mortgage deferrals update • 139k accounts had returned to full payments or paid down their loan ($50.8bn in balances) 9.6k accounts required further assistance ($4.1bn in balances) 4.5k accounts moved into hardship arrangements following the end of the deferral period ($1.9bn in balances) 5.1k accounts had their loans restructured, mostly moving to a 12- month interest only period ($2.2bn in balances) A very small number of accounts remained in deferral in April Business deferrals update • Support provided to ~16% of eligible business lending balances Returned to normal repayment or paid down In arrears ■Restructured or hardship • At the end of March 95% of customers returned to full payments and <5% requested further assistance. Of those that requested further assistance: - Most impacted industries were: Property & property services, Business services, and Accommodation and hospitality sectors; and - Most impacted states were: Victoria followed by NSW $0.4bn balances, 3.1k accounts missed payments or in hardship¹ 58 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#59New Zealand deferrals. Credit quality Total mortgage deferral packages provided (% by balances) ■Returned to normal ~29,000 accounts 2.0 94.0 supported (NZ$6.5bn in balances) 4.0 repayment or paid down ■Restructured ■Hardship Accounts in hardship following deferral represent 29 bps of total New Zealand mortgage accounts (42bps by balance) • Mortgage deferrals update • 29k mortgage accounts supported with NZ$6.5bn in balances (~11% of eligible mortgage lending) 1.6k accounts required further assistance (NZ$0.4bn in balances) 1k accounts moved into hardship arrangements following the end of the deferral period (NZ$0.2bn in balances) 0.6k accounts had their loans restructured (NZ$0.1bn in balances) A very small number of accounts remained in deferral in April Total business support packages provided (% by balances) • ■Temporary overdraft 77.1 ~9,000 business customers supported 0.2 (NZ$2.3bn in balances) 22.7 ■Temporary change to interest-only Deferral package No significant changes in levels of stressed assets since COVID-19 began, remaining around 3% 59 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack • • • Business support packages update 9k business accounts supported with NZ$2.3bn in balances (~9% of eligible business lending balance) Support provided included temporary overdrafts, temporary change to interest only, and deferral packages, with the majority of customers choosing temporary overdrafts or changing to interest only At end of March 2021 no COVID-19 temporary support packages were outstanding with loans either paid down or returned to normal repayment No temporary support packages outstanding at end of March 2021 Westpac GROUP#60Provisions lower from improved outlook. Provisions for impairments Total impairment provisions ($m) ■Overlay Loan provisions to gross loans (bps) Impaired asset provisions to impaired assets (%) Collectively assessed provisions to credit RWA (bps) Expected Credit Loss¹ (ECL) ($m) Provisions Mar-20 Sep-20 Mar-21 80 88 79 Stage 1 CAP 50 41 47 Stage 2 CAP 6,159 140 154 142 ■Stage 3 CAP 5,788 Stage 3 IAP 708 5,508 795 958 1,032 7,865 1,019 Higher overlay to address the potential for loss once COVID-19 support measures unwind 3,922 853 171 3,995 229 818 766 2,247 2,317 Lower CAP from improved asset quality metrics, 1,806 better economic outlook Currently holding ~$1.6bn in impairment provisions above the base case economic scenario 5,482 3,902 Forecasts for base case economic scenario² GDP growth Unemployment Residential property prices Reported probability-weighted ECL 100% base case 100% downside ECL ECL 1,578 1,642 September 2020 March 20213 1,561 1,327 1,051 2021 2022 2021 2022 943 2.5% 2.7% 4.0% 3.0% 925 606 611 564 Lower new IAPS 412 7.5% 6.7% 6.0% 5.3% (0.4%) 7.5% 10.0% Mar-19 10.0% Sep-19 Mar-20 Sep-20 Mar-21 1 Includes ECL Overlays and IAP. Excludes provisions for debt securities. 2 GDP and residential property price growth is annual growth to December each year. Unemployment rate forecast is at year end. 3 Forecast date is February 2021. 4 Overlay from Mar-20 includes New Zealand overlay. 60 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#61Provision cover by portfolio category. Credit quality Exposures as a % of TCE Fully performing portfolio H growth 93.10 92.10 95.72 95.77 Stage 1 exposures increased, mainly mortgages and institutional TCE Stage 1 provisions Provisioning to TCE (%) Sep-19 Mar-20 Sep-20 Mar-21 Fully performing portfolio Small cover as low probability of default (PD) 0.09 0.12 0.11 0.10 Stage 2 provisions Non-stressed but significant 5.99 increase in credit risk Stage 2 reduction 5.30 driven by improved Lifetime expected loss based on 4.32 6.78 3.41 3.29 Non-stressed but significant risk profile / macroeconomic future economic conditions 2.96 increase in 3.03 0.85 outlook and COVID-19 Watchlist & substandard credit risk package run-off 0.75 Still performing but higher cover 5.27 10.67 8.25 9.07 reflects deterioration 0.62 Watchlist & 0.55 substandard Stage 3 provisions 0.80 0.66 90+ day past 0.48 0.50 due and not impaired Impaired 0.17 0.20 0.26 0.19 Stage 3 exposures decreased, from net transfers to Stages 1 and 2, mainly mortgages (delinquency performance) and 90+ day past due and not impaired In default but strong security 11.07 11.61 11.98 12.91 Impaired assets Sep-19 Mar-20 Sep-20 Mar-21 institutional (portfolio run-off) In default. High provision cover reflects expected recovery 44.92 50.09 41.45 47.03 61 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#62Portfolio composition. Asset composition (%) Loan composition at 31 March 2021 (% of total) Credit quality Total assets ($889bn) Loans Available-for-sale securities and investment securities Mar-20 Sep-20 Mar-21 74 76 77 9 10 10 Trading securities and financial assets at fair value through income statement 3 4 2 17 Total loans Derivative financial instruments Cash and balances with central banks 6 CO 72 3 3 $690bn LO 5 3 4 6 ■ Housing ■Business ■Institutional Other consumer Collateral paid and other financial assets Intangible assets 1 1 2 1 1 1 Life insurance assets and other assets1 1 2 2 Exposure by risk grade at 31 March 2021 ($m) Standard and Poor's Risk Grade² Australia NZ / Pacific Americas Asia Europe Group % of Total AAA to AA- 148,193 16,878 7,694 997 819 174,581 16% A+ to A- BBB+ to BBB- BB+ to BB BB- to B+ <B+ 35,054 4,557 3,259 1,889 3,192 47,951 5% 58,288 11,389 2,139 3,197 2,136 77,150 7% 64,600 13,319 427 1,095 267 79,708 7% 62,191 7,173 230 62 200 69,856 7% 9,297 1,468 46 173 0 10,984 1% Mortgages 508,985 63,358 12 572,355 53% Other consumer products 35,492 4,134 Total committed exposures (TCE) 922,100 122,276 13,795 7,426 6,614 39,626 1,072,211 4% Total committed exposures (TCE) at 30 September 2020 900,866 120,215 12,484 21,162 5,528 1,060,255 Exposure by region ³ (%) 86% 11% 1% 1% 1% 100% 1 For March 2021, includes assets held for sale. 2 Risk grade equivalent. 3 Exposure by booking office. 62 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#63Loan portfolio composition. Exposures at default¹ by sector ($bn) 2 Finance & insurance2 Government admin. & defence Property³ 3 Wholesale & retail trade Services Manufacturing Agriculture, forestry & fishing Property services & business services Transport & storage Utilities 4 Construction" Accommodation, cafes & restaurants Mining Credit quality Top 10 exposures to corporations and NBFIs 5 (% of TCE) The single largest corporation/NBFI exposure is 0.3% of TCE Includes securities held in liquid assets portfolio 1.0 1.1 1.1 1.0 1.0 1.0 1.0 ■Mar-20 ■Sep-20 ■Mar-21 Sep-16 Sep-17 Sep-18 Sep-19 Mar-20 Sep-20 Mar-21 Top 10 exposures to corporations & NBFIs at 31 March 2021 ($m) S&P rating or equivalent A+ A- A- BBB+ A+ BB+ BBB+ BBB BBB+ BBB 0 Clearing house membership Other 0 20 40 60 80 100 120 140 160 600 1,200 1,800 3,000 2,400 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. 63 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#64Sep-10 Sep-12 Sep-13 Sep-14 1.24 Impaired 2.17 2.07 Stressed exposures down 31bps in 1H21. Decrease in impaired, 90+ days past due and not impaired and watchlist. Stressed exposures as a % of TCE Movement in stress categories (bps) Credit quality Lower new IAPS and return to performing and run-off mostly from small business and institutional portfolios 3.20 Watchlist and substandard Upgrades in business lending following reviews coupled with improved delinquencies in small business 22 191 (7) (14) 30 1 2 (12) 160 6 132 90+ days past due and not impaired¹ Decrease in mortgage 90+ delinquencies of 39bps² 1.60 1.60 0.85 1.32 1.24 0.85 1.20 1.20 1.05 1.09 1.08 1.10 0.75 0.99 0.62 0.71 0.55 0.65 0.50 0.56 0.57 0.55 0.54 0.46 0.35 0.80 0.31 0.66 0.26 0.33 0.67 0.58 0.25 0.34 0.37 0.39 0.43 0.48 0.50 0.44 0.27 0.20 0.22 0.15 0.15 0.14 0.17 0.17 0.20 0.26 0.19 Sep-15 Sep-16 64 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1.91 1,194 997 958 Mar-20 Impaired 90+ dpd not impaired1 Substandard Watchlist Sep-20 New and increased gross impaired assets ($m) 3 1,078 1 Facilities 90 days or more past due date not impaired. These facilities, while in default, are not treated as impaired for accounting purposes. 2 Group 90+ day mortgage delinquencies, Australian 90+ day mortgage delinquencies decreased by 42bps. 3 Includes exposures that are managed on a facility by facility basis. Impaired 90+ dpd not impaired Substandard 897 864 708 609 607 633 589 477 440 471 450 519 550 222 Westpac GROUP Watchlist Mar-21#65Stress to TCE by sector in business division 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Property Accommodation, cafes & restaurants 65 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Corporate and business stressed exposures. Corporate and business stressed exposures by industry sector ($bn) Increase reflects small number of names mainly Reduction in part due to lower stress in motor vehicle retailing and services Wholesale & retail trade Agriculture, forestry & fishing Property & business services Services Manufacturing Construction Accomm., Property & Sector Property cafes & restaurants Wholesale & retail trade Agriculture, forestry & fishing business Transport & Finance & services Services1 Manufacturing Construction storage Mining Insurance Utilities Sep-20 (%) 2.8 16.0 6.2 6.6 5.1 4.0 3.5 5.8 3.1 2.3 0.2 0.2 Mar-21 (%) 2.9 14.6 4.8 6.0 4.3 3.7 3.3 6.1 2.7 3.4 0.2 0.2 1 Services includes education, health & community services, cultural & recreational and personal & other services. Transport & storage Westpac GROUP Mining Finance & insurance ■Mar-20 Sep-20 Mar-21 Mostly downgrades to watchlist Utilities Credit quality#66Sectors in focus. Accommodation, cafes & restaurants and Construction. Accommodation, cafes and restaurants Credit quality 25 8 ■Fully Secured Mar-20 Sep-20 Mar-21 Portfolio security composition³ (TCE) (%) Total committed exposures $9.7bn $9.8bn $9.7bn (TCE) Lending $8.7bn $8.5bn $8.3bn 25 As a % of Group TCE 0.90 0.92 0.91 % of portfolio graded as stressed 1,2 Unsecured 4.57 16.00 14.55 % of portfolio impaired² 0.38 0.73 0.67 0 67 ■Partially Secured 24 Portfolio by sub-sector (TCE) (%) 60 0 32 38 ■Accommodation Pubs, Taverns and Bars ■Cafes and Restaurants ■Clubs (Hospitality) Construction Portfolio security composition³ (TCE) (%) Portfolio by sub-sector (TCE) (%) Mar-20 Sep-20 Mar-21 Total committed $11.7bn $11.5bn $11.1bn 20 exposures (TCE) Lending $8.5bn $7.9bn $7.6bn As a % of Group TCE 1.08 1.09 1.04 19 % of portfolio graded as stressed 1,2 4.04 5.85 6.06 % of portfolio impaired² 0.92 1.65 1.11 0 ■Fully Secured 26 24 ■Partially Secured 61 ■ Unsecured 16 60 12 ■Building Construction ■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. 66 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#67Sectors in focus. Commercial property. Commercial property Mar-20 Sep-20 Mar-21 Total committed exposures (TCE) $67.6bn $65.9bn $67.4bn Lending $52.7bn $51.9bn $52.2bn As a % of Group TCE 6.25 6.22 6.28 Median risk grade (S&P equivalent) BB+ BB+ BB+ % of portfolio graded as stressed 1,2 1.84 2.83 2.92 % of portfolio impaired² 0.11 0.16 0.14 Commercial property portfolio composition (TCE) (%) Region (%) Borrower type (%) 23 23 O 47 11 32 8 ■ VIC ■NSW & ACT 15 ■ QLD ■ SA & NT ■WA ■NZ & Pacific ■Institutional 1 Includes impaired exposures. 2 Percentage of commercial property portfolio TCE. 67 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 38 88 Credit quality Commercial property exposures % of TCE and % in stress 4 8 6 + 2 O 0 Sep-11 Mar-12 Sep-12 Commercial property as % of TCE (Ihs) Commercial property % in stress (rhs) Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 ■Investors & Developers <$10m ■Developers >$10m 40 40 12 ■Investors >$10m Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sector (%) 12 2 2 ■Diversified Property 21 7 Groups and Property 20 20 Trusts >$10m Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 33 33 ■Commercial Offices ■Residential ■Retail ■Industrial ■Corporate ■Other Westpac GROUP 15 10 25250#68Sectors in focus. Retail trade. Credit quality Retail trade Mar-20 Sep-20 Mar-21 Retail trade exposure by sub-sector (TCE) ($bn) ■Mar-20 ■Sep-20 ■Mar-21 7.0 7.0 Total committed exposures (TCE) $15.5bn $15.0bn $13.9bn 6.4 Lending $11.1bn $9.5bn $8.7bn As a % of Group TCE 1.43 1.41 1.30 4.6 4.4 4.0 3.8 3.6 3.4 BB Median risk grade BB BB equivalent equivalent equivalent % of portfolio graded as stressed 1,2 6.70 7.26 5.48 % of portfolio impaired² 1.44 1.84 1.82 Personal and household Motor vehicle retailing and goods retailing services Food retailing Retail trade portfolio graded as stressed (%) Decreasing stress reflects improving economic conditions, in particular the improved trading across the motor vehicle industry 7.26 6.70 6.05 5.43 5.48 4.67 4.84 3.02 Sep-17 Mar-18 Sep-18 Mar-19 Retail trade by internal risk grade category (TCE) ($bn) 7.0 6.4 ■Investment ■Sub-investment ■Stressed 4.4 4.0 3.6 3.4 Sep-19 Mar-20 Sep-20 Mar-21 Sep-20 Mar-21 Personal and household goods retailing Sep-20 Mar-21 Motor vehicle retailing and services Sep-20 Mar-21 Food retailing 1 Includes impaired exposures. 2 Percentage of retail trade portfolio TCE. 68 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#69Australian consumer finance. 2% of Group loans. Australian consumer finance portfolio 1 Total consumer finance 90+ day delinquencies (%) Mar-20 Sep-20 Mar-21 $18.4bn $15.7bn $15.0bn 2.50 Lending 30+ day delinquencies (%) 4.22 3.62 3.58 1.50 90+ day delinquencies (%) 1.97 2.09 1.92 90+ day delinquencies down 17bps over the period, reflecting 26bps improvement in portfolio, offset by 9bps from contraction in loans. Australian consumer finance portfolio ($bn)¹ ■Mar-20 ■Sep-20 Mar-21 8.3 6.8 6.8 6.3 5.9 5.4 3.8 3.0 2.8 18.4 15.7 15.0 Credit quality 1.92% Consumer unsecured 90+ day delinquencies down 17bps mostly due to portfolio improvement 0.50 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Australian consumer finance portfolio ($bn) Unsecured performing loans balance ($bn Ihs) ■Unsecured 90+ day delinquencies balance ($bn rhs) 12505 0 Credit cards Personal loans Auto loans (consumer) Total consumer finance 1 Does not include Margin Lending. 69 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 3 2 1 0 Westpac GROUP#70Australian mortgage delinquencies. Lower over the half in line with hardship balances. Australian mortgages Australian mortgage delinquencies (%) Mar-20 Sep-20 Mar-21 Total portfolio 30+ day delinquencies (bps) 188 214 179 4.0 Total portfolio 90+ day delinquencies (bps) (inc. impaired mortgages) 94 162 120 3.0 Investment property loans 78 148 118 90+ day delinquencies (bps) 2.0 Interest only loans 73 125 91 90+ day delinquencies (bps) 1.0 Customers in hardship1 (by balances, bps) 105 129 113 10 Consumer properties in possession (number) 468 256 180 0.0 Impaired mortgages (by balances, bps) 9 8 6 Australian mortgage hardship balances ($bn and # of accounts) 7 Balances ($bn, Ihs) 6 Number of accounts (rhs) 5 4 3 Mortgage asset quality 90+ day past due total 30+ day past due total Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Australian mortgage 90+ day delinquencies by State (%) 20,000 NSW/ACT 3.0 VIC/TAS QLD WA 16,000 SA/NT ALL 12,000 2.0 8,000 4,000 1.0 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 0.0 Mar-18 Sep-18 Mar-19 Mar-20 Sep-20 Mar-21 Sep-19 1 Financial hardship assistance is available to customers experiencing unforeseen events, including changes in income due to illness, a relationship breakdown or natural disasters. Hardship assistance often takes the form of a reduction or deferral of repayments for a short period. Customer requesting financial hardship assistance must provide a statement of financial position and an assessment is made regarding the customer's eligibility. 2 Mortgage loss rates are write-offs for the 6 months ending. 70 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#71Australian mortgage portfolio Mar-20 Sep-20 Mar-21 balance balance 1H21 balance Flow1 Australian mortgage portfolio composition. Owner occupiers driving new flows; more customers choosing fixed rates. Mortgage asset quality Australian mortgage portfolio and 1H21 flow by product and repayment type (%) Total portfolio ($bn) 445.7 440.9 443.6 42.0 ■Mar-20 (Portfolio) ■Sep-20 (Portfolio) Owner occupied (OO) (%) 59.4 60.4 62.0 73.6 ■Mar-21 (Portfolio) ■1H21 Flow Investment property loans (IPL) (%) 37.6 36.6 35.2 26.2 69 52 55 57 Portfolio loan/line of credit (LOC) (%) 2.9 2.5 2.3 0.2 22 22 22 Variable rate / Fixed rate (%) 77/23 72/28 68/32 63/37 16 15 13 18 10 Interest only (I/O) (%) 23.4 20.6 18.2 13.6 3 32 0.2 7 6 5 4 LOC IPL-I/O IPL-P&I OO-I/O OO-P&I Proprietary channel (%) 55.5 54.8 54.2 48.2 First home buyer (%) 8.8 9.0 9.4 13.4 Mortgage insured (%) 16.1 16.0 16.1 16.1 Australian mortgage portfolio by interest rate type (% by balances) Variable Fixed 1H21 Mar-20 Sep-20 Mar-21 Flow1 276 275 284 367 24 24 25 25 23 23 28 28 32 Average loan size² ($'000) Customers ahead on repayments 70 71 72 including offset account balances³ (%) Actual mortgage losses net of insurance ($m, for the 6 months 67 58 44 ending) Actual mortgage loss rate annualised4 3 3 2 (bps, for the 6 months ending) 76 75 77 72 22 1H19 2H19 1H20 2H20 68 1H21 1 Flow is new mortgages settled in the 6 months ended 31 March 2021 and includes RAMS. 2 Includes amortisation. Calculated at account level, where split loans represent more than one account. 3 Loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 4 Mortgage loss rates are write-offs for the 6 months ending. 71 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#72Australian mortgage portfolio. Majority of borrowers have significant equity. Australian housing loan-to-value ratios (LVRs) (%) 100 ■1H21 drawdowns LVR at origination ■Portfolio LVR at origination ■Portfolio dynamic LVR¹ 90 80 70 60 60 50 56 42 47 40 30 20 20 18 17 20 220 16 16 14 13 12 10 0 0<=60 60<=70 70<=80 80<=90 2 0 21 N/A 1 90<=95 95<=100 >100 Australian mortgage portfolio LVRS LVR at origination (%) Weighted averages² Dynamic LVR1 (%) LVR of new loans³ (%) Mar-20 balance Sep-20 balance Mar-21 balance Mortgage asset quality Serviceability assessment rate 4 (%) Serviceability assessment rate 2.50% buffer applied in serviceability test Floor rate 6.24 1 5.69 5.05% 2.50 2.50 3.19 3.74 Owner Occupied P&I Investor P&l Loans are assessed at the higher of the customer rate (including any life-of-loan discounts) plus a 2.50% buffer, or the minimum assessment rate (called the "floor rate") 73 73 73 Westpac applies a floor rate of 5.05% 57 56 54 72 71 72 Interest only loans are assessed based on the residual P&l term using the applicable P&I rate Fixed rate loans are assessed on the variable rate to which the loan will revert after the fixed period - usually higher than the fixed rate 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. 4 Interest rates for Westpac Rocket Repay Home Loan/Rocket Investment Loan inclusive of Premier Advantage Package discount assuming LVR up to 70%. At 14 April 2021. 72 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#732 2 2 ■Mar-20 Sep-20 Mar-21 28 27 27 20 20 20 18 16 16 16 Australian mortgage portfolio repayment buffers. >70% of customers remain ahead of scheduled repayments. Australian home loan customers ahead on repayments¹ (% by balances) Offset account balances2 ($bn) Linked to I/O mortgages Mortgage asset quality ■Linked to P&I mortgages Behind On time < 1 Mth < 6 Mths < 1 Yr < 2 Yrs >2 Yrs 666666 Loans 'on time' and <1 mth ahead (% of balances) 47 20 ■Investment property loans - incentive is to keep repayments high for tax purposes ■Accounts opened in the last 12 months 8 9 ■Loans with structural restrictions on repayments e.g. fixed rate 12 10 4 ■Residual - less than 1 month repayment buffer 10 73 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 33 33 24 24 31 21 Sep-15 Mar-16 Sep-16 Mar-17 35 55 Sep-17 36 Mar-18 46 48 37 39 39 40 41 42 Sep-18 Mar-19 Applicant gross income band (1H21 drawdowns, % by balances) ■Owner Occupied Mar-21 1 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. 2 Includes RAMS from September 2020 onwards. <75k 75k to 100k 6 14 Sep-19 ■Investment Property Loan 46 26 20 19 13 00 8 8 Westpac GROUP 5 01 10 Mar-20 Sep-20 Mar-21#74Australian mortgage portfolio underwriting. Mortgage asset quality 6 Credit policy at April 2021 Income Credit Score & • Credit Bureau Expenses Serviceability assessment Genuine savings deposit requirements Security LMI • Income verified via payslips or tax returns with other supporting documentation such as PAYG income statements and salary credits to accounts where required (minimum standards for documents apply) Discount of at least 20% applies to less certain income sources i.e. rental income, bonuses Bespoke application scorecards segmented by new and existing customers Credit and score override rates tracked and capped • Credit bureau checks required Expenses are 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 adjusted 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, interest rate applied to all mortgage debt is the greater of: Actual interest rate plus buffer of 2.50%; and Minimum assessment rate of 5.05% (effective 9 October 2020, previously 5.35%) For IO Loans, serviceability is assessed on a P&I basis over the residual term 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 Minimum 5% proof of genuine savings for higher LVR loans (typically LVR >85%). First Home Owners Grants 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 high LVRs. Exception policy applies for certain professionals and Westpac Group staff. 1 HEM is the Household Expenditure Measure, produced by the Melbourne Institute. Australian mortgage portfolio by year of origination (% of total book) 2 Pre-2006 Calendar year CO 1 1 1 2 2 2 3 6 2006 2007 2008 2009 2010 2011 2012 2013 2014 8 9 11 12 12 16 2015 2016 2017 2018 2019 2020 74 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP 2021#75Australian mortgages. Interest only and investment property lending. I/O lending by dynamic LVR1 and income band (%) Applicant gross income bands <$100k $100k-$250k 55 17 ■>$250k 33 10 27 12 17 6 6 11 <=60% 60%<=80% Dynamic LVR bands (%) >80% 32 Investment property portfolio by number of properties per customer (%) 25 7 211 0 ■1 ■ 2 4 64 ■ 5 6+ Chart does not add due to rounding Investment property lending (IPL) portfolio Mar-20 Sep-20 Mar-21 Scheduled I/O term expiry² (% of total I/O loans) Investment property loans ($bn) 167 161 157 LVR of IPL loans at origination (%) 72 72 72 Weighted averages1 LVR of new IPL loans in the period² (%) 70 69 70 25 25 18 11 11 11 23 Dynamic LVR1 of IPL loans (%) 57 57 54 Average loan size³ ($'000) 322 320 320 Customers ahead on repayments 60 62 63 4<5 Yrs 75 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 5<10 Yrs 10 Yrs+ 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 I/O 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. including offset accounts 4 (%) 90+ day delinquencies (bps) 78 148 118 Annualised loss rate (net of insurance claims) (bps) 5 3 3 Westpac GROUP Mortgage asset quality#76Lenders mortgage insurance arrangements. WLMI continues to provide mortgage insurance to Westpac. Lenders mortgage insurance (LMI) • • Where mortgage insurance is required, mortgages are insured through Westpac Lenders Mortgage Insurance (WLMI), and reinsured through external LMI providers, based on risk profile In March, Westpac announced it would sell WLMI to Arch Capital Group (Arch) and enter into a 10-year exclusive supply agreement for Arch to provide lenders mortgage insurance to the Group Completion of this transaction is expected to occur by the end of August 2021, after which all LMI required on WBC mortgages will be underwritten by Arch Arch has provided reinsurance services to WLMI since 2011 Westpac will retain responsibility for certain legacy matters and provide protection to Arch through customary warranties and indemnities WLMI remains well capitalised (separate from bank capital) and subject to APRA regulation. WLMI targets a capitalisation ratio of 1.2x PCR2 and has consistently been above this target Lenders mortgage insurance arrangements from 1 October 2020 LVR Band • LVR ≤80% •LVR >80% to ≤ 90% • LVR >90% Insurance Not required Where insurance required, insured through WLMI LMI not required for certain borrower groups Reinsurance arrangements: - 40% risk retained by WLMI Mortgage asset quality 60% risk transferred through quota share arrangements with Arch LMI Pty Ltd, Sompo International (Endurance Speciality), Everest Re and Trans Re Where insurance required, insured through WLMI LMI not required for certain borrower groups 100% reinsurance through Arch LMI Pty Ltd Westpac's Australian mortgage portfolio at 31 March 2021 (%) Insurance statistics 1H20 2H20 1H21 84 ■Not insured Insurance claims ($m) 5 21 2 ■Insured by third parties³ WLMI claims ratio (%) 15 67 3 ■Insured by WLMI 11 5 WLMI gross written premiums5 ($m) 89 91 154 1 Since 18 May 2015 WLMI has underwritten all mortgage insurance, where required, on Westpac originated mortgages. The in-force portfolio of loans includes mortgage insurance provided by external providers. 2 Prudential Capital Requirement (PCR) calculated in accordance with APRA standards. 3 Insured coverage is net of quota share. Third party has decreased compared to 30 September 2020 due to a reclassification of loans where the insurance is provided by WLMI and 100% reinsured through Arch LMI. 4 Loss ratio is claims over the total earned premium plus exchange commission. 5 LMI gross written premium includes loans >90% LVR reinsured with Arch Reinsurance Limited. 1H21 gross written premium includes $104m from the arrangement (2H20: $61m and 1H20: $63m). 76 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#77Capital, funding and liquidity Westpac GROUP#78CET1 capital ratio 12.3%. • CET1 capital ratio of 12.34%, up 121bps from 30 September 2020 . • RWA declined 20bps mostly from lower credit RWA due to a reduction in lending and improved credit metrics Capital deductions and other capital movements mostly reflect deferred tax assets and higher other comprehensive income. Partly offset by higher earnings held in entities that are not consolidated for regulatory purposes Divestment impact 8bps from sale of Westpac's stake in Zip Co Limited 2020 final dividend paid was offset by the fully underwritten DRP Pro forma CET1 ratio includes the expected 32bp benefit from announced divestments (Vendor Finance, Westpac General Insurance, Westpac Pacific and Lenders Mortgage Insurance) and the sale of Coinbase CET1 capital ratio movements (%, bps) Capital, Funding and Liquidity Key capital ratios (%) Mar-20 Sep-20 Mar-21 CET1 capital ratio 10.8 11.1 12.3 Additional Tier 1 capital 2.1 2.1 2.2 Tier 1 capital ratio Tier 2 capital 12.9 13.2 14.5 3.4 3.1 3.9 Total regulatory capital ratio 16.3 16.4 18.4 Risk weighted assets (RWA) ($bn) 444 438 429 32 12.66 20 82 12 (1) 8 12.34 Leverage ratio 5.7 5.8 6.3 11.13 10.81 Level 1 CET1 ratio 11.1 11.4 12.6 Internationally comparable ratios¹ Leverage ratio 6.3 6.5 6.9 (internationally comparable) Mar-20 Sep-20 Cash Deductions RWA earnings and other FX Divestments Mar-21 translation impact Sales Pro forma Mar-21 CET1 capital ratio (internationally comparable) 15.8 16.5 18.1 1 Internationally comparable methodology aligns with the APRA study titled 'International Capital Comparison Study' dated 13 July 2015. 78 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#79Risk weighted assets. Decrease from lower credit risk RWA. Risk weighted assets ($bn) 443.9 437.9 (12.3) 0.7 2.9 0.0 (0.3) 428.9 Down $9.0bn or 2.1% Capital, Funding and Liquidity Commentary RWA decreased $9.0bn over 1H21, mostly from lower credit RWA (CRWA), partly offset by non-credit risk CRWA reduced $12.3bn due to: Lower corporate and business lending, partly offset by mortgage lending growth Improved asset quality metrics across corporate and small business portfolios, including $1.6 billion reduction in the RWA overlay for corporate, business and specialised lending Lower counterparty credit and mark-to-market risk RWA floor on mortgages to 23.8% increased CRWA $3.7bn - Mar-20 Sep-20 Credit risk Market IRRBB Operational Other risk Mar-21 risk Movement in credit risk weighted assets ($bn) 369.1 359.4 (4.4) (1.6) (1.6) (1.0) (1.4) (2.3) 347.1 Down $12.3bn or 3.4% Mar-20 Sep-20 Credit metrics Lower lending COVID-19 overlay Methodology changes FX translation impacts Counterparty credit Mar-21 and mark-to- market risk 79 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#80Internationally 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 Deferred tax assets Interest rate risk in the banking book (IRRBB) Residential mortgages Unsecured non-retail exposures Non-retail undrawn commitments Specialised lending Currency conversion threshold Capitalised expenses 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 APRA requires capital to be held for IRRBB. The BCBS does not have a Pillar 1 capital requirement for IRRBB 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 (%) 12.3 0.4 0.6 0.5 1.9 0.7 ≈ 50 0.5 0.7 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. 0.3 18.1 21.0 25.9 80 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#812% 4% 6% 8% 88 0% 5% 10% 15% 20% Well placed on internationally comparable. CET1 and leverage ratios. Common equity Tier 1 ratio (%)¹ Norinchukin Bank NatWest CBA Danske Bank Nordea Westpac (18.1%) Morgan Stanley ANZ Lloyds BPCE Rabobank Sumitomo Mitsui Unicredit Leverage ratio (%) 1 10% Norinchukin Bank ICBC China Construction Bank Bank of China Agricultural Bank of China China Merchants Bank Intesa Sanpaolo Rabobank Westpac (6.9%) CBA BBVA Credit Suisse Unicredit HSBC NAB ANZ Lloyds Nordea NAB BPCE UBS HSBC Standard Chartered Santander NatWest Barclays BNP Paribas Commerzbank Credit Agricole SA ING Group Societe Generale Bank of Montreal Royal Bank of Canada Scotiabank ING Group Intesa Sanpaolo Standard Chartered Barclays UBS China Construction Bank Societe Generale Deutsche Bank JPMorgan Chase Goldman Sachs Commerzbank Credit Agricole SA ICBC Toronto Dominion Bank BNP Paribas Credit Suisse Mitsubishi UFJ Royal Bank of Canada Santander China Merchants Bank Bank of America BBVA CIBC 0% 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 sufficient disclosure to estimate. Based on company reports/ presentations. Ratios at 31 December 2020, except for Westpac which is at 31 March 2021, ANZ and NAB which are at 30 September 2020, and Bank of Montreal, Scotiabank, Royal Bank of Canada and Toronto Dominion are at 31 October 2020. 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 by jurisdictions in response to COVID-19. Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 81 Westpac GROUP CIBC Deutsche Bank Natixis Danske Bank Toronto Dominion Sumitomo Mitsui Mitsubishi UFJ Mizuho FG Citigroup Bank of Montreal Natixis Scotiabank Wells Fargo Mizuho FG Bank of China Agricultural Bank of Capital, Funding and Liquidity#82Liquidity and funding. LCR lower from reduction in CLF and NCO overlay; NSFR little changed. Liquidity coverage ratio¹ (LCR) (quarterly avg, $bn) Net stable funding ratio (NSFR) ($bn) NSFR at 31 March 2021: 123% Sep 2020: LCR 151% 182 Mar 2021: LCR 124% 165 11 10 120 52 134 52 Net cash outflows (NCOs) Other flows² 37 35 22 10 13 119 118 88 85 85 Net cash Liquid assets Net cash Liquid assets outflows Bars do not add due to rounding outflows Wholesale funding ■Customer deposits Liquid assets ■Term Funding Facility (undrawn) ■Committed Liquidity Facility High Quality Liquid Assets 625.2 Wholesale funding and other liabilities Corp. & Insto deposits Retail & SME deposits Sep-20 HQLA CLF and TFF Customer Deposits Wholesale funding Other flows² Mar-21 Liquidity coverage ratio¹ (quarterly average, %) 151 (1) 3 (12) Lower from reduction in CLF and net cash outflow overlay² Capital Available Stable Funding Net stable funding ratio (NSFR) (%) 122 1.4 1.1 Required Stable Funding 2.7 123 (0.5) (1.7) (2.1) 124 (14) Sep-20 Capital 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, CLF eligible securities less RBA open repos funding end of day ESA balances with the RBA. The Committed Liquidity Facility (CLF) and Term Funding Facility (TFF) are made available to Australian Authorised Deposit-taking Institutions by the RBA that, subject to qualifying conditions, can be accessed to meet LCR requirements under APS210 - Liquidity. Other flows include credit and liquidity facilities, collateral outflows and inflows from customers. 2 Other flows includes net cash outflow overlay. Effective 1 January 2021, the Group is 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 Westpac New Zealand Limited. This reduces the average LCR for the quarter ended 31 March 2021 by 12 percentage points. 3 Other includes derivatives and other assets. 4 Other loans includes off balance sheet exposures and residential mortgages >35% risk weight. Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 82 Westpac GROUP Retail & SME Deposits Corporate & Institutional Deposits Wholesale funding and other Residential Mortgages <35% Risk Weight Other loans, liquids & other Mar-21 510.3 Liquids and other³ Other loans4 Residential mortgages <35% risk weight Capital, Funding and Liquidity#83Balance sheet funding. Capital, Funding and Liquidity Shift in balance sheet: higher customer deposits, lower offshore wholesale funding Funding composition (%) By residual maturity 5 7 Significant balance sheet changes in the last 18 months Customer deposits to net loans ratio (%) Customer deposits Net customer loans Deposits to net loans ratio 55 6 5 Wholesale onshore <1yr¹ stable Wholesale offshore <1yr¹ down $17bn W'sale onshore >1 yr up $14bn, inc. TFF drawdowns $22bn Wholesale offshore >1yr down $29bn 80.1 79.8 75.6 73.4 525 715 544 720 693 690 555 550 12 1 1 Securitisation down $1.5bn 9 8 Equity² up $6bn Sep-19 66 63 99 Mar-20 Sep-20 Mar-21 ■Sep-19 ■Mar-20 Wholesale funding by residual maturity³ ($bn) Long term includes TFF drawn down Customer deposits up $26bn ■Sep-20 ■Mar-21 Sep-20 $18bn Mar-21 $22bn 249 255 230 216 148 150 142 131 101 105 88 85 Sep-19 Bars may not add to 100 due to rounding Mar-21 Short term Long term Total wholesale 1 Includes long term wholesale funding with a residual maturity less than or equal to 1 year. 2 Equity excludes FX translation, Available-for-Sale securities and Cash Flow Hedging Reserves. 3 Short term funding includes scroll. Scroll represents wholesale funding with an original maturity greater than 12 months that now has a residual maturity less than 12 months. Long term includes securitisation. 83 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#84Long term wholesale funding. Funding in 1H21 limited to meeting TLAC and capital needs. Supplementary allowance Term Funding Facility1 (TFF) ($bn) Term debt issuance and maturity profile 2 ($bn) 30 12 22 (Drawdown Oct-20 to Jun-21) 4 Initial allowance 18 (Drawdown 18 Mar-20 to Sep-20) TFF Allowance Drawn down At 31 March 2021 Westpac Total Regulatory Capital ■CET1 ■Additional Tier 1 ■ Tier 2 6.0 5.0 FY17 FY18 Issuance Maturities 37 37 34 32 31 29 5.0% 4.7 3.9% ($17bn) 2.2% ($9bn) (approx. $21bn³) 4.0 4.2 3.0 12.3% ($53bn) 2.0 2.2 1.0 31 March 2021 APRA- basis 1 Jan 2024 APRA-basis FY19 FY20 1H21 12 13 2H21 FY22 26 FY23 FY24 FY25 12 FY26 Capital, Funding and Liquidity 25 ■Funding for Lending Programme (NZ) ■Term Funding Facility (Aus) ■Subordinated debt ■Senior/Securitisation Hybrid Covered bond >FY26 Westpac Tier 2 issuance and calls/maturities 4 (notional amount, A$m) Issuance Maturities 0.0 FY19 FY20 1H21 2H21 FY21 Tier 2 issuance expected to be approx. $5-7billion (including buffer) 2.0 2.0 1.7 1.6 1.4 0.4 1.2 1.2 FY22 FY23 1 Westpac's Additional Allowance at 31 March 2021 was zero. 2 Based on residual maturity and FX spot currency translation. Includes all debt issuance with contractual maturity greater than 13 months excluding US Commercial Paper and Yankee Certificates of Deposit. Contractual maturity date for hybrids and callable subordinated instruments is the first scheduled conversion date or call date for the purposes of this disclosure. Perpetual sub debt has been included in >FY26 maturity bucket. Maturities exclude securitisation amortisation. 3 Based on current capital regulation. Does not include balance sheet growth or management buffer. 4 Represents AUD equivalent notional amount using spot FX translation at date of issue for issuance and spot FX translation at 31 March 2021 for maturities. Securities in callable format profiled to first call date, excluding the Perpetual Floating Rate Notes issued 30 September 1986. Securities in bullet format profiled to maturity date. 84 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP FY24 FY25 FY26 FY27 FY28 FY29 FY30 >FY30 5.5#85Divisional Results Westpac GROUP#86Divisional1 contributions. Divisional results 1H21 ($m) Consumer Business WIB NZ Specialist Businesses Group Businesses Group Operating income 4,457 2,356 1,046 1,163 937 840 10,799 Expenses (2,270) (1,170) (698) (500) (740) (603) (5,981) Core earnings 2,187 1,186 348 663 197 237 4,818 Impairment (charges)/benefits 80 129 (8) 92 80 (1) 372 Tax & non-controlling interests (675) (395) (110) (210) (143) (120) (1,653) Cash earnings 1,592 920 230 545 134 116 3,537 2H20 ($m) Consumer Business WIB NZ Specialist Businesses Group Businesses Group Operating income 4,560 2,268 1,132 1,044 581 700 10,285 Expenses (2,141) (1,230) (697) (482) (1,128) (862) (6,540) Core earnings 2,419 1,038 435 562 (547) (162) 3,745 Impairment (charges)/benefits (599) (674) (111) (102) (95) 641 (940) Tax & non-controlling interests (546) (108) (139) (129) 43 (311) (1,190) Cash earnings 1,274 256 185 331 (599) 168 1,615 1 Refer to division descriptions, page 114. NZ in A$. 86 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#871H20 2H20 Consumer 1H21 performance. Cash earnings ($m) Mostly increased spending on risk and compliance and higher operational costs NIM 2bps lower from asset spread compression partly offset by lower funding costs and higher deposit spreads 1,472 1,274 Add back notable items 2H20 ex-notable items Net interest income 19 1,293 (97) 1 (54) Up $375m or 29% Up $318m or 25% Non-interest income Key financial metrics Improved economic outlook and improved asset quality 1H20 2H20 1H21 Change on 2H20 Revenue ($m) 4,560 4,560 4,457 (2%) 679 (154) Net interest margin (%) 2.33 2.41 2.39 (2bps) 1,668 (76) Expense to income (%) 44.6 47.0 50.9 398bps 1,592 Customer deposit to loan ratio (%) 52.68 56.26 56.47 21bps Stressed exposures to TCE (%) 0.83 1.38 1.02 (36bps) Mortgage 90+ day delinquencies (%) 0.94 1.60 1.18 (42bps) Operating expenses Impairment charges Tax and NCI 1H21 ex-notable items 87 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Notable items 1H21 Key operating metrics 1 Includes all points of presence including Advisory and Community banking centres. 2 Refer page 115 for metric definitions and details of provider. Data for 1H21 at February 2021. Change 1H20 2H20 1H21 on 2H20 9.7 9.7 9.7 Total customers (#m) Active digital banking customers (#m) 4.49 4.53 4.58 1% Branches (#)1 931 929 889 (40) ATMs (#) 2,133 1,399 1,352 (47) Main Financial Institution² (%) 16.3 15.7 15.6 (0.1ppt) Westpac GROUP Consumer#881H20 2H20 Business 1H21 performance. Cash earnings ($m) Lower collectively assessed provisions from improved economic outlook and improved asset quality Higher merchant fees AIEA down 4% partly offset by 7bps increase in NIM 478 100 356 (44) 20 (6) 256 Add back notable items 2H20 ex-notable items Net interest income Up $539m or 151% Up $664m or 259% Non-interest income Operating expenses Impairment charges Tax and NCI 88 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 1H21 ex-notable items Notable items 803 (234) 1H21 895 Change Key financial metrics 1H20 2H20 1H21 on 2H20 Revenue ($m) 2,455 2,268 2,356 4% 25 Net interest margin (%) 3.05 2.93 3.17 24bps 25 920 Expense to income (%) 43.5 54.2 49.7 Large Customer deposit to loan ratio (%) 98.1 108.0 114.6 Large Stressed exposures to TCE (%) 3.07 4.70 4.60 (10bps) Change Key operating metrics 1H20 2H20 1H21 on 2H20 Total customers 1 ('000's) 1,021 1,053 1,063 1% 1 Excludes Private Wealth customers. 2 Refer page 115 for details of metric definition and provider. Data for 1H21 at Feb 21. 3 Share of sales made digitally for eligible products. Customer satisfaction² (rank) #1 #1 =#1 Digital sales³ (%) Customer satisfaction - SME² (rank) =#1 #1 =#2 Down 1 23 23 28 27 (1ppt) Westpac GROUP Business#891H20 2H20 Net interest income Non-interest income Up $71m or 38% Up $45m or 24% WIB 1H21 performance. Cash earnings ($m) Lower restructuring costs and reduced professional services expenses Lower Markets income Lower new impaired assets and lower CAPS from improved economic outlook Change Key financial metrics 1H20 2H20 1H21 on 2H20 Revenue ($m) 1,161 1,132 1,046 (8%) Net interest margin (%) 1.46 1.23 1.27 4bps Expense to income ratio (%) 53.3 61.6 66.7 Large 18 AIEA down 11%; margins up 4bps 256 (26) 219 Net loans 78.6 66.2 62.4 (6%) 103 230 Customer deposits 110.0 102.9 91.0 (12%) 147 185 (42) (44) 36 Customer deposit to loan ratio (%) 139.9 155.4 145.8 Large Stressed exposures to TCE (%) 1.09 1.03 0.56 (47bps) Operating expenses Impairment charges 89 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Tax and NCI 1 WIB customer revenue is lending revenue, deposit revenue, sales and fee income. Excludes trading and derivative valuation adjustments. 1H21 ex-notable items Notable items 1H21 Change Key operating metrics 1H20 2H20 1H21 on 2H20 Customer revenue1 / total revenue (%) 94.4 88.3 91.5 Large Trading revenue / total revenue (%) 15.0 13.1 7.2 Large Revenue per FTE ($'000) 784 717 668 (7%) Westpac GROUP Westpac Institutional Bank#901H20 2H20 295 Add back notable items 354 2H20 ex-notable items Cash earnings (NZ$m) New Zealand 1H21 performance¹. Gain on sale of Wealth Advisory business and higher cards income, partly offset by lower insurance income 3% increase in AIEA and 17bps increase in NIM due to repricing and favourable deposit mix 17 110 (11) 4 358 Net interest income Up $235m or 66% Up $229m or 65% Change Key financial metrics 1H20 2H20 1H21 on 2H20 Primarily higher spend on technology and risk, regulatory and compliance programs Revenue (NZ$m) 1,162 1,120 1,245 11% Net interest margin (%) 2.06 1.89 2.06 17bps Improved economic outlook and asset quality Expense to income (%) 46.6 46.3 43.1 (320bps) Customer deposit to loan ratio (%) 79.4 80.7 81.8 111bps 208 (89) Stressed exposures to TCE (%) 1.64 1.59 1.56 (3bps) 593 (10) 583 Non-interest income Operating expenses Impairment charges Tax and NCI 1H21 ex-notables 1 In NZ$ unless otherwise noted. 2 Refer page 115 for details of metric definition and provider. 90 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Notable items 1H21 Change Key operating metrics 1H20 2H20 1H21 on 2H20 Customers (#m) 1.35 1.34 1.33 (1%) Branches (#) 151 143 134 (9) Consumer NPS2 +21 +14 +16 Up 2 Business NPS² +1 +7 (1) Down 8 Agri NPS2 +21 +34 +34 Funds (NZ$bn) (spot) 10.9 12.2 11.9 (2%) Service quality - complaints (000's) 9.6 9.5 9.3 (2%) Westpac GROUP New Zealand#91New Zealand balance sheet. Net loans (NZ$bn) Deposits (NZ$bn) New Zealand 3.0 87.0 88.0 (0.4) 90.6 69.1 71.0 1.0 2.1 74.1 Up 3% Up 4% Mar-20 Sep-20 Consumer Business Mar-21 Mar-20 Sep-20 Consumer Business Mar-21 Loans (NZ$bn) and % of total Customer deposits (NZ$bn) and % of total Up 3% Up 1% 84 87 88 Up 3% 91 ■Business Personal ■Mortgage Up 7% 69 Up 3% 74 71 Up 4% 64 20 22 15 32 32 32 31 2 2 35% 24 15 16 18 21 33% Transaction Savings Term deposits Iloilo 51 53 55 58 Sep-19 Mar-20 Sep-20 Mar-21 O 1% 64% 34 33 31 29 28% Sep-19 Mar-20 Sep-20 Mar-21 39% 91 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#92New Zealand stressed exposures. Business stressed exposures as a % of business TCE ■Watchlist & substandard 90+ day past due and not impaired ■Impaired 17 19 New Zealand ■ Property ■Manufacturing Agriculture, forestry & fishing Wholesale trade 5.5 4.9 4.4 3.3 3.4 3.3 3.1 2.9 3.2 2.6 2.8 ■Construction 5.0 2.3 2.4 4.0 47 0.2 3.0 2.9 2.5 2.2 2.4 Other 1.5 0.1 0.2 0.9 0.8 0.5 0.0 0.1 0.0 0.1 0.1 0.2 0.3 0.3 0.1 0.1 0.3 0.3 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Mar-20 Sep-20 Mar-21 Agribusiness portfolio Milk price (NZ$) Mar-20 Sep-20 Mar-21 Kg Ms $10 TCE (NZ$bn) $9 9.6 10.0 10.1 Westpac Economics forecast $8 $7 Agriculture as a % of $6 7.6 7.9 7.7 total TCE $5 $4 7.90 % of portfolio graded 6.69 7.14 $3 6.12 6.35 9.8 8.2 8.0 as 'stressed'1 $2 $1 % of portfolio in $0 0.48 0.48 0.29 impaired 2016/17 2017/18 2018/19 2019/20 2020/21 1 Includes impaired exposures. 92 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Dairy portfolio summary Overall portfolio health remains sound with risk profiles improving as a result of the higher milk prices paid over the last two seasons. Focus remains on supporting existing dairy customers with proven long-term viability Global dairy prices have increased on the back of rebounding Chinese and South-East Asian demand. Fonterra has revised its 2020/21 milk price forecast range to $7.30/kg - $7.90/kg, while Westpac has lifted its forecast to $7.90/kg Uncertainty around environmental regulations, rising compliance costs, Fonterra's financial performance and labour shortages are ongoing risks to the dairy sector outlook Westpac GROUP#930<=60 New Zealand consumer portfolio. Mortgage 90+ day delinquencies¹ (%) 0.6 0.5 0.4 0.3 0.2 0.1 0.0 90+ day past due (ex-hardship) 90+ day past due Introduction of changes to the reporting of hardship 2.0 0.33 1.0 0.16 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mortgage portfolio LVR2 (%) of portfolio 93% of mortgage portfolio less than 80% LVR 47% 60<=70 23% 23% 70<=80 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 0.0 Unsecured consumer 90+ day delinquencies¹ (%) 3.0 90+ day past due (ex-hardship) 90+ day past due the reporting of hardship Introduction of changes to 1.91 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mortgage loss rates each half (%) 0.25 0.20 0.15 0.10 0.05 5% 0.00 2% 80<=90 90+ 93 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack 1 In May 2019 we made changes to the reporting of customers in hardship to align to the method used by APRA. 2 LVR based on current loan property value at latest credit event. 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Westpac GROUP 0.00 Mar-20 Sep-20 Mar-21 1.14 New Zealand#941H20 (599) 2H20 Add back notable items NIM up 23bps mostly from the roll-off of COVID-19 interest rate discounts as part of support Specialist Businesses 1H21 performance. Cash earnings ($m) Higher Life Insurance, LMI and funds income Decrease in COVID-19 support costs, timing of project spend and seasonality of spend 175 (86) 431 (297) 71 44 820 221 6 93 93 Up $210m or 95% 2H20 ex-notable items Net interest income Non-interest income Up $733m Operating expenses Impairment charges Tax and NCI 1H21 ex-notable items 94 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Notable items 1H21 Improved economic outlook and improved asset quality Specialist Businesses Change Key financial metrics 1H20 2H20 1H21 on 2H20 Average funds ($bn) 203.8 191.1 205.6 8% Spot funds ($bn) 179.1 193.0 211.7 10% Platforms deposits ($bn) 5.2 4.9 4.3 (12%) Platform FUA market share 18.4 18.4 18.5 0.1ppt (inc. Corp Super) 1 (%) Retail Life Insurance in-force 949 942 938 premiums ($m) Life Insurance claims ratio² (%) 54 48 63 Large 134 Auto Finance loans ($bn) 12.5 11.5 11.1 (3%) 1 Plan for Life, December 2020. 2 Loss ratio is claims net of reinsurance over the total earned premium plus exchange commission. 3 Gross written premium. 4 Lenders mortgage insurance. Held for sale businesses Key financial metrics Change 1H20 2H20 1H21 on 2H20 Vendor Finance loans ($bn) 0.5 0.4 0.5 25% Westpac Pacific loans ($bn) 1.8 1.6 1.4 (13%) General Insurance GWP³ ($m) 273 282 289 2% General Insurance claims ratio (%) 107 58 82 Large LMI4 GWP ($m) 89 91 154 69% LMI claims (loss) ratio (%) 15 67 3 Large Westpac GROUP#95Panorama. Supporting advisers and investors. Panorama UX supports both advised and direct to consumer investment and superannuation propositions 0 FUA on Panorama² ($m) BT Wrap migration 49,593 31,240 23,387 24,700 • Best Mobile Platform1 17,041 12,402 • Investment Trends Best Client Portal1 Up 101% WINNER Best Online Business Management¹ Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 One system for all investors & advisers One core operating system Bank connectivity /security BT Panorama's unique offering هههه SMSFs 888 Digital user experience Specialist Businesses Investors on Panorama² (#) BT Wrap migration 67,109 54,781 44,314 32,444 23,462 Up 111% 115,369 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Active advisers on Panorama³ (#) SMSF funds on Panorama³ (#) 14,118 3,535 12,310 3,017 2,827 10,981 2,494 9,289 2,291 7,204 1,775 6,215 Up 25% Up 29% Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1 Investment Trends Platform and Competitive Analysis and Benchmarking Report, December 2020. 2 Migration from BT Wrap to Panorama is underway, expected to complete by 30 June 2021. 3 Advisers and SMSF funds that have been migrated from BT Wrap are not shown separately. 95 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#96Economics Westpac GROUP#97Australian and New Zealand economic forecasts. Economics Key economic indicators (%) at April 2021 2019 2020 2021F 2022F Key economic indicators (%) at April 2021 2019 2020 2021F 2022F World GDP1 2.8 -3.3 5.9 4.5 Australia Credit growth Australia GDP2 2.2 -1.1 4.5 3.0 Total year end 2.4 1.8 4.6 5.6 Unemployment - end period 5.2 6.8 5.0 4.7 Housing-year end 3.0 3.5 6.5 7.2 CPI headline - year end 1.8 0.9 3.1 2.1 Business-year end 2.4 0.9 2.5 3.6 Interest rates - cash rate 0.75 0.10 0.10 0.10 New Zealand Credit growth New Zealand GDP2 1.7 -0.9 2.1 4.9 Total year end 5.7 3.3 5.7 5.7 Unemployment - end period 4.1 4.9 4.9 4.2 Consumer prices 1.9 1.4 2.4 1.3 Housing-year end 6.9 8.2 8.6 6.1 Interest rates - official cash rate 1.00 0.25 0.25 0.25 Business-year end 4.6 -2.6 1.3 5.3 Private sector credit growth (% ann) Housing Australia Total credit Australia Business Australia GDP growth (year average) 12.0 2018 2019 2020 2021f 2022f % ann 25 10.0 20 8.0 6.0 15 4.0 10 2.0 5 0.0 0 -2.0 -4.0 -5 -6.0 -10 Australia New Zealand United States China Mar-07 Source: Westpac Economics. 1 Year average growth rates. 2 Through the year growth rates. 97 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack -Total credit New Zealand Westpac f'casts Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 Sources: RBA, Westpac Economics Westpac GROUP#98The Australian economy. Population 25.7 million. Australian population NT 245k QLD WA 5.2m 2.7m SA 1.8m Australian GDP and employment composition Output 2020 sector contribution to GDP1 (%) 10 90 NSW 8.2m ACT VIC 6.7m 6 430k TAS 540k 10 19 6 6 6 2 6 8 8 ■Mining ■Manufacturing ■Construction Transport, Utilities ■Wholesale, Retail ■Agriculture Household services ■ Health Education Public administration ■Finance Business services Relative size of States (Share of Australia, 2019/20, %) ■GSP ■Population Employment Exports Australian employment by sector 2020 (%) 35 33 32 32 29 2 15 8 9 26 26 24 19 20 20 20 A 6 6 14 14 10 11 677 14 4 2 2 2 1 12 3 13 NSW Victoria Queensland WA SA Tasmania Sources: ABS, Westpac Economics 1 Real, financial years, experimental estimates. 98 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack ■Mining Economics ■Manufacturing ■Construction Transport, Utilities Wholesale, Retail ■ Agriculture Household services ■Health, Social Assistance Education ■Public Administration ■Finance ■Business services Westpac GROUP#99The Australian economy. Recovery well under way and stronger than expected. Australia's GDP profile (index) Index Economics GDP growth year end contributions (ppts) Index ppts ann ppts ann Pre covid forecast Current forecast ■2019 2020 2021f 2022f 112 112 5 Dec 2019 100 108 Westpac f'casts 4 108 3 104 104 2 100 100 0 620 96 96 -1 92 92 -2 -3 5432 - OTN 3 0 -1 -2 -3 88 88 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Consumer Housing Business Investment Public Net exports GDP Sources: ABS, Westpac Economics. Sources: ABS, Westpac Economics. Consumer sentiment (index) Index Monthly Index 130 Consumer sentiment at 11 year high in April 10 130 Australian mobility measures (index) Chart shows movement trends over time in Australia, using Google location data for retail locations. 28-day rolling avg, indexed, daily, Jan 3-Feb 6 avg = 0. 10 10 0 120 120 -10 -10 110 110 -20 -20 100 100 -30 -30 90 90 80 80 -40 National lockdowns in March/April 2020 -40 70 70 -50 -50 Apr-07 Apr-09 Apr-11 Apr-13 Apr-15 Apr-17 Apr-19 Apr-21 Sources: Westpac MI, Westpac Economics Feb-20 Apr-20 Jun-20 Source: Google, Westpac Economics Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 99 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#100The Australian economy. Momentum in consumer and housing. Consumer spending: broad categories Essential services Durables Residential property: listings and sales ('000s) Index '000s Latest vs pre-COVID: 120 31 +11.8% 110 29 +6.2% +2.4% 100 27 -10.7% 90 25 80 23 -27% 50 26040 70 21 19 17 15 Dec-14 Dec-17 Dec-20 Mar-08 Mar-10 Index 120 Discretionary services Basic food 110 Fuel 100 90 80 70 60 50 *Index based to Dec 2019 qtr = 100 40 Dec-05 Dec-08 Dec-11 Sources: ABS, Westpac Economics. Household saving ratio (% of income) new listings (Ihs) sales (lhs) Economics Mar-12 Mar-14 Mar-16 Mar-18 Mar-20 Sources: CoreLogic, Westpac Economics. Dwelling prices (all dwellings, index) '000s 33 29 322222275 % Income 28 24 20 16 12 8 4 % Income Index 210 28 Sydney Westpac f'casts to Dec-22 Index 210 24 190 Melbourne 2017 peaks 190 Brisbane 20 170 170 Perth 16 150 150 12 130 130 8 110 110 4 90 90 0 Dec-09 = 100 -4 Dec-88 -4 70 70 Dec-93 Dec-98 Dec-03 Dec-08 Dec-13 Dec-18 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 Mar-23 Sources: ABS, Westpac Economics. Sources: CoreLogic, Westpac Economics 100 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#101The Australian economy. Positive signs but still a long way from potential. Unemployment rate (%) % 9 LO Business confidence and investment Business investment real, non-mining, Ihs Business confidence, adv 2qtrs, rhs Many % Westpac f'casts % yr end 9 to Dec-23 30 8 8 20 7 7 10 6 6 0 5 5 -10 4 RBA's target: < 4% 4 3 3 -20 2 2 -30 Mar-97 Mar-01 Mar-05 Mar-09 Mar-13 Mar-17 Mar-21 Mar-91 Sources: NAB survey, ABS, Westpac Economics. Sources: NAB survey, ABS, Westpac Economics Mar-00 Economics Net Bal. 30 20 10 0 -10 -20 -30 Mar-09 Mar-18 Wages (%) % 5 Aust. population growth: medium term prospects (% ann) % Ann % Ann % Westpac f'casts 5 2.5 Population to Dec-23 Gov't forecasts (to Jun-24) 2.5 2.0 Contribution from net migration 2.0 4 my 4 1.5 1.5 RBA's target: 3 > 3% 3 1.0 1.0 0.5 0.5 2 2 0.0 0.0 1 Dec-96 1 -0.5 -0.5 Dec-00 Dec-04 Dec-08 Dec-12 Dec-16 Dec-20 1990 Sources: RBA, Westpac Economics 1980 2000 Sources: ABS, Aus Govt Centre for Population, Westpac Economics. 2010 2020 101 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#102The Australian economy. Commodity prices expected to remain higher for longer. World growth post COVID-19 (% yr) Australian commodity prices (index) %yr Westpac %yr f'casts 2012-100 765432-0-2345 China Other Advanced Total 76543N-OT≈345 160 140 120 100 80 60 40 20 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Mar-13 Mar-15 Sources: IMF, Westpac Economics Australian export composition1 ($bn) Mfg/Other, 50 Australian export destinations 1 ($bn) Iron ore, 116 Rural, 43 NZ, 10 Other, 22 Europe, 12 US, 19 Services, 92 Other resources, 75 Asia, rest of, 65 Coal, 43 LNG, 36 Korea, 23 Source: ABS, DFAT, Westpac Economics Sources: DFAT, Westpac Economics 1 All figures show $bn exports in 2020, note that figures may not sum due to rounding and other small differences in source data. 102 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Economics Iron ore Thermal coal Met coal Brent 2012-100 Westpac 160 f'casts to Dec-22 140 120 100 80 A 60 40 20 Mar-17 Mar-19 Mar-21 Sources: Westpac Economics, Bloomberg, ABS China, 145 Australian exports to China1 ($bn) Rural, 13 Services, 16 Other resources, 9 LNG, 10 Mfg/Other, 3 Coal, 16 0 Iron ore, 93 Japan, 44 Source: DFAT, ABS, Westpac Economics Westpac GROUP#103Australian housing market. Housing market in strong, broad-based upswing led by owner-occupiers. Australian dwelling prices (index) Housing finance approvals by segment ($bn) All dwellings (index, Jan 2004 = 100) $bn Index 230 230 45 Rest of Australia 40 210 210 'Upgraders' Investor Other capitals 35 190 190 First home buyers 30 -Sydney-Melbourne 170 170 25 20 150 150 15 130 130 10 110 110 5 90 90 0 Mar-04 Jan-07 Nov-09 Sep-12 Jul-15 May-18 Mar-21 Feb-01 Feb-05 Sources: CoreLogic, Westpac Economics. Dwelling prices Sources: ABS, Westpac Economics. Economics $bn GUNN WR 0 Feb-09 Feb-13 Feb-17 Feb-21 Westpac Economics dwelling price forecasts (%) % change over period % Capital city Pop'n Last 3 mths (to Mar-21) Last 12 mths (Mar-21) Last 5 years ■2021 forecast 2021 year to date 20 (to Mar-21) % 20 Sydney 4.8m Up 6.7% Up 5.4% Up 3.7% 15 15 Melbourne 4.5m Up 4.9% Up 0.7% Up 3.8% 10 10 Brisbane 2.3m Up 4.8% Up 6.8% Up 2.4% 5 5 Perth 1.9m Up 5.0% Up 6.0% Down 2.0% 0 0 Sydney Melbourne Brisbane Perth Adelaide Australia Sources: CoreLogic, Westpac Economics. Sources: CoreLogic, Westpac Economics. 103 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#104Australian housing market. Affordability issues to re-emerge in Sydney and Melbourne. Affordability: Australia (%) % 890 35 30 30 25 25 Share of average income required to raise a deposit over 5yrs and pay mortgage over first 5yrs for purchase of median-priced dwelling 55 Economics Mortgage interest rates (%) Westpac % f'casts to Dec-22 % % 35 Variable* ⚫3 year fixed 10 10 2017 peaks 30 8 8 25 25 6 6 30 20 20 20 4 4 15 15 15 2 2 NSW Vic Aus *Standard, owner occupier, including discount 0 0 10 Dec-99 Sources: CoreLogic, Westpac Economics Consumer Sentiment: 'time to buy a dwelling' (index) 10 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 Dec-02 Dec-05 Dec-08 Dec-11 Dec-14 Dec-17 Dec-20 Sources: RBA, Westpac Economics. Rental vacancy rates (%) Index Index 160 160 Brisbane Rental vacancy rates (%, quarterly, annual average) -Sydney Melbourne -Perth 150 150 8 140 140 7 130 130 6 120 120 110 110 National average since 1980 100 100 3 90 90 80 80 2 70 70 1 *quarterly observations prior to 2007 60 60 0 Apr-01 Apr-05 Apr-09 Apr-13 Apr-17 Apr-21 Mar-88 Sep-93 Mar-99 Sep-04 Mar-10 Sep-15 Mar-21 Sources: Melbourne Institute, Westpac Economics 104 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Sources: ABS, Westpac Economics. Westpac GROUP#105The New Zealand economy. Population 5.1 million. Regional GDP Economy Total nominal GDP 2020: $322 bn Northland, $8bn 4% of population 5 Auckland, $122bn Bay of Plenty, $19bn 6% of population 35% of population Waikato, $28bn 10% of population Taranaki, Whanganui/Manawatu, $21bn 7% of population Tasman/Nelson, $6bn 2% of population West Coast, $2bn 1% of population Southland, $7bn 2% of population Gisborne/Hawke's Bay, $11bn 4% of population Wellington, $40bn 11% of population Marlborough, $3bn 1% of population Canterbury, $40bn 13% of population Otago, $14bn 5% of population 11 10 19 6 35 7 9 Output 2020 sector shares of GDP (%) 6 6 Primary industries ■Construction Electricity, gas, and water ■Manufacturing ■Wholesale, retail and accommodation CO ■Transport 12 Economics ■Financial and professional services ■Public administration ■Social services (incl. health and education) Other NZ employment by sector 2020 (%) 10 ■Primary industries ■Construction Electricity, gas, and water ■Manufacturing 9 ■Wholesale, retail and accommodation ■Transport ■Financial and professional services 18 ■Public administration 19 Sources: Stats NZ, Westpac Economics. Nationwide GDP and employment figures are for the year to Dec 2020, regional figure are for the year to March 2020. Charts may not add to 100 due to rounding. 105 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack ■Social services (incl. health and education) Other Westpac GROUP#106The New Zealand economy. Recovery well advanced. Economics Index 70 65 60 55 50 Economic indicators Cash rate Current Dec 2021 forecast New Zealand GDP ($bn) Business activity surveys (index) $bn $bn Index 0.25% 0.25% 75 Westpac 75 70 (14 Apr 2021) forecasts 65 70 Unemployment 4.9% (Dec qtr 2020) 4.9% 65 70 60 55 59 65 50 45 GDP -0.9% 60 Pre-Covid 60 2.1% (%yr end) (Dec qtr 2020) forecast 40 - PSI Services 35 55 55 Current PMI - Manufacturing 30 3.6% forecast Private sector credit 5.7% 50 50 25 (Feb 2021) 2018 2020 2022 2017 2018 2019 2020 2021 Sources: Stats NZ, Westpac Economics. Sources: ANZ, Westpac Economics Unemployment rate (%) 8 6 5 4 3 2 2006 New Zealand private sector credit growth (% ann) Pre-Covid forecast Current forecast % % ann Westpac 8 25 forecasts 7 20 15 6 10 5 5 4 0 3 -5 2 -10 2009 2012 2015 2018 2021 Aug-00 Sources: Stats NZ, Westpac Economics. 106 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Housing ■Total credit Business Westpac forecasts Aug-04 Aug-08 Aug-12 Aug-16 Aug-20 Sources: Westpac Economics 40 30 42532 Westpac GROUP#107New Zealand housing market. Major policy shift. Changes to housing market policies The Government has announced a suite of new housing market policies affecting both demand and supply Economics New Zealand dwelling prices (index, Jan 2007 = 1000) Index 2500 Index Auckland 2500 The most significant changes relate to the tax treatment of mortgage interest costs This will erode the financial incentives for property investors and tilt housing market conditions more in favour of owner occupiers -Canterbury 2100 Wellington Westpac expects these policy changes will prompt a flattening off of house prices over the remainder of 2021. That follows a period of very strong growth since the economy exited lockdown. Other regions 1700 1300 The major changes introduced by the Government include: Removing the ability to offset mortgage costs on residential investment properties against the income earned on those properties 900 2007 2009 2100 1700 1300 900 2011 2013 2015 2017 2019 2021 This change will take effect from 1 October 2021 for properties purchased after 27 March 2021 and will be gradually phased in over the next four years for existing property owners The Government is also looking at exceptions for new builds The holding period for taxing capital gains on residential investment properties (otherwise known as the 'Bright-line test') has been extended from 5 to 10 years The holding period remains at 5 years for investors who buy new builds A $3.8bn Housing Acceleration Fund is being established to assist with the development of infrastructure (such as pipes and roads) to support new housing Additional financial assistance for first home buyers with changes in First Home Loans and Grants settings, including increases in income caps, as well as changes to regional price caps Sources: REINZ, Westpac Economics. Dwelling prices % change over period Region Pop'n Last 3 mths (to Mar-21) Last 12 mths Last 5 years (Mar-21) (to Mar-21) Auckland 1.7m Up 7.1% Up 22.5% Up 39.2% Wellington 0.5m Up 9.5% Up 31.2% Up 104.7% Canterbury 0.6m Up 7.7% Up 20.3% Up 30.1% Nationwide 5.1m Up 8.5% Up 24.0% Up 58.6% 107 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Sources:REINZ, Stats NZ. Westpac GROUP#108Appendix and Disclaimer Westpac GROUP#109Appendix 1: Cash earnings adjustments. Cash earnings adjustment ($m) 1H20 2H20 1H21 Description Reported net profit 1,190 1,100 3,443 Net profit attributable to owners of Westpac Banking Corporation Fair value (gain)/loss on (219) 581 48 economic hedges Ineffective hedges (24) (37) 46 Adjustments related to 63 (32) Pendal Group Treasury shares (17) 3 Cash earnings 993 1,615 3,537 109 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 Consistent with prior periods, this item has been treated as a cash earnings adjustment given its size and that it does not reflect ongoing operations. The adjustment relates to the mark-to-market of the shares. Westpac disposed of its holdings in Full Year 2020. As a result, no further adjustments will be recognised Under AAS, Westpac shares held by the Group in the managed funds and life businesses are deemed to be Treasury shares and the results of holding these shares cannot be recognised in the reported results. In deriving cash earnings, these results are included to ensure there is no asymmetrical impact on the Group's profits because the Treasury shares support policyholder liabilities and equity derivative transactions which are revalued in determining income. At 31 March 2021, there are no Treasury shares Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#110Appendix 2: Reinventure - Investing in fintech businesses¹. New business models coinbase Westpac has invested $150m in fintech venture capital fund, 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 flare Comprehensive cloud-based human resources and New technology capabilities kasada Enterprise cyber security company that protects businesses from malicious bot attacks Data, Al and analytics HYPER ANNA Appendix A natural language Al system for data analysis targeting relatively simple business queries that comprise 70% of an analyst's work in a large organisation A bitcoin wallet and platform Society One Peer-to-peer (P2P) online lending platform connecting borrowers and investors OpenAgent.com.au Helps home sellers make decisions about who they choose to sell their property AS SE MB LY Full stack payments platform A 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 employee benefits platform to streamline HR processes 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 hmlet CODELINGO Enabling software development teams to scale processes and improve code quality POLYCHAIN CAPITAL A fund of funds for cryptocurrency and blockchain technology InDebted FORTE BASIQ Open Banking API platform that provides connectivity to over 100 financial sources across Australia and NZ DATA REPUBLIC A trust framework and secure platform that allows users to exchange data safely and securely Digitised debt collection, leveraging modern communications, automation and machine learning C urious thing Conversational voice-based Al for digital interviewing, powered by machine learning Slyp Smart receipts that automatically link purchase receipts to customers' bank accounts a⚫kin Turning buildings into community-centric dwellings IMMUTABLE 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 Pioneering a new asset class called Tradeable Income Based Securities (TIBS) Flybits Al-powered, context-as-a-service platform, to deliver personalised experiences to customers Creating real-game assets for developers, using blockchain technology KEPLER ANALYTICS B2B platform for physical retail stores that provides insights through their Al engine and in-store sensors 1 Logos are of the respective companies. 110 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#111Appendix 3: Sustainability. Industry recognition CDP DISCLOSURE INSIGHT ACTION Appendix Received "B" rating in the 2020 CDP for our response to Climate Change, announced December 2020 Sustainability indexes Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA Member of the DJSI Indexes since 2002 Inclusion and diversity recognition 2019 = Bloomberg Gender Equality Index Recognised by the Bloomberg Gender Equality Index for the 5th consecutive year ENVIRONMENTAL QUALITYSCORE HIGHEST RANKED BY ISS ESG Corporate ESG Performance 1 Achieved highest ISS QualityScore for Environment and Social dimensions Rated Prime status of "C" by ISS Prime ESG (formerly ISS-oekom) ISS ESG‣ RATED BY SUSTAINALYTICS- a Morningstar company RATED FTSE4Good As of March 2021, Westpac received an ESG Risk Rating of 27.3 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 for over 19 years, announced in June 2020 AWEI 2020 autism spectrum AUSTRALIA MSCI ESG RATINGS A CCC B BB 888 AA AAA Recognised as Silver Tier Employer in 2020 in the Australian Workplace Equality Index Awards Received the 2020 Advancement Award in recognition of Westpac's innovative autism hiring program, Tailored Talent As of 2020, Westpac received an MSCI ESG Rating of A² AUSTRALIAN NETWORK ON DISABILITY Included in the 2019-20 Australian Network on Disability Access and Inclusion Index 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 Global ESG Monitor Report carers + employers Accredited Carer Employer Activate Accredited as Level 1 Activate as a Carer Friendly Employer under the Carers NSW Carers + Employers Program in 2020 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. 111 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#112Appendix 3: Sustainability. Key commitments and partnerships UNEP PRINCIPLES FOR FINANCE RESPONSIBLE INITIATIVE BANKING Principles for Responsible Banking Signatory 2019 Signatory of: PRI | Principles for Responsible Investment Principles for Responsible Investment Signatory (2007) SUSTAINABLE DEVELOPMENT GOALS UN Sustainable Development Goals CEO Statement of Commitment (2015) PARIS 2015- Paris Climate Agreement Supporter (2015) EQUATOR PRINCIPLES The Equator Principles Founding Adopter, First Australian Bank (2003) 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+ Driving Busin Climate Action 100+ Signatory (2017) RE 100 °C CDP RE100, an initiative of The Climate Group in partnership with CDP Member (2019) WE SUPPORT COMPACT Commitment to United Nations Global Compact Signatory (2002), Global Compact Network Australia Founding Member (2009) GLOBAL INVESTOR COALITION ON CLIMATE CHANGE Global Investor Coalition Statement on Climate Change Signatory (2014) #PRIIMontréalPLEDGE The Montreal Carbon Pledge Signatory (2014) Australian Sustainable Finance Initiative Climate Bonds Climate Bonds Initiative Partner Climate Active Carbon Neutral ORGANISATION Carbon Neutral Certification Since 2012 (previously NCOS) 112 Carbon Market Institute Carbon Markets Institute Corporate Member AUSTRALIAN BUSINESS ROUNDTABLE for Disaster Resilience * Safer Communities Australian Business Roundtable for Disaster Resilience & Safer Communities Founding member (2012) Australian Sustainable Finance Initiative Steering Committee Member Supply Nation Supply Nation (for Indigenous owned businesses) Founding member (2016) WEConnect INTERNATIONAL WeConnect International (for women owned businesses) (2014) United Nations Tobacco-Free Finance pledge Founding signatory (2018) Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Appendix Westpac GROUP#113Appendix 4: Definitions - Credit quality. Appendix 90 days past due and not impaired Provision for expected credit losses (ECL) 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 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 future economic conditions Collectively assessed provisions (CAPS) CAPS 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, cashflow, and the net realisation of value of assets to which recourse is held: facilities 90 days or more past due, and full recovery is in doubt: exposures where contractual payments are 90 or more days in arrears and the net realisable value of assets to which recourse is held may not be sufficient to allow full collection of interest and principal, including overdrafts or other revolving facilities that remain continuously outside approved limits by material amounts for 90 or more calendar days; non-accrual facilities: exposures with individually assessed impairment provisions held against them, excluding restructured loans; restructured assets: 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 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. Stressed exposures do not include stressed exposures which are on an active COVID-19 deferral package as of 30 September 2020 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 113 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#114Appendix 4: Definitions - Divisions, earnings drivers, capital and liquidity. Divisions 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 to Australian personal customers, including mortgages, credit cards, personal loans, and savings and deposit products Business serves the banking needs of Australian SME and Commercial customers (including Agribusiness) and provides banking and advisory services to high net worth individuals through Private Wealth 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 provides auto finance, Australian life, general and lenders mortgage insurance, investment product and services (including margin lending and equities broking), superannuation and retirement products as well as wealth administration platforms. It also manages Westpac Pacific which provides a full range of banking services in Fiji and Papua New Guinea. Westpac has announced it has entered into a sales agreement for Westpac Pacific, Westpac Vendor Finance business, Westpac General Insurance, and Westpac Lenders Mortgage Insurance. These sales are expected to finalise in 2021, subject to regulator approvals Group Businesses includes the results of unallocated support functions such as Treasury, Technology and Operations, and Core Support. 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 for the period 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) Appendix The RBA makes available to Australian Authorised Deposit-taking Institutions a CLF that, subject to qualifying conditions, can be accessed to meet LCR requirements under APS210 Liquidity 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 12.5 114 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#115Appendix 4: Definitions - Other. Appendix Branch transactions 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 Consumer MFI share Branch transactions are typically withdrawals, deposits, transfers and payments 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, August 2018 - February 2021, 6MMA. MFI customers Source: DBM Consultants Business Atlas, August 2018 - February 2021, 6MMA. MFI customers, all businesses Source: DBM Consultants Business Atlas, 6 months to September 2019, March 2020 and August 2020. 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. Includes new American Express credit card sales 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 Consumer Atlas, 6 months to February 2021. MFI customers 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 Women in Leadership 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, August 2018 - February 2021, 6MMA. MFI customers Source: DBM Consultants Business Atlas, August 2018 - February 2021, 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 The proportion of 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. Senior Executive refers to the proportion of women in the combined Group Executives and General Manager populations 115 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP#116Investor Relations Team. Contact Us. Andrew Bowden Head of Investor Relations +61 2 8253 4008 +61 438 284 863 ☐ [email protected] Jacqueline Boddy Head of Debt Investor Relations +61 2 8253 3133 ☑+61 448 064 012 [email protected] www.westpac.com.au/investorcentre Annual reports Presentations and webcasts 5 year financial summary Prior financial results Louise Coughlan Head of Rating Agencies and Analysis Rebecca Plackett Director +61 2 8254 0549 +61 425 213 504 [email protected] Alec Leithhead Manager +61 2 8254 0159 +61 481 906 863 [email protected] +61 2 8253 6556 ☑+61 478 336 647 [email protected] restor Centre age your sharing Dividend information Or email: [email protected] 116 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack tame Personal Business Corporate About us Help Westpac share information INVESTOR CENTRE information and help for Westpac securityholders and those considering investing in Westpac Financial information Stric Westpac at a glan events and presentations Fixed income investors Contact Investor Relations 2020 final dividend 31 cents per share Pally ranked, paid on 18 December 20 DAP per a 1193 > Full announcement Share prices Check the latest share prices. Latest share price Got the latest Check the ASC announcements >announcements Westpac Capital Notes T >Westpac Capital hictes information har Latest news 2021 Half >3000 AGM 2020 Annual Report > information on secusation paci Contact us Contact us Locates Lost or stolen cards Register Online tanking Personal Sign in Contact our share registry Contact detai AUSTRAC civil proceedings announcement information about the AUSTRAC Westpac GROUP#117Disclaimer 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 2021 Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2021 available at www.westpac.com.au for details of the basis of preparation of cash earnings. Refer to page 35 for an explanation of cash earnings and Appendix 1 page 109 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, including, without limitation, future loan loss provisions, financial support to certain borrowers, indicative drivers, forecasted economic indicators and performance metric outcomes. We use words such as 'will', 'may', 'expect', 'intend', 'seek', 'would', 'should', 'could', 'continue', 'plan', 'estimate', 'anticipate', 'believe', 'probability', 'risk', 'aim', or other similar words to identify forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control, and have been made based upon management's expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be in accordance with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially from those which we expect, depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the section titled 'Risk factors' in Westpac's 2021 Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2021 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 update any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, after the date of this presentation. 117 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack Westpac GROUP