Investor Presentaiton

Australian 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

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