Investor Presentaiton

Margin drivers – ex Treasury & Markets. Westpac - 2H22 movement - Interest rates > • 3yr swap rates increased ~150bps Lending (14bps) Deposits 25bps² Liquidity (6bps) Hedged balances ~5bps Compression from competition, switching and mix (9bps) • Rate lag impact (5bps) ⚫ At call and term deposit spreads improved • Rate lag impact 4bps Increase in liquid assets portfolio • Higher cost of funding liquid assets > Capital Deposits Industry – 1H23 considerations¹ Tailwinds - Impact of higher rates still to fully flow through on deposits Higher earnings on capital and hedged deposits Roll-off of lower spread fixed rate mortgages Headwinds × Deposit mix impact * Highly competitive mortgage environment * Wholesale funding costs higher, including from phase-out of CLF 1 This page contains 'forward-looking statements' and statements of expectation. Please refer to the disclaimer on page 138. 2 Excludes impact of hedged deposits. 24 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack Westpac GROUP

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