Westpac Banking Corporation · ASX:WBC
Westpac Banking — H1 2025 Earnings Presentation
113 slides from Westpac Banking's earnings presentation, May 2025
Slide 1: 2025 Interim Financial Results Presentation and Investor Discussion Pack
2025 INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025 PRESENTATION AND INVESTOR DISCUSSION PACK Westpac Banking Corporation ABN 33 007 457 141
Slide 2: 2025 Interim Results Index
WESTPAC 2025 Interim Results Presentation Investor Discussion Pack 3 29 2025 INTERIM Earnings drivers 31 RESULTS INDEX Credit quality and provisions 45 Capital, funding and liquidity 66 Supporting our customers 78 Sustainability 89 Segment results 93 Economics 100 Appendix 106 Contact us 112 Disclai
Slide 3: Anthony Miller, Chief Executive Officer
ANTHONY MILLER CHIEF EXECUTIVE OFFICER
Slide 4: 1H25 Highlights
1H25 HIGHLIGHTS SERVICE ONE BEST WAY PERFORM EXCELLENCE STRONG FOUNDATIONS 4 Westpac Group 2025 Interim Results Presentation & Investor Discussion Pack
Slide 5: Strong Foundations
STRONG FOUNDATIONS Escalating trade and ongoing geopolitical tensions have CET1 CAPITAL RATIO created a volatile and uncertain outlook 6.0% 12.2% IMPACTS • Consumer and business confidence Mar-081 Mar-252 (pre GFC) • Wholesale funding market volatility DEPOSIT TO LOAN RATIO RISKS • Consumer spending
Slide 6: Creating Better Futures Together
CREATING BETTER FUTURES TOGETHER1 CUSTOMERS COMMUNITIES ECONOMY $115M INCREASED ~$170M customer scams REGIONAL INVESTMENT cost to support stopped announced new cash services service centres $70M $1BN $1.7BN to customers through the female entrepreneur fund, income tax expense Westpac Rewards Hub sup
Slide 7: 1H25 Financial Performance
1H25 FINANCIAL PERFORMANCE $3.5bn 11.1% 76c Net profit ROTE Dividend ex Notable Items ex Notable Items 1% to 1H24 9bps to 1H24 1% to 1H24 $3.3bn 51.8% 75% Net profit Cost to Income ratio Dividend payout ratio ex Notable Items ex Notable Items 1% to 1H24 2ppts to 1H24 1ppt to 1H24 7 Westpac Group 202
Slide 8: 1H25 Market Position
1H25 MARKET POSITION STRONG CONSUMER MOMENTUM IN DEEPENING INSTITUTIONAL DEPOSIT GROWTH BUSINESS LENDING CLIENT RELATIONSHIPS $351.0bn $105.8bn $107.0bn Consumer deposits1 Business lending3 WIB lending Up 9%2 up 14%2 up 15%2 HOUSEHOLD DEPOSIT GROWTH GROWTH IN TARGETED SECTORS2 Compared to system4 Se
Slide 9: Balancing Growth and Returns in Mortgages
BALANCING GROWTH AND RETURNS IN MORTGAGES MORTGAGES GROWTH ($BN)1 NEW OWNER OCCUPIED LENDING RATE RELATIVE TO PEERS3 Competition persists WBC front book returns higher than back book 485 473 WBC 462 higher Up 3% Up 2% 0.9 x WBC 1.0x system lower system 1H24 2H24 1H25 Mar-24 Sep-24 Mar-25 TIME TO DEC
Slide 10: Customer Service Excellence
CUSTOMER SERVICE EXCELLENCE INVESTING IMPROVING DIGITAL USING AI IN PEOPLE EXPERIENCE EFFECTIVELY MORE BANKERS #1 MOBILE APP1 AI ACCELERATOR ~350 inc.25% Business, onboarded Business cash flow & expense management tools 4 reusable AI solution patterns established ~80 inc.50% WIB, onboarded Savings s
Slide 11: Innovating to Support Service Excellence
INNOVATING TO SUPPORT SERVICE EXCELLENCE BIZEDGE WESTPAC ONE OBJECTIVE: Fast, simple, digital lending origination OBJECTIVE: Leading transaction banking capability with experience enhanced digital experience for Institutional clients 1H25 ACHIEVEMENTS: 1H25 ACHIEVEMENTS: • Rollout commenced in Mar-2
Slide 12: UNITE: One Best Way
UNITE: ONE BEST WAY – THE BEST OF WESTPAC DELIVERED CONSISTENTLY • Business led, technology enabled simplification UNITE INVESTMENT • 4 initiatives complete, including • $251m invested in 1H25, 77% expensed − Single Electronic ID verification process • Expect to invest $350m-$400m in 2H25 − Multiple
Slide 13: CEO Priorities
CEO PRIORITIES PERFORMANCE CUSTOMER Improve ROTE and cost to Whole of bank to whole of income relative to peers customer approach Improve market position Improve customer experience TRANSFORMATION PEOPLE UNITE Attract, retain and invest Innovate to improve Externally focused, customer outcomes and a
Slide 14: Measuring Progress
MEASURING PROGRESS METRIC MAR-25 SEP-29 TARGET Consumer NPS #2 #1 SERVICE #1 EXCELLENCE Business NPS #3 WIB RSI1 n/a #1 Complete UNITE on time On track Complete ONE 35%-40% BEST WAY Complete UNITE on budget $398m2 of total investment over FY25 to FY28 Employee engagement Top quartile Top decile Cost
Slide 15: Michael Rowland, Chief Financial Officer
MICHAEL ROWLAND CHIEF FINANCIAL OFFICER
Slide 16: Strong Foundations
STRONG FOUNDATIONS CAPITAL FUNDING COMPOSITION CET1 capital ratio (%) $1tn Equity 12.2 11% $8.9bn above $704bn 15% Short term 8.8 regulatory wholesale3 minimum 10.25% 17% 67% 6.0 $352bn 16% Long term 60% wholesale 37% UP 6PPTS 14% UP $680BN Customer 44% 1 2 2 deposits Mar-08 Mar-15 Mar-25 Mar-08 Mar
Slide 17: Capital Above Top End of Target Operating Range
CAPITAL ABOVE TOP END OF TARGET OPERATING RANGE CET1 CAPITAL RATIO % Lending (25bps) Data refinement & asset sale 14bps Deposit hedge (23bps) Credit quality & other 11bps 74bps (58bps) Share buyback: $1.1bn2 12.55 - (31bps) 12.49 (13bps) 3bps 12.24 (25bps) 11.99 Mar-24 Sep-24 Net profit 2H24 RWA IRR
Slide 18: Capital Management
CAPITAL MANAGEMENT ORDINARY DIVIDENDS ORDINARY DIVIDENDS PER SHARE (CENTS) • 1H25 payout ratio of 75%1 75 76 76 • Payout ratio range 65 – 75% • Dividend yield 4.8%2, fully franked 6.8%2 • Neutralise DRP 1H24 2H24 1H25 SHARE BUYBACKS REDUCING SHARE COUNT THROUGH BUYBACKS (#BN) • On market share buyba
Slide 19: 1H25 Financial Performance
1H25 FINANCIAL PERFORMANCE 2H24 1H25 Change Net profit $3,648m $3,317m (9%) Notable Items $41m ($140m) Large Excluding Notable Items: Net profit $3,607m $3,457m (4%) Earnings Per Share 104c 101c (3%) Revenue $10,947m $10,993m - Expenses ($5,549m) ($5,698m) 3% Pre-provision profit $5,398m $5,295m (2%
Slide 20: 1H25-2H24 Net Profit
1H25-2H24 NET PROFIT ($M)1 3,607 4 42 (149) 3,506 (75) 28 3,457 Pre-provision profit down 2% 3% HIGHER 4% LOWER 1H24 2H24 Net interest Non-interest Expenses Impairment Tax 1H25 2 income income charges & NCI 1 Excludes the impact of Notable Items. 2 Non-controlling interests. 20 Westpac Group 2025 In
Slide 21: Net Loans
NET LOANS ($BN) 6.4 - - (6.3) 6.9 824.8 11.1 806.8 Up $1.1bn in NZ$ 784.8 UP 3% UP 2% Mar-24 Sep-24 Mortgages1 Business2 Institutional New Personal Portfolios in Mar-25 3 Zealand runoff (in A$) Chart may not add due to rounding. 1 Australian, excluding RAMS. 2 B&W segment, excluding Auto Finance. 3
Slide 22: Deposit Growth
DEPOSIT GROWTH ($BN) 3.9 2.3 0.4 696.8 16.5 673.6 Up $1.2bn in NZ$ 650.9 UP 3% UP 3% Mar-24 Sep-24 Consumer Business WIB & Treasury New Zealand Mar-25 & Wealth (in A$) Chart may not add due to rounding. 22 Westpac Group 2025 Interim Results Presentation & Investor Discussion Pack
Slide 23: Net Interest Margin
NET INTEREST MARGIN (%) NZ mortgages 1bp Replicating portfolio 4bps Replicating portfolio 3bps Business (1bp) Savings & TD spreads (3bps) Non hedged capital (1bp) WIB (1bp) Mix & other (3bps) 2H24 provision release (1bp) 1.89 1.97 (1bp) (2bps) (1bp) 1bp - (1bp) (5bps) 0.01 1.88 0.14 0.13 0.12 Core N
Slide 24: Non-Interest Income
NON-INTEREST INCOME1 NON-INTEREST INCOME BY TYPE ($M) 1,465 6% LOWER 1,382 UP 3% 1,424 405 345 329 218 223 239 842 830 840 1H24 2H24 1H25 Fees Wealth Trading and other 1 Excludes the impact of Notable Items. 24 Westpac Group 2025 Interim Results Presentation & Investor Discussion Pack
Slide 25: 1H25 Expenses
1H25 EXPENSES ($M)1 Wages growth Increased FTE: • To support UNITE • Investment in bankers 376 (261) 128 (94) 5,698 5,549 5,395 Simpler operating model UNITE investment $251m, Reduced property footprint 77% expensed Digitisation 3% INCREASE 3% INCREASE 1H24 2H24 Ongoing Cost reset UNITE Investments
Slide 26: Investment Spend
INVESTMENT SPEND INVESTMENT SPEND ($M) UNITE Total down 17% due to seasonality & completion of risk projects • Consolidated 20 Consumer ID processes to one • UNITE, growth & productivity up 9% • Multiple mortgage offset accounts • Risk & reg down 38% • Consolidated two versions of Asia BankTrade int
Slide 27: Credit Quality
CREDIT QUALITY STRESSED EXPOSURES AS A % OF TCE AUSTRALIAN MORTGAGE DELINQUENCIES (%) 1.45 30+ day delinquencies 90+ day delinquencies 1.36 1.36 4.00 90+ ex RAMS & 6 mth serviceability hold-out period Sep-24 3.00 0.59 2.00 1.82 0.54 0.54 1.50 1.12 1.00 0.86 0.67 0.62 0.00 Mar-21 Mar-22 Mar-23 Mar-24
Slide 28: Impairment Provisions $1.7bn Above Base Case
IMPAIRMENT PROVISIONS $1.7BN ABOVE BASE CASE ($M) CAP to credit RWA of 1.26%, down 4bps1 5,135 5,096 5,072 Overlays reduced $49m Overlays 260 179 130 CAP $99m lower Stage 1 CAP 705 768 877 • Sale of auto finance balances • Commercial property price & interest rate outlook Partly offset by increase i
Slide 29: Investor Discussion Pack
Vif INVESTOR DISCUSSION PACK
Slide 30: Creating Value for Our Stakeholders: Overview
CREATING VALUE FOR OUR SHAREHOLDERS, CUSTOMERS, PEOPLE, COMMUNITY OVERVIEW AND ENVIRONMENT IN 1H25 SHAREHOLDERS CUSTOMERS OUR PEOPLE COMMUNITY ENVIRONMENT $3.5bn 13 million 80 $115m 88% Net Profit ex Notable Items, Customers across Organisational Health Stopped or recovered in Reduction in scope dow
Slide 31: Earnings Drivers
Vif | EARNINGS DRIVERS
Slide 32: 1H25 Net Profit (vs 2H24)
1H25 NET PROFIT EARNINGS NET PROFIT 2H24 – 1H25 ($M) Higher net wealth income and Institutional lending fees, partly offset by the sale of auto finance portfolio AIEA up 2% due to loan growth. Higher UNITE costs, salaries, Core NIM down 3bps, wages and software amortisation, Treasury & Markets NIM d
Slide 33: 1H25 Net Profit (vs 1H24)
1H25 NET PROFIT EARNINGS NET PROFIT 1H24 – 1H25 ($M) Lower Markets income and loss on the sale of auto finance portfolio, partly offset by higher net wealth income Increase in UNITE costs, salaries, AIEA up 3% due to loan growth. wages, technology expenses and Core NIM flat, software amortisation Tr
Slide 34: Single Measure of Performance – Net Profit After Tax
SINGLE MEASURE OF PERFORMANCE – NET PROFIT AFTER TAX EARNINGS Westpac uses net profit after tax to assess financial performance at both a Group and segment level Notable Items are shown separately to clarify underlying operating performance and allocated to the following categories: • Large items th
Slide 35: Group Loans and Deposits
GROUP LOANS AND DEPOSITS EARNINGS COMPOSITION OF GROSS LOANS (% OF TOTAL) COMPOSITION OF CUSTOMER DEPOSITS (% OF TOTAL) 4 1 8 Australian mortgages 18 1 Australian business 12 Institutional Households $829bn Australian personal $697bn Businesses 61 New Zealand mortgages 23 59 Institutional 13 New Zea
Slide 36: Growth in Lending
GROWTH IN LENDING REVENUE MORTGAGES AND PERSONAL LENDING ($BN) BUSINESS AND INSTITUTIONAL LENDING ($BN) 7 6 (1) 245 11 1 (1) (1) (4) 584 234 577 569 220 UP 1% UP 5% UP 3% UP 11% 2 2 Mar-24 Sep-24 Australian NZ Personal RAMS Mar-25 Mar-24 Sep-24 Australian NZ WIB Auto finance Mar-25 mortgages mortgag
Slide 37: Growth in Deposits
GROWTH IN DEPOSITS REVENUE CUSTOMER DEPOSITS BY TYPE (%) CUSTOMER DEPOSITS BY SEGMENT (%) 1 Term deposits Savings Transaction Mortgage offset NIB deposits Consumer Business & Wealth WIB & Treasury New Zealand 651 674 697 651 674 697 11% 11% 11% 11% 11% 11% 9% 9% 10% 18% 18% 18% 19% 18% 18% 22% 21% 2
Slide 38: Net Interest Margin
NET INTEREST MARGIN REVENUE NET INTEREST MARGIN (%) 1 Core NIM Treasury & Markets Notable Items Composition of NIM (%) 1H24 2H24 1H25 1.97 (1bp) (2bps) - (1bp) 1bp (1bp) (5bps) 1.88 Core NIM 1.80 1.83 1.80 0.01 0.13 0.12 Treasury & Markets 0.14 0.13 0.12 Mar-25 Exit Core NIM 1.79%2 Core NIM, 1.83 1.
Slide 39: Non-Interest and Markets Income
NON-INTEREST AND MARKETS INCOME REVENUE NON-INTEREST INCOME BY TYPE ($M)1 NET FEE INCOME BY SEGMENT ($M) 842 830 840 1H24 2H24 1H25 25 842 830 9 (6) (13) (5) 840 405 329 345 218 223 239 Fees Wealth management Trading and other income 1H24 2H24 Consumer Business WIB New Other 1H25 & Wealth Zealand NO
Slide 40: Expenses
EXPENSES EARNINGS EXPENSES 1H25 – 2H24 ($M) Wages growth and increased 1H25 UNITE investment FTE to support UNITE and $251m, 77% expensed from new bankers 376 (261) 128 (94) 5,698 5,549 5,395 Cost Reset benefits including: Lower investment spend due to • Simpler operating model seasonality and compl
Slide 41: UNITE Objectives: One Best Way
UNITE OBJECTIVES: ONE BEST WAY – THE BEST OF WESTPAC DELIVERED CONSISTENTLY UNITE 1 BETTER CUSTOMER EXPERIENCE 2 IMPROVED EMPLOYEE EXPERIENCE 3 INCREASED SHAREHOLDER RETURN NPS #1 EMPLOYEE ENGAGEMENT CLOSE CTI RATIO TOP DECILE GLOBALLY GAP TO PEERS FEWER PRODUCTS SIMPLIFY PROCESSES CONSOLIDATE TECHN
Slide 42: UNITE: Initiatives Completed
UNITE: INITIATIVES COMPLETED UNITE OUTCOMES COST BENEFITS MIDAS MIGRATION & DECOMMISSION • Migrated WNZL FM platform to the WBC platform • Reduces cost and delivers better customer experience $8m ~$5m p.a. ELECTRONIC IDENTITY VERIFICATION • Consolidated 20 Consumer identity verification processes to
Slide 43: UNITE: Initiatives – FY25 Focus
UNITE: INITIATIVES – FY25 FOCUS UNITE OUTCOMES COST BENEFITS MORTGAGE SIMPLIFICATION1 • Migrates mortgage customers to a single suite of products, processes and applications $450m ~$120m p.a. C. DIGITAL BANKER2 • Extends Digital Banker capability to all bankers $175m C. BANKER PRODUCTIVITY ONE COL
Slide 44: Impairment Charges Composition
IMPAIRMENT CHARGES COMPOSITION IMPAIRMENT CHARGES IMPAIRMENT CHARGES ($M) Individually assessed Collectively assessed Total New Write-backs & Write-offs Other movements IAPs recoveries direct in CAP 362 251 Higher Cards & Personal 275 279 Increase to downside 250 213 210 211 scenario weighting Loans
Slide 45: Credit Quality and Provisions
CREDIT QUALITY AND PROVISIONS
Slide 46: Provisions for Expected Credit Loss
PROVISIONS FOR EXPECTED CREDIT LOSS CREDIT QUALITY TOTAL PROVISIONS FOR EXPECTED CREDIT LOSSES1 ($M) EXPECTED CREDIT LOSS (ECL) ($M) Overlay Stage 1 CAP Stage 2 CAP $1.7bn in provisions above the base case ECL Stage 3 CAP Stage 3 IAP 7,245 5,135 5,096 5,072 5,072 4,941 260 179 130 3,325 432 Increase
Slide 47: Provision Cover
PROVISION COVER CREDIT QUALITY EXPOSURES AS A % OF TCE1 KEY RATIOS Stage 3 Stage 2 Stage 1 Mar-24 Sep-24 Mar-25 Provisions to gross loans (bps) 65 63 61 Impaired asset provisions 47 41 41 to impaired assets (%) Stage 1 – Lending Collectively assessed provisions 136 130 126 growth, mostly in to credi
Slide 48: Portfolio Composition
PORTFOLIO COMPOSITION CREDIT QUALITY TOTAL COMMITTED EXPOSURE (TCE) BY RISK GRADE AT 31 MARCH 2025 ($M) Standard and Poor’s risk grade1 Australia NZ / Pacific Other overseas Group % of total AAA to AA- 200,162 26,527 30,699 257,388 20% A+ to A- 43,096 5,004 12,611 60,711 5% BBB+ to BBB- 86,955 11,00
Slide 49: Credit Quality Metrics
CREDIT QUALITY METRICS CREDIT QUALITY STRESSED EXPOSURES AS A % OF TCE MOVEMENT IN STRESS BY SEGMENT (BPS) Impaired Non-performing, 90+ days 145 (6) (3) 1 (1) 136 Non-performing, <90 days Watchlist & substandard 1.45 1.36 1.36 1.26 0.59 Reduction mostly 0.54 0.54 within the mining Sep-24 Consumer Bu
Slide 50: Credit Quality Across Sectors
CREDIT QUALITY ACROSS SECTORS CREDIT QUALITY CORPORATE AND BUSINESS STRESSED EXPOSURES BY INDUSTRY SECTOR (%) 7.0 Mar-24 Sep-24 Mar-25 Small number of Small number of Large single name upgrade 6.0 customers upgraded customers downgraded 5.0 4.0 3.0 2.0 1.0 0.0 Property Wholesale Services Manufacturi
Slide 51: Sectors in Focus: Commercial Property
SECTORS IN FOCUS: COMMERCIAL PROPERTY CREDIT QUALITY • Single credit policy, supported by industry sector concentration limits COMMERCIAL PROPERTY EXPOSURES COMMERCIAL PROPERTY PORTFOLIO • Maintained credit standards, with close (% OF TCE) COMPOSITION (TCE) (%) oversight of portfolio 6.6 6.6 6.8 6.9
Slide 52: Sectors in Focus: Commercial Property – Office; Construction
SECTORS IN FOCUS: COMMERCIAL PROPERTY – OFFICE; CONSTRUCTION CREDIT QUALITY COMMERCIAL PROPERTY – OFFICE S&P EQUIVALENT RISK GRADE Mar-24 Sep-24 Mar-25 TCE ($bn) 17.0 17.2 17.1 • Office exposure has reduced to 1.3% of 31 Group TCE in Mar-25 from 2.1% in Sep-20 20 A+ to A- % of Group TCE 1.37 1.38 1.
Slide 53: Sectors in Focus: Accommodation, Cafes and Restaurants
SECTORS IN FOCUS: ACCOMMODATION, CAFES AND RESTAURANTS CREDIT QUALITY ACCOMMODATION, CAFES AND RESTAURANTS PORTFOLIO SECURITY COMPOSITION (TCE) (%) Mar-24 Sep-24 Mar-25 4 11 TCE ($bn) 11.5 11.7 12.6 Fully secured % of Group TCE 0.93 0.94 0.98 Partially secured Lending ($bn) 9.8 10.2 10.7 Unsecured %
Slide 54: Sectors in Focus: Retail Trade
SECTORS IN FOCUS: RETAIL TRADE CREDIT QUALITY RETAIL TRADE PORTFOLIO SECURITY COMPOSITION (TCE) (%) Mar-24 Sep-24 Mar-25 TCE ($bn) 12.0 12.4 13.6 34 Fully secured % of Group TCE 0.97 0.99 1.06 45 Partially secured Lending ($bn) 7.6 8.5 8.8 Unsecured % of portfolio graded as stressed1,2 4.71 6.05 5.7
Slide 55: Sectors in Focus: Agriculture; Manufacturing
SECTORS IN FOCUS: AGRICULTURE; MANUFACTURING CREDIT QUALITY AGRICULTURE AGRICULTURE PORTFOLIO BY SUB-SECTOR (TCE) (%) Mar-24 Sep-24 Mar-25 Dairy 2 222 Beef & sheep 3 TCE ($bn) 24.3 25.4 26.9 3 26 Grain 4 Horticulture % of Group TCE 1.96 2.03 2.09 Services to agriculture 10 Cotton Lending ($bn) 20.7
Slide 56: Australian Mortgage Portfolio Composition
AUSTRALIAN MORTGAGE PORTFOLIO COMPOSITION MORTGAGE CREDIT QUALITY Australian mortgage portfolio Mar-24 balance Sep-24 balance Mar-25 balance 1H25 flow1 BY PRODUCT AND REPAYMENT TYPE (%) Mar-24 (Portfolio) Sep-24 (Portfolio) Total portfolio ($bn) 495.2 503.3 510.2 54.8 Mar-25 (Portfolio) 1H25 Flows 6
Slide 57: Australian Mortgage Portfolio Performance
AUSTRALIAN MORTGAGE PORTFOLIO PERFORMANCE MORTGAGE CREDIT QUALITY Australian mortgage portfolio Mar-24 Sep-24 Mar-25 30+ DAY AND 90+ DAY DELINQUENCIES (%) 90+ day delinquencies (bps): 90+ dpd excl. 6 months serviceability hold-out period Total portfolio1 inc. impaired mortgages 106 112 86 and RAMS (
Slide 58: Australian Mortgage Portfolio Composition and Performance
AUSTRALIAN MORTGAGE PORTFOLIO COMPOSITION AND PERFORMANCE MORTGAGE CREDIT QUALITY PORTFOLIO BY STATE (%) 90+ DAY DELINQUENCIES BY STATE (%) 4.0 ALL NSW/ACT VIC/TAS 7 8 QLD WA SA/NT NSW/ACT 3.0 41 VIC/TAS 15 QLD 2.0 WA 1.0 SA/NT 29 0.0 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Charts may not add to 1
Slide 59: Mortgage Portfolio LVRs and Offset Accounts
AUSTRALIAN MORTGAGE PORTFOLIO MORTGAGE CREDIT QUALITY LOAN-TO-VALUE RATIOS (LVRS) AND OFFSET ACCOUNTS LOAN-TO-VALUE RATIOS (%) SERVICEABILITY ASSESSMENT CREATES A BUFFER 100 1H25 drawdowns LVR at origination FOR BORROWERS Portfolio LVR at origination • Loans are assessed at the higher of: 80 1 − The
Slide 60: Australian Mortgage Portfolio Repayment Buffers
AUSTRALIAN MORTGAGE PORTFOLIO REPAYMENT BUFFERS MORTGAGE CREDIT QUALITY BUFFER TO BALANCE RATIO1 (%) CHANGES IN CUSTOMER BUFFERS1 (%) Buffer = Current Limit – Outstanding Balance + Offset Balance Owner-occupied variable rate customers change in buffer over 12 months (by balances) 19.7 20.3 19.0 19.4
Slide 61: Australian Mortgage Portfolio Underwriting
AUSTRALIAN MORTGAGE PORTFOLIO UNDERWRITING MORTGAGE CREDIT QUALITY CREDIT POLICY AT MARCH 2025 • Verified via payslips, tax returns or salary credits, with other supporting documentation such as PAYG payment summaries or ATO Income Income Statements (minimum standards apply) • Shading of at least 20
Slide 62: Australian Mortgage Portfolio Hardship
AUSTRALIAN MORTGAGE PORTFOLIO MORTGAGE CREDIT QUALITY HARDSHIP1 BALANCES (% OF PORTFOLIO) 2.50 Non-COVID-19 support COVID-19 support 2.00 1.50 1.14 1.00 0.76 0.50 0.00 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Mar-25 HARDSHIP1 BALANCES BY SUPPORT SOLUTION TOTAL PORTFOLIO BY INSURANCE PROFILE2 (%) (% 1H25 N
Slide 63: Interest Only and Investment Property Lending
AUSTRALIAN MORTGAGE PORTFOLIO INTEREST ONLY MORTGAGE CREDIT QUALITY AND INVESTMENT PROPERTY LENDING INTEREST ONLY (I/O) LENDING BY DYNAMIC LVR1 AND INVESTMENT PROPERTY PORTFOLIO BY NUMBER INCOME BAND (% OF TOTAL I/O LENDING) OF PROPERTIES PER CUSTOMER (%) 1 1 2 Applicant gross income bands 5 62 <$10
Slide 64: Australian Consumer Finance
AUSTRALIAN CONSUMER FINANCE CREDIT QUALITY AUSTRALIAN CONSUMER AUSTRALIAN CONSUMER FINANCE FINANCE PORTFOLIO1 90+ DELINQUENCIES (%) 6.0 Credit cards Personal loans Mar-24 Sep-24 Mar-25 5.0 Lending ($bn) 8.8 8.5 8.5 4.0 As a % of Group loans 1.1 1.0 1.0 3.0 2.77 2.0 30+ day delinquencies (%) 2.41 2.4
Slide 65: New Zealand Credit Quality
NEW ZEALAND CREDIT QUALITY NEW ZEALAND CREDIT QUALITY Mortgage portfolio Sep-24 Mar-25 MORTGAGE 90+ DAY UNSECURED CONSUMER 90+ DAY DELINQUENCIES3 (%) DELINQUENCIES3 (%) Total portfolio (NZ$bn)1 68.0 69.5 1.0 3.0 Owner occupied (%) 74.4 74.3 0.8 Investment property 2.0 25.6 25.7 0.6 0.54 loans (IPL)
Slide 66: Capital, Funding and Liquidity
CAPITAL, FUNDING AND LIQUIDITY
Slide 67: CET1 Capital Ratio 12.24%
CET1 CAPITAL RATIO 12.24% CAPITAL, FUNDING AND LIQUIDITY LEVEL 2 CET1 CAPITAL RATIO MOVEMENTS (%, BPS) Key capital ratios (%) Mar- 24 Sep- 24 Mar- 25 Lending (25bps) Level 2 CET1 Data refinement & asset sale 14bps 12.5 12.5 12.2 (58) capital ratio 74 Credit quality & other 11bps Additional Tier 1 2.
Slide 68: Risk Weighted Assets
RISK WEIGHTED ASSETS CAPITAL, FUNDING AND LIQUIDITY RISK WEIGHTED ASSETS1 (RWA) ($BN) See below Credit RWA up $1.5bn or 0.4%2 11.3 0.3 (1.1) 449.5 444.4 9.1 (2.0) (5.1) 437.4 (1.1) 0.3 0.2 UP $12.1BN OR 2.8% Mar-24 Sep-24 Credit quality Lending Counter- Data FX Other IRRBB Operational risk Market Ma
Slide 69: Regulatory Capital Changes
REGULATORY CAPITAL CHANGES CAPITAL, FUNDING AND LIQUIDITY Expected impact on the Implementation Change Details Group’s total Capital • In December 2024, APRA confirmed it will phase out AT1 capital instruments from the bank prudential framework. APRA intends to finalise changes to prudential standar
Slide 70: Internationally Comparable Capital Ratio Reconciliation
INTERNATIONALLY COMPARABLE CAPITAL RATIO RECONCILIATION1 CAPITAL, FUNDING AND LIQUIDITY APRA’s capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported capital ratios by Australian banks. The following details the adjustmen
Slide 71: Well Placed on Internationally Comparable Capital
WELL PLACED ON INTERNATIONALLY COMPARABLE1 CAPITAL, FUNDING AND LIQUIDITY COMMON EQUITY TIER 1 RATIO (%) 20% 15% 10% Agricultural Bank of China Bank of Communications China Construction Bank Toronto Dominion Bank China Merchants Bank Royal Bank of Canada Standard Chartered Norinchukin Bank Bank of M
Slide 72: APRA to Phase Out AT1 Capital Instruments
APRA TO PHASE OUT AT1 CAPITAL INSTRUMENTS CAPITAL, FUNDING AND LIQUIDITY CHANGES TO CAPITAL1 TOTAL CAPITAL • In December 2024, APRA confirmed it would proceed to phase out AT1 21.61 • Under APRA’s proposed approach, large, internationally active banks, including 18.25 18.25 Westpac, will be required
Slide 73: Tier 2 Capital and LAC
TIER 2 CAPITAL AND LAC CAPITAL, FUNDING AND LIQUIDITY LOSS-ABSORBING CAPACITY (LAC) (% OF RWA) TIER 2 CAPITAL OUTSTANDING (%) By format1 (notional amount) 6.5 5.0 LAC 21 4.5 Tier 2 7.1 3.0 Callable Bullet 2.0 2.0 Westpac January 2024 January 2026 79 31 March 2025 Requirements Requirements TIER 2 CAP
Slide 74: Funding Composition
FUNDING COMPOSITION CAPITAL, FUNDING AND LIQUIDITY FUNDING BY RESIDUAL MATURITY (%) NET STABLE FUNDING RATIO (%) • Growth in stable funding sources 1.4 0.5 (2.6) • Customer deposits 67% of total funding, up 159bps since March 2024 2.5 115 • Additional 22% from stable sources of long-term wholesale a
Slide 75: Liquidity Coverage Ratio (LCR)
LIQUIDITY COVERAGE RATIO (LCR) CAPITAL, FUNDING AND LIQUIDITY LCR ($BN) MOVEMENT IN LCR (%) March 2025 quarterly average 135% 7.4 0.4 (1.8) (4.7) 183 Net cash outflows (NCOs) 1.2 135 135 Other flows1 133 Wholesale funding 25 12 Customer deposits 183 Liquid assets 98 HQLA Sep-24 HQLA RBNZ Customer Wh
Slide 76: Long Term Wholesale Funding Profile
LONG TERM WHOLESALE FUNDING PROFILE CAPITAL, FUNDING AND LIQUIDITY TERM DEBT ISSUANCE AND MATURITY PROFILE1 ($BN) Issuance Maturities Funding for Lending Programme (NZ) 43 42 Term Funding Facility (Aus) 40 35 35 36 34 32 33 31 Tier 2 capital 26 12 18 Additional Tier 1 capital 15 14 Covered bond Seni
Slide 77: Wholesale Funding
WHOLESALE FUNDING CAPITAL, FUNDING AND LIQUIDITY INDICATIVE WHOLESALE FUNDING COSTS LONG TERM WHOLESALE FUNDING BACK BOOK1 (%) (SPREAD ABOVE 3MTH BBSW) By program AUD Mar-25 AUD Mar-24 USD Mar-25 USD Mar-24 AT1 capital 6 98 Tier 2 capital 18 87 61 75 88 Covered bonds 22 50 80 71 28 52 Senior bonds 5
Slide 78: Supporting Customers
Vif SUPPORTING CUSTOMERS
Slide 79: #1 Mobile Banking App
#1 MOBILE BANKING APP1 SUPPORTING OUR CUSTOMERS COMPREHENSIVE FUNCTIONALITY SAFE AND SECURE3 Best in class money movement and account Proactive fraud and scam prevention including management1 Westpac SaferPay and Verify Introduced multiple offset accounts providing Australian-first in-app call capab
Slide 80: Evolving Our Digital Banking Experience
EVOLVING OUR DIGITAL BANKING EXPERIENCE SUPPORTING OUR CUSTOMERS LOYALTY MONEY MANAGEMENT SERVICING & ONBOARDING PAYMENTS & TRANSACTIONS LOYALTY & & REWARDS REWARDS Business Financial Management One best digital way for ID Pocket money features for kids Westpac Rewards Hub verification redeem & trac
Slide 81: Enhancing Banking Protection for Customers
ENHANCING BANKING PROTECTION FOR CUSTOMERS1 SUPPORTING OUR CUSTOMERS SAFECALL • Australian-first in-app calling capability to help prevent scammers impersonate us is now rolling out Spot genuine Westpac calls • Available in the app to over 1 million customers VERIFY • Prevents on average more than 4
Slide 82: Protecting Customers from Fraud and Scams
PROTECTING CUSTOMERS FROM FRAUD AND SCAMS1 SUPPORTING OUR CUSTOMERS SCAM AND DIGITAL FRAUD DETECTION (%)2 1H25 SNAPSHOT Scam Fraud 90 80 81 80 74 Customer reported scam losses 19% 70 66 68 lower compared to 2H24 65 60 50 40 SafeCall launched to help prevent 30 scammers impersonating staff 1H24 2H24
Slide 83: Broad Suite of Security Features Driving Down Customer Losses
BROAD SUITE OF SECURITY FEATURES DRIVING DOWN CUSTOMER LOSSES SUPPORTING OUR CUSTOMERS INVESTED ~$115M IN DETECTION AND PREVENTION MEASURES SINCE FY21, SAVING CUSTOMERS OVER $800M IN FRAUD AND SCAM LOSSES ‘Callstop’ initiative launched and expanded in Enhancement of Westpac Verify partnership with t
Slide 84: Customers Continue to Migrate to Digital
CUSTOMERS CONTINUE TO MIGRATE TO DIGITAL SUPPORTING OUR CUSTOMERS DIGITALLY ACTIVE CUSTOMERS1 (#M) DIGITAL TRANSACTIONS1 (#M) 6.2 6.10 437 6.02 429 6 5.92 412 5.80 5.8 UP 1% 395 UP 2% 5.64 372 5.6 UP 8% UP 6% 5.4 1H23 2H23 1H24 2H24 1H25 1H23 2H23 1H24 2H24 1H25 DIGITAL SALES1,2 MOBILE WALLET PAYMEN
Slide 85: Providing Cash Services for Australian Customers
PROVIDING CASH SERVICES FOR AUSTRALIAN CUSTOMERS SUPPORTING OUR CUSTOMERS CHANGING CUSTOMER PREFERENCES INVESTING IN SUPPORTING Digital payments have increased by 81% Westpac spent ~$170m in 1H25 as part CASH SERVICES of our commitment to providing #M, Avg. # of Monthly Transactions Australians acce
Slide 86: Franchise
FRANCHISE SUPPORTING OUR CUSTOMERS CONSUMER MFI SHARE1,2 CUSTOMER SATISFACTION (CSAT)2 NET PROMOTER SCORE (NPS®)2 8.0 15 33.2% Consumer 7.8 10 7.6 5 7.4 0 17.2% 13.9% 7.2 -5 11.7% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 WBC St.George Brands Peers WBC St.George Brands Pe
Slide 87: Improvement in Mortgages
IMPROVEMENT IN MORTGAGES SUPPORTING OUR CUSTOMERS TIME TO DECISION (DAYS) ON-DAY SETTLEMENT (%) Westpac Group ranks #1 among peers 1st Party 3rd Party 85.7 86.2 81.8 9.7 77.4 6.1 5.4 5.2 5.2 5.0 4.7 4.8 UP 5% 2H23 1H24 2H24 1H25 2H23 1H24 2H24 1H25 MORTGAGE PRODUCT NPS®1 UNIT COST PER 3RD PARTY APPL
Slide 88: Cyber Security – A Layered Defence
CYBER SECURITY – A LAYERED DEFENCE SUPPORTING OUR CUSTOMERS EMPLOYEES Controls underpin who we hire; how we grant access; and how we monitor system use CUSTOMERS Dedicated controls to help protect customers from fraud, including multi-factor authentication SUPPLIERS Security reviews, limited access
Slide 89: Sustainability
Vif | SUSTAINABILITY
Slide 90: Sustainability and Climate Strategies
SUSTAINABILITY AND CLIMATE STRATEGIES SUSTAINABILITY OUR PURPOSE CREATING BETTER FUTURES TOGETHER PILLAR Customer Easy Expert Advocate Support in good times Action on climate Equitable and THEMES and bad Simpler, safer bank and nature inclusive society 1 2 3 4 5 6 OBJECTIVES Enhance financial inclus
Slide 91: Sustainability and Climate Highlights
SUSTAINABILITY AND CLIMATE HIGHLIGHTS SUSTAINABILITY STRENGTHENING GOVERNANCE NET-ZERO OPERATIONS CUSTOMERS TRANSITION AND ENGAGEMENT TO NET-ZERO • Elevated Chief Sustainability Officer role • Scope 1 and 2 absolute emissions reduced by • Continued to engage customers and refined our to report to th
Slide 92: Our People – Strengthening Inclusion, Diversity and Wellbeing
OUR PEOPLE – STRENGTHENING INCLUSION, DIVERSITY AND WELLBEING PEOPLE GENDER DIVERSITY INDIGENOUS REPRESENTATION ORGANISATIONAL HEALTH Females % Mar-25 Target Progress 1.08% of our Australian workforce identify as Organisational Health Index score3 80 Aboriginal and /or Torres Strait Islander at Mar-
Slide 93: Segment Results
Vif | SEGMENT RESULTS
Slide 94: Consumer 1H25 Performance
CONSUMER 1H25 PERFORMANCE CONSUMER NET PROFIT ($M) AIEA flat, NIM stable Benefits from Cost Reset offset by higher salaries, wages and UNITE Increase in downside scenario weight and higher write-offs in cards and personal lending 1,126 (9) 7 2 (38) - 1,088 1,058 DOWN 3% 1H24 2H24 Net interest income
Slide 95: Business and Wealth 1H25 Performance
BUSINESS AND WEALTH 1H25 PERFORMANCE BUSINESS AND WEALTH NET PROFIT ($M) AIEA up 5%, NIM decreased 28bps, Step up in UNITE offset by Increase in overlays and lower litigation and downside scenario weight including one-off remediation restructuring costs provision release in 2H24 1,175 1,181 (25) 7 2
Slide 96: BT Panorama
BT PANORAMA BUSINESS AND WEALTH FUA ON BT PANORAMA ($M) NET FLOWS EXCLUDING BENEFIT 118,593 120,501 PAYMENTS3 ON BT PANORAMA ($M) 3,364 113,328 102,068 102,872 3,146 UP 2% 1,690 1,952 UP 7% 1,020 UP 6% UP 72% Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Winner of Platform of
Slide 97: Institutional 1H25 Performance
INSTITUTIONAL 1H25 PERFORMANCE WESTPAC INSTITUTIONAL BANK NET PROFIT ($M) AIEA up 6%, NIM ex. Markets down 11bps Higher fee income from underwriting activity and higher sales and risk Higher salaries, wages and technology investment management income from FX 20 (35) 58 2 758 681 686 27 UP 10% 1H24 2
Slide 98: New Zealand 1H25 Performance
NEW ZEALAND 1H25 PERFORMANCE1 NEW ZEALAND NET PROFIT ($M) AIEA up 2%, NIM up 3bps Higher staff and technology costs, Increase in downside scenario including software amortisation and weight and weaker economic investment spend projections 35 (15) (60) 578 (29) 16 525 477 DOWN 9% 1H24 2H24 Net intere
Slide 99: New Zealand Balance Sheet
NEW ZEALAND BALANCE SHEET1 NEW ZEALAND NET LOANS CUSTOMER DEPOSITS 100.8 102.1 1.5 (0.4) 103.2 78.8 79.7 1.1 0.1 80.9 UP 1% UP 2% 1H24 2H24 Consumer Business 1H25 1H24 2H24 Consumer Business 1H25 LOANS % OF TOTAL CUSTOMER DEPOSITS AND % OF TOTAL Mortgage Personal Business Term deposits Savings Trans
Slide 100: Economics
ECONOMICS
Slide 101: Australian and New Zealand Economic Forecasts as at May 2025
AUSTRALIAN AND NEW ZEALAND ECONOMIC FORECASTS – (%) AS AT 2 MAY 2025 ECONOMICS KEY ECONOMIC INDICATORS 2024 2025 Calendar Years Q2 Q3 Q4 Q1E Q2F Q3F Q4F 2023 2024 2025F 2026F World GDP1 - - - - - - - 3.2 3.3 2.9 3.0 Australia GDP2 1.0 0.8 1.3 1.5 1.7 2.0 1.9 1.5 1.2 1.9 2.2 Unemployment – end period
Slide 102: Australian Housing Market – Prices Upturn Moderates
AUSTRALIAN HOUSING MARKET – PRICES UPTURN MODERATES ECONOMICS DWELLING PRICES (%, 3 MONTH ANNUALISED) 40 % Macro- 2019 election COVID-19 ‘Delta’ 35 rate cuts rate hikes prudential 30 measures Macro-prudential 25 measures 20 15 10 5 0 -5 -10 -15 -20 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Ap
Slide 103: New Zealand Housing Market – Activity Has Stabilised, Still Subdued
NEW ZEALAND HOUSING MARKET – ACTIVITY HAS STABILISED, STILL SUBDUED ECONOMICS MONTHLY HOUSE SALES AND PRICES (% YR) DWELLING PRICES (INDEX) Sales %YR Index Auckland Canterbury Index Sales (lhs) House prices (rhs) 14,000 40 Wellington Other regions 2750 2750 12,000 30 10,000 2250 2250 20 8,000 10 6,0
Slide 104: Consumer Customer Spend and Buffers
CONSUMER CUSTOMER SPEND AND BUFFERS1 AVERAGE QUARTERLY SPEND PER PERSON (%) 5 Q1 Consumer spending growth of 0.9% in in line with price growth – real spend, flat 4 3 + 1 S.D 2 1 0 - 1 S.D -1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 CONTRIBUTION TO ANNUAL CHANGE IN BUFFERS2 No. mont
Slide 105: Business Customer Cashflow Conditions Improving
BUSINESS CUSTOMER CASHFLOW CONDITIONS IMPROVING CASHFLOW TRENDS Deviation from the rolling 6-month average (ppts) SME remains challenged Commercial continues SME Commercial but showing signs of to improve improvement 10 5 0 -5 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 CASHFLOW GAUGE (IN
Slide 106: Appendix
APPENDIX
Slide 107: Appendix 1: Net Profit ex Notable Items
APPENDIX 1: NET PROFIT EX NOTABLE ITEMS1 APPENDIX Change $m 1H24 2H24 1H25 1H25 – 2H24 (%) Net interest income 9,351 9,565 9,569 - Non-interest income 1,465 1,382 1,424 3% Net operating income 10,816 10,947 10,993 - Expenses (5,395) (5,549) (5,698) 3% Pre-provision profit 5,421 5,398 5,295 (2%) Impa
Slide 108: Appendix 2: 1H25 Notable Items
APPENDIX 2: 1H25 NOTABLE ITEMS1 APPENDIX Net profit 2H24 excluding Net profit Net profit Net profit Hedging hedging Other Notable excluding excluding % change ($m) after tax Notable Items Notable Items 2 Items 3 Notable Items Notable Items 4 1H25-2H24 Net interest income 9,351 (218) 9,569 - 9,569 9,
Slide 109: Appendix 3: Definitions – Credit Quality
APPENDIX 3: DEFINITIONS – CREDIT QUALITY APPENDIX Includes facilities less than 90 days past due and those credit exposures, that are in <90 days Includes exposures that have deteriorated to the point where full collection of interest default, but where it is expected that the full value of principa
Slide 110: Appendix 3: Definitions – Segments, Earnings Drivers, Capital and Liquidity
APPENDIX 3: DEFINITIONS – SEGMENTS, EARNINGS DRIVERS, CAPITAL AND LIQUIDITY APPENDIX SEGMENTS CAPITAL AND LIQUIDITY Consumer Consumer provides banking products and services, including mortgages, credit cards, Capital ratios As defined by APRA (unless stated otherwise) personal loans, and savings and
Slide 111: Appendix 3: Definitions – Other
APPENDIX 3: DEFINITIONS – OTHER APPENDIX Branch Mobile Wallet Branch transactions are typically withdrawals, deposits, transfers and payments Count of transactions that use a digital card via apple pay, fitbit pay, garmin pay, google pay transactions Payments and samsung pay products. Customer The C
Slide 112: Investor Relations Team – Contact Us
INVESTOR RELATIONS TEAM – CONTACT US CONTACT US Justin McCarthy Catherine Garcia General Manager, Investor Relations Head of Investor Relations, Institutional Jacqueline Boddy Lucy Wilson Head of Debt Investor Relations Head of Corporate Reporting and ESG James Wibberley Arthur Petratos Manager, Inv
Slide 113: Disclaimer
DISCLAIMER 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