WESTPAC
JUNE 2026
INCORPORATING THE REQUIREMENTS OF APS 330
WESTPACBANKING CORPORATION ABN 33 007 457 141
2 WESTPAC GROUP JUNE 2026 PILLAR 3 REPORT
Acknowledgement of Indigenous Peoples
Westpac acknowledges the First Peoples of Australia. We recognise their ongoing role as Traditional Owners of the land and waters of this country and pay our respects to Elders, past and present. We extend our respect to Westpac's Aboriginal and Torres Strait Islander employees, partners and stakeholders and to the Indigenous Peoples in the other locations where we operate.
In Aotearoa (New Zealand) we also acknowledge tāngata whenua and the unique relationship that Indigenous Peoples share with all New Zealanders under Te Tiriti o Waitangi.
Content
OVERVIEW 3
Introduction 4
Key Metrics 5
Group Structure 8
Capital Overview 10
RISK MANAGEMENT 15
Credit Risk Management 16
Leverage Ratio 17
Funding and Liquidity Risk Management 18
OTHER INFORMATION 19
Management's Declaration 20
Appendices 21
Glossary 22
Disclosure regarding Forward- 25
looking statements
In this report reFerences to 'Westpac', 'WBC', 'Westpac Group', 'the Group', 'we', 'us' and 'our' are to Westpac Banking Corporation ABN 33 007 457 141 and its subsidiaries unless it clearly means just Westpac Banking Corporation.
In this report, unless otherwise stated or the context otherwise requires, reFerences to 'dollars', 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars. ReFerences to 'US$', 'USD' or 'US dollars' are to United States dollars, reFerences to 'NZ$', 'NZD' or 'NZ dollars' are to New Zealand dollars, reFerences to 'EUR' are to European Euro, reFerences to 'SGD' are to Singapore dollars and reFerences to 'JPY' are Japanese Yen.
Any discrepancies between totals and sums oF components in tables contained in this report are due to rounding.
In this report, unless otherwise stated, disclosures reFlect the Australian Prudential Regulation Authority's (APRA) implementation oF Basel III.
InFormation contained in or accessible through the websites mentioned in this report does not Form part oF this report unless we speciFically state that it is incorporated by reFerence and Forms part oF this report. InFormation on those websites owned by Westpac is current as at the date oF this report. Except as required by law, we assume no obligation to revise or update those websites aFter the date oF this report. We are not in a position to veriFy inFormation on websites owned and/or operated by third parties.
Westpac Banking Corporation ABN 33 007 457 141
RISK MANAGEMENT
OTHER INFORMATION
3
OVERVIEW
INTRODUCTION KEY METRICS
KM1: Key metrics
GROUP STRUCTURE CAPITAL OVERVIEW
OV1: Overview oF Risk Weighted Assets (RWA) Summary oF Credit Risk
CMS1: Comparison oF modelled and standardised RWA at risk level
INTRODUCTIONWestpac Banking Corporation is an Authorised Deposit-taking Institution (ADI) subject to regulation by the Australian Prudential Regulation Authority (APRA). Westpac is primarily accredited to use the Advanced Internal Ratings-Based Approach (A-IRB) For credit risk, the Standardised Measurement Approach (SMA) For operational risk and is required to apply the Pillar 1 Basel capital Framework in our assessment oF traded market risk and interest rate risk in the banking book (IRRBB).
This report has been prepared in accordance with APS 330 Public Disclosure (APS 330) and Westpac's Board approved Prudential Disclosure Policy. This report provides prudential inFormation about our risk management practices and measures. Westpac is required to comply with the disclosure requirements issued by the Basel Committee on Banking Supervision (BCBS), subject to certain amendments by APRA. Disclosure requirements vary For quarterly, semi-annual and annual Pillar 3 reports.
In addition to this report, the regulatory disclosures section oF Westpac's website1 contains the reporting requirements For capital instruments under paragraph 37 oF APS 330 and CCA: Main Features oF regulatory capital instruments.
Capital instruments disclosures are updated when:
A new capital instrument is issued that will Form part oF regulatory capital; or
A capital instrument is redeemed, converted into Common equity tier 1 (CET1) capital, written oFF, or its terms and conditions are changed.
1. http://www.westpac.com.au/about-westpac/investor-centre/Financial-inFormation/regulatory-disclosures/
KEY METRICS KM1: Key metrics1This table shows Westpac's main regulatory ratios over the last Five quarters.
Çm 30 June 2026 31 March 2026 31 December 2025 30 September 2025 30 June 2025
Available capital (amounts) | ||||||
1 | Common Equity Tier 1 (CET1) | 56,017 | 56,936 | 55,693 | 56,380 | 54,576 |
2 | Tier 1 | 64,535 | 65,458 | 64,256 | 64,978 | 64,886 |
3 | Total capital | 96,447 | 98,543 | 97,582 | 97,491 | 97,410 |
Risk-weighted assets (amounts) | ||||||
4 | Total risk-weighted assets (RWA) | 464,511 | 458,343 | 452,372 | 450,048 | 444,768 |
4a | Total risk-weighted assets (pre-Floor) | 460,250 | 458,343 | 450,853 | 450,048 | 444,768 |
Risk-based capital ratios as a percentage of RWA | ||||||
5 | CET1 ratio (%) | 12.06% | 12.42% | 12.31% | 12.53% | 12.27% |
5b | CET1 ratio (%) (pre-Floor ratio) | 12.17% | 12.42% | 12.35% | 12.53% | 12.27% |
6 | Tier 1 ratio (%) | 13.89% | 14.28% | 14.20% | 14.44% | 14.59% |
6b | Tier 1 ratio (%) (pre-Floor ratio) | 14.02% | 14.28% | 14.25% | 14.44% | 14.59% |
7 | Total capital ratio (%) | 20.76% | 21.50% | 21.57% | 21.66% | 21.90% |
7b | Total capital ratio (%) (pre-Floor ratio) | 20.96% | 21.50% | 21.64% | 21.66% | 21.90% |
Additional CET1 buffer requirements as a percentage of RWA | ||||||
8 | Capital conservation buFFer requirement (%) | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
9 | Countercyclical buFFer requirement (%) | 0.85% | 0.84% | 0.84% | 0.84% | 0.84% |
10 | Bank G-SIB and/or D-SIB additional requirements (%) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
11 | Total oF bank CET1 speciFic buFFer | 5.60% | 5.59% | 5.59% | 5.59% | 5.59% |
requirements (%) | ||||||
(row 8 + row 9 + row 10) | ||||||
12 | CET1 available aFter meeting the bank's minimum capital requirements (%) | 7.56% | 7.92% | 7.81% | 8.03% | 7.77% |
Basel III Leverage ratio | ||||||
13 | Total Basel III leverage ratio exposure measure | 1,329,875 | 1,314,189 | 1,286,113 | 1,282,207 | 1,263,823 |
14 | Basel III leverage ratio (%) (including | 4.85% | 4.98% | 5.00% | 5.07% | 5.13% |
the impact oF any applicable temporary | ||||||
exemption oF central bank reserves) | ||||||
Liquidity Coverage Ratio (LCR)a | ||||||
15 | Total high-quality liquid assets (HQLA) | 183,484 | 183,143 | 181,495 | 189,346 | 179,984 |
16 | Total net cash outFlow | 137,401 | 138,483 | 136,802 | 137,975 | 134,500 |
17 | LCR ratio (%) | 134% | 132% | 133% | 137% | 134% |
Net Stable Funding Ratio (NSFR) | ||||||
18 | Total available stable Funding | 820,487 | 802,951 | 793,215 | 780,361 | 775,219 |
19 | Total required stable Funding | 738,035 | 714,991 | 708,148 | 687,987 | 681,331 |
20 | NSFR ratio (%) | 111% | 112% | 112% | 113% | 114% |
a. LCR disclosures are based on quarterly averages.
Level 1 Capital Adequacy Ratios
30 June 2026 31 March 2026 31 December 2025 30 September 2025 30 June 2025
CET1 ratio (%) | 12.34% | 12.75% | 12.52% | 12.74% | 12.34% |
CET1 ratio (%) (pre-Floor ratio) | 12.40% | 12.75% | 12.52% | 12.74% | 12.34% |
Tier 1 ratio (%) | 14.34% | 14.77% | 14.60% | 14.83% | 14.89% |
Tier 1 ratio (%) (pre-Floor ratio) | 14.41% | 14.77% | 14.60% | 14.83% | 14.89% |
Total capital ratio (%) | 21.93% | 22.71% | 22.71% | 22.77% | 23.01% |
Total capital ratio (%) (pre-Floor ratio) | 22.03% | 22.71% | 22.71% | 22.77% | 23.01% |
1. The KM1 key metrics reFlects the application oF expected credit loss accounting under AASB 9 Financial Instruments.
KEY METRICSLevel 2 CET1 capital ratio movement Third Quarter 2026 - Second Quarter 2026
38bps (57bps)
12.42%
(18bps)
1bp
12.06%
Mar-26 Net profit Dividends RWA movement Capital
deductions and other items
Jun-26
The Level 2 CET1 capital ratio declined by 36 basis points to 12.1%. Key movements included:
Third quarter 2026 net proFit added 38 basis points;
Payment oF the 2026 interim ordinary dividend detracted 57 basis points;
RWA growth detracted 18 basis points mainly From higher credit RWA and the capital Floor RWA adjustment partly oFFset by lower IRRBB RWA; and
Capital deductions and other items added 1 basis point mainly due to lower capitalised soFtware balances and other reserve movements.
Tier 2 capital Third Quarter 2026 - Second Quarter 2026
The Group issued 30.7 billion and redeemed 32.0 billion oF Tier 2 capital instruments. The net impact oF these transactions was a decrease in the total capital ratio oF approximately 22 basis points.
Risk Weighted Assets (RWA)
Çm 30 June 2026 31 March 2026 % Mov't
Credit riska
363,497
357,050
2
Market risk
10,780
10,504
3
Interest rate risk in the banking book
42,310
47,088
(10)
Operational risk
43,663
43,701
-
Total risk weighted assets (pre-floor)
460,250
458,343
-
Floor adjustment
4,261
-
-
Total
464,511
458,343
1
a. Includes counterparty credit risk, credit valuation adjustment, securitisation exposures in the banking book and settlement risk.
Total RWA increased by 1% to 3464.5 billion over the quarter with higher credit RWA partly oFFset by lower non-credit RWA.
Credit RWA increased by 36.4 billion. Key movements included:
A 34.7 billion increase From higher lending primarily in Corporate, Large Corporate and Specialised Lending;
A 31.6 billion increase mainly From higher delinquencies in Residential Mortgages and modest rating migrations in the Corporate portFolio;
A 31.5 billion increase From credit valuation adjustment and counterparty credit risk due to increases in the mark-to-market value oF derivatives From changes in underlying Foreign currency rates;
A 30.7 billion decrease From Foreign currency translation impacts, predominantly the appreciation oF the AUD against the NZD; and
A 30.6 billion decrease From data reFinements.
Non-credit RWA decreased by 34.5 billion. Key movements included:
IRRBB RWA: A 34.8 billion decrease due to a reduction in the embedded loss component From lower long-term interest rates over the quarter and a net decrease in repricing and yield curve risk in line with underlying banking book positions; and
Market RWA: A 30.3 billion increase driven by changes in interest rate risk positioning.
The capital Floor RWA adjustment as at 30 June 2026 was 34.3 billion mainly From lower IRRBB RWA.
Leverage ratio Third Quarter 2026 - Second Quarter 2026
The leverage ratio represents the percentage oF Tier 1 capital relative to the Exposure Measure1. The leverage ratio was 4.9% at 30 June 2026, down 13 basis points over the quarter and well above APRA's regulatory minimum requirement oF 3.5%. The decrease in the leverage ratio was due to higher total exposures mostly From higher lending and lower Tier 1 capital Following the payment oF the 2026 interim ordinary dividend.
Liquidity Coverage Ratio (LCR)
Westpac's average LCR For the quarter ended 30 June 2026 was 134% (31 March 2026: 132%), well above the regulatory minimum oF 100%. The increase in the ratio was due to lower average net cash outFlows.
Net Stable Funding Ratio (NSFR)
Westpac NSFR For the quarter ended 30 June 2026 was 111% (31 March 2026: 112%) and continues to be above the regulatory minimum oF 100%. The decrease For the quarter reFlects an increase in available stable Funding, driven by growth in customer deposits and an increase in wholesale Funding, more than oFFset by growth in customer lending.
Regulatory Developments
APRA has announced a number oF changes to banks' capital and liquidity requirements. In addition, the RBNZ has announced its decisions relating to its review oF key capital settings For deposit takers. Further details on these announcements are set out in the Capital Overview section.
1. As deFined under Attachment D oF APS 110: Capital Adequacy.
GROUP STRUCTUREAPRA applies a tiered approach to measuring Westpac's capital adequacy1 by assessing Financial strength at three levels:
Level 1, comprising Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as being part oF a single 'Extended Licensed Entity' (ELE) For the purposes oF measuring capital adequacy;
Level 2, the consolidation oF Westpac Banking Corporation and all its subsidiary entities except those entities speciFically excluded by APRA regulations. The head oF the Level 2 group is Westpac Banking Corporation; and
Level 3, the consolidation oF Westpac Banking Corporation and all its subsidiary entities.
Unless otherwise speciFied, all quantitative disclosures in this report reFer to the prudential assessment oF Westpac's Financial strength on a Level 2 basis2.
The Westpac Group
The Following diagram shows the Level 3 conglomerate group and illustrates the diFFerent tiers oF regulatory consolidation.
Level 1
Westpac Banking
Corporation
Offshore Branches and
Extended Licensed Entities
Level 2
Westpac New Zealand Limited
Other Banking & Financial Entities
Level 3
Funds Management, Non- Financial Operations, Special
Purpose Entities and Insurance
Accounting consolidation3
The consolidated Financial statements incorporate the assets and liabilities oF all entities including structured entities controlled by Westpac. Westpac and its subsidiaries are reFerred to collectively as the 'Group'. The eFFects oF all transactions between entities in the Group are eliminated on consolidation. Control exists when the parent entity
is exposed to, or has rights to, variable returns From its involvement with an entity, and has the ability to aFFect those returns through its power over that entity. Subsidiaries are Fully consolidated From the date on which control commences and they are no longer consolidated From the date that control ceases.
Group entities excluded from the regulatory consolidation at Level 2
Regulatory consolidation at Level 2 covers the global operations oF Westpac and its subsidiary entities, including other controlled banking, securities and Financial entities, except For those entities involved in the Following business activities:
Acting as manager, responsible entity, approved trustee, trustee or similar role in relation to Funds management;
Non-Financial (commercial) operations;
Special purpose entities to which assets have been transFerred in accordance with the requirements oF
APS 120 Securitisation; or
Insurance.
Retained earnings and equity investments in subsidiary entities excluded From the consolidation at Level 2 are deducted From capital, with the exception oF securitisation special purpose entities.
APS 110 Capital Adequacy outlines the overall Framework adopted by APRA For the purpose oF assessing the capital adequacy oF an ADI.
Impaired assets and provisions held in Level 3 entities are excluded From the tables in this report.
ReFer to Note 29 and Consolidated Entity Disclosure Statement oF Westpac's 2025 Annual Report For Further details.
Subsidiary banking entities
Westpac New Zealand Limited (WNZL), a wholly owned subsidiary entity, is a registered bank incorporated in New Zealand and regulated by, among others, the Reserve Bank oF New Zealand (RBNZ) For prudential purposes. WNZL uses both A-IRB and Standardised methodologies For credit risk and the SMA For operational risk. Other subsidiary banking entities in the Group include Westpac Bank PNG Limited and Westpac Europe GMBH. For the purposes oF determining Westpac's capital adequacy, subsidiary banking entities are consolidated at Level 2.
Customer operations
Westpac is one oF Australia's leading providers oF banking and certain Financial services, operating under multiple brands in Australia and in New Zealand, with a small presence in Europe, North America, Asia and the PaciFic. Westpac provides banking products and services through its digital and online channels, supported by a branch and ATM network, contact centres and relationship and product managers.
Restrictions and major impediments on the transfer of funds or regulatory capital within the Group
Certain subsidiary banking and trustee entities are subject to speciFic and local prudential regulation in their own right, including local capital adequacy requirements. Westpac seeks to ensure that its subsidiary entities are adequately capitalised and adhere to regulatory requirements at all times. Dividends and capital are repatriated in line with the Group's policy subject to subsidiary Board approval and local regulations.
Intra-group exposure limits
Exposures to related entities are managed within the prudential limits prescribed by APRA in APS 222 Associations with Related Entities1. Westpac has an internal limit structure and approval process governing credit exposures to related entities. This limit structure and approval process, combined with APRA's prudential limits, is designed to reduce the potential For unacceptable contagion risk.
Updates to large and related entity exposure limit calculations resulting From the changes to banks' capital requirements are outlined in the Capital Overview section. These changes are eFFective From 1 January 2027.
1. For the purposes oF APS 222, subsidiaries controlled by Westpac, other than subsidiaries that Form part oF the ELE, represent 'related entities'. Prudential and internal limits apply to intra-group exposures between the ELE and related entities, both on an individual and aggregate basis.
CAPITAL OVERVIEW Capital management strategyWestpac's capital management strategy is reviewed on an ongoing basis, including through an annual Internal Capital Adequacy Assessment Process (ICAAP). Key considerations include:
Regulatory capital minimums together with the capital conservation buFFer and countercyclical capital buFFer comprise the total CET1 requirement. The total CET1 requirement is currently at least 10.25% and 10.50% eFFective 1 January 20271;
Strategy, business mix and operations and contingency plans;
Perspectives oF external stakeholders including rating agencies as well as equity and debt investors; and
A stress testing Framework that tests our resilience under a range oF adverse economic scenarios.
The Board has determined a target post dividend CET1 capital ratio oF above 11.25% in normal operating conditions.
Regulatory developmentsAPRA's phase out of AT1 capital as eligible bank capital
On 4 December 2025, APRA published the Final changes to the relevant prudential and reporting standards resulting From the phase out oF AT1 with an eFFective date oF 1 January 2027. Under the revisions, large internationally active banks such as Westpac will replace 1.5% oF AT1 capital with 1.25% oF Tier 2 capital and 0.25% oF CET1 capital. The total CET1 requirement, including regulatory buFFers, will increase From 10.25% to 10.50%. There is no overall increase in total capital requirements For banks.
On implementation oF these revised prudential and reporting standards, existing AT1 capital instruments would be included in the calculation oF the amount oF total capital, until their First scheduled call date. Existing Westpac AT1 capital instruments would reach their First scheduled optional redemption dates by 2031 at the latest.
In addition, eFFective 1 January 2027 the minimum leverage ratio requirement will be 3.25% based on CET1 capital replacing the current requirement oF 3.50% based on Tier 1 capital. APS 221 Large Exposures and APS 222 Associations with Related Entities exposure limits remain unchanged, however these will be based on CET1 capital rather than Tier 1 capital.
APRA consultation on enhancements to bank capital and liquidity frameworks
On 16 March 2026, APRA announced that it will consult on a package oF reForms to bank capital and liquidity settings. The consultation will be run in three workstreams including the Following:
Targeted amendments to the standardised capital Framework to increase risk sensitivity and better align capital requirements with underlying risk;
Changes to the liquidity Framework including consideration oF a new Pillar 2 liquidity Framework to address risks not covered by existing Liquidity Coverage Ratio minimum requirements;
Implementation oF a simpliFied version oF the Basel Committee's Fundamental Review oF the Trading Book standard.
On 29 June 2026, APRA commenced consultation on reForms to credit risk capital requirements. The consultation includes proposed changes to lower standardised risk weights For large domestic public inFrastructure exposures, high-quality unrated corporate exposures and certain residential land acquisition, development and construction exposures.
APRA intends to Finalise the credit risk capital changes in the second halF oF the 2026 calendar year, with a proposed eFFective date oF 1 April 2027. Consultation on the liquidity and market risk workstreams are expected to commence over the next 12 months.
RBNZ capital review
On 17 December 2025, the RBNZ announced its decisions relating to its review oF key capital settings For deposit takers (2025 Capital Review). Once implemented, the updated settings For Group 1 deposit takers2 (including WNZL) will:
Remove AT1 From the capital stack and phase out the recognition oF existing AT1 instruments;
Require the deposit taker to have a Tier 1 capital ratio oF 12% (including a 6% prudential capital buFFer (PCB) ratio);
Require the deposit taker to have a total capital ratio oF 15% (including the 6% PCB ratio). Up to 3% oF the total capital ratio requirement can consist oF subordinated debt eligible as Tier 2 capital to be issued to the Australian parent bank;
Require the deposit taker to have an additional 6% oF RWAs oF Loss Absorbing Capacity (LAC) instruments to be issued to the Australian parent bank, bringing the total requirement including LAC to 21%;
Noting that APRA may apply higher CET1 requirements For an individual ADI.
New Zealand deposit takers with total assets oF NZ3100 billion or more.
Introduce more granular and lower standardised risk weights For certain asset classes.
On 18 June 2026, the RBNZ published consultations on an exposure draFt oF the Capital Standard under the Deposit Takers Act 2023 (DT Act) and policy proposals For the Crisis Preparedness Standard under the DT Act, including the new Tier 2 and LAC instrument design and Further inFormation on indicative implementation timelines. The new Tier 2 and LAC instruments will include write-oFF provisions. The RBNZ has indicated it intends to consult Further on the design and implementation timelines during 2027. The Capital Standard is expected to take eFFect on 1 December 2028, with phased implementation.
On 28 July 2026, the RBNZ announced its decisions on changes to the Banking Prudential Requirements (BPRs), to implement some oF the decisions From the 2025 Review oF Key Capital Settings, and to come into eFFect From 1 October 2026. For domestic systemically important banks (including WNZL) these decisions include, as an interim measure, permitting the issuance oF Tier 2 instruments aFter 1 October 2026 and beFore 1 December 2028, with a shorter maturity date or earlier redemption date than would otherwise be permitted under the current settings. Additionally, the amortisation table For Tier 2 instruments does not apply to short-dated Tier 2 instruments.
CAPITAL OVERVIEW OV1: Overview of Risk Weighted Assets (RWA)This table presents an overview oF Westpac's RWA and minimum capital requirements by risk type and approach.
RWA
Minimum capital requirements
Çm 30 June 2026 31 March 2026 31 December 2025 30 June 2026
1 | Credit risk (excluding counterparty credit risk) | 341,625 | 336,739 | 337,841 | 27,329 |
2 | OF which: standardised approach (SA) | 21,003 | 22,533 | 23,398 | 1,680 |
3 | OF which: Foundation internal ratings-based (F-IRB) approach | 34,565 | 33,191 | 32,220 | 2,765 |
4 | OF which: supervisory slotting approach | 13,528 | 12,620 | 12,832 | 1,082 |
5 | OF which: advanced internal ratings-based (A-IRB) approach | 272,529 | 268,395 | 269,391 | 21,802 |
6 | Counterparty credit risk (CCR) | 9,771 | 8,856 | 8,651 | 782 |
7 | OF which: standardised approach For counterparty credit risk | 8,635 | 7,822 | 7,744 | 691 |
9 | OF which: other CCR | 1,136 | 1,034 | 907 | 91 |
10 | Credit valuation adjustment (CVA) | 3,260 | 2,645 | 2,257 | 261 |
15 | Settlement risk | 40 | 13 | 20 | 3 |
16 | Securitisation exposures in banking book | 8,801 | 8,797 | 8,967 | 704 |
18 | OF which: securitisation external ratings-based approach (SEC-ERBA) | 3,831 | 4,107 | 3,968 | 306 |
19 | OF which: securitisation standardised approach (SEC-SA) | 4,970 | 4,690 | 4,999 | 398 |
20 | Market risk | 10,780 | 10,504 | 10,728 | 862 |
21 | OF which: standardised approach (SA) | 1,435 | 1,668 | 1,295 | 115 |
22 | OF which: internal model approach (IMA) | 9,345 | 8,836 | 9,433 | 747 |
AU20aa | Interest rate risk in the banking book | 42,310 | 47,088 | 38,663 | 3,385 |
24 | Operational risk | 43,663 | 43,701 | 43,726 | 3,493 |
25 | Amounts below the thresholds for deduction (subject to 250% risk weight) | - | - | - | - |
26 | Output Floor applied | 72.5% | 72.5% | 72.5% | |
27 | Floor adjustment (beFore application oF transitional cap) | - | - | - | |
28 | Floor adjustment (after application of transitional cap) | 4,261 | - | 1,519 | 342 |
29 | Total (1 + 6 + 10 + 15 + 16 + 20 + AU20a + 24 + 25 + 28) | 464,511 | 458,343 | 452,372 | 37,161 |
a. Line items with designations oF AU are APRA's speciFic amendments.
Summary of Credit RiskThe Following table provides a summary oF credit risk and counterparty risks by asset classes to assist users oF the report as the inFormation is disaggregated across a number oF tables under current BCBS disclosure requirements.
EAD post CRM and post CCF RWA Non-performing
ECL
Çm | Credit risk | Counterparty credit risk | Total | Credit risk | Counterparty credit risk | Total | Exposures | Accounting provisions |
As at 30 June 2026 | ||||||||
Subject to A-IRB approach | ||||||||
Corporate | 190,730 | 5,243 | 195,973 | 97,464 | 1,711 | 99,175 | 2,450 | 691 |
Residential Mortgages | 596,547 | - | 596,547 | 117,530 | - | 117,530 | 4,838 | 447 |
SME Retail | 26,538 | - | 26,538 | 15,932 | - | 15,932 | 1,054 | 250 |
QualiFying Revolving Retail | 13,921 | - | 13,921 | 3,635 | - | 3,635 | 94 | 36 |
Other Retail | 1,800 | - | 1,800 | 2,285 | - | 2,285 | 52 | 25 |
Subject to F-IRB approach | ||||||||
Large Corporate | 46,493 | 3,362 | 49,855 | 22,976 | 1,200 | 24,176 | 119 | 71 |
Sovereign | 152,538 | 3,889 | 156,427 | 1,845 | 203 | 2,048 | - | - |
Financial Institutions | 25,754 | 23,991 | 49,745 | 9,744 | 6,192 | 15,936 | 44 | 9 |
Total IRB approach | 1,054,321 | 36,485 | 1,090,806 | 271,411 | 9,306 | 280,717 | 8,651 | 1,529 |
Subject to Standardised approach | ||||||||
Corporate | 1,402 | 5,237 | 6,639 | 1,392 | 193 | 1,585 | 28 | 9 |
Residential Property | 11,351 | - | 11,351 | 11,269 | - | 11,269 | 323 | 52 |
Other | 3,374 | - | 3,374 | 1,998 | - | 1,998 | 30 | 15 |
Other assets | 7,352 | - | 7,352 | 4,139 | - | 4,139 | - | - |
Total Standardised approach | 23,479 | 5,237 | 28,716 | 18,798 | 193 | 18,991 | 381 | 76 |
Specialised Lending | 8,327 | 372 | 8,699 | 6,199 | 272 | 6,471 | 59 | 44 |
RBNZ Regulated Entities | 122,755 | - | 122,755 | 45,217 | - | 45,217 | 888 | 138 |
Securitisation | 47,590 | 8,801 | ||||||
Settlement risk | 18 | 40 | ||||||
Credit valuation adjustment | 3,260 | |||||||
Total credit risk | 1,208,882 | 42,094 | 1,298,584 | 341,625 | 9,771 | 363,497 | 9,979 | 1,787 |
As at 31 March 2026 | ||||||||
Subject to A-IRB approach | ||||||||
Corporate | 184,930 | 4,394 | 189,324 | 93,537 | 1,549 | 95,086 | 2,451 | 667 |
Residential Mortgages | 589,187 | - | 589,187 | 117,059 | - | 117,059 | 4,603 | 433 |
SME Retail | 26,354 | - | 26,354 | 15,966 | - | 15,966 | 1,073 | 208 |
QualiFying Revolving Retail | 14,013 | - | 14,013 | 3,711 | - | 3,711 | 97 | 37 |
Other Retail | 1,831 | - | 1,831 | 2,331 | - | 2,331 | 65 | 39 |
Subject to F-IRB approach | ||||||||
Large Corporate | 43,822 | 3,176 | 46,998 | 21,491 | 1,218 | 22,709 | 139 | 83 |
Sovereign | 155,545 | 3,480 | 159,025 | 1,868 | 174 | 2,042 | - | - |
Financial Institutions | 26,538 | 22,550 | 49,088 | 9,832 | 5,464 | 15,296 | 48 | 10 |
Total IRB approach | 1,042,220 | 33,600 | 1,075,820 | 265,795 | 8,405 | 274,200 | 8,476 | 1,477 |
Subject to Standardised approach | ||||||||
Corporate | 1,426 | 5,188 | 6,614 | 1,416 | 211 | 1,627 | 33 | 17 |
Residential Property | 11,537 | - | 11,537 | 11,456 | - | 11,456 | 330 | 53 |
Other | 3,278 | - | 3,278 | 1,871 | - | 1,871 | 21 | 8 |
Other assets | 8,761 | - | 8,761 | 5,443 | - | 5,443 | - | - |
Total Standardised approach | 25,002 | 5,188 | 30,190 | 20,186 | 211 | 20,397 | 384 | 78 |
Specialised Lending | 6,924 | 307 | 7,231 | 5,216 | 240 | 5,456 | 57 | 44 |
RBNZ Regulated Entities | 124,192 | - | 124,192 | 45,542 | - | 45,542 | 871 | 133 |
Securitisation | 47,428 | 8,797 | ||||||
Settlement risk | 4 | 13 | ||||||
Credit valuation adjustment | 2,645 | |||||||
Total credit risk | 1,198,338 | 39,095 | 1,284,865 | 336,739 | 8,856 | 357,050 | 9,788 | 1,732 |
This table provides a summary oF Westpac's risk weighted assets by risk type and measurement approach, and compares it to the output Floor calculated under the standardised approach.
a b c d RWA
RWA for modelled approaches that
banks have supervisory approval
Çm to use
RWA for portfolios where standardised approaches are used
Total Actual RWA (a + b)
(ie RWA which banks report as current requirements)
RWA calculated using full standardised approach (ie used in the base of the output floor)
As at 30 June 2026
| 320,622 9,577 | 21,003 194 | 341,625 9,771 | 549,523 24,638 | |
3,260 | 3,260 | 3,260 | |||
-9,345 42,310 | 8,801 1,435 - | 8,801 10,780 42,310 | 8,801 10,780 - | ||
43,663 40 | 43,663 40 | 43,663 40 | |||
8 | Total | 381,854 | 78,396 | 460,250 | 640,705 |
Output Floor at 72.5% oF RWA calculated using Full standardised approach RWA prior to application oF Floor | 464,511 460,250 |
Floor adjustment | 4,261 |
As at 31 March 2026
1 | Credit risk (excluding counterparty credit risk) | 314,206 | 22,533 | 336,739 | 541,800 |
2 | Counterparty credit risk | 8,645 | 211 | 8,856 | 22,233 |
3 | Credit valuation adjustment | 2,645 | 2,645 | 2,645 | |
4 | Securitisation exposures in the banking book | - | 8,797 | 8,797 | 8,797 |
5 | Market risk | 8,836 | 1,668 | 10,504 | 10,504 |
AU5aa | Interest rate risk in the banking book | 47,088 | - | 47,088 | - |
6 | Operational risk | 43,701 | 43,701 | 43,701 | |
7 | Residual RWA | 13 | 13 | 13 | |
8 | Total | 378,775 | 79,568 | 458,343 | 629,693 |
Output Floor at 72.5% oF RWA calculated using Full standardised approach 456,527
RWA prior to application oF Floor 458,343
Floor adjustment -
a. Line items with designations oF AU are APRA's speciFic amendments.
OVERVIEW
OTHER INFORMATION
15
RISK MANAGEMENT
CREDIT RISK MANAGEMENT
CR8: RWA Flow statements oF credit risk exposures under IRB
LEVERAGE RATIO
LR2: Leverage ratio common disclosure template
FUNDING AND LIQUIDITY RISK MANAGEMENT
LIQ1: Liquidity Coverage Ratio
CREDIT RISK MANAGEMENT CR8: RWA flow statements of credit risk exposures under IRBThe Following table provides details on the drivers oF changes in credit RWA measured under the IRB approach.
Quarter ended
Çm 30 June 2026 31 March 2026
1 | RWA as at end of previous reporting period | 314,206 | 314,443 |
2 | Asset size | 6,102 | 5,212 |
3 | Asset quality | 1,564 | (2,678) |
4 | Model updates | - | 500 |
5 | Methodology and policy | - | - |
6 | Acquisitions and disposals | - | - |
7 | Foreign exchange movements | (634) | (1,779) |
8 | Other | (616) | (1,492) |
9 | RWA as at end of reporting period | 320,622 | 314,206 |
OTHER INFORMATION
17
OVERVIEW
RISK MANAGEMENT
The table below provides a detailed breakdown oF the components oF the leverage ratio denominator, as well as inFormation on the leverage ratio, minimum requirements and buFFers.
Çm 30 June 2026 31 March 2026 31 December 2025
On-balance sheet exposures | 1,161,312 5,062 (4,873) - -(15,343) | 1,149,802 4,618 (3,916) - -(15,373) | 1,125,672 4,315 (4,798) - -(15,334) | |
1 | On-balance sheet exposures (excluding derivatives and securities Financing | |||
transactions (SFTs), but including collateral) | ||||
2 | Gross-up For derivatives collateral provided where deducted From balance sheet | |||
assets pursuant to the operative accounting Framework | ||||
3 | (Deductions oF receivable assets For cash variation margin provided in | |||
derivatives transactions) | ||||
4 | (Adjustment For securities received under securities Financing transactions that | |||
are recognised as an asset) | ||||
5 | (SpeciFic and general provisions associated with on-balance sheet exposures | |||
that are deducted From Tier 1 capital) | ||||
6 | (Asset amounts deducted in determining Tier 1 capital and | |||
regulatory adjustments) | ||||
7 | Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of rows 1 to 6) | 1,146,158 | 1,135,131 | 1,109,855 |
Derivative exposures | ||||
8 | Replacement cost associated with all derivatives transactions (where applicable | 11,270 | 9,782 | 6,443 |
net oF eligible cash variation margin, with bilateral netting and/or the speciFic | ||||
treatment For client cleared derivatives) | ||||
9 | Add-on amounts For potential Future exposure associated with all derivatives transactions | 27,220 | 28,262 | 28,448 |
10 | (Exempted central counterparty (CCP) leg oF client-cleared trade exposures) | - | - | - |
11 | Adjusted eFFective notional amount oF written credit derivatives | 9,743 | 1,658 | 2,354 |
12 | (Adjusted eFFective notional oFFsets and add-on deductions For written credit derivatives) | (9,743) | (1,614) | (2,354) |
13 | Total derivative exposures (sum of rows 8 to 12) | 38,490 | 38,088 | 34,891 |
Securities financing transaction exposures | ||||
14 | Gross SFT assets (with no recognition oF netting), aFter adjustment For sale accounting transactions | 29,546 | 24,845 | 26,308 |
15 | (Netted amounts oF cash payables and cash receivables oF gross SFT assets) | (3,103) | (2,857) | (2,127) |
16 | Counterparty credit risk exposure For SFT assets | 3,122 | 2,738 | 2,748 |
17 | Agent transaction exposures | - | - | - |
18 | Total securities financing transaction exposures (sum of rows 14 to 17) | 29,565 | 24,726 | 26,929 |
Other off-balance sheet exposures | ||||
19 | OFF-balance sheet exposure at gross notional amount | 231,919 | 232,480 | 230,692 |
20 | (Adjustments For conversion to credit equivalent amounts) | (116,257) | (116,236) | (116,254) |
21 | (SpeciFic and general provisions associated with oFF-balance sheet exposures deducted in determining Tier 1 capital) | - | - | - |
22 | Off-balance sheet items (sum of rows 19 to 21) | 115,662 | 116,244 | 114,438 |
Capital and total exposures | ||||
23 | Tier 1 capital | 64,535 | 65,458 | 64,256 |
24 | Total exposures (sum of rows 7, 13, 18 and 22) | 1,329,875 | 1,314,189 | 1,286,113 |
Leverage ratio | ||||
25 | Leverage ratio (including the impact oF any applicable temporary exemption oF central bank reserves) | 4.85% | 4.98% | 5.00% |
25a | Leverage ratio (excluding the impact oF any applicable temporary exemption oF central bank reserves) | 4.85% | 4.98% | 5.00% |
26 | National minimum leverage ratio requirement | 3.50% | 3.50% | 3.50% |
27 | Applicable leverage buFFers | - | - | - |
Disclosure of mean values | ||||
28 | Mean value oF gross SFT assets, aFter adjustment For sale accounting | 26,443 | 21,988 | 24,181 |
transactions and netted oF amounts oF associated cash payables and | ||||
cash receivables | ||||
29 | Quarter-end value oF gross SFT assets, aFter adjustment For sale accounting | 33,474 | 23,474 | 21,587 |
transactions and netted oF amounts oF associated cash payables and | ||||
cash receivables | ||||
30 | Total exposures (including the impact oF any applicable temporary exemption | 1,329,875 | 1,314,189 | 1,286,113 |
oF central bank reserves) incorporating mean values From row 28 oF gross SFT | ||||
assets (aFter adjustment For sale accounting transactions and netted oF amounts | ||||
oF associated cash payables and cash receivables) | ||||
30a | Total exposures (excluding the impact oF any applicable temporary exemption | 1,329,875 | 1,314,189 | 1,286,113 |
oF central bank reserves) incorporating mean values From row 28 oF gross SFT | ||||
assets (aFter adjustment For sale accounting transactions and netted oF amounts | ||||
oF associated cash payables and cash receivables) | ||||
31 | Basel III leverage ratio (including the impact oF any applicable temporary | 4.85% | 4.98% | 5.00% |
exemption oF central bank reserves) incorporating mean values From row 28 oF | ||||
gross SFT assets (aFter adjustment For sale accounting transactions and netted | ||||
oF amounts oF associated cash payables and cash receivables) | ||||
31a | Basel III leverage ratio (excluding the impact oF any applicable temporary | 4.85% | 4.98% | 5.00% |
exemption oF central bank reserves) incorporating mean values From row 28 oF | ||||
gross SFT assets (aFter adjustment For sale accounting transactions and netted | ||||
oF amounts oF associated cash payables and cash receivables) | ||||
The Liquidity Coverage Ratio (LCR) measures a bank's ability to meet its liquidity needs under an acute liquidity stress scenario (prescribed by APRA), measured over a 30-day time Frame. LCR is calculated as high-quality liquid assets (HQLA) as a percentage oF net cash outFlows (NCO). The minimum regulatory requirement is 100%.
Average LCR is calculated as a simple average oF the daily observations over the quarter. The number oF data points used is reported in the table.
Westpac's average LCR For the quarter was 134% (31 March 2026: 132%).
The increase in average LCR For the quarter ended 30 June 2026 reFlects lower average NCOs oF 31.1 billion, mainly due to reduction in wholesale Funding maturities compared to the prior quarter. Average liquid assets were higher driven by higher average short-term Funding balance, oFFset by wider average Funding gap and higher average collateral outFlows over the quarter.
HQLA averaged 3178.6 billion (31 March 2026: 3178.0 billion), increase oF 30.6 billion or 0.3% over the quarter, comprising oF cash and balances with central banks, Australian government and semi-government bonds. Westpac also holds other liquid assets, mainly qualiFying RBNZ securities.
Funding is sourced From retail, small business, corporate and institutional customer deposits and wholesale Funding. Westpac seeks to minimise the outFlows associated with this Funding by targeting customer deposits with lower LCR outFlow rates and actively manages the maturity proFile oF its wholesale Funding portFolio.
30 June 2026 31 March 2026
Total unweighted
Çm value (average)
Total weighted value (average)
Total unweighted value (average)
Total weighted value (average)
Liquid assets, of which: | |||||
| 178,560 | 177,953 | |||
- | - | ||||
4,924 | 5,190 | ||||
410,164 | 34,388 | 404,399 | 33,799 | ||
214,310 | 10,716 | 209,225 | 10,461 | ||
195,854 | 23,672 | 195,174 | 23,338 | ||
176,741 | 76,023 | 177,808 | 77,392 | ||
78,584 | 19,563 | 80,520 | 20,051 | ||
87,897 | 46,200 | 86,956 | 47,009 | ||
10,260 | 10,260 | 10,332 | 10,332 | ||
1,326 | 532 | ||||
203,412 | 33,053 | 207,776 | 37,935 | ||
14,961 | 14,125 | 18,536 | 17,781 | ||
229 | 229 | 1,453 | 1,453 | ||
188,222 | 18,699 | 187,787 | 18,701 | ||
11,185 | 7,808 | 10,017 | 7,016 | ||
75,536 | 6,016 | 69,507 | 5,415 | ||
16 | Total Cash Outflows | 158,614 | 162,089 | ||
Cash inflows | |||||
17 Secured lending (e.g. reverse repos) | 20,976 | 83 | 18,004 | - | |
18 InFlows From Fully perForming exposures | 11,255 | 6,013 | 8,840 | 4,614 | |
19 Other cash inFlows | 15,117 | 15,117 | 18,992 | 18,992 | |
20 | Total Cash Inflows | 47,348 | 21,213 | 45,836 | 23,606 |
Total adjusted value
Total adjusted value
21 | Total HQLA | 183,484 | 183,143 | ||
22 | Total net cash outflows | 137,401 | 138,483 | ||
23 | Liquidity Coverage Ratio (%) | 134% | 132% | ||
Number of data points used | 62 | 64 | |||
OTHER INFORMATION
19
RISK MANAGEMENT
OVERVIEW
MANAGEMENT'S DECLARATION APPENDICES
Appendix I - Regulatory capital instruments
GLOSSARY
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
MANAGEMENT'S DECLARATIONI hereby certiFy that the inFormation set out in the June 2026 Pillar 3 report has been prepared in accordance with Westpac's disclosure policy and complies with the requirements oF the Australian Prudential Standards, APS 330 Public Disclosure.
Nathan Goonan
ChieF Financial OFFicer
Sydney
9 August 2026
ABN 33 007 457 141