| JUNE 2023 INCORPORATING THE REQUIREMENTS OF APS330 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Pillar 3 Report |
| Pillar 3 report Table of contents 2 | Westpac Group June 2023 Pillar 3 report Structure of Pillar 3 report Executive summary 3 Introduction 5 Group structure 6 Capital overview 8 Leverage ratio 12 Credit risk exposures 13 Securitisation 17 Liquidity coverage ratio 20 Appendices Appendix I – APRA revised capital framework 21 Appendix II – APS 330 quantitative requirements 23 Disclosure regarding forward-looking statements 24 In this report references to ‘Westpac’, ‘Westpac Group’, ‘the Group’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation and its controlled entities (unless the context indicates otherwise). In this report, unless otherwise stated or the context otherwise requires, references to ‘$’, ‘AUD’ or ‘A$’ are to Australian dollars. 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) capital framework and 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. All references in this report to websites are inactive textual references and are for information only. |
| Pillar 3 report Executive Summary Westpac Group June 2023 Pillar 3 report | 3 Key capital ratios APRA’s revised capital framework (Basel III) became effective on 1 January 2023 and included updated prudential standards for capital adequacy and credit risk capital. The revisions included amendments to capital requirements, revisions to the calculation of credit Risk Weighted Asset (RWA), introduction of a capital floor and introduction of a minimum leverage ratio. A summary of the changes can be found in Appendix I. These revisions are reflected in the disclosed capital ratios at 30 June 2023 and 31 March 2023. Prior periods have not been restated with capital reported under APRA’s, then applicable, capital framework. Third Quarter 2023 – First Half 2023 Westpac’s Level 2 common equity Tier 1 (CET1) capital ratio was 11.86% at 30 June 2023, 42 basis points lower than 31 March 2023. The CET1 capital ratio was lower than 31 March 2023 due to payment of the 2023 interim dividend, an increase in total RWA and higher capital deductions mostly from capitalised software and other expenditure. These impacts were partially offset by the contribution of earnings over the quarter. Third Quarter 2023 – Third Quarter 2022 Westpac’s Level 2 CET1 capital ratio at 30 June 2023 was 111 basis points higher than 30 June 2022 due to earnings, less payment of dividends, divestment benefits and a reduction in total RWA. Total RWA reduced from 30 June 2022 by $18.0 billion or 3.8%. Credit RWA reduced by $19.5 billion, mostly from the implementation of APRA’s revised capital framework which reduced credit RWA by $23.7 billion and resulted in a 62 basis points addition to the CET1 ratio. Risk Weighted Assets $m 30 June 2023 31 March 2023 30 June 2022 Risk weighted assets at Level 2 Credit risk 342,766 340,558 362,279 Market risk 14,561 15,168 9,837 Operational risk 55,362 56,900 57,875 Interest rate risk in the banking book 42,635 34,748 43,498 Other 4,692 5,572 4,540 Total RWA 460,016 452,946 478,029 Total Exposure at Default 1,191,704 1,187,904 1,212,775 Total RWA increased by 1.6% since 31 March 2023 to $460.0 billion from both credit and non-credit RWA increases. Credit RWA increased by $2.2 billion. Key movements included: A $1.9 billion increase from higher lending across Corporate, Business Lending, Property Finance and Residential Mortgages; A $1.2 billion increase from deteriorating credit quality from higher early cycle delinquencies in Residential Mortgages offset by improved credit quality in Corporate; A $0.7 billion decrease from foreign currency translation impacts, predominantly the appreciation of the A$ against the NZ$; and A $0.2 billion decrease from counterparty credit risk primarily due to a decrease in the mark-to-market value of derivatives from changes in underlying foreign currency exchange rates. Non-credit RWA were $4.9 billion higher. Key movements included: A $7.9 billion increase in interest rate risk in the banking book (IRRBB) RWA from: $5.4 billion due to a higher embedded loss from higher interest rates; and % 30 June 2023 31 March 2023 30 June 2022 Level 2 Regulatory capital structure Common equity Tier 1 capital ratio 11.86 12.28 10.75 Additional Tier 1 capital ratio 2.16 2.20 2.02 Tier 1 capital ratio 14.02 14.48 12.77 Tier 2 capital ratio 5.69 5.27 4.40 Total regulatory capital ratio 19.71 19.75 17.17 APRA leverage ratio 5.36 5.46 5.35 Level 1 Common equity Tier 1 capital ratio 12.01 12.50 10.59 |
| Pillar 3 report Executive summary 4 | Westpac Group June 2023 Pillar 3 report Ongoing model changes ($2.5 billion) which still require regulatory approval1 .. 1 Operational RWA: $1.5 billion decrease due to lower capital requirements; and Market RWA: $0.6 billion decrease due to lower Risks Not In Value at Risk (RNIV), offset by an increase from portfolio movements. Exposure at Default (EAD) EAD increased $3.8 billion over the quarter. Key movements include: A $8.6bn billion increase from higher lending mainly across Residential Mortgages, Corporate, Business Lending, Property Finance and Securitisation asset classes; A $2.4 billion decrease in Sovereign exposures, as part of liquidity management; and A $2.3 billion decrease in New Zealand exposures, mainly within sovereign exposures. Tier 2 capital movements for third quarter 2023 Over the quarter, the Group issued A$2.9 billion of Tier 2 capital instruments and redeemed A$0.9 billion of Tier 2 instruments. The net impact of these transactions was an increase in total capital of approximately 43bps. On 2 December 2021, APRA announced a requirement for domestic systemically important banks (D-SIBs) including Westpac, to increase total capital requirements by 4.5 percentage points of RWA to meet additional loss absorbing capacity. This includes an interim total capital requirement of 16.75% from 1 January 2024 and a final total capital requirement from 1 January 2026 of 18.25%. The increase in total capital is expected to be met through additional Tier 2 capital. Leverage Ratio2 The leverage ratio represents the amount of Tier 1 capital relative to an exposure measure2 .. At 30 June 2023, Westpac’s leverage ratio was 5.36%, down 10 basis points from 31 March 2023. This was mostly driven by lower Tier 1 capital following payment of the 2023 interim dividend. Liquidity Coverage Ratio (LCR) Westpac’s average LCR for the quarter ending 30 June 2023 was 138% (31 March 2023: 135%). The increase in the ratio was mainly driven by an increase in average holdings of liquid assets partially offset by an increase in net cash outflows. 1 APRA has approved Westpac's IRRBB Embedded Gain/Loss (EGL) model, however Westpac has applied an overlay pending recalibration of the model. 2 As defined under Attachment D of APS110: Capital Adequacy. |
| Pillar 3 report Introduction 5 | Westpac Group June 2023 Pillar 3 report Westpac Banking Corporation is an Authorised Deposit-taking Institution (ADI) subject to regulation by APRA. APRA has accredited Westpac to apply advanced models permitted by the Basel III global capital adequacy regime to the measurement of its regulatory capital requirements. Westpac uses the Internal Ratings-Based approach (IRB) for credit risk and the Standardised Measurement Approach (SMA) for operational risk. In accordance with APS330 Public Disclosure, financial institutions that have received the Advanced IRB (AIRB) accreditation, such as Westpac, are required to disclose prudential information about their risk management practices on a semi-annual basis. A subset of this information must be disclosed quarterly. In addition to this report, the regulatory disclosures section of the Westpac website1 contains the reporting requirements for: Capital instruments under Attachment B of APS330; and The identification of potential Global-Systemically Important Banks (G-SIB) under Attachment H of APS330 (disclosed annually). 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 CET1 capital, written off, or its terms and conditions are changed. 1 1 http://www.westpac.com.au/about-westpac/investor-centre/financial-information/regulatory-disclosures/ |
| Pillar 3 report Group structure 6 | Westpac Group June 2023 Pillar 3 report APRA 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 1 2 The following diagram shows the Level 3 conglomerate group and illustrates the different tiers of regulatory consolidation. Accounting consolidation33 The consolidated financial statements incorporate the assets and liabilities of all subsidiaries (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: insurance; acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management; non-financial (commercial) operations; or special purpose entities to which assets have been transferred in accordance with the requirements of APS120 Securitisation. 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. 1 APS110 Capital Adequacy outlines the overall framework adopted by APRA for the purpose of assessing the capital adequacy of an ADI. 2 Impaired assets and provisions held in Level 3 entities are excluded from the tables in this report. 3 Refer to Note 30 of Westpac’s 2022 Annual Report for further details. Level 1 Consolidation Level 2 Consolidation Level 3 Consolidation Regulatory non-consolidated subsidiaries Westpac New Zealand Ltd Other Westpac Level 2 subsidiaries Westpac Banking Corporation Westpac Level 1 subsidiaries |
| Pillar 3 report Group structure Westpac Group June 2023 Pillar 3 report | 7 Subsidiary banking entities Westpac New Zealand Limited (WNZL), a wholly owned subsidiary entity, is a registered bank incorporated in New Zealand and regulated by the Reserve Bank of New Zealand (RBNZ). WNZL uses both the Advanced IRB and Standardised methodologies for credit risk and the standardised measurement approach (SMA) for operational risk. Other subsidiary banking entities in the Group include Westpac Bank PNG Limited and Westpac Europe Limited. For the purposes of determining Westpac’s capital adequacy subsidiary banking entities are consolidated at Level 2. Restrictions and major impediments on the transfer of funds or regulatory capital within the Group Certain subsidiary banking and trustee entities are subject to local prudential regulation in their own right, including capital adequacy requirements and investment or intra-group exposure limits. 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. Minimum capital (‘thin capitalisation’) rules Tax legislation in most jurisdictions in which the Group operates prescribes minimum levels of capital that must be retained in that jurisdiction to avoid a portion of the interest costs incurred in the jurisdiction ceasing to be tax deductible. Capital for these purposes includes both contributed capital and non-distributed retained earnings. Westpac seeks to maintain sufficient capital/retained earnings in these entities to comply with these rules. Tax costs associated with repatriation Repatriation of retained earnings (and capital) may result in tax being payable in either the jurisdiction from which the repatriation occurs or Australia on receipt of the relevant amounts. This cost would reduce the amount actually repatriated. Intra-group exposure limits1 Exposures to related entities are managed within the prudential limits prescribed by APRA in APS222 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. Prudential regulation of subsidiary entities On 23 March 2021, the RBNZ issued two notices to WNZL under section 95 of the Banking (Prudential Supervision) Act 1989 requiring WNZL to supply two external reviews to the RBNZ (the ‘Risk Governance Review’ and the ‘Liquidity Review’). These reviews only applied to WNZL and not to Westpac in Australia or its NZ Branch. The Risk Governance Review related to the effectiveness of WNZL’s risk governance. This review was completed, in November 2021 and identified deficiencies in WNZL’s risk governance practices and operations which WNZL sought to address through a programme of work overseen by the WNZL Board. In April 2023, the RBNZ acknowledged the decision of WNZL’s Board to approve closure of the Risk Governance programme of work, noted the improvements made by WNZL to date and that any remaining activity will be overseen by the WNZL Board Risk and Compliance Committee. The Liquidity Review related to the effectiveness of WNZL’s actions to improve liquidity risk management and the associated risk culture. The review was, completed in May 2022 and did not identify any material control gaps or issues and made some recommendations for improvement, which are being implemented as part of WNZL’s continuous improvement activity. Since then, WNZL has undertaken further assurance work and continues to review and enhance the control framework. From 31 March 2021, the RBNZ amended WNZL’s conditions of registration, requiring WNZL to discount the value of its liquid assets by approximately 14%. From 15 August 2022, the RBNZ reduced the overlay quantum to approximately 7%, which at 30 June 2023 was $1.5 billion. The overlay will remain in place until the RBNZ is satisfied that control assurance work has been completed. 1 For the purposes of APS222, 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. |
| Pillar 3 report Capital overview 8 | Westpac Group June 2023 Pillar 3 report Capital management strategy1 Westpac evaluates its approach to capital management through an Internal Capital Adequacy Assessment Process (ICAAP). Key features include: The development of a capital management strategy, including consideration of regulatory capital minimums, capital buffers and contingency plans. The current regulatory capital minimums together with the capital conservation buffer (CCB) and countercyclical capital buffer are the Total CET1 requirement. The Total CET1 Requirement for Westpac is at least 10.25%1 based on an industry minimum CET1 requirement of 4.5% plus a capital conservation buffer of 4.75% and a countercyclical capital buffer of 1.0%2 .. Consideration of regulatory capital requirements and the perspectives of external stakeholders including rating agencies as well as equity and debt investors; and A stress testing framework that challenges the capital measures, coverage and capital requirements including the impact of adverse economic scenarios. The Board has determined that Westpac will target a CET1 operating capital range of between 11.0% and 11.5%, in normal operating conditions. Westpac’s capital adequacy ratios % 30 June 2023 31 March 2023 30 June 2022 The Westpac Group at Level 2 Common equity Tier 1 capital ratio 11.9 12.3 10.7 Additional Tier 1 capital 2.2 2.2 2.0 Tier 1 capital ratio 14.0 14.5 12.8 Tier 2 capital ratio 5.7 5.3 4.4 Total regulatory capital ratio 19.7 19.8 17.2 The Westpac Group at Level 1 Common equity Tier 1 capital ratio 12.0 12.5 10.6 Additional Tier 1 capital 2.4 2.4 2.2 Tier 1 capital ratio 14.4 14.9 12.7 Tier 2 capital ratio 6.2 5.8 4.7 Total regulatory capital ratio 20.6 20.7 17.5 Westpac New Zealand Limited’s capital adequacy ratios % 30 June 2023 31 March 2023 30 June 2022 Common equity Tier 1 capital ratio 11.3 11.1 11.5 Additional Tier 1 capital 1.6 1.6 2.0 Tier 1 capital ratio 12.9 12.7 13.5 Tier 2 capital ratio 1.0 1.0 1.2 Total regulatory capital ratio 13.9 13.7 14.8 1 Noting that APRA may apply higher CET1 requirements for an individual ADI. 2 APRA has currently set a 1.0% default countercyclical capital buffer for Australian exposures however this may be varied by APRA in the range of 0 to 3.5%. The final countercyclical capital buffer is ADI specific and dependent on a bank’s international exposures. |
| Pillar 3 report Capital overview Westpac Group June 2023 Pillar 3 report | 9 Capital requirements APRA’s revised capital framework became effective on 1 January 2023. This included updated prudential standards for public disclosures, capital adequacy and credit risk capital. A summary of these changes has been included in Appendix I. A key change of the framework has been asset classifications used to determine RWA and the use of the foundation IRB approach (FIRB) for some exposure classes. Under FIRB, an ADI must provide its own estimates of Probably of Default (PD) and maturity and rely on supervisory estimates of Loss Given Default (LGD) and EAD. The table below summarises Westpac’s revised credit risk asset classes under APRA’s revised capital framework. A further explanation of the new asset classes is set out in Appendix I. Revised Credit Asset Classes Previously Reported Credit Asset Classes Corporate Corporate Business Lending Business Lending Small Business Property Finance Specialised Lending Large Corporate Corporate Sovereign Sovereign Financial Institutions Corporate Business Lending Bank Residential Mortgages Residential Mortgages Australian Credit Cards Australian Credit Cards Other Retail Other Retail Small Business Small Business Business Lending Specialised Lending Specialised Lending Securitisation Securitisation New Zealand Corporate Business Lending Sovereign Banks Residential mortgages Other retail Small business Specialised lending Securitisation |
| Pillar 3 report Capital overview 10 | Westpac Group June 2023 Pillar 3 report This table shows risk weighted assets for each risk type included in the regulatory assessment of Westpac’s capital adequacy. The 30 June 2023 and 31 March 2023 balances below incorporate the revised credit asset classes under APRA’s revised capital framework. 30 June 2023 IRB FIRB Standardised Total Risk $m Approach1 Approach Approach2 Weighted Assets Credit risk Corporate 24,542 - 1,075 25,617 Business Lending 26,752 - 186 26,938 Property Finance 32,119 - - 32,119 Large Corporate - 20,281 - 20,281 Sovereign - 2,360 1,814 4,174 Financial Institutions - 14,895 82 14,977 Residential Mortgages 111,459 - 18,834 130,293 Australian Credit Cards 3,937 - - 3,937 Other Retail 5,113 - 467 5,580 Small Business 17,908 - 169 18,077 Specialised Lending 3,042 - 456 3,498 Securitisation 7,098 - - 7,098 New Zealand 42,809 - 2,015 44,824 Mark-to-market related credit risk3 - - 5,353 5,353 Total Credit risk 274,779 37,536 30,451 342,766 Market risk 14,561 Operational risk 55,362 Interest rate risk in the banking book 42,635 Other4 4,692 Total 460,016 31 March 2023 IRB FIRB Standardised Total Risk $m Approach1 Approach Approach2 Weighted Assets Credit risk Corporate 24,309 - 1,147 25,456 Business Lending 25,928 - 177 26,105 Property Finance 31,234 - - 31,234 Large Corporate - 21,228 - 21,228 Sovereign - 2,357 1,777 4,134 Financial Institutions - 15,057 75 15,132 Residential Mortgages 109,164 - 19,651 128,815 Australian Credit Cards 3,957 - - 3,957 Other Retail 5,304 - 464 5,768 Small Business 18,219 - 170 18,389 Specialised Lending 2,931 - 464 3,395 Securitisation 6,400 - - 6,400 New Zealand 43,301 - 2,030 45,331 Mark-to-market related credit risk3 - - 5,214 5,214 Total Credit risk 270,747 38,642 31,169 340,558 Market risk 15,168 Operational risk 56,900 Interest rate risk in the banking book 34,748 Other4 5,572 Total 452,946 1234 1 IRB approaches excluding FIRB. 2 Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories. 3 Mark-to-market related credit risk is measured under the standardised approach. It is also known as Credit Valuation Adjustment (CVA) risk. 4 Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets. |
| Pillar 3 report Capital overview Westpac Group June 2023 Pillar 3 report | 11 1 30 June 2022 IRB Standardised Total Risk $m Approach1 Approach2 Weighted Assets Credit risk Corporate 841 70,238 71,079 Business lending 726 31,732 32,458 Sovereign 1,658 2,389 4,047 Bank 104 5,089 5,193 Residential mortgages 147,721 3,069 150,790 Australian credit cards 3,944 - 3,944 Other retail 744 7,296 8,040 Small business - 14,128 14,128 Specialised lending 395 59,453 59,848 Securitisation - 6,883 6,883 Mark-to-market related credit risk3 5,869 5,869 Total 13,406 348,873 362,279 Market risk 9,837 Operational risk 57,875 Interest rate risk in the banking book 43,498 Other assets4 4,540 Total 478,029 1 IRB approaches including FIRB. 2 Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories. 3 Mark-to-market related credit risk is measured under the standardised approach. It is also known as Credit Valuation Adjustment (CVA) risk. 4 Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets. |
| Pillar 3 report Leverage ratio 12 | Westpac Group June 2023 Pillar 3 report Leverage ratio The following table summarises Westpac’s leverage ratio. APRA’s revised capital framework has introduced a minimum leverage ratio of 3.5% and revised the calculation of leverage exposure. Revisions include: Revised credit conversion factors for the calculation of off-balance sheet exposures to align with the standardised approach to RWA; and Revised calculation of derivative exposure to align with the calculation of counterparty credit risk RWA. The 30 June 2023 and 31 March 2023 leverage ratios incorporate these revisions. $ billion 30 June 2023 31 March 2023 31 December 2022 30 September 2022 Net Tier 1 Regulatory Capital 64.5 65.6 63.4 63.9 Total Exposures 1,202.1 1,200.1 1,151.3 1,140.3 Leverage ratio 5.4% 5.5% 5.5% 5.6% |
| Pillar 3 report Credit risk exposures Westpac Group June 2023 Pillar 3 report | 13 Summary credit risk disclosure12 1 Includes regulatory expected losses for defaulted and non-defaulted exposures. 2 Corporate loan losses include the recovery of a previously written off loan of $40m. 3 At 30 June 2022 Westpac applied a floor of 25% to its residential mortgage portfolio risk weight. 4 Includes mark-to-market related credit risk. Regulatory Expected Specific Actual Risk Regulatory Loss for Provision for Losses for 30 June 2023 Exposure Weighted Expected non-defaultedNon-Performing the 9 months $m at Default Assets Loss1 exposures Exposures ended Corporate2 38,372 24,542 593 140 140 (25) Business Lending 42,310 26,752 506 270 282 23 Property Finance 53,904 32,119 300 164 136 3 Large Corporate 39,493 20,281 64 64 - - Sovereign 208,470 2,360 5 2 - - Financial Institutions 37,980 14,895 66 31 16 6 Residential Mortgages 523,670 111,459 1,112 760 354 20 Australian Credit Cards 13,653 3,937 170 130 36 72 Other Retail 5,263 5,113 225 147 74 84 Small Business 29,387 17,908 568 376 187 43 Specialised Lending 3,965 3,042 24 24 - - Securitisation 36,023 7,098 - - - - Standardised4 29,481 28,436 - - 90 5 New Zealand 129,733 44,824 530 353 127 15 Total 1,191,704 342,766 4,163 2,461 1,442 246 Expected Specific Actual Risk Regulatory Loss for Provision for Losses for 31 March 2023 Exposure Weighted Expected non-defaultedNon-Performing the 6 months $m at Default Assets Loss1 exposures Exposures ended Corporate2 37,110 24,309 588 136 147 (26) Business Lending 40,861 25,928 490 263 235 16 Property Finance 52,697 31,234 288 154 134 2 Large Corporate 40,248 21,228 63 63 - - Sovereign 210,868 2,357 2 2 - - Financial Institutions 37,687 15,057 71 31 18 5 Residential Mortgages 518,276 109,164 1,057 731 330 11 Australian Credit Cards 13,675 3,957 172 131 37 44 Other Retail 5,586 5,304 234 151 80 53 Small Business 29,559 18,219 576 374 196 31 Specialised Lending 3,746 2,931 26 26 - - Securitisation 32,831 6,400 - - - - Standardised4 30,253 29,139 - - 98 - New Zealand 134,507 45,331 534 360 118 7 Total 1,187,904 340,558 4,101 2,422 1,393 143 Regulatory Expected Specific Actual Risk Regulatory Loss for Provisions Losses for 30 June 2022 Exposure Weighted Expected non-defaulted Impaired for Impairedthe 9 months $m at Default Assets1 Loss1 exposures Loans Loans ended Corporate 139,009 70,238 854 322 313 243 303 Business lending 54,163 31,732 595 333 320 149 65 Sovereign 229,423 2,389 2 2 - - - Bank 22,191 5,089 6 6 - - - Residential mortgages3 147,721 590,902 1,551 1,112 214 64 29 Australian credit cards 15,170 3,944 168 129 63 35 78 Other retail 9,634 7,296 335 217 217 115 61 Small business 28,990 14,128 454 284 315 149 22 Specialised lending 72,261 59,453 884 556 76 17 - Securitisation 36,187 6,883 - - - - - Standardised4 13,406 14,845 - - 99 45 - Total 1,212,775 362,279 4,849 2,961 1,617 817 558 |
| Pillar 3 report Credit risk exposures 14 | Westpac Group June 2023 Pillar 3 report The following tables segment the portfolio by characteristics that provide an insight into the assessment of credit risk concentration. Exposure at Default by major type11 1 Given the introduction of new credit risk asset classes under APRA’s revised capital framework, which resulted in exposures moving between asset classes, average EAD over the six-months to 31 March 2023 has not been included for 31 March 2023. 2 Average is based on exposures as at 30 June 2023 and 31 March 2023. 3 Average is based on exposures as at 30 June 2022 and 31 March 2022. 30 June 2023 On balance Total Exposure Average $m sheet Non-market related Market related at Default 3 months ended2 Corporate 26,027 9,223 3,122 38,372 37,741 Business Lending 36,926 5,325 59 42,310 41,586 Property Finance 48,244 5,387 273 53,904 53,301 Large Corporate 20,522 14,657 4,314 39,493 39,871 Sovereign 170,171 246 38,053 208,470 209,668 Financial Institutions 16,651 4,356 16,973 37,980 37,834 Residential Mortgages 458,515 65,155 - 523,670 520,972 Australian Credit Cards 6,182 7,471 - 13,653 13,664 Other Retail 4,288 975 - 5,263 5,425 Small Business 22,229 7,158 - 29,387 29,473 Specialised Lending 1,889 1,954 122 3,965 3,856 Securitisation 27,212 8,769 42 36,023 34,427 Standardised 23,107 3,458 2,916 29,481 29,867 New Zealand 107,576 21,628 529 129,733 132,119 Total 969,539 155,762 66,403 1,191,704 1,189,804 31 March 2023 On balance Total Exposure $m sheet Non-market related Market related at Default Corporate 25,900 8,319 2,891 37,110 Business Lending 35,255 5,541 65 40,861 Property Finance 47,275 5,097 325 52,697 Large Corporate 20,818 14,767 4,663 40,248 Sovereign 162,968 188 47,712 210,868 Financial Institutions 17,819 4,106 15,762 37,687 Residential Mortgages 452,592 65,684 - 518,276 Australian Credit Cards 6,149 7,526 - 13,675 Other Retail 4,584 1,002 - 5,586 Small Business 22,280 7,279 - 29,559 Specialised Lending 1,846 1,746 154 3,746 Securitisation 26,254 6,506 71 32,831 Standardised 24,206 3,387 2,660 30,253 New Zealand 112,731 21,302 474 134,507 Total 960,677 152,450 74,777 1,187,904 30 June 2022 On balance Total Exposure Average $m sheet Non-market related Market related at Default 3 months ended3 Corporate 59,748 59,602 19,659 139,009 134,759 Business lending 40,659 13,504 - 54,163 53,764 Sovereign 173,433 1,877 54,113 229,423 214,439 Bank 11,342 1,484 9,365 22,191 21,724 Residential mortgages 510,792 80,110 - 590,902 588,355 Australian credit cards 6,216 8,954 - 15,170 15,182 Other retail 7,045 2,589 - 9,634 9,973 Small business 22,230 6,760 - 28,990 29,322 Specialised lending 58,541 13,207 513 72,261 71,556 Securitisation 28,181 7,957 49 36,187 34,777 Standardised 11,256 989 2,600 14,845 14,561 Total 929,443 197,033 86,299 1,212,775 1,188,412 Off-balance sheet Off-balance sheet Off-balance sheet |
| Pillar 3 report Credit risk exposures Westpac Group June 2023 Pillar 3 report | 15 Expected credit loss provision 1 This table provides a summary of expected credit loss provisions. For 30 June 2023 and 31 March 2023 Stage 1 and Stage 2 credit losses are included in the provisions held against the Performing Exposures line item. Stage 3 credit losses are included in the Total Specific Provision line. 1 Provisions classified according to APRA’s letter dated 4 July 2017 “Provisions for regulatory purposes and AASB 9 financial instruments”. 30 June 2023 Total Regulatory $m IAPs CAPs Provisions Specific Provisions for impaired loans 243 407 650 for defaulted but not impaired loans - 792 792 Total Specific Provision1 1,035 407 1,442 Provisions held against performing exposures - 3,656 3,656 Total provisions for ECL 4,691 407 5,098 31 March 2023 Total Regulatory $m IAPs CAPs Provisions Specific Provisions for impaired loans 269 382 651 for defaulted but not impaired loans - 742 742 Total Specific Provision1 1,011 382 1,393 Provisions held against performing exposures - 3,530 3,530 Total provisions for ECL 4,541 382 4,923 30 June 2022 Total Regulatory $m IAPs CAPs Provisions Specific Provisions for impaired loans 296 521 817 for defaulted but not impaired loans - 650 650 for Stage 2 - 1,990 1,990 Total Specific Provision1 2,936 521 3,457 General Reserve for Credit Loss1 - 1,087 1,087 Total provisions for expected credit losses 4,023 521 4,544 A-IFRS Provisions A-IFRS Provisions A-IFRS Provisions |
| Pillar 3 report Credit risk exposures 16 | Westpac Group June 2023 Pillar 3 report Non-performing and past due loans This table discloses non-performing and past due loans by credit asset class. Under the revised capital framework, ADI’s are required to disclose non-performing exposures which are exposures in default aligned to the definition in APS220 Credit Risk Management. Under APS 220, the initial recognition of default under APS220 is where either one, or both, of the following has happened: Westpac considers that the borrower is unlikely to pay its credit obligations to Westpac in full, and without recourse to actions such as realising available security; the borrower is 90 days or more past-due on a credit obligation to Westpac. The revised definition also requires ADI’s to classify an exposure as non-performing for an additional 90 days after returning to performing. Non-performing and past due loans by portfolio12 Non-Performing Non-Performing Total Specific provisions Actual 30 June 2023 Exposures Exposures Non-Performing for Non-Performing Losses for the $m - Not Impaired - Impaired Exposures Exposures 9 months ended Corporate 54 145 199 140 (25) Business Lending 879 185 1,064 282 23 Property Finance 694 26 720 136 3 Large Corporate - - - - - Sovereign - - - - - Financial Institutions 41 13 54 16 6 Residential Mortgages 3,777 233 4,010 354 20 Australian Credit Cards - 96 96 36 72 Other Retail - 150 150 74 84 Small Business 691 356 1,047 187 43 Specialised Lending - - - - - Securitisation - - - - - Standardised 307 126 433 90 5 New Zealand 653 88 741 127 15 Total 7,096 1,418 8,514 1,442 246 Non-Performing Non-Performing Total Specific provisions Actual 31 March 2023 Exposures Exposures Non-Performing for Non-Performing Losses for the $m - Not Impaired - Impaired Exposures Exposures 6 months ended Corporate 78 164 242 147 (26) Business Lending 890 164 1,054 235 16 Property Finance 719 23 742 134 2 Large Corporate - - - - - Sovereign - - - - - Financial Institutions 50 15 65 18 5 Residential Mortgages 3,397 232 3,629 330 11 Australian Credit Cards - 100 100 37 44 Other Retail - 160 160 80 53 Small Business 692 429 1,121 196 31 Specialised Lending - - - - - Securitisation - - - - - Standardised 309 137 446 98 - New Zealand 574 97 671 118 7 Total 6,709 1,521 8,230 1,393 143 Specific Actual 30 June 2022 Defaulted Impaired Provisions for Losses for the $m not impaired1 Loans Impaired Loans 9 months ended Corporate 144 313 243 303 Business lending 971 320 149 65 Sovereign - - - - Bank - - - - Residential mortgages 3,991 214 64 29 Australian credit cards - 63 35 78 Other retail - 217 115 61 Small business 502 315 149 22 Specialised lending 557 76 17 - Securitisation - - - - Standardised 70 99 45 - Total 6,235 1,617 817 558 1 Includes items past 90 days not impaired. |
| Pillar 3 report Securitisation Westpac Group June 2023 Pillar 3 report | 17 Banking book summary of securitisation activity by asset type This table shows assets transferred into securitisation schemes by underlying asset type (ADI originated) for the relevant period. Amounts securitised for the 3 months ended to 30 June 2023 were $1.8 billion, a reduction of $17.2 billion from the 3 months ended 30 June 2022. Amounts securitised for the 6 months ended 31 March 2023 were $14.2 billion. The reduction in assets securitised is primarily due to lower requirements following the phase-out of the Reserve Bank of Australia’s Committed Liquidity Facility on 1 January 2023. For the 3 months ended 30 June 2023 Amount Recognised gain or $m securitised loss on sale Residential mortgages 1,819 - Credit cards - - Auto and equipment finance - - Business lending - - Investments in ABS - - Other - - Total 1,819 - For the 6 months ended 31 March 2023 Amount Recognised gain or $m securitised loss on sale Residential mortgages 14,236 - Credit cards - - Auto and equipment finance - - Business lending - - Investments in ABS - - Other - - Total 14,236 - For the 3 months ended 30 June 2022 Amount Recognised gain or $m securitised loss on sale Residential mortgages 19,110 - Credit cards - - Auto and equipment finance - - Business lending - - Investments in ABS - - Other - - Total 19,110 - |
| Pillar 3 report Securitisation 18 | Westpac Group June 2023 Pillar 3 report Banking book summary of on and off-balance sheet securitisation by exposure type 30 June 2023 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 8,163 65 8,228 Liquidity facilities - - 289 289 Funding facilities 4,309 - 495 4,803 Underwriting facilities - - - - Lending facilities 1,842 - 151 1,993 Warehouse facilities 12,896 - 7,813 20,709 Total 8,163 19,046 8,814 36,023 31 March 2023 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 7,135 - 7,135 Liquidity facilities - - 292 292 Funding facilities 3,634 - 431 4,064 Underwriting facilities - - - - Lending facilities 1,953 - 125 2,078 Warehouse facilities 13,534 - 5,729 19,263 Total 7,135 19,120 6,577 32,831 30 June 2022 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 7,383 36 7,419 Liquidity facilities - - 281 281 Funding facilities 4,551 - 1,697 6,248 Underwriting facilities - - - - Lending facilities 2,545 - 368 2,913 Warehouse facilities 13,703 - 5,623 19,326 Total 7,383 20,799 8,005 36,187 On balance sheet On balance sheet On balance sheet |
| Pillar 3 report Securitisation Westpac Group June 2023 Pillar 3 report | 19 Trading book summary of on and off-balance sheet securitisation by exposure type1 1 30 June 2023 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 455 - 455 Liquidity facilities - - - - Funding facilities - - - - Underwriting facilities - - - - Lending facilities - - - - Warehouse facilities - - - - Credit enhancements - - - - Basis swaps - - 37 37 Other derivatives - - 5 5 Total - 455 42 498 31 March 2023 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 610 - 610 Liquidity facilities - - - - Funding facilities - - - - Underwriting facilities - - - - Lending facilities - - - - Warehouse facilities - - - - Credit enhancements - - - - Basis swaps - - 65 65 Other derivatives - - 6 6 Total - 610 71 681 30 June 2022 Off-balance Total Exposure $m Securitisation retained Securitisation purchased sheet at Default Securities - 518 - 518 Liquidity facilities - - - - Funding facilities - - - - Underwriting facilities - - - - Lending facilities - - - - Warehouse facilities - - - - Credit enhancements - - - - Basis swaps - - 34 34 Other derivatives - - 15 15 Total - 518 49 566 On balance sheet On balance sheet On balance sheet 1 Trading book securitisation exposure is captured and risk weighted under APS116. |
| Pillar 3 report Liquidity coverage ratio 20 | Westpac Group June 2023 Pillar 3 report Liquidity Coverage Ratio1 The average LCR for the quarter was 138%, up from 135% at 31 March 2023. APRA’s regulatory minimum is 100%. The increase in the period was mainly driven by an increase in holdings of liquid assets and a decrease in net cash outflows. Liquid assets included in the LCR comprise High Quality Liquid Assets (HQLA) and additional qualifying RBNZ securities. The portfolio of HQLA averaged $184.1 billion1 , up from $182.9 billion from the prior quarter. 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. The Group maintains a buffer over the regulatory minimum of 100%. $m Total unweighted (average) Total weighted (average) Total unweighted (average) Total weighted (average) Liquid assets, of which: 1. High-quality liquid assets (HQLA) 184,088 182,940 2. Alternative liquid assets (ALA) 0 0 3. Reserve Bank of New Zealand (RBNZ) securities 4,533 3,540 Cash Outflows 4. Retail deposits and deposits from small business customers, of which: 323,225 28,759 319,953 28,559 5. Stable deposits 156,437 7,822 154,498 7,725 6. Less stable deposits 166,788 20,937 165,455 20,834 7. Unsecured wholesale funding, of which: 168,609 78,425 178,399 83,270 8. Operational deposits (all counterparties) and deposits in networks for cooperative banks 71,852 17,893 75,709 18,858 9. Non-operational deposits (all counterparties) 83,643 47,418 87,700 49,422 10. Unsecured debt 13,114 13,114 14,990 14,990 11. Secured wholesale funding 2,816 0 12. Additional requirements, of which: 212,234 29,016 209,524 29,011 13. Outflows related to derivatives exposures and other collateral requirements 11,536 11,536 12,015 12,015 14. Outflows related to loss of funding on debt products 241 241 300 300 15. Credit and liquidity facilities 200,457 17,239 197,209 16,696 16. Other contractual funding obligations 8,536 5,754 6,471 4,023 17. Other contingent funding obligations 49,642 4,287 46,240 3,847 18. Total cash outflows 149,057 148,710 Cash inflows 19. Secured lending (e.g. reverse repos) 6,434 0 4,523 0 20. Inflows from fully performing exposures 9,268 4,936 8,260 4,340 21. Other cash inflows 7,552 7,552 6,734 6,734 22. Total cash inflows 23,254 12,488 19,517 11,074 23. Total liquid assets 188,621 186,480 24. Total net cash outflows 136,569 137,636 24.1 Net cash outflows overlay 25. Liquidity Coverage Ratio (%) 138% 135% Number of data points used 62 63 30 June 2023 31 March 2023 1 Calculated as a simple average of the daily observations over the quarter. |
| Pillar 3 report Appendix I - APRA revised capital framework Westpac Group June 2023 Pillar 3 report | 21 APRA’s revised capital framework (Basel III) became effective on 1 January 2023 and included updated prudential standards for capital adequacy and credit risk capital. The objectives of the revised capital framework are to provide flexibility for banks to operate in all environments including in times of stress, enhance risk sensitivity and improve comparability with international standards. Revisions include: Capital requirements: Total CET1 Requirement for D-SIBs (including Westpac), is 10.25% (noting that APRA may apply higher CET1 requirements for an individual ADI). This comprises: Minimum CET1 of 4.5%; Capital conservation buffer (CCB) of 4.75%; and Countercyclical capital buffer of 1.0%. Calculation of Credit RWA: Several changes with the most significant including: Asset classifications used to determine RWA; Greater use of internal modelling within property finance and mortgages which reduced risk weightings; Higher capital requirements for higher risk segments such as interest only and investor mortgages; Revised credit conversion factors (CCFs) for the calculation of off-balance sheet exposures which has reduced exposure at default. CCFs are percentage values used to convert an off-balance sheet exposure into an on-balance sheet equivalent; and New Zealand RWA largely determined by the RBNZ requirements which increased RWA compared to prior periods. Introduction of a capital floor which limits the capital benefit available to advanced banks to no more than 72.5% of the RWA outcomes available under the standardised approach; and Introduction of a minimum leverage ratio of 3.5% and amendments of the leverage exposure calculation. Implementation of the revised capital framework reduced credit RWA by $23.7 billion. Key drivers were: Property Finance: Internal modelling has reduced the risk weight of property finance from 85% to 61%. These exposures were formerly calculated using the IRB slotting approach; Residential Mortgages: Revisions to mortgage models reduced RWA, although additional capital was required for higher risk segments, including standardised risk weights for some exposures. Overall, this change resulted in a reduction in the mortgage risk weight by 110 basis points to 23.9%; and Off-balance sheet exposures: EAD has reduced by $40.4 billion mainly related to changes in CCFs for non-retail exposures. Changes to credit risk capital APRA’s revised capital framework included updated prudential standards for credit risk capital (APS113 Capital Adequacy: Internal Ratings-Based Approach to Credit Risk). In line with the revised standard an ADI must categorise banking book exposures into four broad IRB APS113 asset classes (Corporate, Sovereign, Financial Institution and Retail) and apply the prescribed treatment for those classes to each credit exposure within them for the purposes of deriving its regulatory capital requirement. APS113 cascades these asset classes into further sub-asset classes as per below. APRA’s revised capital framework results in changes to previously reported credit asset classes. This includes changes to credit RWA calculations from AIRB to a foundation IRB approach (FIRB) for some exposure classes. Under FIRB, an ADI must provide its own estimates of PD and maturity and rely on supervisory estimates of LGD and EAD. The below table sets out Westpac’s revised credit risk asset classes under APRA’s revised standards. Revised Credit Asset Classes Previously Reported Credit Asset Classes Revised Asset Class definition Corporate Corporate The Corporate asset class covers credit exposures where consolidated annual revenue < $750m, but greater than $75m, and does not meet the definition of Business Lending or Small Business exposures. Large Corporate exposures previously included in Corporate are identified as a separate asset class, with credit RWA measured under FIRB (previously measured under AIRB). The annual revenue threshold between Corporate and Business Lending has been updated from $50m to $75m, resulting in a portion of exposures shifting from Corporate to Business Lending (eligible for firm-size adjustment). Non-bank financial institutions have been transferred from the Corporate asset class and included in the new Financial Institutions asset class (expanded from the previous ‘Bank’ asset class), with credit RWA measured under FIRB (previously measured under AIRB). Business Lending Business Lending Business Lending exposures are credit exposures to business customers with annual revenue less than $75m. The annual revenue threshold between |
| Pillar 3 report Appendix I - APRA revised capital framework 22 | Westpac Group June 2023 Pillar 3 report Standardised and Securitised portfolios are separately treated under APS112 Capital Adequacy: Standardised Approach to Credit Risk and APS120 Securitisation respectively. Revised Credit Asset Classes Previously Reported Credit Asset Classes Revised Asset Class definition Small Business Corporate and Business Lending changed under APRA’s revised framework from $50m to $75m, resulting in a portion of exposures shifting from Corporate to Business Lending (eligible for firm-size adjustment). Small Business exposures are business customer where total exposures is less than $1.5m or the customer holds a complex product. APRA’s revised capital framework increased the Small Business exposure threshold from $1m to $1.5m, resulting in a portion of exposures shifting from Business Lending to Small Business. Non-bank financial institutions have been transferred from the Business Lending asset class and included in the new Financial Institutions asset class (expanded from the previous ‘Bank’ asset class), with credit RWA measured under FIRB (previously under AIRB). Property Finance Specialised Lending Income-producing Real Estate (IPRE) exposures within specialised lending risk-weighted according to the AIRB approach (previously supervisory slotting) and now classified as Property finance. Property finance represents exposures where repayments depend primarily on the cash flows generated by the asset or other real estate assets owned by the borrower. Large Corporate Corporate Large Corporate exposures are credit exposures to corporate counterparties (where consolidated annual revenue > $750m) and are identified as a separate asset class, with credit RWA measured under FIRB (previously measured under AIRB). Sovereign Sovereign Sovereign exposures are credit exposures to central and sub-national governments, central banks, and development banks or institutions eligible for zero risk weights. Sovereign credit RWA measured under FIRB (previously under AIRB). Domestic Public Sector Entities (PSEs) have been transferred from the Sovereign asset class to the Corporate asset class. Financial Institutions Corporate Business Lending Bank Financial Institution exposures are credit exposures to financial institution counterparties. Financial institutions include, but are not limited to, banks, securities firms, insurance companies and leveraged funds. Non-bank financial institution exposures have been transferred from the Corporate and Business lending to the Financial Institutions asset class. Financial institutions credit RWA measured under FIRB (previously AIRB). Residential Mortgages Residential Mortgages Asset class remains materially the same; however, non-standard mortgages receive 100% standardised risk weight (rather than the internally-modelled Retail IRB approach) and mortgages within New Zealand are presented within the New Zealand asset class. Australian Credit Cards Australian Credit Cards No material change. Other Retail Other Retail No material change. Small Business Small Business Business Lending Small Business exposures are business customer where total exposures is less than $1.5m or the customer holds a complex product. APRA’s revised capital framework increased the Small Business exposure threshold from $1m to $1.5m, resulting in a portion of exposures shifting from Business Lending to Small Business. Specialised Lending Specialised Lending Specialised Lending includes Project Finance (including Object Finance) exposures. This exposure class excludes Property Finance exposures that are now a separate asset class and risk-weighted according to the AIRB approach. Project finance is defined as exposures where revenues generated by a single project, are both the primary source of repayment and security for the loan. Object finance is defined as lending for the acquisition of equipment where the repayment of the loan is dependent on the cash flows generated by the specific assets that have been financed and pledged or assigned to the lender. Securitisation Securitisation See New Zealand section below. Otherwise, no material changes New Zealand Corporate Business Lending Sovereign Banks Residential mortgages Other retail Small business Specialised lending Securitisation Under the revised capital framework, RBNZ regulated exposures are calculated using RBNZ rules and disclosed separately under a New Zealand class. |
| Pillar 3 report Appendix II - APS 330 quantitative requirements Westpac Group June 2023 Pillar 3 report | 23 APS330 reference Westpac disclosure Page General Requirements Paragraph 51 Tier 1 capital, total exposures and leverage ratio 12 Attachment C Table 3: Capital Adequacy (a) to (e) (f) Capital requirements Westpac’s capital adequacy ratios Capital adequacy ratios of major subsidiary banks 10 8 8 Table 4: Credit Risk - general disclosures (a) (b) (c) Exposure at Default by major type Non-performing and past due loans by portfolio Provisions held against performing exposures 14 16 15 Table 5: Securitisation exposures (a) (b) Banking Book summary of securitisation activity by asset type Banking Book summary of on and off-balance sheet securitisation by exposure type Trading Book summary of on and off-balance sheet securitisation by exposure type 17 18 19 Attachment F Table 20: Liquidity Coverage Ratio disclosure template Liquidity Coverage Ratio disclosure 20 Exchange rates The following exchange rates were used in the Westpac Pillar 3 report and reflect spot rates for the period end. $ 30 June 2023 31 March 2023 30 June 2022 USD 0.6625 0.6711 0.6890 GBP 0.5255 0.5418 0.5666 NZD 1.0890 1.0680 1.1077 EUR 0.6101 0.6158 0.6584 |
| Pillar 3 report Disclosure regarding forward-looking statements 24 | Westpac Group June 2023 Pillar 3 report The information contained in this report contains statements that constitute “forward-looking statements” within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Forward-looking statements are statements that are not historical facts. Forward-looking statements appear in a number of places in this report and include statements regarding Westpac’s intent, belief or current expectations with respect to its business and operations, macro and micro economic and market conditions, results of operations and financial condition, capital adequacy and risk management, including, without limitation, future loan loss provisions and financial support to certain borrowers, forecasted economic indicators and performance metric outcomes, indicative drivers, climate- and other sustainability- related statements, commitments, targets, projections and metrics, and other estimated and proxy data. Words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’, ‘forecast’, ‘f’cast’, ‘f’, ‘assumption’, ‘projection’, ‘target,’ goal’, ‘guidance’, ‘ambition’ or other similar words are used to identify forward-looking statements, or otherwise identify forward-looking statements. These forward-looking statements reflect Westpac’s current views on future events and are subject to change, certain known and unknown risks, uncertainties and assumptions and other factors which are, in many instances, beyond Westpac’s control (and the control of Westpac’s officers, employees, agents and advisors), and have been made based on management’s expectations or beliefs concerning future developments and their potential effect upon Westpac. Forward-looking statements may also be made, verbally or in writing, by members of Westpac’s management or Board in connection with this report. Such statements are subject to the same limitations, uncertainties, assumptions and disclaimers set out in this report. There can be no assurance that future developments or performance will align with Westpac’s expectations or that the effect of future developments on Westpac will be those anticipated. Actual results could differ materially from those we expect or which are expressed or implied in forward-looking statements, depending on various factors including, but not limited to, those described in the section titled ‘Risk Factors’ in Westpac’s 2023 Interim Financial Results Announcement. When relying on forward-looking statements to make decisions with respect to Westpac, investors and others should carefully consider such factors and other uncertainties and events. Except as required by law, Westpac assumes no obligation to revise or update any forward-looking statements in this report, whether from new information, future events, conditions or otherwise, after the date of this report. |
