Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

May 6, 2024

 

Commission File Number 1-10167

 

WESTPAC BANKING CORPORATION

(Translation of registrant’s name into English)

 

275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F.

 

Form 20-F     x          Form 40-F     ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

 

 

 

Incorporation by Reference

 

The information contained in Exhibit 1 to this Report on Form 6-K shall be incorporated by reference in the prospectuses relating to the Registrant’s securities contained in the Registrant’s Registration Statements on Form F-3 (File Nos. 333-260702 and 333-260703), as such prospectuses may be amended or supplemented from time to time.

 

Index to Exhibits

 

Exhibit No.		Description
1		Westpac Group March 2024 Pillar 3 Report

 

Disclosure regarding forward-looking statements

 

The information contained in this Report on Form 6-K 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 our current intent, belief or expectations with respect to our business and operations, macro and micro economic and market conditions, results of operations and financial condition and performance, 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 our 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 our control (and the control of our officers, employees, agents and advisors), and have been made based upon management’s expectations and beliefs concerning future developments and their potential effect upon us.

 

 

 

 

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 our expectations or that the effect of future developments on us 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 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events.

 

Except as required by law, we assume no obligation to revise or update any forward-looking statements contained in this Report, whether from new information, future events, conditions or otherwise, after the date of this Report.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	WESTPAC BANKING CORPORATION
	(Registrant)
Date: May 6, 2024	By:	/s/ Esther Choi
		Esther Choi
		Tier One Attorney

 

 

 

Exhibit 1

ASX Release 6 May 2024 Pillar 3 Report as at 31 March 2024 Westpac Banking Corporation (“Westpac”) today provides the attached Pillar 3 Report (March 2024). For further information: Hayden Cooper Justin McCarthy Group Head of Media Relations General Manager, Investor Relations 0402 393 619 0422 800 321 This document has been authorised for release by Tim Hartin, Company Secretary. Level 18, 275 Kent Street Sydney, NSW, 2000

Table of contents Acknowledgment of Indigenous Peoples Westpac acknowledges the First Peoples of Australia and recognises their ongoing role as Traditional Owners of the land and waters of this country, and we pay respect to Elders past and present. We extend that 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 tangata whenua and the unique relationship that Indigenous Peoples share with all New Zealanders as partners and custodians of their natural ecosystems under Te Tiriti o Waitangi. 2 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT Structure of Pillar 3 Report PILLAR 3 REPORT 3 Executive Summary 4 Introduction 7 Risk Appetite and Risk Types 8 Controlling and Managing Risk 9 Group Structure 14 Capital Overview 16 Leverage Ratio 20 Credit Risk Management 21 Credit Risk Exposure 31 Credit Risk Mitigation 59 Counterparty Credit Risk 61 Securitisation 64 Market Risk 74 Interest Rate Risk in the Bank Book (IRRBB) 79 Operational Risk 81 Equity Risk 83 Funding and Liquidity Risk Management 84 Liquidity Coverage Ratio 85 Net Stable Funding Ratio 86 APPENDICES 88 Appendix I – Regulatory capital reconciliation 89 Appendix II – Entities included in regulatory Consolidation 96 Appendix III – Level 3 entities’ assets and liabilities 98 Appendix IV – Regulatory expected loss 99 Appendix V – APS330 quantitative requirements 100 Appendix VI – Exchange rates 103 GLOSSARY 104 DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 109 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. 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 'GBP' are to British Pound Sterling and references to 'EUR' are to European Euro. Refer to Appendix VI for information regarding the rates of exchange between the Australian dollar and other currencies applied by the Group as part of its operating activities as at 31 March 2024, 30 September 2023 and 31 March 2023. 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. All references in this report to websites are inactive textual references and are for information only. Westpac Banking Corporation ABN 33 007 457 141

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 3 PILLAR 3 REPORT EXECUTIVE SUMMARY INTRODUCTION RISK APPETITE AND RISK TYPES CONTROLLING AND MANAGING RISK GROUP STRUCTURE CAPITAL OVERVIEW LEVERAGE RATIO CREDIT RISK MANAGEMENT CREDIT RISK EXPOSURE CREDIT RISK MITIGATION COUNTERPARTY CREDIT RISK SECURITISATION MARKET RISK INTEREST RATE RISK IN THE BANK BOOK (IRRBB) OPERATIONAL RISK EQUITY RISK FUNDING AND LIQUIDITY RISK MANAGEMENT LIQUIDITY COVERAGE RATIO NET STABLE FUNDING RATIO

4 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT EXECUTIVE SUMMARY Key capital ratios 31 March 30 September 31 March 2024 2023 2023 Level 2 regulatory capital structure Common equity Tier 1 (CET1) capital after deductions ($m) 55,764 55,885 55,644 Risk weighted assets (RWA) ($m) 444,417 451,418 452,946 CET1 capital ratio 12.55% 12.38% 12.28% Additional Tier 1 capital ratio 2.46% 2.21% 2.20% Tier 1 capital ratio 15.01% 14.59% 14.48% Tier 2 capital ratio 6.42% 5.86% 5.27% Total regulatory capital ratio 21.43% 20.45% 19.75% APRA leverage ratio 5.49% 5.50% 5.46% Level 1 regulatory capital structure CET1 capital after deductions ($m) 51,999 52,273 52,021 Risk weighted assets ($m) 406,397 414,293 416,254 Level 1 CET1 capital ratio 12.80% 12.62% 12.50% CET1 CAPITAL RATIO MOVEMENT FOR FIRST HALF 2024 12.38% 75bps (57bps) 17bps 2bps (1bps) (19bps) 12.55% Sep-23 Net profit Dividends RWA movement Capital deductions and other items FX translation impacts Share buyback Mar-24 Westpac’s Level 2 CET1 capital ratio was 12.55% at 31 March 2024, 17 basis points higher than 30 September 2023. Key movements included: • First half 2024 net profit: 75 basis points increase; • Payment of the 2023 final dividend: 57 basis points reduction; • RWA: 17 basis points increase mainly from a reduction in Interest Rate Risk in the Banking Book (IRRBB) RWA; • Capital deductions and other capital movements: 2 basis points increase mainly due to lower deductions for capitalised software; • Foreign currency impacts: 1 basis point reduction; and • On-market share buyback: 19 basis points reduction. As at 31 March 2024, approximately $0.85 billion of the $1.5 billion on-market share buyback announced in November 2023 has been completed with a total of 34,442,450 shares bought back and cancelled at an average price of $24.65. Westpac’s Level 1 CET1 capital ratio was 12.80% at 31 March 2024, 18 basis points higher than 30 September 2023 with movements in line with Level 2.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 5 Risk Weighted Assets (RWA) 31 March 30 September 31 March $m 2024 2023 2023 Risk weighted assets at Level 2 Credit risk 339,741 339,758 340,558 Market risk 11,251 11,538 15,168 Operational risk 54,934 55,175 56,900 Interest rate risk in the banking book (IRRBB) 33,599 40,138 34,748 Other 4,892 4,809 5,572 Total RWA 444,417 451,418 452,946 Total Exposure at Default 1,177,971 1,173,867 1,187,904 Total RWA decreased by 1.6% to $444.4 billion over the half largely due to the decrease in non-credit RWA. Credit RWAs were flat. Key movements included: • A $2.2 billion increase from higher lending primarily in Corporates; • A $3.0 billion increase due to deterioration in credit metrics mainly from an increase in delinquencies in Residential Mortgages; • A $4.0 billion decrease from data refinements mainly related to Residential Mortgages and Corporate exposures; • A $0.3 billion decrease from counterparty credit risk and mark-to-market related credit risk due to decreases in the mark-to-market value of derivatives from changes in underlying foreign currency rates; and • A $0.8 billion decrease from foreign currency translation impacts, predominantly the appreciation of the A$ against the NZ$ and US$. Non-credit RWA were $7.0 billion lower. Key movements included: • IRRBB RWA: $6.5 billion decrease, driven by: – Reduction of $8.4 billion from a lower regulatory embedded loss due to lower swap rates; and – Increase in repricing and yield curve risk of $1.4 billion in line with underlying banking book positions; • Operational RWA: $0.2 billion decrease driven by the outcome of the annual Standardised Measurement Approach (SMA) capital revision and the roll-off of indemnities provided as part of the exit of non-core businesses; and • Market RWA: $0.3 billion decrease from changes in market risk exposures.

6 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT EXECUTIVE SUMMARY Exposure at Default Exposure at Default (EAD) increased $4.1 billion over the half. Key movements include: • A $15.5 billion increase from higher lending, mainly in Corporates and Residential Mortgages; • A $6.7 billion decrease in Sovereign exposures, mainly driven by maturing Term Funding Facility (TFF) drawdowns; • A $2.4 billion decrease from foreign currency translation impacts; and • A $1.2 billion decrease in derivative exposures. Additional Tier 1 (AT1) and Tier 2 capital movement for First Half 2024 During the half, the Group issued $1.75 billion of Additional Tier 1 capital instruments and redeemed $0.8 billion of Additional Tier 1 capital instruments. The net impact of these transactions was an increase in the Tier 1 capital ratio of approximately 21 basis points. The Group also issued $2.7 billion of Tier 2 capital instruments over the half. The impact of these transactions was an increase in the Total Capital ratio of approximately 59 basis points. There were no Tier 2 capital instruments redeemed. Domestic systemically important banks (D-SIBs), including Westpac, have a Total Capital requirement of 18.25% from 1 January 2026. Leverage ratio The leverage ratio represents the amount of Tier 1 capital relative to exposure1 .. At 31 March 2024, Westpac’s leverage ratio was 5.49%, down 1 basis point from 30 September 2023, and above APRA's regulatory minimum requirement of 3.5%. Liquidity Coverage Ratio (LCR) Westpac’s average LCR for the quarter ended 31 March 2024 was 132% (31 December 2023: 133%), well above the regulatory minimum of 100%. The decrease in the ratio was mainly due to higher average Net Cash Outflows (NCO). This comprised higher wholesale funding outflows, mostly from long-term wholesale funding maturities, and maturing TFF drawdowns. This was partly offset by higher issuance of wholesale term funding in the quarter which increased cash holdings. Net Stable Funding Ratio (NSFR) Westpac had an NSFR of 114% as of 31 March 2024 (31 December 2023: 114%) and continues to be above the regulatory minimum of 100%. The NSFR for the quarter ended 31 March 2024 held flat on the previous quarter. 1. As defined under Attachment D of APS110: Capital Adequacy.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 7 INTRODUCTION 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 Advanced Internal Ratings-Based approach (Advanced 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 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. This report describes Westpac’s risk management practices and presents the prudential assessment of Westpac’s capital adequacy as at 31 March 2024. 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. http://www.westpac.com.au/about-westpac/investor-centre/financial-information/regulatory-disclosures/

8 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT RISK APPETITE AND RISK TYPES Westpac’s appetite for risk is informed by our strategic objectives and business plans, regulatory rules and ratios, and the potential for adverse outcomes that may result in material impacts on our customers, our people, our reputation, our regulatory relationships and/or our financial position including the potential for capital and liquidity ratios to fall below target levels in stressed scenarios. Westpac distinguishes between different types of risk and takes an integrated approach toward identifying, assessing, and managing risks. The Risk Management Framework, which includes the Risk Management Strategy and Board Risk Appetite Statement, together with monitoring and controls are key to identifying and managing risk. Overview of key risk types: • risk culture – the risk that our culture does not promote and reinforce behavioural expectations and structures to identify, understand, discuss and act on risks; • strategic risk – the risk that Westpac makes inappropriate strategic choices, does not implement its strategies successfully, or does not respond effectively to changes in the environment; • capital adequacy risk – the risk that Westpac has an inadequate level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under both normal or stressed operating environments; • funding and liquidity risk – the risk that Westpac cannot meet its payment obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets; • credit risk – the risk of financial loss where a customer or counterparty fails to meet their financial obligations to Westpac; • market risk – the risk of an adverse impact on Westpac’s financial performance or financial position resulting from changes in market factors, such as foreign exchange rates, commodity prices, equity prices, credit spreads and interest rates. This includes interest rate risk in the banking book, which is the risk of loss in earnings or economic value in the banking book as a consequence of movements in interest rates; • operational risk – the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events; • cyber risk – the risk that Westpac or its third parties’ data or technology are inappropriately accessed, manipulated, or damaged from cyber threats or vulnerabilities; • compliance and conduct risk – the risk of failing to abide by compliance obligations required of us or otherwise failing to have behaviours and practices that deliver suitable, fair, and clear outcomes for our customers and that support market integrity; • reputational and sustainability risk − the risk of failing to recognise or address environmental, social or governance (ESG) issues and the risk that an action, inaction, transaction, investment, or event will reduce trust in Westpac’s integrity and competence by clients, counterparties, investors, regulators, employees, or the public; and • financial crime risk – the risk that Westpac fails to prevent financial crime and comply with applicable global financial crime regulatory obligations. We have put in place a risk management framework that seeks to: • achieve Westpac’s purpose of creating better futures together; • deliver fair outcomes for our customers and counterparties that support market integrity; • protect Westpac’s depositors and investors by maintaining a balance sheet with sound credit quality and buffers over regulatory minimums; • manage risk within risk appetite; • make Westpac resilient to operational risks and disruptions, and manage the risks arising from service providers; • ensure appropriate reward for risk we take aligned to our purpose, values and behaviours; and • meet our regulatory and statutory obligations. The Board Risk Appetite Statement and Group Risk Management Framework and Strategy are reviewed annually by the Board Risk Committee. This review includes consideration of whether the framework continues to be sound, and that Westpac is operating with due regards to risk appetite. The Board Risk Appetite Statement and Group Risk Management Framework and Strategy were approved by the Board during the 12 months to 31 March 2024.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 9 CONTROLLING AND MANAGING RISK Roles and responsibilities We have adopted and embedded a Three Lines of Defence model which enables all our people to understand their roles and responsibilities in the active management of risk. First Line First Line under the Three Lines of Defence Model refers to all Divisions and Functions excluding the Risk and Audit functions. The First Line proactively identifies, evaluates, owns, monitors, manages and controls the existing and emerging risks in their business. It manages business activities within approved risk appetite and policies. In managing its risk, the First Line establishes and maintains appropriate governance structures, controls, resources and self-assessment processes, including issue identification, recording and escalation procedures. Second Line Second Line under the Three Lines of Defence Model refers to the Risk Function. It is an independent function that develops risk management frameworks, defines guardrails, provides objective review and challenge regarding the effectiveness of risk management within the First Line business, and executes specific risk management activities where functional independence and/or specific risk capability is required. Its approach is risk-based and proportionate to First Line activities. Third Line Group Audit is the Third Line assurance function that provides the Board and Senior Executive with independent and objective evaluation of the adequacy and effectiveness of the Group’s governance, risk management and internal controls. Risk management governance structure as at 31 March 2024 Board • approves the overall risk management framework for managing financial and non-financial risks, as well as Westpac’s Risk Management Framework, Risk Management Strategy and Board Risk Appetite Statement, and monitors the effectiveness of risk management by Westpac; • forms a view of Westpac’s risk culture and oversees the identification of, and steps taken, to address any changes to risk culture; • approves the Internal Capital Adequacy Assessment Process (ICAAP), including reviewing Group stress testing scenarios/outcomes, and approves recovery and exit plans and resolution plans; and • makes its annual declaration to APRA on risk management under APRA prudential standard CPS 220 Risk Management.

10 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CONTROLLING AND MANAGING RISK Risk management governance structure as at 31 March 2024 Board Risk Committee (BRiskC) From the perspective of specific types of risk, the BRiskC’s role includes: • credit risk – reviewing and approving Westpac’s Credit Risk Management Framework, Credit Risk Management Strategy, Credit Risk Appetite Statement and material policies and limits supporting Westpac’s Credit Risk Management Framework, approving credit provisioning levels, and monitoring the risk profile, performance, and management of our credit portfolio; • funding and liquidity risk – reviewing and approving Westpac’s Liquidity Risk Management Framework and key policies and limits supporting that framework, including our annual funding strategy, and liquidity targets and limits, reviewing and recommending recovery and exit plans and resolution plans to the Board for approval, and monitoring the liquidity position and requirements; • capital adequacy risk – reviewing and approving Westpac’s Capital Adequacy Risk Management Framework and key policies supporting that framework, reviewing and recommending the ICAAP to the Board for approval including target capital ranges (where appropriate) and reviewing and monitoring capital levels for consistency with the Board Risk Appetite Statement; • market risk – reviewing and approving Westpac’s Market Risk Management Framework and key policies and limits supporting that framework, and reviewing Westpac’s trading and non-trading market risk profiles and their respective exposure against limits; • non-financial risks, including operational risk, compliance and conduct risk, cyber risk, financial crime risk, and reputational and sustainability risk – reviewing and approving the risk classes’ Risk Management Frameworks and key policies supporting those frameworks, and monitoring the performance of risk class management and controls; and • risk culture – reviewing and approving Westpac’s Risk Culture Framework, forming a view on Westpac’s risk culture and the extent to which it supports our ability to operate consistently within Westpac’s Risk Management Framework and Board Risk Appetite Statement, and overseeing the identification of, and steps taken to address, any desirable changes to risk culture. The Board Risk Committee also: • reviews Westpac’s Group stress testing results, monitors management response and, together with the Board provides recommendations for future scenarios; • provides relevant periodic assurances and reports (as appropriate) to the Board Audit Committee; • refers or recommends to the Board and any other Board Committees (as appropriate) any matters that have come to the attention of the Board Risk Committee that are relevant for the Board or the respective Board Committee; and • in its capacity as the Westpac Group’s US Risk Committee, oversees the key risks, risk management framework and policies of Westpac’s US operations. Assists the Board to: • consider and approve Westpac’s overall risk management framework for managing financial and non-financial risks; • oversee risk culture across Westpac; • oversee Westpac’s risk profile and set risk appetite for material risks; • review and approve the Risk Management Framework, Risk Management Strategy and Board Risk Appetite Statement; • make its annual declaration to APRA on risk management under APRA prudential standard CPS 220 Risk Management; and • oversee compliance risk management within Westpac. The Committee is also responsible for: • reviewing and monitoring Westpac’s risk profile and controls for consistency with the Board Risk Appetite Statement; • overseeing and recommending recovery and exit plans and resolution plans to the Board for approval; • reviewing and approving the limits and conditions that apply to the delegated credit risk approval authorities; • monitoring changes anticipated for the economic and business environment including consideration of emerging risks and other factors considered relevant to our risk profile and risk appetite; • reviewing and where appropriate approving risks beyond the approval discretion provided to management; and • overseeing material legal and regulatory change relevant to Westpac and the management of material litigation and regulatory investigations and associated remediation activities.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 11 Risk management governance structure as at 31 March 2024 Board Committees with a Risk Focus Board Audit Committee (BAC) Assists the Board by overseeing the: • integrity of financial statements and financial reporting systems of Westpac and its related bodies corporate; • external audit engagement, including the external auditor’s qualifications, performance, independence and fees; • performance of the internal audit function; and • integrity of the Group’s corporate reporting including Westpac’s financial reporting and compliance with prudential regulatory reporting and professional accounting requirements. Board Remuneration Committee (BRemC) • the Board Remuneration Committee assists the Board to discharge its responsibility by overseeing the design, operation and monitoring of the remuneration framework. • the Board Remuneration Committee seeks feedback from and considers matters raised by other Board Committees (as appropriate) with respect to remuneration outcomes, adjustments to remuneration in light of relevant matters and alignment of remuneration with the risk management framework. • cross membership of the Board Remuneration Committee and the Board Risk Committee also supports alignment between risk management and remuneration. • independent input is received from the Chief Risk Officer on risk, compliance and conduct matters that may need to be considered in remuneration outcomes. Executive Team Westpac Executive Team (ET) • executes the Board-approved strategy; • delivers Westpac’s various strategic and performance goals within the approved risk appetite; and • endorse climate change and human rights position statements for approval by the Board. All other position statements on sustainability issues are approved by the CEO. Executive risk committees Westpac Group Executive Risk Committee (RISKCO) • informs the CEO, Chief Risk Officer and other accountable individuals in making risk-related decisions in respect of the Group; • informs attendees in making material decisions in their area of responsibility, with due consideration of Westpac’s risk profile and risk culture; • reviews and provides input on Westpac’s Risk Management Framework and Risk Management Strategy for approval by the Board; • oversees the implementation and performance of the Risk Management Framework and the Risk Management Strategy as well as required controls and actions; • reviews and provides input on risk class risk management frameworks and material supporting policies, as required; • reviews and provides input on the Board Risk Appetite Statement for approval by the Board, oversees the implementation of the Board Risk Appetite Statement and monitors Westpac’s risk profile against its risk appetite measures and thresholds; • monitors the Group’s risk culture, its alignment to risk appetite and related actions; • analyses emerging risks and oversees the adequacy of Westpac’s response; and • reviews outcomes of, annual stress testing, material risk models and risk measurement methodologies, including impacts on capital adequacy and the Group’s Recovery and Exit Plan. Westpac Group Asset & Liability Committee (ALCO) • oversees the balance sheet risk profile, including funding and liquidity risk, capital adequacy risk and interest rate risk in the banking book; • reviews the level and quality of capital, liquidity and funding to ensure that it is commensurate with Westpac’s risk profile, business strategy and risk appetite; • facilitates the optimisation of funding allocation across Westpac; • oversees the Liquidity Risk Management Framework, Capital Adequacy Risk Management Framework and key supporting policies; and • identifies emerging funding, liquidity, and interest rate risk in the banking book risks and oversees actions to respond as appropriate.

12 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CONTROLLING AND MANAGING RISK Risk management governance structure as at 31 March 2024 Executive risk committees (continued) Westpac Group Credit Risk Committee (CREDCO) • reviews and provides input on the Credit Risk Management Framework, Credit Risk Management Strategy, Credit Risk Appetite Statement, and key supporting policies and limits; • oversees Westpac’s credit risk profile against the Board Risk Appetite Statement and thresholds and reviews and monitors Westpac’s credit risks that are outside of risk appetite or approaching tolerance limits and monitors remediation plans and actions; • reviews reporting from the Climate Change Credit Risk Committee on the potential impact on credit exposures from climate-related transition and physical risks; and • analyses emerging credit risks and implications of changes in the regulatory and external environment on the Group credit risk exposures, and reviews business activity with material credit risk-related impacts. Westpac Group Market Risk Committee (MARCO) • reviews and provides input on the Market Risk Management Framework and key market risk management policies; • reviews and provides input on policies and limits for managing traded and non-traded market risk; and • monitors Westpac’s market risk profile, appetite and exposures. Westpac Group Operational Risk, Compliance and Resilience Committee (ORCR) • reviews and provides input on the Operational Risk Management Framework, the Cyber Risk Management Framework and the Compliance and Conduct Risk Management Framework, and key supporting policies; • oversees Westpac’s operational risk, cyber risk, and compliance and conduct risk profiles; • analyses emerging operational, cyber, compliance and conduct risks; • reviews the Group-wide operational risk scenarios for exposure to high-severity loss events; and • reviews and monitors the Group's artificial intelligence risks. Westpac Group Remuneration Oversight Committee (ROC) • supports the BRemC and the Board in fulfilling their responsibility to oversee the design, operation and monitoring of the remuneration framework. Model Risk Committee • oversees the operational effectiveness of the Group Model Risk Policy and key supporting artefacts; • monitors the model risk profile and material model risk exposures, taking into account the regulatory and external environment; • oversees approvals for significant changes to Westpac’s material models; and • oversees material model risk matters raised by associated committees. Stress Testing Committee • reviews and provides input on the Westpac Group Stress Testing Policy, stress testing results and mitigating actions; • reviews and monitors the effectiveness of Westpac’s Group stress-testing framework; and • oversees the generation and selection of Group stress testing scenarios, with reference to emerging risks. Westpac Group Financial Crime Risk Committee • reviews and provides input on Westpac’s Financial Crime risk appetite measures for inclusion in the Board Risk Appetite Statement; • reviews and provides input on the Financial Crime Risk Management Framework, key supporting policies, programs and standards; • reviews regular reporting on Westpac’s aggregate Financial Crime risk exposures, regulatory matters and measures; and • analyses emerging financial crime risks developments and implications of changes in the regulatory and external environment.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 13 Risk management governance structure as at 31 March 2024 Risk Function Risk Function • promotes a strong risk culture and the ‘Voice of Risk’ across the Three Lines of Defence; • owns the design and content of the Risk Management Framework; • defines the structure and coverage of risk appetite; • defines the annual Risk Management Strategy to execute the Risk Management Framework ensuring that the management of risks is in alignment with risk appetite and business strategy; • establishes risk policies, procedures and limits; • measures and reports on risk levels; and • provides oversight of and direction on the management of risks, including Compliance and Conduct and Financial Crime risks. Independent internal review Group Audit • provides the Board, relevant Board Committees and Senior Executive with independent and objective evaluation of the Group’s governance, risk management and internal controls. Divisional business units and functions Business units and functions • responsible for identifying, evaluating, owning, monitoring, managing and controlling the existing and emerging risks in their business, and managing business activities within approved risk appetite and policies; and • establish and maintain appropriate governance structures, controls, resources and self-assessment processes, including issue identification, recording and escalation procedures.

14 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT GROUP STRUCTURE 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 .. Refer to Appendix II for a list of entities included in the regulatory consolidation for the purposes of measuring capital adequacy at Level 1 and Level 2. The Westpac Group The following diagram shows the Level 3 conglomerate group and illustrates the different tiers of regulatory consolidation. 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: • 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 29 of Westpac’s 2023 Annual Report for further details.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 15 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 the Advanced 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. Branch operations Westpac is one of Australia's leading providers of banking and selected financial services, operating under multiple brands, and predominantly in Australia and New Zealand, with a small presence in Europe, North America and Asia. Westpac operates through a significant online capability supported by an extensive branch and ATM network, call centres and specialist 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 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 limits 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. RBNZ capital review2 The RBNZ capital adequacy framework became effective from 1 July 2022. The reforms begun being phased in from 1 October 2021, with changes yet to be fully implemented including: • WNZL Tier 1 capital requirement will increase to 16% of RWA by 1 July 2028, of which 13.5% must be CET1 and up to 2.5% may be AT1; • WNZL’s total capital requirement will increase to 18% of RWA by 1 July 2028, of which up to 2% can be Tier 2 capital; and • Eligible Tier 1 capital will comprise common equity and redeemable perpetual preference shares. Existing AT1 capital instruments will be phased out by 1 July 2028. 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. 2. WNZL’s references to CET1, AT1 and other capital measures may not align with the Australian definition in the Glossary as they are subject to RBNZ’s requirements.

16 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CAPITAL OVERVIEW Capital structure This table shows Westpac’s capital resources on a Level 2 basis under APS111 Capital Adequacy: Measurement of Capital. 31 March 30 September 31 March $m 2024 2023 2023 Tier 1 capital CET1 capital Paid up ordinary capital 38,944 39,826 39,824 Treasury shares (815) (759) (759) Equity based remuneration 1,994 1,929 1,907 Foreign currency translation reserve (332) (171) (160) Accumulated other comprehensive income (238) (221) (38) Non-controlling interests - other 38 44 44 Retained earnings 32,179 31,436 30,686 Less retained earnings in life and general insurance, funds management and securitisation entities (399) (369) (343) Deferred fees 305 334 276 Total CET1 capital 71,676 72,049 71,437 Deductions from CET1 capital Goodwill (excluding funds management entities) (7,901) (7,940) (7,943) Deferred tax assets (2,186) (2,144) (2,065) Goodwill in life and general insurance, funds management and securitisation entities (149) (149) (149) Capitalised expenditure (2,333) (2,375) (2,250) Capitalised software (2,658) (2,797) (2,631) Investments in subsidiaries not consolidated for regulatory purposes (136) (76) (201) Regulatory expected downturn loss in excess of eligible provisionsa - - (2) Securitisation (16) (16) - Defined benefit superannuation fund surplus (146) (217) (67) Equity investments (234) (228) (209) Regulatory adjustments to fair value positions (153) (222) (276) Total deductions from CET1 capital (15,912) (16,164) (15,793) Total CET1 capital after deductions 55,764 55,885 55,644 Additional Tier 1 capital Basel III complying instruments 10,956 10,037 9,958 Total Additional Tier 1 capital 10,956 10,037 9,958 Deductions from Additional Tier 1 capital Holdings of own and other financial institutions Additional Tier 1 capital instruments (26) (46) (25) Total deductions from Additional Tier 1 capital (26) (46) (25) Net Additional Tier 1 regulatory capital 10,930 9,991 9,933 Net Tier 1 regulatory capital 66,694 65,876 65,577 Tier 2 capital Basel III complying instruments 28,067 25,740 23,160 Eligible general reserve for credit loss 896 1,051 1,103 Total Tier 2 capital 28,963 26,791 24,263 Deductions from Tier 2 capital Holdings of own and other financial institutions Tier 2 capital instruments (410) (370) (367) Total deductions from Tier 2 capital (410) (370) (367) Net Tier 2 regulatory capital 28,553 26,421 23,896 Total regulatory capital 95,247 92,297 89,473 a. An explanation of the relationship between this deduction, regulatory expected loss and provisions for impairment charges is contained in Appendix IV.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 17 Capital management strategy Westpac's capital management strategy is reviewed on an ongoing basis and annually through an Internal Capital Adequacy Assessment Process (ICAAP). Key considerations include: • Regulatory capital minimums together with the capital conservation buffer (CCB) and countercyclical capital buffer are the Total CET1 Requirement. The Total CET1 Requirement for D-SIBs, including Westpac, is at least 10.25%1 ; • 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 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 31 March 30 September 31 March % 2024 2023 2023 The Westpac Group at Level 2 CET1 capital ratio 12.55 12.38 12.28 Additional Tier 1 capital ratio 2.46 2.21 2.20 Tier 1 capital ratio 15.01 14.59 14.48 Tier 2 capital ratio 6.42 5.86 5.27 Total regulatory capital ratio 21.43 20.45 19.75 The Westpac Group at Level 1 CET1 capital ratio 12.80 12.62 12.50 Additional Tier 1 capital ratio 2.68 2.42 2.38 Tier 1 capital ratio 15.48 15.04 14.88 Tier 2 capital ratio 7.11 6.44 5.79 Total regulatory capital ratio 22.59 21.48 20.67 Westpac New Zealand Limited’s capital adequacy ratios 31 March 30 September 31 March % 2024 2023 2023 Westpac New Zealand Limited CET1 capital ratio 11.37 11.10 11.07 Additional Tier 1 capital ratio 2.14 1.62 1.65 Tier 1 capital ratio 13.51 12.72 12.72 Tier 2 capital ratio 1.72 1.73 0.99 Total regulatory capital ratio 15.23 14.45 13.71 Westpac New Zealand capital ratios are reported in accordance with RBNZ requirements. 1. Noting that APRA may apply higher CET1 requirements for an individual ADI.

18 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CAPITAL OVERVIEW This table shows risk weighted assets for each risk type included in the regulatory assessment of Westpac’s capital adequacy. Westpac’s approach to managing each risk type, and more detailed disclosures on the prudential assessment of capital requirements, are presented in the following sections of this report. 31 March 2024 $m IRB Approacha FIRB Approachb Standardised Approachc Total Risk Weighted Assets Credit risk Corporate 25,269 - 1,230 26,499 Business Lending 23,426 - 229 23,655 Property Finance 30,386 - - 30,386 Large Corporate - 20,558 - 20,558 Sovereign - 1,919 1,604 3,523 Financial Institutions - 13,088 73 13,161 Residential Mortgages 115,918 - 16,786 132,704 Australian Credit Cards 3,789 - - 3,789 Other Retail 4,259 - 424 4,683 Small Business 17,378 - 118 17,496 Specialised Lending 3,276 - 457 3,733 Securitisation 7,317 - - 7,317 New Zealand 44,184 - 2,306 46,490 Credit valuation adjustment - - 5,747 5,747 Total Credit risk 275,202 35,565 28,974 339,741 Market risk 11,251 Operational risk 54,934 Interest rate risk in the banking book 33,599 Otherd 4,892 Total 444,417 a. IRB approaches excluding Foundation IRB (FIRB). Refer page 23 for a summary of approach by asset class. b. Under FIRB, an ADI must provide its own estimates of probability of default (PD) and maturity and rely on supervisory estimates of loss given default (LGD) and EAD. c. Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories. d. Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 19 $m IRB Approacha FIRB Approachb Standardised Approachc Total Risk Weighted Assets 30 September 2023 Credit risk Corporate 24,818 - 656 25,474 Business Lending 23,860 - 223 24,083 Property Finance 30,416 - - 30,416 Large Corporate - 20,570 - 20,570 Sovereign - 2,143 1,805 3,948 Financial Institutions - 13,457 71 13,528 Residential Mortgages 112,948 - 19,290 132,238 Australian Credit Cards 3,712 - - 3,712 Other Retail 4,607 - 425 5,032 Small Business 17,040 - 125 17,165 Specialised Lending 3,065 - 466 3,531 Securitisation 7,661 - - 7,661 New Zealand 44,350 - 2,298 46,648 Credit valuation adjustment - - 5,752 5,752 Total Credit risk 272,477 36,170 31,111 339,758 Market risk 11,538 Operational risk 55,175 Interest rate risk in the banking book 40,138 Otherd 4,809 Total 451,418 31 March 2023 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 Credit valuation adjustment - - 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 Otherd 5,572 Total 452,946 a. IRB approaches excluding Foundation IRB (FIRB). Refer page 23 for a summary of approach by asset class. b. Under FIRB, an ADI must provide its own estimates of PD and maturity and rely on supervisory estimates of LGD and EAD. c. Westpac’s standardised risk weighted assets are categorised based on their equivalent IRB categories. d. Other assets include cash items, unsettled transactions, fixed assets and other non-interest earning assets.

20 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT LEVERAGE RATIO Leverage Ratio The following table summarises Westpac’s leverage ratio. $ billion 31 Mar 2024 31 Dec 2023 30 Sept 2023 30 June 2023 Net Tier 1 Regulatory Capital 66.7 65.3 65.9 64.5 Total Exposures 1,214.9 1,207.4 1,196.7 1,202.1 Leverage ratio 5.49% 5.41% 5.50% 5.36% Leverage ratio disclosure $m 31 March 2024 On-balance sheet exposures 1 On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral) 1,045,971 2 Asset amounts deducted in determining Tier 1 capital (15,912) 3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of rows 1 and 2) 1,030,059 Derivative exposures 4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 7,310 5 Add-on amounts for potential future credit exposure (PFCE) associated with all derivatives transactions 22,715 6 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the Australian Accounting Standards 4,843 7 Deductions of receivables assets for cash variation margin provided in derivatives transactions (3,845) 8 Exempted central counterparty (CCP) leg of client-cleared trade exposures - 9 Adjusted effective notional amount of written credit derivatives - 10 Adjusted effective notional offsets and add-on deductions for written credit derivatives - 11 Total derivative exposures (sum of rows 4 to 10) 31,023 SFT exposures 12 Gross SFT assets (with no recognition of netting), after adjusting for sales accounting transactions 42,992 13 Netted amounts of cash payables and cash receivables of gross SFT assets - 14 Counterparty credit risk exposure for SFT assets 5,686 15 Agent transaction exposures - 16 Total SFT exposures (sum of rows 12 to 15) 48,678 Other off-balance sheet exposures 17 Off-balance sheet exposure at gross notional amount 216,154 18 Adjustments for conversion to credit equivalent amounts (110,981) 19 Other off-balance sheet exposures (sum of rows 17 and 18) 105,173 Capital and total exposures 20 Net Tier 1 Regulatory Capital 66,694 21 Total exposures (sum of rows 3, 11, 16 and 19) 1,214,933 Leverage ratio % 22 Leverage ratio 5.49% Summary comparison of total consolidated assets to leverage ratio exposure measure $m 31 March 2024 1 Total consolidated assets disclosed in 2024 Interim Financial Report 1,052,661 2 Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation (209) 3 Adjustment for assets held on the balance sheet in a fiduciary capacity pursuant to the Australian Accounting Standards but excluded from the leverage ratio exposure measure - 4 Adjustments for derivative financial instruments 15,228 5 Adjustment for SFTs (i.e. repos and similar secured lending) 34,601 6 Adjustment for off-balance sheet exposures (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) 105,173 7 Other adjustments 7,479 8 Leverage ratio exposure 1,214,933

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 21 CREDIT RISK MANAGEMENT Credit risk is the risk of financial loss where a customer or counterparty fails to meet their financial obligations to Westpac. Credit Risk Management Framework and policies Westpac maintains a credit risk management framework and supporting policies that clearly define roles and responsibilities, acceptable practices, limits and key controls. The Credit Risk Management Framework describes the principles, methodologies, systems, roles and responsibilities, reports and controls that exist for managing credit risk in Westpac. The Credit Risk Rating System policy describes the credit risk rating system philosophy, design, key features, roles and responsibilities and uses of rating outcomes. Concentration risk policies cover individual counterparties, specific industries (e.g. property) and individual countries. In addition, we have policies covering risk appetite statements, environmental, social and governance (ESG) risk, credit risks and the delegation of credit approval authorities. At the divisional level, credit policies and standards embed the Group’s framework requirements. Policies and standards cover the origination, evaluation, approval, documentation, settlement and on-going management of credit risks, and sector policies to guide the extension of credit where industry-specific guidelines are considered necessary. Credit approval limits represent the formal delegation of credit approval authority to responsible individuals throughout the organisation. Structure and organisation The Chief Risk Officer is responsible for the effectiveness of overall risk management throughout Westpac, including credit risk. The Group Chief Credit Officer is responsible for the effectiveness of credit risk management, including credit approval decisioning beyond business authority level and appointing our most senior authorised credit officers. Authorised Credit Officers have delegated authority to approve credit risk exposures, including customer risk grades, other credit parameters and their ongoing review. Our largest exposures are approved by our most experienced authorised credit officers. Management is responsible for managing credit risks originated in their business and for managing risk adjusted returns from their business credit portfolios, within the approved risk appetite, risk management framework and policies. Approach Westpac adopts two approaches to managing credit risk depending upon the nature of the customer and the product. Transaction-managed approach For larger customers, Westpac evaluates credit requests by undertaking detailed individual customer and transaction risk analysis (the ‘transaction-managed’ approach). Such customers are assigned a customer risk grade (CRG) representing Westpac’s estimate of their probability of default (PD). Each facility is assigned a loss given default (LGD). The Westpac credit risk rating system has 20 risk grades for non-defaulted customers and 8 risk grades for defaulted customers. Non-defaulted CRGs down to the level of normally acceptable risk (i.e. D grade – see table below) are mapped to Moody’s and S&P Global Ratings (S&P) external senior unsecured ratings. This mapping allows Westpac to integrate the rating agencies’ default history with internal historical data when calculating PDs. The final assignment of CRGs and LGDs is approved by authorised credit approvers with appropriate delegated approval authority. All material credit exposures are also approved by authorised Credit Officers who are part of the risk management stream and operate independently of the areas originating the credit risk proposals. Authorised Credit Officer decisions are subject to reviews to ensure consistent quality and confirm compliance with approval authority. Separate teams are responsible for maintaining accurate and timely recording of all credit risk approvals and changes to customer and facility data. These teams also operate independently of both the areas originating the credit risk proposals and the credit risk approvers. Appropriate segregation of functions is one of the key requirements of our Credit Risk Management Framework.

22 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MANAGEMENT Alignment of Westpac risk grades The table below shows the current alignment between Westpac’s internal CRGs and the corresponding external rating. Note that only high-level CRG groupings are shown. Westpac customer risk grade Moody’s Rating S&P Rating A Aaa - Aa3 AAA - AA– B A1 - A3 A+ - A– C Baa1 - Baa3 BBB+ - BBB– D Ba1 - B1 BB+ - B+ Westpac Rating E Watchlist F Special mention G Substandard/default H Doubtful/default For Specialised Lending, Westpac aligns exposures to the appropriate supervisory slot based on an assessment that takes into account borrower strength and security quality, as required by APS113 Capital Adequacy: Internal Ratings-Based Approach to Credit Risk (APS113). Program-managed approach High-volume retail customer credit portfolios with homogenous credit risk characteristics are managed on a statistical basis according to pre-determined objective criteria (the ‘program-managed’ approach). Program-managed exposure includes all consumer and some small business customers. Quantitative scorecards are used to assign application and behavioural scores to enable risk-based decision making within these portfolios. For capital estimation and other purposes, risk-based customer segments are created based upon modelled PD, LGD and, where applicable, exposure at default (EAD)1 .. Accounts are then assigned to respective segments based on customer and account characteristics. Each segment is assigned a quantified measure of its PD, LGD and EAD. For both transaction-managed and program-managed approaches, PD and LGD assignment is regularly monitored and validated against subsequent customer performance and models and credit processes are recalibrated when required. CRGs, PDs and LGDs are reviewed at least annually. Alignment of Basel categories to Westpac portfolios APRA’s capital framework includes prudential standards for credit risk capital (APS113 Capital Adequacy: Internal Ratings-Based Approach to Credit Risk). In line with the standard, an ADI must categorise banking book exposures into four broad IRB APS113 asset classes (Corporate, Sovereign, Financial Institutions 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 capital framework resulted in changes to previously reported credit asset classes from 1 January 2023. This included changes to credit RWA calculations from advanced Internal rating based approach (AIRB) to a foundation Internal rating based 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. 1. Under APS113 the credit conversion factors used to calculate EAD are prescribed for all portfolios other than revolving retail.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 23 The below table sets out Westpac credit risk asset classes under APRA’s standards. Credit Asset Classes Asset Class definition Corporate The Corporate asset class covers exposures to corporate counterparties with consolidated annual revenue <$750m, but greater than or equal to $75m. Business Lending Business Lending asset class covers exposures to corporate counterparties with consolidated annual revenue <$75m. Property Finance Property Finance asset class covers Income-producing Real Estate (IPRE) exposures risk-weighted according to the AIRB approach. 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 Large Corporate asset class covers exposures to corporate counterparties with consolidated annual revenue greater than $750m. Credit RWA is measured under FIRB. Sovereign Sovereign asset class covers exposures to central and sub-national governments, central banks, and development banks or institutions eligible for zero risk weights. Credit RWA is measured under FIRB. Financial Institutions Financial Institutions asset class covers exposures to financial institution counterparties. Financial institutions include, but are not limited to, banks, securities firms, insurance companies and leveraged funds. Credit RWA is measured under FIRB. Residential Mortgages Residential Mortgages asset class covers exposures, to individuals and not for business purposes, fully or partially secured by residential property. Non-standard mortgages receive 100% standardised risk weight (rather than the internally-modelled Retail IRB approach). Australian Credit Cards Australian Credit Cards, otherwise known as Qualifying Revolving Retail, covers exposure to individuals and not for business purposes which are revolving, unsecured and unconditionally cancellable. Other Retail Other retail asset class covers retail exposures which do not meet the criteria of any other retail asset class. Small Business Small Business asset class covers exposures where the total exposures are <$1.5m, the customer does not hold a complex product and consolidated annual revenues are <$75m. Exposures are managed as part of a portfolio. Specialised Lending Specialised Lending asset class covers exposures subject to the supervisory slotting approach and includes Project and Object finance. 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 Securitised portfolios are treated separately under APS120 Securitisation. New Zealand RBNZ regulated exposures are calculated using RBNZ rules and disclosed separately under a New Zealand class. Standardised and Securitised portfolios are separately treated under APS112 Capital Adequacy: Standardised Approach to Credit Risk and APS120 Securitisation respectively.

24 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MANAGEMENT Approach APS asset class Types of exposures Transaction-Managed Portfolios Corporate Sovereign Financial Institutions Direct lending Contingent lending Derivative counterparty Asset warehousing Underwriting Secondary market trading Foreign exchange settlement Other intra-day settlement obligations Program-Managed Portfolios Residential Mortgages Qualifying revolving retail Other retail Small-and medium-sized enterprise retail Mortgages Equity access loans Australian credit cards Personal loans Overdrafts Auto and equipment finance Business development loans Business overdrafts Other term products Internal ratings process for transaction-managed portfolios The process for assigning and approving individual customer PDs and facility LGDs involves: • An expert judgement decisioning process is employed to evaluate customer CRG and facility LGDs; • CRG and LGDs are recommended under the guidance of criteria set out in established credit policies and, where relevant, with use of internally developed risk grading models. Each CRG is associated with an estimated PD; • Authorised credit officers evaluate the recommendations and approve the final CRG and facility LGDs. Authorised credit officers may override recommendations; • Under certain circumstances model outcomes are approved by the business, where no adjustment or override has been applied to the input data or model produced result; and • Decisions are subject to hindsighting by credit officers to ensure consistency and confirm compliance with approval authority. For ongoing exposures to transaction-managed customers, risk grades and facility LGDs are required to be reviewed at least annually, but also whenever material changes occur. No material deviations from the reference definition of default are permitted. Internal ratings process for program-managed portfolios The process for assigning PDs, LGDs and, where applicable, EADs to the program-managed portfolio involves segmenting or categorising the portfolio into a number of pools per product. These pools are created by analysing risk characteristics that have historically predicted that an account is likely to go into default or loss. No material deviations from the reference definition of default are permitted. Internal credit risk ratings system In addition to using the credit risk estimates as the basis for regulatory capital purposes, they are also used for the purposes described below: Provisioning - Credit provisions are held by Westpac to cover expected credit losses in the loan portfolio. Provisioning includes both individual and collective components, including overlays. Individual provisions are calculated on impaired loans taking into account management’s best estimate of the present value of future cashflows. Collective provisions are established on a portfolio basis using a framework that considers PD, LGD, EAD, total committed exposure, level of arrears, recent past experience and forward looking macro-economic forecasts. This also includes a consideration of overlays. Risk-adjusted performance measurement - Business performance is measured using allocated capital, which incorporates charges for regulatory capital, including credit capital and capital for other risk types. Pricing - Westpac prices loans with consideration of the return on the capital allocated to the loan. Returns include interest income and fees after expected credit losses and other costs.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 25 Credit approval - For transaction-managed facilities, approval authorities are tiered based on the CRG, with lower limits applicable for customers with a higher PD. Program-managed facilities are approved on the basis of application scorecard outcomes and product based approval authorities. Control mechanisms for the credit risk rating system include: • Westpac’s credit risk rating system is reviewed by Risk and presented to BRiskC confirming that the rating criteria and policy are appropriate given the current portfolio, control framework and external conditions; • All models impacting the risk rating process are periodically reviewed by Model Owner in accordance with Westpac’s model risk policies; • Credit risk estimate models (including PD, LGD and EAD levels) are independently assessed annually by Model Risk and outcomes are noted at the Credit Risk Estimate Forum and the Model Risk Committee (a sub-committee of the Group Executive Risk Committee). All credit risk estimate models used for IRB purposes are approved by Head of Model Risk; • Group Audit undertakes an independent annual review of the credit risk rating system in accordance with APS113; and • CREDCO, RISKCO and BRiskC monitor the risk profile, performance and management of Westpac’s credit portfolio and the development and review of key credit risk policies. Risk reporting A report on Westpac’s credit risk portfolio is provided to CREDCO, RISKCO and BRiskC quarterly. It includes monitoring of performance against risk appetite. Credit risk and asset quality are also reported to the Board, including details of impairment losses, stressed exposures, delinquency trends and key performance metrics.

26 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MANAGEMENT Summary credit risk disclosure 31 March 2024 $m Exposure at Default Risk Weighted Assets Regulatory Expected Lossa Regulatory expected loss for non-defaulted exposures Specific Provision for Non-performing Exposures Actual losses for the 6 months ended Corporate 42,936 25,269 547 151 163 14 Business Lending 43,815 23,426 554 240 322 6 Property Finance 55,503 30,386 328 173 153 3 Large Corporate 40,205 20,558 85 85 - - Sovereign 168,637 1,919 2 2 - - Financial Institutions 38,428 13,088 60 28 17 - Residential Mortgages 540,189 115,918 1,327 851 479 20 Australian Credit Cards 13,561 3,789 166 128 38 56 Other Retail 4,271 4,259 191 132 59 50 Small Business 28,002 17,378 510 341 183 26 Specialised Lending 4,116 3,276 30 30 - - Securitisation 38,009 7,317 - - - - Standardisedb 27,411 26,668 - - 125 2 New Zealand 132,888 46,490 583 374 157 10 Total 1,177,971 339,741 4,383 2,535 1,696 187 a. Includes regulatory expected losses for defaulted and non-defaulted exposures. b. Includes credit valuation adjustment. 30 September 2023 $m Exposure at Default Risk Weighted Assets Regulatory Expected Lossa Regulatory expected loss for non-defaulted exposures Specific Provision for Non-performing Exposures Actual losses for the 12 months ended Corporate 40,545 24,818 477 151 93 16 Business Lending 42,327 23,860 529 244 296 39 Property Finance 54,736 30,416 320 162 157 4 Large Corporate 41,328 20,570 84 84 - - Sovereign 175,377 2,143 3 3 - - Financial Institutions 38,426 13,457 66 30 16 9 Residential Mortgages 529,740 112,948 1,166 788 382 32 Australian Credit Cards 13,590 3,712 155 124 31 99 Other Retail 4,848 4,607 193 133 59 122 Small Business 28,232 17,040 509 346 165 57 Specialised Lending 3,981 3,065 25 25 - - Securitisation 37,600 7,661 - - - - Standardisedb 29,393 28,813 - - 97 5 New Zealand 133,744 46,648 551 377 120 27 Total 1,173,867 339,758 4,078 2,467 1,416 410 a. Includes regulatory expected losses for defaulted and non-defaulted exposures. b. Includes credit valuation adjustment.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 27 31 March 2023 $m Exposure at Default Risk Weighted Assets Regulatory Expected Lossa Regulatory expected loss for non-defaulted exposures Specific Provision for Non-performing Exposures Actual losses for the 6 months ended Corporateb 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 - - - - Standardisedc 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 a. Includes regulatory expected losses for defaulted and non-defaulted exposures. b. Corporate loan losses include the recovery of a previously written off loan of $40 million. c. Includes credit valuation adjustment. Loan impairment provisions Expected credit losses (ECL) are estimates of the cashflow shortfalls expected to result from defaulted exposures over the relevant timeframe. ECL is determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts of future economic conditions. Westpac calculates provisions for ECL based on a three-stage approach: • Stage 1: 12 months ECL (performing) - For financial assets where there has been no significant increase in credit risk since origination, a provision for 12-month ECL is recognised. • Stage 2: Lifetime ECL (performing) - For financial assets where there has been a significant increase in credit risk since origination and where the asset is still performing, a provision for lifetime ECL is recognised. Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical accounting judgement. The determination of a significant increase in risk is driven by the change in the probability of default (PD) since origination. In determining whether a change in PD represents a significant increase in risk, relative changes in PD and absolute PD thresholds are both considered based on the portfolio of the exposure. • Stage 3: Lifetime ECL (non-performing) - For financial assets that are non-performing a provision for lifetime ECL is recognised. Indicators include a breach of contract with Westpac such as a default on interest or principal payments or a borrower experiencing significant financial difficulties. Collective and individual assessment – Financial assets that are in Stages 1 and 2 are assessed on a collective basis as are financial assets in Stage 3 below specified exposure thresholds. Those financial assets in Stage 3 above the specified exposure thresholds are assessed on an individual basis. Overlays – Where appropriate, adjustments are made to modelled outcomes to reflect reasonable and supportable information about estimated cashflow shortfalls on defaulted exposures not already incorporated in the models. Judgements can change with time as new information becomes available which could result in changes to the provision for ECL. Expected life – Lifetime ECL represents the expected credit losses that result from default events over the expected life of a financial instrument. In considering lifetime ECL, the remaining contractual life is used for non-retail portfolios. For retail portfolios lifetime ECL is calibrated to historically observed portfolio behaviour.

28 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MANAGEMENT Forward looking information - The measurement of ECL for each stage and the assessment of significant increase in credit risk considers information about past events and current conditions as well as reasonable and supportable projections of future events and economic conditions. In order to capture the asymmetry of the losses expected over the range of plausible future events and economic conditions, Westpac considers three future macroeconomic scenarios: base, upside and downside scenarios. The macroeconomic variables used in these scenarios, include (but are not limited to) employment to population ratio, real gross domestic product growth rates and residential and commercial property price indices. The ECL is a weighted average of the credit losses expected under these three scenarios. The scenario weights are based on Westpac’s assessment of upside and downside risks taking into account current trends, forward looking conditions and the degree of uncertainty attached to these projections. Regulatory classification of loan impairment provisions All individually assessed provisions (IAPs) raised under Australian Accounting Standards (AAS) are classified as specific provisions in accordance with APS220 Credit Risk Management. Only Collectively Assessed Provisions (CAPs) raised under AAS for non-performing exposures are classified as specific provisions. Expected credit loss provision This table provides a summary of expected credit loss provisions. 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 item. The increase in IAPs since 30 September 2023 was mainly due to new IAPs in the trade and manufacturing sectors. The increase in CAPs was driven by increase in mortgage 90+ day delinquencies and less favourable forward-looking outlooks for interest rates and commercial property prices. AAS Provisions Total Regulatory $m IAPs CAPs Provisions 31 March 2024 Specific Provisions for impaired loans 461 238 699 for defaulted but not impaired loans - 997 997 Total Specific Provisiona 461 1,235 1,696 Provisions held against performing exposures - 3,439 3,439 Total provisions for ECL 461 4,674 5,135 30 September 2023 Specific Provisions for impaired loans 351 215 566 for defaulted but not impaired loans - 850 850 Total Specific Provisiona 351 1,065 1,416 Provisions held against performing exposures - 3,525 3,525 Total provisions for ECL 351 4,590 4,941 31 March 2023 Specific Provisions for impaired loans 382 269 651 for defaulted but not impaired loans - 742 742 Total Specific Provisiona 382 1,011 1,393 Provisions held against performing exposures - 3,530 3,530 Total provisions for ECL 382 4,541 4,923 a. Provisions classified according to APRA’s letter dated 4 July 2017 “Provisions for regulatory purposes and AASB 9 financial instruments”.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 29 Movement in provisions for impairment For the 6 months ended 31 March 2024 Performing Non-performing $m Stage 1 Stage 2 Stage 3 Total Balance as at 30 September 2023 for Loans and Credit Commitments 706 2,808 1,416 4,930 Transfers to Stage 1 1,471 (1,434) (37) - Transfers to Stage 2 (615) 835 (220) - Transfers to Stage 3 (6) (320) 326 - Business activity during the period 147 210 (165) 192 Net remeasurement of provision for ECL (989) 618 629 258 Write-offs - - (277) (277) Exchange rate and other adjustments (2) (4) 24 18 Balance as at 31 March 2024 for Loans and Credit Commitments 712 2,713 1,696 5,121 Balance as at 30 September 2023 for debt securities 5 6 - 11 Provision for ECL on debt securities at amortised cost - 2 - 2 Provision for ECL on debt securities at FVOCIa 1 - - 1 Total provision as at 31 March 2024 6 8 - 14 Total provision for ECL as at 31 March 2024 718 2,721 1,696 5,135 a. Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at fair value. For the 12 months ended 30 September 2023 Performing Non-performing $m Stage 1 Stage 2 Stage 3 Total Balance as at 30 September 2022 for Loans and Credit Commitments 885 2,341 1,399 4,625 Transfers to Stage 1 1,675 (1,546) (129) - Transfers to Stage 2 (640) 1,119 (479) - Transfers to Stage 3 (8) (496) 504 - Business activity during the period 269 140 (296) 113 Net remeasurement of provision for ECL (1,479) 1,239 965 725 Write-offs - - (601) (601) Exchange rate and other adjustments 4 11 53 68 Balance as at 30 September 2023 for Loans and Credit Commitments 706 2,808 1,416 4,930 Balance as at 30 September 2022 for debt securities 4 6 - 10 Provision for ECL on debt securities at amortised cost - - - - Provision for ECL on debt securities at FVOCIa 1 - - 1 Total provision as at 30 September 2023 5 6 - 11 Total provision for ECL as at 30 September 2023 711 2,814 1,416 4,941 a. Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at fair value.

30 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MANAGEMENT For the 6 months ended 31 March 2023 Performing Non-performing $m Stage 1 Stage 2 Stage 3 Total Balance as at 30 September 2022 for Loans and Credit Commitments 885 2,341 1,399 4,625 Transfers to Stage 1 694 (619) (75) - Transfers to Stage 2 (159) 408 (249) - Transfers to Stage 3 (4) (247) 251 - Business activity during the period 136 54 (136) 54 Net remeasurement of provision for ECL (670) 677 456 463 Write-offs - - (271) (271) Exchange rate and other adjustments 9 14 18 41 Balance as at 31 March 2023 for Loans and Credit Commitments 891 2,628 1,393 4,912 Balance as at 30 September 2022 for debt securities 4 6 - 10 Provision for ECL on debt securities at amortised cost - - - - Provision for ECL on debt securities at FVOCIa 1 - - 1 Total provision as at 31 March 2023 5 6 - 11 Total provision for ECL as at 31 March 2023 896 2,634 1,393 4,923 a. Impairment of debt securities at Fair Value through Other Comprehensive Income (FVOCI) is recognised in the income statement with a corresponding amount in other comprehensive income. There is no reduction of the carrying value of the debt securities which remain at fair value. Overlays included in provisions for ECL on loans and credit commitments As at As at As at $m 31 March 2024 30 Sept 2023 31 March 2023 Modelled provision for ECL on loans and credit commitments 4,861 4,498 4,192 Overlays 260 432 720 Total provisions for ECL on loans and credit commitments 5,121 4,930 4,912

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 31 CREDIT RISK EXPOSURE Exposure at Default by major type1 The following tables segment the portfolio by characteristics that provide an insight into the assessment of credit risk concentration. Off-balance sheet Total Exposure at Default Average 6 months $m ended On balance sheet Non-market related Market related 31 March 2024 Corporate 29,177 10,236 3,523 42,936 41,459 Business Lending 37,449 6,258 108 43,815 43,301 Property Finance 50,026 5,148 329 55,503 54,882 Large Corporate 21,256 14,620 4,329 40,205 40,416 Sovereign 152,731 222 15,684 168,637 175,399 Financial Institutions 16,877 5,644 15,907 38,428 37,023 Residential Mortgages 475,874 64,315 - 540,189 536,060 Australian Credit Cards 6,284 7,277 - 13,561 13,586 Other Retail 3,413 858 - 4,271 4,565 Small Business 20,768 7,234 - 28,002 28,116 Specialised Lending 2,264 1,660 192 4,116 4,035 Securitisation 30,971 6,907 131 38,009 38,065 Standardised 19,131 5,319 2,961 27,411 28,941 New Zealand 111,206 20,973 709 132,888 133,838 Total 977,427 156,671 43,873 1,177,971 1,179,686 30 September 2023 Corporate 27,410 9,835 3,300 40,545 38,676 Business Lending 36,285 5,989 53 42,327 41,833 Property Finance 48,877 5,577 282 54,736 53,779 Large Corporate 22,845 13,686 4,797 41,328 40,356 Sovereign 148,767 297 26,313 175,377 198,239 Financial Institutions 17,001 4,545 16,880 38,426 38,031 Residential Mortgages 464,316 65,424 - 529,740 523,896 Australian Credit Cards 6,170 7,420 - 13,590 13,639 Other Retail 3,886 962 - 4,848 5,232 Small Business 21,200 7,032 - 28,232 29,059 Specialised Lending 2,079 1,803 99 3,981 3,897 Securitisation 29,823 7,723 54 37,600 35,485 Standardised 21,077 5,249 3,067 29,393 29,709 New Zealand 111,491 21,536 717 133,744 132,661 Total 961,227 157,078 55,562 1,173,867 1,184,492 Off-balance sheet Total Exposure $m at Default On balance sheet Non-market related Market related 31 March 2023 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 1. APRA’s capital framework effective 1 January 2023 introduced new credit risk asset classes. This resulted in exposures moving between asset classes. Given this, for 30 September 2023 the average EAD over 6-months has been shown rather than a 12-month average. For 31 March 2023 the average EAD has not been shown.

32 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Exposure at Default by measurement method IRB FIRB Standardised Total Exposure $m Approach Approach Approach at Default 31 March 2024 Corporate 42,936 - 6,144 49,080 Business Lending 43,815 - 268 44,083 Property Finance 55,503 - - 55,503 Large Corporate - 40,205 - 40,205 Sovereign - 168,637 1,604 170,241 Financial Institutions - 38,428 73 38,501 Residential Mortgages 540,189 - 16,843 557,032 Australian Credit Cards 13,561 - - 13,561 Other Retail 4,271 - 1,839 6,110 Small Business 28,002 - 155 28,157 Specialised Lending 4,116 - 485 4,601 Securitisation 38,009 - - 38,009 New Zealand 114,687 - 18,201 132,888 Total 885,089 247,270 45,612 1,177,971 30 September 2023 Corporate 40,545 - 5,348 45,893 Business Lending 42,327 - 261 42,588 Property Finance 54,736 - - 54,736 Large Corporate - 41,328 - 41,328 Sovereign - 175,377 1,805 177,182 Financial Institutions - 38,426 71 38,497 Residential Mortgages 529,740 - 19,386 549,126 Australian Credit Cards 13,590 - - 13,590 Other Retail 4,848 - 1,874 6,722 Small Business 28,232 - 157 28,389 Specialised Lending 3,981 - 491 4,472 Securitisation 37,600 - - 37,600 New Zealand 115,430 - 18,314 133,744 Total 871,029 255,131 47,707 1,173,867 31 March 2023 Corporate 37,110 - 5,905 43,015 Business Lending 40,861 - 205 41,066 Property Finance 52,697 - - 52,697 Large Corporate - 40,248 - 40,248 Sovereign - 210,868 1,777 212,645 Financial Institutions - 37,687 75 37,762 Residential Mortgages 518,276 - 19,632 537,908 Australian Credit Cards 13,675 - - 13,675 Other Retail 5,586 - 1,972 7,558 Small Business 29,559 - 213 29,772 Specialised Lending 3,746 - 474 4,220 Securitisation 32,831 - - 32,831 New Zealand 114,970 - 19,537 134,507 Total 849,311 288,803 49,790 1,187,904

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 33 Exposure at Default by industry classification 31 March 2024 $m Accommodation, cafes & restaurants Agriculture, forestry & fishing Construction Finance & insurance Government administration & defence Manufacturing Mining Property Property services & business services Servicesa Tradeb Transport & storage Utilitiesc Retail lending Other Total exposure at default Corporate 2,684 937 1,564 2,307 91 3,456 837 3,133 4,265 6,928 4,555 6,763 5,226 - 190 42,936 Business Lending 5,840 10,515 3,325 490 410 3,786 436 78 5,763 4,750 5,884 2,009 125 - 404 43,815 Property Finance 599 - - 60 - - - 54,623 1 - 18 - - - 202 55,503 Large Corporate 153 520 1,251 557 2 6,827 3,161 4,947 4,111 3,555 6,913 3,124 5,060 - 24 40,205 Sovereign 1 - - 97,696 70,726 - 22 - - - - 192 - - - 168,637 Financial Institutions 347 75 61 36,924 - 352 - - 215 158 165 115 12 - 4 38,428 Residential Mortgages - - - - - - - - - - - - - 540,189 - 540,189 Australian Credit Cards - - - - - - - - - - - - - 13,561 - 13,561 Other Retail - - - - - - - - - - - - - 4,271 - 4,271 Small Business 718 1,901 4,032 1,416 382 1,713 691 2,983 4,304 3,105 3,039 1,567 332 - 1,819 28,002 Specialised Lending - - - 295 - 334 111 - 82 155 - 1,015 2,124 - - 4,116 Securitisation - - - 37,064 - - - - 419 - 526 - - - - 38,009 Standardised 108 4 42 5,176 1,675 130 37 470 44 32 355 55 83 18,679 521 27,411 New Zealand 368 9,285 951 16,433 6,915 3,356 240 9,125 1,341 2,783 5,000 1,181 3,105 72,697 108 132,888 Total 10,818 23,237 11,226 198,418 80,201 19,954 5,535 75,359 20,545 21,466 26,455 16,021 16,067 649,397 3,272 1,177,971 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services.

34 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE 30 September 2023 $m Accommodation, cafes & restaurants Agriculture, forestry & fishing Construction Finance & insurance Government administration & defence Manufacturing Mining Property Property services & business services Servicesa Tradeb Transport & storage Utilitiesc Retail lending Other Total exposure at default Corporate 2,412 826 1,583 2,161 532 3,266 577 3,078 3,505 7,017 4,496 5,971 4,772 - 349 40,545 Business Lending 5,540 10,434 3,314 431 8 3,707 408 87 5,458 4,475 5,962 1,937 141 - 425 42,327 Property Finance 738 - - 13 - - - 53,653 1 129 23 - - - 179 54,736 Large Corporate 101 273 1,269 295 2 7,170 3,830 4,375 4,247 4,173 7,775 2,589 5,206 - 23 41,328 Sovereign - - - 115,517 59,620 - - - - - - 240 - - - 175,377 Financial Institutions 344 74 64 36,839 1 339 - - 241 180 126 195 14 - 9 38,426 Residential Mortgages - - - - - - - - - - - - - 529,740 - 529,740 Australian Credit Cards - - - - - - - - - - - - - 13,590 - 13,590 Other Retail - - - - - - - - - - - - - 4,848 - 4,848 Small Business 741 1,898 3,866 1,461 478 1,719 656 2,957 4,393 3,302 2,972 1,548 328 - 1,913 28,232 Specialised Lending - - - 295 - 334 192 - 83 200 - 1,092 1,785 - - 3,981 Securitisation - - - 36,619 - - - - 559 - 422 - - - - 37,600 Standardised 105 4 41 4,933 1,882 70 31 483 40 30 333 48 56 21,261 76 29,393 New Zealand 351 9,526 869 16,998 6,719 3,572 229 9,000 1,430 2,790 5,296 1,295 3,290 72,323 56 133,744 Total 10,332 23,035 11,006 215,562 69,242 20,177 5,923 73,633 19,957 22,296 27,405 14,915 15,592 641,762 3,030 1,173,867 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 35 31 March 2023 $m Accommodation, cafes & restaurants Agriculture, forestry & fishing Construction Finance & insurance Government administration & defence Manufacturing Mining Property Property services & business services Servicesa Tradeb Transport & storage Utilitiesc Retail lending Other Total exposure at default Corporate 2,497 873 1,242 1,447 534 3,311 549 2,805 3,353 5,876 3,872 6,443 4,008 - 300 37,110 Business Lending 5,107 9,939 3,128 451 6 3,608 401 243 5,354 4,442 5,763 1,797 123 - 499 40,861 Property Finance 589 - - - - - - 51,907 1 1 20 - - - 179 52,697 Large Corporate 101 392 1,150 413 4 7,266 3,929 4,153 4,246 3,110 7,429 3,035 4,999 - 21 40,248 Sovereign - - - 149,376 61,492 - - - - - - - - - - 210,868 Financial Institutions 311 83 68 36,399 - 66 19 2 251 200 131 124 17 - 16 37,687 Residential Mortgages - - - - - - - - - - - - - 518,276 - 518,276 Australian Credit Cards - - - - - - - - - - - - - 13,675 - 13,675 Other Retail - - - - - - - - - - - - - 5,586 - 5,586 Small Business 783 1,984 3,762 1,591 588 1,662 615 3,138 4,568 3,635 3,007 1,532 330 - 2,364 29,559 Specialised Lending - - - - - 298 317 - 56 462 - 1,163 1,450 - - 3,746 Securitisation - - - 31,841 - - - - 424 - 566 - - - - 32,831 Standardised 1 - 10 5,712 - 2 - 21 30 111 7 - - 19,669 4,690 30,253 New Zealand 367 9,834 913 17,352 6,658 3,614 223 9,034 1,612 2,746 4,982 1,690 3,285 72,081 116 134,507 Total 9,756 23,105 10,273 244,582 69,282 19,827 6,053 71,303 19,895 20,583 25,777 15,784 14,212 629,287 8,185 1,187,904 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services.

36 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Exposure at Default by geography1 Total Exposure $m Australia New Zealand Americas Asia Europe Pacific at Default 31 March 2024 Corporate 41,192 362 232 600 550 - 42,936 Business Lending 43,777 38 - - - - 43,815 Property Finance 55,501 2 - - - - 55,503 Large Corporate 34,924 417 1,318 1,604 1,942 - 40,205 Sovereign 146,547 3,078 18,012 613 387 - 168,637 Financial Institutions 29,212 150 5,484 269 3,313 - 38,428 Residential Mortgages 540,109 - - 80 - - 540,189 Australian Credit Cards 13,561 - - - - - 13,561 Other Retail 4,271 - - - - - 4,271 Small Business 28,001 - - 1 - - 28,002 Specialised Lending 4,115 - 1 - - - 4,116 Securitisation 38,009 - - - - - 38,009 Standardised 23,904 - - 3 - 3,504 27,411 New Zealand - 132,888 - - - - 132,888 Total 1,003,123 136,935 25,047 3,170 6,192 3,504 1,177,971 30 September 2023 Corporate 38,864 254 266 462 699 - 40,545 Business Lending 42,327 - - - - - 42,327 Property Finance 54,735 1 - - - - 54,736 Large Corporate 35,517 431 1,387 1,532 2,461 - 41,328 Sovereign 159,827 3,607 10,830 696 417 - 175,377 Financial Institutions 29,042 103 4,611 110 4,560 - 38,426 Residential Mortgages 529,640 - - 100 - - 529,740 Australian Credit Cards 13,590 - - - - - 13,590 Other Retail 4,848 - - - - - 4,848 Small Business 28,231 - - 1 - - 28,232 Specialised Lending 3,980 - 1 - - - 3,981 Securitisation 37,600 - - - - - 37,600 Standardised 25,788 - - 4 - 3,601 29,393 New Zealand - 133,744 - - - - 133,744 Total 1,003,989 138,140 17,095 2,905 8,137 3,601 1,173,867 31 March 2023 Corporate 35,422 315 266 525 582 - 37,110 Business Lending 40,861 - - - - - 40,861 Property Finance 52,695 2 - - - - 52,697 Large Corporate 34,198 436 1,524 1,896 2,194 - 40,248 Sovereign 190,563 3,858 15,467 671 309 - 210,868 Financial Institutions 28,857 102 4,845 121 3,762 - 37,687 Residential Mortgages 518,156 - - 120 - - 518,276 Australian Credit Cards 13,675 - - - - - 13,675 Other Retail 5,586 - - - - - 5,586 Small Business 29,558 - - 1 - - 29,559 Specialised Lending 3,506 5 - - 235 - 3,746 Securitisation 32,831 - - - - - 32,831 Standardised 26,710 - - 6 - 3,537 30,253 New Zealand - 134,507 - - - - 134,507 Total 1,012,618 139,225 22,102 3,340 7,082 3,537 1,187,904 1. Geographic segmentation of exposures is based on the location of the office in which these items were booked.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 37 Exposure at Default by residual contractual maturity Total Exposure $m On demand < 12 months 1 to < 3 years 3 to < 5 years > 5 years at Default 31 March 2024 Corporate 2,922 7,633 17,421 9,617 5,343 42,936 Business Lending 2,788 11,158 18,829 4,187 6,853 43,815 Property Finance 183 19,435 23,750 5,013 7,122 55,503 Large Corporate 3,994 6,333 18,375 9,125 2,378 40,205 Sovereign 366 94,479 29,824 22,422 21,546 168,637 Financial Institutions 2,663 5,280 26,800 2,815 870 38,428 Residential Mortgages 23,670 1,315 3,092 765 511,347 540,189 Australian Credit Cards 13,559 - - - 2 13,561 Other Retail 172 166 1,084 926 1,923 4,271 Small Business 4,505 2,769 7,152 5,931 7,645 28,002 Specialised Lending 1 294 1,309 1,475 1,037 4,116 Securitisation - 9,910 7,676 3,350 17,073 38,009 Standardised 1,090 4,510 5,104 467 16,240 27,411 New Zealand 5,219 23,280 23,249 6,600 74,540 132,888 Total 61,132 186,562 183,665 72,693 673,919 1,177,971 30 September 2023 Corporate 3,087 6,217 16,937 9,204 5,100 40,545 Business Lending 2,527 9,391 18,459 4,487 7,463 42,327 Property Finance 193 16,254 25,349 5,527 7,413 54,736 Large Corporate 4,300 6,339 19,207 9,703 1,779 41,328 Sovereign 434 102,118 38,962 14,239 19,624 175,377 Financial Institutions 2,841 5,752 25,876 2,690 1,267 38,426 Residential Mortgages 24,522 1,255 3,138 768 500,057 529,740 Australian Credit Cards 13,588 - - - 2 13,590 Other Retail 175 177 1,235 1,165 2,096 4,848 Small Business 4,270 2,608 7,401 5,953 8,000 28,232 Specialised Lending - 355 1,121 935 1,570 3,981 Securitisation - 6,637 10,737 2,253 17,973 37,600 Standardised 1,397 2,676 6,813 405 18,102 29,393 New Zealand 5,354 26,258 20,144 8,147 73,841 133,744 Total 62,688 186,037 195,379 65,476 664,287 1,173,867 31 March 2023 Corporate 3,189 4,829 15,016 9,270 4,806 37,110 Business Lending 2,473 8,958 17,470 4,813 7,147 40,861 Property Finance 207 14,537 24,677 7,029 6,247 52,697 Large Corporate 4,406 6,034 19,246 9,029 1,533 40,248 Sovereign 469 111,183 59,069 14,256 25,891 210,868 Financial Institutions 3,281 5,786 24,379 3,238 1,003 37,687 Residential Mortgages 26,217 1,606 3,648 784 486,021 518,276 Australian Credit Cards 13,675 - - - - 13,675 Other Retail 184 206 1,421 1,526 2,249 5,586 Small Business 4,490 2,525 7,451 6,113 8,980 29,559 Specialised Lending 1 338 821 1,155 1,431 3,746 Securitisation - 10,132 7,022 3,065 12,612 32,831 Standardised 1,467 2,608 6,976 449 18,753 30,253 New Zealand 5,554 27,198 20,503 8,191 73,061 134,507 Total 65,613 195,940 207,699 68,918 649,734 1,187,904

38 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Non-performing and past due loans by portfolio The table below discloses non-performing and past due loans by credit asset class. ADI’s are required to disclose non-performing exposures which are exposures in default aligned to the definition in APS220 Credit Risk Management. Under APS220, the initial recognition of default 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. ADI’s are also required to classify an exposure as non-performing for an additional 90 days after returning to performing. 31 March 2024 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 6 months ended Corporate 89 163 252 163 14 Business Lending 904 161 1,065 322 6 Property Finance 694 13 707 153 3 Large Corporate - - - - - Sovereign - - - - - Financial Institutions 44 11 55 17 - Residential Mortgages 5,123 298 5,421 479 20 Australian Credit Cards - 92 92 38 56 Other Retail - 118 118 59 50 Small Business 779 370 1,149 183 26 Specialised Lending - - - - - Securitisation - - - - - Standardised 365 118 483 125 2 New Zealand 719 156 875 157 10 Total 8,717 1,500 10,217 1,696 187 30 September 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 12 months ended Corporate 27 100 127 93 16 Business Lending 823 190 1,013 296 39 Property Finance 716 36 752 157 4 Large Corporate - - - - - Sovereign - - - - - Financial Institutions 51 8 59 16 9 Residential Mortgages 4,117 238 4,355 382 32 Australian Credit Cards - 84 84 31 99 Other Retail - 123 123 59 122 Small Business 667 320 987 165 57 Specialised Lending - - - - - Securitisation - - - - - Standardised 345 124 469 97 5 New Zealand 661 79 740 120 27 Total 7,407 1,302 8,709 1,416 410

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 39 31 March 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 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 Non-performing and past due loans by industry classification 31 March 2024 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 6 months ended Accommodation, cafes & restaurants 212 38 250 74 2 Agriculture, forestry & fishing 389 62 451 81 (16) Construction 171 80 251 60 8 Finance & insurance 87 22 109 22 20 Government administration & defence - - - - - Manufacturing 178 144 322 130 5 Mining 11 9 20 5 1 Property 863 57 920 189 5 Property services & business services 223 107 330 81 7 Servicesa 173 95 268 79 2 Tradeb 275 204 479 187 17 Transport & storage 104 26 130 25 1 Utilitiesc 9 5 14 3 1 Retail lending 5,999 626 6,625 733 135 Other 23 25 48 27 (1) Total 8,717 1,500 10,217 1,696 187 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services.

40 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE 30 September 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 12 months ended Accommodation, cafes & restaurants 148 40 188 48 10 Agriculture, forestry & fishing 347 43 390 73 (30) Construction 194 75 269 63 9 Finance & insurance 76 28 104 28 10 Government administration & defence - - - - - Manufacturing 183 104 287 109 51 Mining 11 7 18 3 1 Property 864 66 930 184 13 Property services & business services 212 102 314 87 21 Servicesa 152 82 234 66 11 Tradeb 222 125 347 91 29 Transport & storage 56 22 78 15 4 Utilitiesc 7 4 11 2 - Retail lending 4,898 540 5,438 604 275 Other 37 64 101 43 6 Total 7,407 1,302 8,709 1,416 410 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services. 31 March 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 6 months ended Accommodation, cafes & restaurants 208 61 269 63 7 Agriculture, forestry & fishing 263 59 322 51 (34) Construction 185 96 281 63 6 Finance & insurance 94 39 133 33 5 Government administration & defence - - - - - Manufacturing 172 112 284 109 1 Mining 12 8 20 4 - Property 892 61 953 158 7 Property services & business services 226 125 351 93 14 Servicesa 174 92 266 72 8 Tradeb 295 170 465 113 9 Transport & storage 63 33 96 18 1 Utilitiesc 8 5 13 2 - Retail lending 4,059 583 4,642 570 116 Other 58 77 135 44 3 Total 6,709 1,521 8,230 1,393 143 a. Includes education, health & community services, cultural & recreational services and personal & other services. b. Includes wholesale trade and retail trade. c. Includes electricity, gas & water, and communication services.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 41 Non-performing and past due loans by geography1 31 March 2024 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 6 months ended Australia 7,964 1,271 9,235 1,473 144 New Zealand 719 156 875 157 10 Americas - - - - - Asia - 3 3 - 31 Europe - - - - - Pacific 34 70 104 66 2 Total 8,717 1,500 10,217 1,696 187 30 September 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 12 months ended Australia 6,705 1,111 7,816 1,221 379 New Zealand 661 79 740 120 27 Americas - - - - - Asia - 34 34 32 - Europe - - - - - Pacific 41 78 119 43 4 Total 7,407 1,302 8,709 1,416 410 31 March 2023 $m Non Performing Exposures - Not Impaired Non Performing Exposures - Impaired Total Non Performing Exposures Specific provisions for Non Performing Exposures Actual Losses for the 6 months ended Australia 6,078 1,295 7,373 1,205 136 New Zealand 574 98 672 118 7 Americas - - - - - Asia - 33 33 20 - Europe - - - - - Pacific 57 95 152 50 - Total 6,709 1,521 8,230 1,393 143 1. Geographic segmentation of exposures is based on the location of the office in which these items were booked.

42 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Portfolios subject to IRB approaches (AIRB) In the tables below Westpac’s transaction-managed exposures are classified by reference to the external credit rating. Each external credit rating aligns to one or more internally assigned credit risk grades, as outlined in the ‘Credit Risk Management’ section of this report. Westpac’s internal rating scale has more risk grades than the external rating scale, and as a result, average PD can vary from portfolio to portfolio for the same external grade. Westpac’s program-managed exposures are classified by PD band and the average PD within a band can, likewise, vary from portfolio to portfolio. For both non-defaulted and defaulted exposures, regulatory expected loss is determined at the facility level. For non-defaulted exposures, regulatory expected loss is the product of PD, LGD and EAD while for defaulted exposures, the best estimates of loss is applied. Total regulatory expected loss as shown in the table below is the sum of both non-defaulted and defaulted regulatory expected loss and given the difference in methodology, regulatory expected loss reported is not equal to the product of the corresponding reported average PD, average LGD and aggregate EAD. Corporate portfolio by external credit rating Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA - - - - - - - - AA 1,174 1,016 1,675 0.05% 50% - 290 17% A 4,393 2,722 5,611 0.07% 42% 2 1,316 23% BBB 13,271 7,676 17,019 0.27% 37% 17 7,447 44% BB 12,779 7,314 17,152 1.18% 37% 73 14,001 82% B 135 124 207 4.78% 42% 4 304 147% Other 473 492 781 18.13% 40% 55 1,593 204% Subtotal 32,225 19,344 42,445 0.95% 38% 151 24,951 59% Default 241 39 491 100.00% 54% 396 318 65% Total 32,466 19,383 42,936 2.09% 38% 547 25,269 59% 30 September 2023 AAA 108 103 150 0.05% 50% - 23 15% AA 1,495 1,275 2,159 0.05% 50% 1 406 19% A 4,416 2,672 5,570 0.07% 41% 2 1,315 24% BBB 11,652 7,095 15,401 0.27% 38% 16 7,179 47% BB 12,005 6,441 15,852 1.22% 38% 71 13,596 86% B 194 94 248 4.78% 45% 5 394 159% Other 479 542 805 17.58% 44% 56 1,713 213% Subtotal 30,349 18,222 40,185 0.98% 39% 151 24,626 61% Default 127 30 360 100.00% 49% 326 192 53% Total 30,476 18,252 40,545 1.86% 39% 477 24,818 61% 31 March 2023 AAA 100 104 142 - 50% - 20 14% AA 1,430 1,256 2,120 0.05% 47% - 384 18% A 3,250 2,236 4,243 0.07% 44% 1 1,147 27% BBB 11,013 6,559 14,308 0.34% 41% 17 7,259 51% BB 11,999 6,036 15,017 1.19% 39% 70 13,404 89% B 113 69 149 4.70% 47% 3 233 156% Other 334 405 560 19.11% 45% 45 1,233 220% Subtotal 28,239 16,665 36,539 0.94% 41% 136 23,680 65% Default 241 115 571 100.00% 48% 452 629 110% Total 28,480 16,780 37,110 2.47% 41% 588 24,309 66% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 43 Business Lending portfolio by external credit ratings Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA 131 101 171 0.05% 50% - 32 19% AA 121 426 400 0.05% 50% - 55 14% A 2 24 16 0.07% 37% - 2 10% BBB 3,908 2,753 5,213 0.35% 28% 5 1,569 30% BB 30,270 9,010 34,661 1.34% 28% 128 18,346 53% B 789 102 848 4.79% 29% 12 677 80% Other 1,329 244 1,464 21.86% 30% 95 2,248 154% Subtotal 36,550 12,660 42,773 1.97% 28% 240 22,929 54% Default 1,007 115 1,042 100.00% 26% 314 497 48% Total 37,557 12,775 43,815 4.30% 28% 554 23,426 53% 30 September 2023 AAA - - - - - - - - AA - - - - - - - - A - 20 8 0.08% 27% - 1 11% BBB 3,674 2,705 4,951 0.45% 29% 7 1,684 34% BB 29,764 9,315 34,280 1.36% 28% 130 18,895 55% B 714 114 778 4.81% 29% 11 635 82% Other 1,233 214 1,356 23.19% 30% 96 2,082 153% Subtotal 35,385 12,368 41,373 2.03% 28% 244 23,297 56% Default 953 107 954 100.00% 27% 285 563 59% Total 36,338 12,475 42,327 4.24% 28% 529 23,860 56% 31 March 2023 AAA - - - - - - - - AA - - - - - - - - A - 22 10 - 30% - 2 20% BBB 3,208 2,407 4,227 0.54% 30% 8 1,604 38% BB 29,360 9,743 33,799 1.50% 30% 160 20,935 62% B 652 117 703 4.84% 31% 11 605 86% Other 1,045 220 1,143 22.92% 32% 84 1,791 157% Subtotal 34,265 12,509 39,882 2.07% 31% 263 24,937 63% Default 976 137 979 100.00% 27% 227 991 101% Total 35,241 12,646 40,861 4.42% 30% 490 25,928 63% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

44 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Property Finance portfolio by external credit ratings1 Property finance (income-producing real estate under APS113) represents exposures where repayments depend primarily on the cash flows generated by the asset or other real estate assets owned by the borrower. Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA - - - - - - - - AA - - - - - - - - A 1,497 648 1,759 0.09% 35% 1 571 32% BBB 11,948 1,942 12,870 0.25% 18% 5 3,972 31% BB 34,272 6,036 38,127 1.24% 21% 102 22,803 60% B 1,018 49 1,043 4.79% 22% 11 1,023 98% Other 910 93 982 22.56% 23% 54 1,798 183% Subtotal 49,645 8,768 54,781 1.42% 21% 173 30,167 55% Default 707 58 722 100.00% 19% 155 219 30% Total 50,352 8,826 55,503 2.70% 21% 328 30,386 55% 30 September 2023 AAA - - - - - - - - AA - - - - - - - - A 1,455 591 1,695 0.09% 43% 1 741 44% BBB 11,538 2,676 13,064 0.24% 17% 5 3,642 28% BB 33,741 5,636 37,489 1.27% 22% 105 23,533 63% B 864 40 885 4.78% 22% 10 852 96% Other 816 69 858 20.84% 23% 41 1,475 172% Subtotal 48,414 9,012 53,991 1.36% 21% 162 30,243 56% Default 745 49 745 100.00% 19% 158 173 23% Total 49,159 9,061 54,736 2.70% 21% 320 30,416 56% 31 March 2023 AAA - - - - - - - - AA - - - - - - - - A 1,470 708 1,754 0.11% 43% 1 771 44% BBB 11,248 2,548 12,529 0.24% 18% 5 3,975 32% BB 33,257 5,497 36,733 1.31% 23% 115 24,704 67% B 392 27 406 4.68% 24% 5 410 101% Other 489 62 531 20.15% 26% 28 989 186% Subtotal 46,856 8,842 51,953 1.23% 23% 154 30,849 59% Default 744 45 744 100.00% 21% 134 385 52% Total 47,600 8,887 52,697 2.63% 23% 288 31,234 59% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date. 1. Property Finance is a separate asset class and subject to the AIRB approach to calculate RWAs. Property Finance was previously categorised as specialised lending and subject to supervisory risk weights in the IRB approach.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 45 Residential Mortgages portfolio by PD band1 Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 0.0 to 0.10 77,673 42,278 118,626 0.06% 13% 9 6,697 6% 0.10 to 0.25 107,689 14,715 121,145 0.16% 14% 27 9,884 8% 0.25 to 1.0 223,902 9,378 232,584 0.45% 15% 163 42,995 18% 1.0 to 2.5 30,113 694 30,715 1.20% 16% 60 11,666 38% 2.5 to 10.0 22,847 1,165 23,446 7.81% 15% 281 24,795 106% 10.0 to 99.99 8,212 21 8,234 23.64% 16% 311 11,280 137% Subtotal 470,436 68,251 534,750 1.02% 15% 851 107,317 20% Default 5,439 28 5,439 100.00% 20% 476 8,601 158% Total 475,875 68,279 540,189 2.02% 15% 1,327 115,918 21% 30 September 2023 0.0 to 0.10 72,233 41,325 112,350 0.06% 13% 8 6,368 6% 0.10 to 0.25 106,671 14,695 120,152 0.16% 14% 27 10,067 8% 0.25 to 1.0 221,712 11,338 232,352 0.45% 16% 163 43,357 19% 1.0 to 2.5 29,636 672 30,214 1.20% 16% 59 11,510 38% 2.5 to 10.0 22,472 1,149 23,055 7.78% 15% 280 24,663 107% 10.0 to 99.99 7,220 24 7,245 21.54% 16% 251 9,963 138% Subtotal 459,944 69,203 525,368 0.95% 15% 788 105,928 20% Default 4,372 28 4,372 100.00% 20% 378 7,020 161% Total 464,316 69,231 529,740 1.77% 15% 1,166 112,948 21% 31 March 2023 0.0 to 0.10 68,121 42,265 109,324 0.05% 13% 8 6,199 6% 0.10 to 0.25 108,341 15,201 122,339 0.16% 14% 28 10,327 8% 0.25 to 1.0 214,998 11,043 225,545 0.44% 16% 159 42,080 19% 1.0 to 2.5 27,824 669 28,427 1.21% 17% 57 10,919 38% 2.5 to 10.0 21,926 1,327 22,632 7.73% 16% 273 24,250 107% 10.0 to 99.99 6,332 26 6,362 19.82% 16% 206 8,813 139% Subtotal 447,542 70,531 514,629 0.90% 15% 731 102,588 20% Default 3,629 28 3,647 100.00% 20% 326 6,576 180% Total 451,171 70,559 518,276 1.59% 15% 1,057 109,164 21% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date. 1. As at 31 March 2024 Residential Mortgages risk weighted assets under the IRB approach totalled $132,704 million. The standardised approach equivalent was $211,967 million.

46 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Australian Credit Cards portfolio by PD band Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 0.0 to 0.10 1,241 5,774 4,200 0.08% 81% 3 177 4% 0.10 to 0.25 1,526 4,527 4,014 0.17% 84% 6 342 9% 0.25 to 1.0 1,422 2,107 2,614 0.55% 85% 12 581 22% 1.0 to 2.5 892 572 1,238 1.64% 85% 17 640 52% 2.5 to 10.0 771 402 988 3.60% 84% 30 878 89% 10.0 to 99.99 360 161 435 17.28% 81% 60 953 219% Subtotal 6,212 13,543 13,489 1.15% 83% 128 3,571 26% Default 72 21 72 100.00% 75% 38 218 305% Total 6,284 13,564 13,561 1.67% 83% 166 3,789 28% 30 September 2023 0.0 to 0.10 1,245 5,913 4,267 0.08% 81% 3 182 4% 0.10 to 0.25 1,512 4,603 4,047 0.17% 84% 6 345 9% 0.25 to 1.0 1,400 2,155 2,621 0.55% 85% 12 582 22% 1.0 to 2.5 871 581 1,223 1.64% 85% 17 632 52% 2.5 to 10.0 737 405 954 3.58% 84% 29 844 88% 10.0 to 99.99 342 160 415 17.36% 80% 57 901 217% Subtotal 6,107 13,817 13,527 1.11% 83% 124 3,486 26% Default 63 21 63 100.00% 75% 31 226 358% Total 6,170 13,838 13,590 1.57% 83% 155 3,712 27% 31 March 2023 0.0 to 0.10 1,231 6,106 4,345 0.07% 80% 3 185 4% 0.10 to 0.25 1,450 4,610 3,981 0.18% 84% 6 338 8% 0.25 to 1.0 1,375 2,130 2,581 0.54% 85% 12 575 22% 1.0 to 2.5 901 593 1,260 1.67% 85% 18 652 52% 2.5 to 10.0 754 439 984 3.56% 84% 29 871 89% 10.0 to 99.99 365 188 451 17.29% 81% 63 983 218% Subtotal 6,076 14,066 13,602 1.16% 83% 131 3,604 26% Default 73 28 73 100.00% 74% 41 353 484% Total 6,149 14,094 13,675 1.69% 83% 172 3,957 29% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 47 Small Business portfolio by PD band Regulatory Risk Average Committed Exposure Probability Loss Given Expected Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Loss Assets Weight 31 March 2024 0.0 to 0.10 - - - - - - - - 0.10 to 0.25 - - - - - - - - 0.25 to 1.0 1,357 2,578 3,971 0.58% 38% 9 1,306 33% 1.0 to 2.5 13,231 3,839 17,082 1.48% 35% 89 8,133 48% 2.5 to 10.0 3,811 504 4,317 4.77% 35% 72 2,971 69% 10.0 to 99.99 1,473 228 1,704 27.51% 35% 171 1,858 109% Subtotal 19,872 7,149 27,074 3.51% 35% 341 14,268 53% Default 896 105 928 100.00% 41% 169 3,110 335% Total 20,768 7,254 28,002 6.71% 36% 510 17,378 62% 30 September 2023 0.0 to 0.10 - - - - - - - - 0.10 to 0.25 - - - - - - - - 0.25 to 1.0 1,339 2,455 3,822 0.58% 37% 8 1,235 32% 1.0 to 2.5 13,684 3,802 17,482 1.48% 35% 92 8,334 48% 2.5 to 10.0 3,861 508 4,369 4.86% 35% 73 3,018 69% 10.0 to 99.99 1,465 240 1,707 28.16% 35% 173 1,850 108% Subtotal 20,349 7,005 27,380 3.56% 35% 346 14,437 53% Default 851 94 852 100.00% 39% 163 2,603 306% Total 21,200 7,099 28,232 6.47% 35% 509 17,040 60% 31 March 2023 0.0 to 0.10 - - - - - - - - 0.10 to 0.25 - - - - - - - - 0.25 to 1.0 1,145 2,292 3,474 0.60% 37% 8 1,144 33% 1.0 to 2.5 14,408 4,022 18,651 1.47% 35% 98 8,938 48% 2.5 to 10.0 4,054 547 4,672 4.88% 36% 81 3,055 65% 10.0 to 99.99 1,538 209 1,767 28.92% 36% 187 1,923 109% Subtotal 21,145 7,070 28,564 3.62% 36% 374 15,060 53% Default 988 103 995 100.00% 39% 202 3,159 317% Total 22,133 7,173 29,559 6.87% 36% 576 18,219 62% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

48 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Other Retail portfolio by PD band Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 0.0 to 0.10 1 3 2 0.07% 78% - - 16% 0.10 to 0.25 57 120 174 0.22% 72% - 59 34% 0.25 to 1.0 1,045 397 1,443 0.61% 63% 5 781 54% 1.0 to 2.5 899 273 1,171 1.57% 76% 14 1,160 99% 2.5 to 10.0 977 56 1,043 4.89% 78% 40 1,315 126% 10.0 to 99.99 305 12 323 29.98% 73% 73 596 185% Subtotal 3,284 861 4,156 4.22% 72% 132 3,911 94% Default 115 3 115 100.00% 73% 59 348 302% Total 3,399 864 4,271 6.81% 72% 191 4,259 100% 30 September 2023 0.0 to 0.10 1 4 2 0.07% 79% - - 17% 0.10 to 0.25 67 135 199 0.22% 71% - 67 34% 0.25 to 1.0 1,356 454 1,811 0.62% 62% 7 967 53% 1.0 to 2.5 987 303 1,291 1.57% 76% 15 1,263 98% 2.5 to 10.0 1,019 58 1,087 4.79% 77% 41 1,347 124% 10.0 to 99.99 321 12 339 28.73% 71% 70 598 176% Subtotal 3,751 966 4,729 3.84% 70% 133 4,242 90% Default 120 4 119 100.00% 72% 60 365 305% Total 3,871 970 4,848 6.21% 70% 193 4,607 95% 31 March 2023 0.0 to 0.10 1 3 2 - 100% - - - 0.10 to 0.25 80 141 218 - 70% - 72 33% 0.25 to 1.0 1,724 466 2,190 0.64% 61% 8 1,154 53% 1.0 to 2.5 1,121 314 1,436 1.53% 74% 17 1,375 96% 2.5 to 10.0 1,098 62 1,169 4.79% 76% 43 1,427 122% 10.0 to 99.99 389 20 416 28.37% 69% 83 715 172% Subtotal 4,413 1,006 5,431 3.87% 68% 151 4,743 87% Default 155 5 155 100.00% 72% 83 561 362% Total 4,568 1,011 5,586 6.53% 69% 234 5,304 95% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 49 Portfolios subject to supervisory risk-weights in the IRB approach Exposures subject to supervisory risk-weights in the IRB approach include assets categorised as specialised lending, where a regulatory capital ‘slotting’ approach applies. Specialised lending relates to Project Finance and Object Finance. The ‘Credit Risk Management’ section of this report describes the alignment of Westpac risk grades to both external rating equivalents and regulatory capital ‘slots’. Exposure at Regulatory Risk Weighted $m Risk Weight Default Expected Loss Assets 31 March 2024 Strong 70% 2,976 12 2,083 Good 90% 888 7 799 Satisfactory 115% 175 5 202 Weak 250% 77 6 192 Default N/A - - - Total 4,116 30 3,276 30 September 2023 Strong 70% 2,909 11 2,036 Good 90% 817 7 736 Satisfactory 115% 255 7 293 Weak 250% - - - Default N/A - - - Total 3,981 25 3,065 31 March 2023 Strong 70% 2,596 10 1,817 Good 90% 837 7 753 Satisfactory 115% 312 9 359 Weak 250% 1 - 2 Default N/A - - - Total 3,746 26 2,931

50 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Portfolios subject to FIRB This table sets out portfolios subject to FIRB. Under FIRB, an ADI must provide its own estimates of PD and maturity and rely on supervisory estimates of LGD and EAD. This includes all Sovereign, Financial Institutions and Large Corporate exposures. Sovereign exposures by external credit rating Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA 90,233 8 90,237 0.01% 6% - 532 1% AA 77,415 284 77,554 0.02% 5% 1 1,179 2% A 591 134 651 0.05% 32% - 86 13% BBB 127 2 127 0.22% 48% - 55 43% BB 30 5 34 0.48% 51% - 13 38% B 20 31 32 4.78% 51% 1 52 163% Other - 3 2 23.74% 20% - 2 100% Subtotal 168,416 467 168,637 0.02% 6% 2 1,919 1% Default - - - - - - - - Total 168,416 467 168,637 0.02% 6% 2 1,919 1% 30 September 2023 AAA 110,926 6 110,928 0.01% 7% 1 782 1% AA 63,146 213 63,328 0.02% 5% 1 1,038 2% A 778 145 844 0.04% 47% - 158 19% BBB 222 61 246 0.19% 50% - 116 47% BB 4 3 7 1.51% 54% - 8 114% B 4 46 22 4.78% 51% 1 36 164% Other - 3 2 23.74% 39% - 5 250% Subtotal 175,080 477 175,377 0.01% 7% 3 2,143 1% Default - - - - - - - - Total 175,080 477 175,377 0.01% 7% 3 2,143 1% 31 March 2023 AAA 142,152 42 142,169 0.01% 5% 1 780 1% AA 67,986 207 68,172 0.02% 5% 1 1,409 2% A 388 94 430 - 43% - 102 24% BBB 84 1 84 - 51% - 47 56% BB 8 4 11 - 55% - 13 118% B - - - - - - 1 - Other - 3 2 - 50% - 5 250% Subtotal 210,618 351 210,868 0.01% 5% 2 2,357 1% Default - - - - - - - - Total 210,618 351 210,868 0.01% 5% 2 2,357 1% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 51 Financial Institution exposures by external credit rating Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA 2,383 38 2,398 0.05% 50% 1 597 25% AA 8,697 448 8,936 0.05% 50% 2 2,291 26% A 16,573 5,439 19,452 0.06% 51% 6 5,028 26% BBB 3,178 4,071 5,318 0.19% 52% 5 3,034 57% BB 1,814 635 2,176 1.15% 38% 8 1,962 90% B 12 4 14 4.50% 38% - 19 136% Other 53 11 58 26.67% 40% 6 157 271% Subtotal 32,710 10,646 38,352 0.18% 50% 28 13,088 34% Default 76 1 76 100.00% 42% 32 - - Total 32,786 10,647 38,428 0.37% 50% 60 13,088 34% 30 September 2023 AAA 2,428 - 2,428 0.05% 50% 1 716 29% AA 10,141 442 10,383 0.05% 50% 3 2,529 24% A 16,560 3,559 18,486 0.06% 50% 6 4,648 25% BBB 2,461 3,466 4,416 0.20% 51% 4 2,598 59% BB 2,128 673 2,521 1.08% 44% 10 2,752 109% B 23 18 38 4.73% 39% 1 66 174% Other 53 28 68 22.46% 37% 5 148 218% Subtotal 33,794 8,186 38,340 0.18% 50% 30 13,457 35% Default 86 3 86 100.00% 42% 36 - - Total 33,880 8,189 38,426 0.41% 50% 66 13,457 35% 31 March 2023 AAA 3,029 - 3,029 0.07% 50% 1 1,486 49% AA 8,868 482 9,127 0.05% 50% 2 3,279 36% A 16,596 4,045 18,740 0.06% 51% 6 5,019 27% BBB 2,800 2,544 4,125 0.19% 52% 4 2,523 61% BB 2,113 642 2,484 1.13% 47% 12 2,553 103% B 27 15 41 4.88% 46% 1 69 168% Other 53 5 56 23.21% 38% 5 128 229% Subtotal 33,486 7,733 37,602 0.18% 50% 31 15,057 40% Default 85 3 85 100.00% 47% 40 - - Total 33,571 7,736 37,687 0.41% 50% 71 15,057 40% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

52 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE Large Corporate exposures by external credit rating Risk Average Committed Exposure Probability Loss Given Regulatory Weighted Risk $m Outstandingsa Undrawnb at Default of Default Default Expected Loss Assets Weight 31 March 2024 AAA - - - 0.05% - - - - AA 351 1,075 783 0.05% 38% - 151 19% A 8,551 8,563 12,428 0.07% 50% 4 3,619 29% BBB 13,912 19,163 22,564 0.21% 49% 23 11,698 52% BB 2,695 2,260 3,823 0.98% 46% 17 3,701 97% B 16 63 65 3.69% 43% 1 83 128% Other 58 961 540 14.60% 49% 40 1,306 242% Subtotal 25,583 32,085 40,203 0.44% 49% 85 20,558 51% Default 2 - 2 100.00% 24% - - - Total 25,585 32,085 40,205 0.44% 49% 85 20,558 51% 30 September 2023 AAA - - - 0.05% - - - - AA 1,286 292 1,405 0.05% 33% - 244 17% A 9,270 7,392 12,767 0.07% 50% 5 3,785 30% BBB 14,201 17,966 22,460 0.21% 50% 25 11,499 51% BB 2,620 3,077 4,236 0.94% 46% 19 3,892 92% B 31 25 52 4.78% 53% 1 91 175% Other 233 329 407 16.76% 50% 34 1,059 260% Subtotal 27,641 29,081 41,327 0.41% 49% 84 20,570 50% Default 1 - 1 100.00% 28% - - - Total 27,642 29,081 41,328 0.41% 49% 84 20,570 50% 31 March 2023 AAA - - - - - - - - AA 174 261 281 - 50% - 66 23% A 8,056 9,177 12,328 0.07% 55% 5 3,947 32% BBB 14,096 18,316 22,683 0.22% 52% 26 12,152 54% BB 2,960 3,740 4,838 1.01% 48% 24 4,786 99% B 37 26 54 5.56% 59% 2 107 198% Other 19 88 64 17.19% 52% 6 170 266% Subtotal 25,342 31,608 40,248 0.31% 52% 63 21,228 53% Default - - - - - - - - Total 25,342 31,608 40,248 0.31% 52% 63 21,228 53% a. Outstandings are balances that were drawn down as at the reporting date and include certain off-balance sheet items. b. Committed undrawn balances are committed exposures that were not drawn down as at the reporting date.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 53 Portfolios subject to the standardised approach The table below presents exposures subject to the standardised approach for the calculation of RWA. This includes certain mortgages that are prescribed a standardised risk weight including interest-only mortgages greater than five years and mortgages held by self-managed super funds. Other exposures subject to the standardised approach include Westpac Pacific, Asian retail exposures, margin lending and some other small portfolios. Credit valuation adjustment and qualifying central clearing counterparties exposure is also included in the standardised approach. Total Exposure Risk Weighted Risk Weight % at Default $m Assets $m 31 March 2024 0% - - 2% 4,899 98 4% - - 20% 1,768 354 35% - - 50% 372 186 65% 205 133 75% 158 118 85% 274 233 90% 432 389 100% 18,638 18,637 120% 12 15 150% 428 642 1250% - - Default fund contributionsa 225 116 Credit valuation adjustment - 5,747 Total 27,411 26,668 30 September 2023 0% - - 2% 2,983 60 4% 1,739 70 20% 1,811 362 35% - - 50% 393 196 65% 210 137 75% 155 116 85% 269 229 90% 437 393 100% 20,828 20,828 120% 11 13 150% 388 584 1250% - - Default fund contributionsa 169 73 Credit valuation adjustment - 5,752 Total 29,393 28,813 a. Portfolios subject to the standardised approach include exposures to qualifying central clearing counterparties used to clear derivative transactions. Derivative counterparty exposure and initial margin are risk weighted at 2%. Default fund contributions to qualifying central clearing counterparties are shown separately and are subject to higher risk weights.

54 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE 31 March 2023 Total Exposure Risk Weighted Risk Weight % at Default $m Assets $m 0% - - 2% 2,559 51 4% - - 20% 4,571 914 35% - - 50% 414 207 65% 208 135 75% 201 151 85% 201 171 90% 412 371 100% 20,736 20,736 120% 15 18 150% 681 1,021 1250% - - Default fund contributionsa 255 150 Credit valuation adjustment - 5,214 Total 30,253 29,139 a. Portfolios subject to the standardised approach include exposures to qualifying central clearing counterparties used to clear derivative transactions. Derivative counterparty exposure and initial margin are risk weighted at 2%. Default fund contributions to qualifying central clearing counterparties are shown separately and are subject to higher risk weights. New Zealand portfolio This table presents a summary of New Zealand asset classes. When an overseas banking subsidiary is regulated by the RBNZ, RWA and Expected Losses (EL) are calculated using the RBNZ rules1 .. The table below summarises Westpac’s New Zealand regulated RWA credit exposures (including securitisations) using RBNZ asset classes used to determine RWA. Total Total Risk Regulatory Exposure Weighted Expected $m at Default Assets Loss 31 March 2024 Residential Mortgages 70,172 17,828 196 Other Retail 2,524 1,201 41 Small Business 1,895 659 11 Corporate/Business Lending 40,096 24,496 335 Standardised 18,201 2,306 - Total 132,888 46,490 583 30 September 2023 Residential Mortgages 69,751 17,353 176 Other Retail 2,572 1,223 41 Small Business 1,977 688 11 Corporate/Business Lending 41,130 25,085 323 Standardised 18,314 2,299 - Total 133,744 46,648 551 31 March 2023 Residential Mortgages 69,440 16,804 166 Other Retail 2,642 1,287 49 Small Business 2,053 711 12 Corporate/Business Lending 40,835 24,499 307 Standardised 19,537 2,030 - Total 134,507 45,331 534 1. The scaling factor and floor applied to New Zealand exposures is calculated using APRA requirements rather than the RBNZ requirements.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 55 Credit Quality Actual losses 31 March 2024 $m Write-offs direct Legal and recovery costs Write-offs from provisionsa Recoveries Actual Losses for the 6 months ended Corporate - - 33 (19) 14 Business Lending 6 - 2 (2) 6 Property Finance 4 - - (1) 3 Large Corporate - - - - - Sovereign - - - - - Financial Institutions - - - - - Residential Mortgages 5 3 16 (4) 20 Australian Credit Cards 81 - - (25) 56 Other Retail 84 1 - (35) 50 Small Business 15 - 13 (2) 26 Specialised Lending - - - - - Securitisation - - - - - Standardised - - 2 - 2 New Zealand 12 - - (2) 10 Total 207 4 66 (90) 187 a. Write-offs from individually assessed provisions. 30 September 2023 $m Write-offs direct Legal and recovery costs Write-offs from provisionsa Recoveries Actual Losses for the 12 months ended Corporate 4 - 53 (41) 16 Business Lending 13 - 29 (3) 39 Property Finance 6 - - (2) 4 Large Corporate - - - - - Sovereign - - - - - Financial Institutions 1 - 8 - 9 Residential Mortgages 6 5 33 (12) 32 Australian Credit Cards 160 - - (61) 99 Other Retail 177 4 - (59) 122 Small Business 40 - 24 (7) 57 Specialised Lending - - - - - Securitisation - - - - - Standardised 2 - 3 - 5 New Zealand 22 - 11 (6) 27 Total 431 9 161 (191) 410 a. Write-offs from individually assessed provisions.

56 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE 31 March 2023 $m Write-offs direct Legal and recovery costs Write-offs from provisionsa Recoveries Actual Losses for the 6 months endedb Corporate 2 - 12 (40) (26) Business Lending 7 - 11 (2) 16 Property Finance 3 - - (1) 2 Large Corporate - - - - - Sovereign - - - - - Financial Institutions - - 5 - 5 Residential Mortgages 2 2 13 (6) 11 Australian Credit Cards 82 - - (38) 44 Other Retail 83 2 - (32) 53 Small Business 25 - 11 (5) 31 Specialised Lending - - - - - Securitisation - - - - - Standardised - - - - - New Zealand 10 - 1 (4) 7 Total 214 4 53 (128) 143 a. Write-offs from individually assessed provisions. b. Loan losses included the recovery of a previously written off loan of $40 million within the Corporate asset class. Regulatory loss estimates and actual losses The table below compares regulatory credit risk estimates used in the calculation of risk weighted assets to the average of actual outcomes observed since the establishment of Advanced IRB accreditation for each portfolio. Predicted parameters represent average internally predicted long-run probabilities of default for non-defaulted obligors at the start of each year, as well as downturn estimates of loss (or the regulatory minimum where required). They are averaged using data from the financial years beginning at the time of Advanced IRB accreditation (2008 for most portfolios) and compared to observed outcomes over the same period. Predicted parameters are reviewed annually utilising observed outcomes from prior periods as a key input. Historical information from the period of previous capital framework (Basel II) has been mapped to the most comparable Basel III asset classes. Default rates At the start of each year, a predicted default probability is assigned to all non-defaulted obligors. This is averaged over the portfolio for the period since IRB accreditation and reported as the predicted default rate. The actual default rate reflects the fraction of obligors who start the year not in default but default during the one-year period. The observed annual default rates are averaged over the period since IRB accreditation. Loss Given Default (LGD) LGD estimates are based on an economic loss calculation and include workout costs and discounting of future cash flows to the date of default. LGD analysis excludes recent defaults in order to allow sufficient time for the full workout of the facility and hence an accurate LGD to be determined. The workout period varies by portfolio: a two-year workout period is assumed for transaction-managed and residential mortgage lending; and a one year period for other program-managed portfolios.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 57 Exposure at Default (EAD) The EAD variance compares the observed EAD to the predicted EAD up to one year prior to default. For transaction-managed portfolios, predicted EAD is currently mandated to be 100% of committed exposures. The observed EAD is averaged for all obligors that defaulted over the observation period. Regulatory Observed EAD Expected Default rate Loss Given Default variance to $m Lossa Predicted Observed Predicted Observed Predictedb 31 March 2024 Corporate 547 2.25% 0.91% 41% 21% (22%) Business Lending 554 2.26% 1.65% 33% 12% (13%) Property Financec 328 N/A N/A N/A N/A N/A Large Corporatec 85 N/A N/A N/A N/A N/A Sovereign 2 0.26% - - - - Financial Institutionsc 60 0.43% 0.10% - - - Residential Mortgages 1,327 0.77% 0.60% 20% 1% - Australian Credit Cards 166 1.56% 1.45% 75% 58% (3%) Other Retail 191 4.60% 3.45% 69% 40% (7%) Small Business 510 3.91% 2.91% 37% 6% (12%) Specialised Lendingd 30 N/A 2.25% N/A 11% (12%) Securitisationd - N/A N/A N/A N/A N/A New Zealande 583 N/A N/A N/A N/A N/A Standardisedd - N/A N/A N/A N/A N/A Total 4,383 30 September 2023 Corporate 477 2.27% 0.90% 42% 23% (22%) Business Lending 529 2.26% 1.65% 35% 14% (13%) Property Financec 320 N/A N/A N/A N/A N/A Large Corporatec 84 N/A N/A N/A N/A N/A Sovereign 3 0.25% - - - - Financial Institutionsc 66 0.43% 0.10% - - - Residential Mortgages 1,166 0.77% 0.60% 20% 1% (1%) Australian Credit Cards 155 1.58% 1.47% 75% 57% (2%) Other Retail 193 4.62% 3.46% 69% 40% (7%) Small Business 509 3.93% 2.93% 37% 6% (10%) Specialised lendingd 25 N/A 2.22% N/A 14% (11%) Securitisationd - N/A N/A N/A N/A N/A New Zealande 551 N/A N/A N/A N/A N/A Standardisedd - N/A N/A N/A N/A N/A Total 4,078 a. Includes regulatory expected losses for defaulted and non-defaulted exposures. b. A negative outcome indicates observed EAD was lower than predicted EAD, which can happen because exposures were managed down prior to default or off-balance sheet items or undrawn limits were not fully drawn prior to default. c. These are new asset classes under the capital framework. ‘Financial Institutions’ includes exposures subject to ‘Bank’ under the previous framework. Performance information of exposures reported under Large Corporate and Property Finance requires sufficient passage of time to be observed and thus is currently shown as N/A. d. Predicted parameters are not available for specialised lending, securitisation or standardised exposures as risk weights for these portfolios do not rely on credit estimates and are shown as N/A in the tables above. e. Historical Default Rate, Loss Given Default and Observed-to-Predicted EAD are included in the asset classes above, consistent with the historical classification of New Zealand exposures.

58 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK EXPOSURE 31 March 2023 Regulatory Observed EAD Expected Default rate Loss Given Default variance to $m Lossa Predicted Observed Predicted Observed Predictedb Corporate 588 2.27% 0.91% 45% 24% (22%) Business Lending 490 2.26% 1.67% 34% 15% (13%) Property Financec 288 N/A N/A N/A N/A N/A Large Corporatec 63 N/A N/A N/A N/A N/A Sovereign 2 0.25% - - - - Financial Institutionsc 71 0.43% 0.10% - - - Residential Mortgages 1,057 0.76% 0.61% 20% 1% (1%) Australian Credit Cards 172 1.61% 1.49% 75% 57% (2%) Other Retail 234 4.65% 3.48% 69% 40% (7%) Small Business 576 3.93% 2.92% 37% 6% (10%) Specialised Lendingd 26 N/A 2.26% N/A 14% (12%) Securitisationd - N/A N/A N/A N/A N/A New Zealande 534 N/A N/A N/A N/A N/A Standardisedd - N/A N/A N/A N/A N/A Total 4,101 a. Includes regulatory expected losses for defaulted and non-defaulted exposures. b. A negative outcome indicates observed EAD was lower than predicted EAD, which can happen because exposures were managed down prior to default or off-balance sheet items or undrawn limits were not fully drawn prior to default. c. These are new asset classes under the capital framework. ‘Financial Institutions’ includes exposures subject to ‘Bank’ under the previous framework. Performance information of exposures reported under Large Corporate and Property Finance requires sufficient passage of time to be observed and thus is currently shown as N/A. d. Predicted parameters are not available for specialised lending, securitisation or standardised exposures as risk weights for these portfolios do not rely on credit estimates and are shown as N/A in the tables above. e. Historical Default Rate, Loss Given Default and Observed-to-Predicted EAD are included in the asset classes above, consistent with the historical classification of New Zealand exposures.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 59 CREDIT RISK MITIGATION This section describes the way in which Westpac reduces its credit risk by using financial collateral, guarantees or credit derivatives for the Corporate, Sovereign and Financial Institutions asset classes. Approach Westpac recognises credit risk mitigation only when formal legal documentation is held that establishes Westpac’s direct, irrevocable and unconditional recourse to the collateral or to an unrelated credit risk mitigation provider. Minimum standards for recognising credit risk mitigation are set out in Westpac’s credit rules and policies. All proposals for recognising risk mitigation require approval by an authorised credit officer. Authorised credit officer approval is also required for existing risk mitigation to be discontinued or withdrawn. The amount of credit risk mitigation recognised is the face value of the mitigation instrument, adjusted by the application of discounts for any maturity and/or currency mismatch with the underlying obligation, so that a discounted amount is recognised when calculating the residual exposure after mitigation. For regulatory capital purposes: • exposures secured by eligible financial collateral, either cash or certain government or semi-government securities, or where protection is bought via credit linked notes, provided proceeds are invested in eligible financial collateral, are included at the gross value, with risk weighted assets for the portion thus secured calculated by applying a 5% LGD1 ; • exposures mitigated by eligible guarantees, standby letters of credit or similar instruments, where Westpac has direct recourse to an unrelated third party, or credit protection bought via credit default swaps where Westpac is entitled to recover either full principal or credit losses on occurrence of defined credit events, are treated under double default rules where the protection provider is rated A-/A3 or better. The Group Chief Credit Officer has the authority to approve exceptions to the A-/A3 minimum; and • exposures mitigated by guarantees, letters of credit, credit default swaps or similar instruments, which are not eligible for double default treatment are treated under the substitution approach. When Westpac uses credit risk mitigation techniques to reduce counterparty exposure, limits are applied to both gross (i.e. pre-mitigation) and net exposure. Furthermore, exposure is recorded against the provider of any credit risk mitigation and a limit framework prevents excessive concentration to such counterparties. Netting Risk reduction by way of current account set-offs is recognised for exposures to creditworthy customers domiciled in Australia and New Zealand only. Customers are required to enter into formal agreements giving Westpac the unfettered right to set-off gross credit and debit balances in their nominated accounts to determine Westpac’s net exposure within each of these two jurisdictions. Cross-border set-offs are not permitted. Close-out netting is undertaken for off-balance sheet financial market transactions with counterparties with whom Westpac has entered into master netting agreements which allow such netting in specified jurisdictions. Close-out netting effectively aggregates pre-settlement risk exposure at time of default, thus reducing overall exposure. Collateral valuation and management Westpac revalues financial markets and associated collateral positions on a daily basis to monitor the net risk position, and has formal processes in place so that calls for collateral top-up or exposure reduction are made promptly. An independent operational unit has responsibility for monitoring these positions. The collateralisation arrangements are documented via the Credit Support Annex of the International Swaps and Derivatives Association (ISDA) master agreement for derivatives transactions and Global Master Repurchase Agreement (GMRA) for repurchase transactions and Clearing Agreements for cleared trades. 1. Excludes collateralised derivative transactions.

60 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT CREDIT RISK MITIGATION Total exposure covered by collateral, credit derivatives and guarantee Credit Risk Mitigants $m Total before mitigation Impact of credit mitigationa Total after mitigation Total exposure for which some credit risk is mitigated Eligible Financial Collateral Covered by Guarantees Covered by Credit Derivatives 31 March 2024 Corporate 42,947 (11) 42,936 738 11 87 - Large Corporate 40,205 - 40,205 2,116 1,254 - - Sovereign 169,164 (527) 168,637 1,109 528 214 - Financial Institutions 39,897 (1,469) 38,428 5,796 2,471 425 - Standardised 27,412 (1) 27,411 1 1 - - Total 319,625 (2,008) 317,617 9,760 4,265 726 - 30 September 2023 Corporate 40,642 (97) 40,545 617 97 90 - Large Corporate 41,339 (11) 41,328 2,686 1,419 - - Sovereign 175,870 (493) 175,377 1,005 493 240 - Financial Institutions 40,954 (2,528) 38,426 7,362 3,375 402 - Standardised 29,393 - 29,393 - - - - Total 328,198 (3,129) 325,069 11,670 5,384 732 - 31 March 2023 Corporate 37,405 (295) 37,110 1,056 295 92 - Large Corporate 40,248 - 40,248 2,926 1,522 - - Sovereign 211,270 (402) 210,868 777 402 17 - Financial Institutions 40,192 (2,505) 37,687 6,802 3,103 394 - Standardised 30,253 - 30,253 - - - - Total 359,368 (3,202) 356,166 11,561 5,322 503 - a. Impact of credit mitigation under the substitution approach.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 61 COUNTERPARTY CREDIT RISK Approach Westpac’s process for managing counterparty credit risk is based on its assessment of the potential future credit risk Westpac is exposed to when dealing in derivatives products and securities financing transactions. Westpac quantifies this risk through a daily simulation of future market price and rate shocks and converts the effect of these shocks on the mark-to-market value of Westpac’s positions to a credit exposure using Westpac’s Derivative Risk Equivalent (DRE) methodology. Exposures are loaded into Westpac’s credit limit management system where they are checked against pre-settlement risk limits that are set at the counterparty level. Limit excesses are reported to credit managers and actioned within strict timeframes. Structure and organisation Financial Markets (First Line of Defence) and Westpac Institutional Bank Credit (WIB Credit, Second Line of Defence) work collaboratively, providing insight, oversight and challenge of Financial Market’s credit exposure. WIB Credit sets counterparty credit risk appetite, internal ratings, and credit limits for the counterparties with which Financial Markets transacts. Transactions generating credit exposure outside of pre-defined credit appetite and limits require approval by WIB Credit. Market related credit risk There are two components to the regulatory capital requirements for credit risk arising from derivative products: • capital to absorb losses arising from the default of derivative counterparties; and • capital to absorb losses arising from mark-to-market valuation movements resulting from changes in the credit quality of derivative counterparties. These valuation movements are referred to as credit valuation adjustments (CVA) and this risk is sometimes labelled as CVA risk. Risk mitigation Mitigation is achieved in a number of ways: • the limit system monitors for excesses of the pre-defined limits, with any excesses being notified to authorised credit officers; • Westpac has netting agreements with counterparties to allow the exposure across a portfolio of trades with the same counterparty to be netted; • Westpac has collateral agreements with its largest counterparties. The market value of the counterparty’s portfolio is used to recalculate the credit position at each end of day, with collateral being called for when certain pre-set limits are met or exceeded. Westpac exchanges Initial Margin with eligible counterparties for eligible products as protection against potential future exposure to changes in market value; • Westpac has initial margin agreements with qualifying counterparties subject to relevant international regulations. The exchange of initial margin for eligible products covers the potential future exposure that could arise from changes in the market value of derivative transactions over the close-out period in the event of a counterparty default; • credit derivatives are used to mitigate credit exposure against certain counterparties; and • regular marking to market and settling of the foreign exchange components of foreign exchange reset contracts. Counterparty derivative exposures and limits The risk management methodology for counterparty derivatives exposures is similar to the credit methodology for transaction-managed loans. The main difference is in the estimation of the exposure for derivatives which is based on the DRE methodology. DRE is a credit exposure measure for derivative trades which is calibrated to a ‘loan-equivalent’ exposure. Counterparty credit limits are approved on an uncommitted and unadvised basis by authorised credit officers. This follows an evaluation of each counterparty’s credit worthiness and establishing an agreed credit risk appetite for the nature and extent of prospective business.

62 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT COUNTERPARTY CREDIT RISK Wrong-way risk exposures Westpac defines wrong-way risk as exposure to a counterparty which is adversely correlated with the credit quality of that counterparty. With respect to credit derivatives, wrong-way risk refers to credit protection purchased from a counterparty highly correlated to the reference obligation. Wrong-way risk exposures using credit derivatives are controlled by only buying protection from highly rated counterparties. These transactions are assessed by an authorised credit officer who has the right to decline any transaction where they feel there is an unacceptably high correlation between the ability to perform under the trade and the performance of the underlying counterparty. Consequences of a downgrade in Westpac’s credit rating A downgrade in Westpac’s credit rating can have an impact on Westpac’s collateral agreements. Where an outright threshold and minimum transfer amount are agreed, there will not be any impact on the amount of collateral posted by Westpac in the event of a credit rating downgrade. Where the threshold and minimum transfer amount are tiered according to credit rating, the impact of Westpac being downgraded below its current credit rating would be: for a one notch downgrade, postings of $nil, while for a two notch downgrade, postings would be $10 million1 .. Counterparty credit risk summary The counterparty credit risk exposures below exclude New Zealand exposures. These exposures are separately included in the New Zealand credit exposure line item. 31 March 30 September 31 March $m 2024 2023 2023 Gross positive fair value 15,776 21,461 20,598 Netting and collateral benefitsa (11,044) (14,599) (14,946) Replacement cost 4,732 6,862 5,652 Potential future exposure 13,212 11,938 12,130 Impact of scaling factor of 1.4 and incurred credit value adjustment 7,075 7,381 6,921 Net derivatives credit exposure under standardised approach to counterparty credit risk 25,019 26,181 24,703 Exposure type Interest rate contracts 5,924 4,736 6,391 Foreign exchange contracts 18,282 20,746 17,539 Equity contracts - - - Credit derivatives 64 14 13 Commodity contracts 749 685 760 Other - - - Total 25,019 26,181 24,703 a. Includes cash collateral posted of $2,210 million as at 31 March 2024 (30 September 2023 included cash collateral posted: $1,236 million, 31 March 2023 included cash collateral held: $155 million). Credit derivative transactions that create exposures to counterparty credit risk2 31 March 2024 Westpac Portfolio Intermediation activities Notional value by product type ($m) Bought Sold Bought Sold Credit Default Swaps 2,271 - - - Total Return Swaps - - - - Credit options - - - - Credit linked notes - - - - Collateralised Loan Obligations - - - - Other - - - - Total 2,271 - - - 1. Credit rating downgrade postings are cumulative. 2. Comparatives have been revised to conform with current period presentation.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 63 30 September 2023 Westpac Portfolio Intermediation activities Notional value by product type ($m) Bought Sold Bought Sold Credit Default Swaps 2,027 65 - - Total Return Swaps - - - - Credit options - - - - Credit linked notes - - - - Collateralised Loan Obligations - - - - Other - - - - Total 2,027 65 - - 31 March 2023 Westpac Portfolio Intermediation activities Notional value by product type ($m) Bought Sold Bought Sold Credit Default Swaps 1,258 - - - Total Return Swaps - - - - Credit options - - - - Credit linked notes - - - - Collateralised Loan Obligations - - - - Other - - - - Total 1,258 - - -

64 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT SECURITISATION A securitisation is a financial structure where the cash flow from a pool of assets is used to service obligations to at least two different tranches or classes of creditors (typically holders of debt securities), with each class or tranche reflecting a different degree of credit risk (i.e. one class of creditors is entitled to receive payments from the pool before another class of creditors). Securitisation transactions are generally grouped into two broad categories: • traditional or true sale securitisations, which involve the transfer of ownership of the underlying asset pool to a third party; and • synthetic transactions, where the ownership of the underlying asset pool remains with the originator and only the credit risk of the pool is transferred to a third party, using credit derivatives or guarantees. Covered bond transactions, in which bonds issued by Westpac are guaranteed by assets held in a special purpose vehicle, are not considered to be securitisation transactions. Approach Westpac’s involvement in securitisation activities ranges from a seller of its own assets to an investor in third-party transactions and includes the arranging of transactions, the provision of securitisation services and the provision of funding for clients, including clients requiring access to capital markets. All securitisation activity must follow Westpac’s credit policies and approval processes. Securitisation of Westpac originated assets - Securitisation is used by Westpac to manage funding and liquidity and may also be used for capital management. It allows Westpac the ability to use a pool of assets to increase Westpac’s wholesale funding capacity. Westpac may provide arm’s length facilities and services to the securitisation vehicles. These typically include the provision of financing, redraw facilities and derivative contracts. Westpac has entered into self securitisation transactions for funding and liquidity purposes. These are the same as traditional securitisations, except that Westpac is the holder of all classes of notes issued (other than where senior notes have been pledged as eligible collateral with the RBA). The senior notes qualify as eligible collateral with the RBA, and are pledged against the Term Funding Facility provided by the RBA and used to meet APRA’s contingent liquidity requirements1 .. These ‘self securitisations’ do not change risk weighted assets2 .. No securitisation transactions for Westpac originated assets are classified as resecuritisation exposures which are deemed to mean a securitisation exposure in which at least one of the underlying exposures in the pool is a securitisation exposure. Securitisation in the management of Westpac’s credit portfolio - Westpac does not use securitisation to manage its corporate and institutional loan and counterparty credit risk portfolios. Single name credit default swaps are not treated as securitisations but as credit risk mitigation facilities. Provision of securitisation services, including funding and arranging asset backed bond issues – Westpac provides services to clients wishing to access asset-backed financing through securitisation. Those services include the provision of warehouse3 and term funding of securitised assets; and arranging and/or lead managing asset backed bond issues. Westpac may also invest in securitised bond issues and will receive an interest margin for securities held. Securitisation facilities provided by Westpac may include resecuritisation exposures. Westpac also buys and sells securitisation exposures in the secondary market to facilitate portfolio management activity by its institutional customers who hold asset backed bonds. Westpac’s role in the securitisation process Securitisation activity Role played by Westpac Securitisation of Westpac originated assets • Arranger • Asset originator • Bond distributor • Facility provider • Note holder • Trust manager • Swap provider • Servicer Provision of securitisation services including funding and arranging asset backed bond issues • Arranger • Bond distributor • Warehouse financing • Investor - purchaser of securitisation exposures • Liquidity facility provider • Swap provider • Market maker and broker for distributed bonds 1. APS210 updated contingent liquidity guidance requires from 1 March 2022, self securitisations to cover 30% of AUD net cash outflows. 2. The credit exposures of the underlying loans are measured in accordance with APS112 and APS113. 3. Lending facilities provided to securitisation vehicles which enable accumulation of originator assets until a sufficiently large pool is available for issuance of securities in a term securitisation.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 65 Key Objectives Securitisation of Westpac originated assets - The securitisation of Westpac’s own assets provides funding diversity and liquidity management. Provision of securitisation services including funding and arranging asset backed bond issues - Westpac receives market-based fees in return for its services as servicer, swap provider, arranger, facility provider and distribution fees for issuance of asset backed bonds associated with the provision of warehouse and term funding facilities. Westpac also purchases securities in order to earn income. Westpac facilitates portfolio management activity by its institutional customers by buying and selling securitisation exposures in the secondary market and is compensated through an interest margin including a bid-offer spread on the transactions. Structure and organisation Securitisation of Westpac originated assets - Westpac's Treasury operations are responsible for all Westpac originated securitisation activity including funding and liquidity management. Provision of securitisation services including funding and arranging asset backed bond issues - These services are provided by Westpac Institutional Bank and include the provision of securitisation services including arranger, bond distributor, warehouse financing, liquidity facility provider, swap provider, market-making and broking of asset-backed bonds. Risk reporting Credit exposure - Funding, liquidity, credit enhancement and redraw facilities, swap arrangements and counterparty exposures are captured and monitored in key source systems along with other facilities/derivatives entered into by Westpac. Operational risk exposure - The operational risk review process for Westpac includes the identification of risks, controls and key performance indicators in relation to all securitisation activity and services provided by Westpac or any of its subsidiaries. Market risk exposure - Exposures arising from transactions with counterparties are captured as part of Westpac’s traded and non-traded market risk reporting and limit management framework. Liquidity risk exposure - Exposure to, and the impact of, securitisation transactions are managed under the Liquidity Risk Management Framework and are integrated into routine reporting for capital and liquidity positions, net interest margin analysis, balance sheet forecasting and funding scenario testing. The annual funding plan incorporates consideration of overall liquidity risk limits and the securitisation of Westpac originated assets. Risk mitigation Securitisation of Westpac originated assets - The interest rate and basis risks generated by Westpac’s hedging arrangements to each securitisation trust are captured and managed within Westpac’s asset and liability management framework. The liquidity risk generated by Westpac’s liquidity and redraw facilities to each securitisation trust is captured and managed in accordance with Westpac’s liquidity management policies along with all other contingent liquidity facilities. Provision of securitisation services including funding and arranging asset backed bond issues - All securitisation transactions are approved within the context of a securitisation credit policy that sets detailed transaction-specific guidelines that regulate servicer counterparty risk appetite, transaction tenor, asset class, third party credit support and portfolio quality. This policy is applied in conjunction with other credit and market risk policies that governs the provision of derivative and other services that support securitisation transactions. In particular, credit hedging transactions are subject to Westpac’s credit risk mitigation approach (see pages 59 and 60). Any interest rate or currency hedging is subject to counterparty credit risk management (see pages 61 to 63) and market risk management (see pages 74 to 78) policies and processes).

66 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT SECURITISATION Regulatory capital approaches The regulatory capital treatment of all securitisation exposures is measured in accordance with APS120 other than the securitisation exposures of an overseas banking subsidiary that is prudentially regulated by a prescribed authority. For these New Zealand exposures, Westpac calculates risk-weighted assets using the Reserve Bank of New Zealand’s prudential rules. These exposures are separately included in the New Zealand credit exposure line item. Westpac must still make deductions from CET1 capital that are required under APS120. APS120 also specifies that securitisation exposures held in the trading book are subject to the requirements of Prudential Standard APS116 Capital Adequacy: Market Risk. Under APS120 the approaches employed include the External Rating Based Approach (ERBA) and the Supervisory Formula Approach (SFA). Under the ERBA, APRA provides risk-weights that are matched to external credit ratings and takes into account tranche maturity and tranche thickness. The SFA applicable to unrated exposures dynamically looks at the type and performance of underlying asset pools funded by the securitisation exposure as well as the structural features of the transaction to determine capital requirements. The Internal Assessment Approach (IAA) is not permitted under APS120. Securitisation of Westpac originated assets - The assets sold by Westpac to a securitisation trust are excluded from Westpac’s calculation of credit risk weighted assets if capital relief is sought and the requirements of APS120 are satisfied1 .. In instances where insufficient risk transfer is achieved by the transaction for regulatory purposes, the capital calculation is performed on the underlying asset pool while the facilities provided to such securitisation vehicles do not attract regulatory capital charges. Provision of securitisation services including funding - Westpac uses the ERBA and the SFA methodology when determining regulatory capital requirements for warehouse and term funding client facilities. The External Credit Assessment Institutions that can be used by Westpac for securitisations are S&P Global Ratings, Moody's Ratings and Fitch Ratings. Westpac’s accounting policies for securitisation activities Securitisation of Westpac originated assets - The assets sold by Westpac to a securitisation trust remain on Westpac’s balance sheet for accounting purposes. Provision of securitisation services including funding and arranging asset backed bond issues - Fee income from these services is recognised on an accrual basis. Liquidity and funding facilities are treated as commitments to provide finance, with fee and margin income recognised on an accrual basis. Warehouse and term funding facilities are treated as loans. For investment in securitisation exposures, if the instrument has been designated on initial recognition at fair value (including instruments containing a credit default swap), the exposure will be measured at fair value through the Income Statement. All other investments in securitisation exposures will be classified and measured at fair value through Other Comprehensive Income (FVOCI) (within the debt securities at FVOCI reserve). 1. Including the requirements to achieve capital relief.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 67 Banking book summary of assets securitised by Westpac1 The table below shows outstanding banking book securitisation assets and assets intended to be securitised for Westpac originated assets by underlying asset type. It includes the amount of impaired and past due assets, along with any losses recognised by Westpac during the current period. Securitised assets are held in securitisation trusts. Trusts which meet requirements to achieve capital relief do not form part of the Level 2 consolidated group. Self securitisation trusts remain consolidated at Level 2 and the assets transferred to these trusts are risk weighted in accordance with APS112 and APS113. Total outstanding securitisations at 31 March 2024 were $121.1 billion, a reduction of $11.5 billion from 30 September 2023. The movement over the half is due to a reduction in the size of internal securitisation programmes, resulting from reduced requirements following the phase-out of the Reserve Bank of Australia’s (RBA) Committed Liquidity Facility on 1 January 2023 and the maturing of drawdowns under the Term Funding Facility since June 2023. Total outstanding securitised Assets Intended to be securitised Non performing Exposures - Not Impaired Non performing Exposures - Impaired Total Non performing Exposures Past due assets Westpac recognised losses by ADI $m Traditional Securitisationa Synthetic Securitisation 31 March 2024 Residential mortgages 121,138 - - 1,199 61 1,260 1,129 - Credit cards - - - - - - - - Auto and equipment finance - - - - - - - - Business lending - - - - - - - - Investments in ABS - - - - - - - - Other - - - - - - - - Total 121,138 - - 1,199 61 1,260 1,129 - 30 September 2023 Residential mortgages 132,630 - - 1,009 56 1,065 949 - Credit cards - - - - - - - - Auto and equipment finance - - - - - - - - Business lending - - - - - - - - Investments in ABS - - - - - - - - Other - - - - - - - - Total 132,630 - - 1,009 56 1,065 949 - 31 March 2023 Residential mortgages 140,870 - - 902 45 947 814 - Credit cards - - - - - - - - Auto and equipment finance 199 - - 2 6 8 - - Business lending - - - - - - - - Investments in ABS - - - - - - - - Other - - - - - - - - Total 141,069 - - 904 51 955 814 - a. Includes self-securitisation assets of $114,287 million as at 31 March 2024 ($127,884 million as at 30 September 2023 and $135,877 million as at 31 March 2023). 1. Represents securitisation activity from the end of the reporting period to the disclosure date of this report.

68 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT SECURITISATION Banking book summary of total Westpac sponsored third party assets securitised The table below represents banking book third party assets where Westpac acts as a sponsor. Westpac would be considered as a sponsor as it manages or advises the securitisation program, places securities into the market or provides liquidity and/or credit enhancement. $m 31 March 2024 30 September 2023 31 March 2023 Residential mortgages 123 149 120 Total 123 149 120 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. The overall reduction in the amounts securitised is due to the reduction in the frequency and volume of sales to the internal securitisation programmes, resulting from reduced requirements following the phase-out of the Reserve Bank of Australia’s Committed Liquidity Facility on 1 January 2023 and the maturing drawdowns of the Term Funding Facility since June 2023. For the 6 months ended Recognised 31 March 2024 Amount gain or loss $m securitised on sale Residential mortgages 4,714 - Total 4,714 - For the 12 months ended Recognised 30 September 2023 Amount gain or loss $m securitised on sale Residential mortgages 26,201 - Total 26,201 - For the 6 months ended Recognised 31 March 2023 Amount gain or loss $m securitised on sale Residential mortgages 14,236 - Total 14,236 -

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 69 Banking book summary of on and off-balance sheet securitisation by exposure type As set out in the table on page 23, the table below for 31 March 2024 and on pages 67 to 68 excludes New Zealand exposures. Under the capital framework these exposures are separately included in the New Zealand credit exposure line item. On balance sheet Total Securitisation Securitisation Off-balance Exposure $m retained purchased sheet at Default 31 March 2024 Securities - 7,942 - 7,942 Liquidity facilities - - 378 378 Funding facilities 6,988 - 720 7,708 Underwriting facilities - - - - Lending facilities 1,831 - 159 1,990 Warehouse facilities 14,210 - 5,781 19,991 Total 23,029 7,942 7,038 38,009 30 September 2023 Securities - 7,520 - 7,520 Liquidity facilities - - 329 329 Funding facilities 6,800 - 767 7,567 Underwriting facilities - - - - Lending facilities 1,870 - 220 2,090 Warehouse facilities 13,632 - 6,462 20,094 Total 22,302 7,520 7,778 37,600 31 March 2023 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 19,120 7,135 6,577 32,831

70 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT SECURITISATION Banking book securitisation exposure at default by risk weight band Exposure Total Exposure Risk Weighted Assets Total Risk $m Securitisation Resecuritisation at Default Securitisation Resecuritisation Weighted Assets 31 March 2024 Less than or equal to 10% - - - - - - Greater than 10 - 20% 33,154 - 33,154 5,778 - 5,778 Greater than 20 - 30% 4,182 - 4,182 1,047 - 1,047 Greater than 30 - 50% 186 - 186 76 - 76 Greater than 50 - 75% 411 - 411 248 - 248 Greater than 75 - 100% 10 - 10 9 - 9 Greater than 100 - 250% 31 - 31 39 - 39 Greater than 250 - 425% 35 - 35 120 - 120 Greater than 425 - 650% - - - - - - Other - - - - - - Deductions - - - - - - Total 38,009 - 38,009 7,317 - 7,317 30 September 2023 Less than or equal to 10% - - - - - - Greater than 10 - 20% 31,440 - 31,440 5,530 - 5,530 Greater than 20 - 30% 3,213 - 3,213 746 - 746 Greater than 30 - 50% 2,540 - 2,540 1,123 - 1,123 Greater than 50 - 75% 356 - 356 217 - 217 Greater than 75 - 100% 38 - 38 35 - 35 Greater than 100 - 250% 9 - 9 10 - 10 Greater than 250 - 425% - - - - - - Greater than 425 - 650% - - - - - - Other - - - - - - Deductions 4 - 4 - - - Total 37,600 - 37,600 7,661 - 7,661 31 March 2023 Less than or equal to 10% 8 - 8 - - - Greater than 10 - 20% 28,802 - 28,802 4,983 - 4,983 Greater than 20 - 30% 1,605 - 1,605 371 - 371 Greater than 30 - 50% 1,963 - 1,963 760 - 760 Greater than 50 - 75% 415 - 415 248 - 248 Greater than 75 - 100% 22 - 22 21 - 21 Greater than 100 - 250% 15 - 15 16 - 16 Greater than 250 - 425% - - - - - - Greater than 425 - 650% - - - - - - Other - - - - - - Deductions 1 - 1 - - - Total 32,831 - 32,831 6,400 - 6,400

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 71 Securitisation exposure deducted from capital As at 31 March 2024, securitisation exposure deducted from capital was $16.3 million (30 September 2023: $16.0 million) all of which related to the securitisation of Westpac originated assets. There is no trading book capital deduction for 31 March 2024 (30 September 2023: nil). Banking book securitisation subject to early amortisation treatment There is no securitisation exposure in the banking book that is subject to early amortisation treatment as at 31 March 2024 (30 September 2023: nil). Banking book resecuritisation exposure subject to credit risk mitigation (CRM) As at 31 March 2024, resecuritisation exposures subject to CRM was nil (30 September 2023: nil). Banking book resecuritisation exposure to guarantors Westpac has no third party guarantors providing guarantees for securitised assets, principal or interest repayments as at 31 March 2024 (30 September 2023: nil). Trading book summary of assets securitised by Westpac As at 31 March 2024, there was $119.6 million in outstanding securitisation exposures for Westpac originated assets held in the trading book (30 September 2023: $0.2 million). Trading book summary of total Westpac sponsored third party assets securitised There are no third party assets held in the trading book where Westpac is responsible for the establishment of the securitisation program and subsequent management as at 31 March 2024 (30 September 2023: nil). Trading book summary of securitisation activity by asset type There was $119.6 million of Westpac originated residential mortgage exposures in the trading book as at 31 March 2024 (30 September 2023: $0.2 million). Trading book aggregated amount of exposure securitised by Westpac and subject to APS116 Capital Adequacy: Market Risk As at 31 March 2024, there was $119.6 million of Westpac originated securitisation exposure held in the trading book subject to APS116 Capital Adequacy: Market Risk (30 September 2023: $0.2 million).

72 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT SECURITISATION Trading book summary of on and off-balance sheet securitisation by exposure type1 On balance sheet Total Securitisation Securitisation Off-balance Exposure $m retained purchased sheet at Default 31 March 2024 Securities - 610 - 610 Liquidity facilities - - - - Funding facilities - - - - Underwriting facilities - - - - Lending facilities - - - - Warehouse facilities - - - - Credit enhancements - - - - Basis swaps - - 130 130 Other derivatives - - 1 1 Total - 610 131 741 30 September 2023 Securities - 447 - 447 Liquidity facilities - - - - Funding facilities - - - - Underwriting facilities - - - - Lending facilities - - - - Warehouse facilities - - - - Credit enhancements - - - - Basis swaps - - 49 49 Other derivatives - - 5 5 Total - 447 54 501 31 March 2023 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 1. EAD associated with trading book securitisation is not included in the EAD by major type on page 31. Trading book securitisation exposure is captured and risk weighted under APS116.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 73 Trading book securitisation exposure subject to internal models approach (IMA) for specific risk There is no trading book securitisation exposure subject to IMA for specific risk for 31 March 2024 (30 September 2023: nil). Trading book securitisation exposure subject to APS120 Securitisation specific risk by risk weight band There is no trading book securitisation exposure subject to APS120 specific risk for 31 March 2024 (30 September 2023: nil). Trading book capital requirements for securitisation exposures subject to IMA for specific risk by risk classification There is no trading book capital requirement for securitisation subject to IMA for specific risk for 31 March 2024 (30 September 2023: nil). Trading book capital requirements for securitisation regulatory capital approaches by risk weight band There is no trading book capital requirement for securitisation subject to regulatory capital approaches for 31 March 2024 (30 September 2023: nil). Trading book securitisation subject to early amortisation treatment There is no securitisation exposure in the trading book that is subject to early amortisation treatment for 31 March 2024 (30 September 2023: nil). Trading book resecuritisation exposure subject to CRM Westpac has no resecuritisation exposure subject to CRM at 31 March 2024 (30 September 2023: nil). Trading book resecuritisation by guarantor creditworthiness Westpac has no third party guarantors providing guarantees for securitised assets, principal or interest repayments for 31 March 2024 (30 September 2023: nil).

74 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT MARKET RISK Westpac’s exposure to traded market risk arises out of Financial Markets and Treasury trading activities. This is quantified for regulatory capital purposes using both the internal model approach and the standard method, details of which are provided below. Approach Financial Markets trading business supports customers through activities including market making and distribution of capital markets products. The types of market risk arising from these activities include interest rate, foreign exchange, commodity, equity price, credit spread and volatility risk. Treasury’s trading activity includes the management of interest rate, foreign exchange and credit spread risks associated with the wholesale funding book, liquid asset portfolios and foreign exchange repatriations. Treasury also manages interest rate risk in the banking book which is discussed in the IRRBB section. Trading activities are managed within a BRiskC approved market risk framework that incorporates BRiskC approved value at risk (VaR) and stressed value at risk (SVaR) limits. Market risk is managed using VaR, SVaR and structural risk limits (including volume limits and basis point value limits) in conjunction with scenario analysis and stress testing. Market risk limits are allocated to business management based upon Westpac’s risk appetite and business strategies, in addition to the consideration of market liquidity and concentration risk. Trades are fair valued daily using rates that have been captured from an independent market data source that has been approved by the Revaluation Committee (RC). Where there is no source of independent rates, data will either be derived using a methodology approved by the RC or sourced from dealer contributions. Rates that are dealer-sourced or have limited independent sources are reviewed at least on a monthly basis. The RC meets monthly to review the results of independent price verification performed by the Finance valuation function. In addition, valuation adjustments may be made as deductions from CET1 Capital for exposures which are not captured through the fair valuation framework. VaR and SVaR limits Market risk arising from trading book activities is primarily measured using VaR based on an historical simulation methodology. Westpac estimates VaR as the potential loss in earnings from adverse market movements and is calculated to a 99% confidence level using the most recent 12 months of historical market data. SVaR is an additional VaR measure which uses 12 months of historical market data that includes a period of significant financial stress. VaR and SVaR take account of all known material market variables that may cause a change in the value of the trading portfolio, including interest rates, foreign exchange rates, price changes, volatility, and the correlation between these variables. The BRiskC approved market risk VaR and SVaR limits for trading activities include separate VaR and SVaR sub-limits for the trading activities of Financial Markets and Treasury. Back-testing Daily back-testing of VaR results is performed to ensure that model integrity is maintained. A review of both the actual and potential profit and loss outcomes is also undertaken to monitor any skew created by the historical data. Stress testing Daily stress testing against pre-determined scenarios is carried out to analyse potential losses beyond the 99% confidence level. A stress test escalation framework is approved by the Head of Market Risk, Liquidity and Capital Risk. Profit and loss notification framework The BRiskC has approved a profit and loss notification framework. Included in this framework are levels of escalation in accordance with the size of the profit or loss. Triggers are applied to both a 1-day and a rolling 20-day cumulative total.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 75 Risk reporting Daily monitoring of current exposure and limit utilisation is conducted independently by the Market Risk and Treasury Risk (Second Line of Defence) teams, that monitor market risk exposures against VaR, SVaR and structural limits. Daily VaR and SVaR position reports are produced by risk type, by product lines and by geographic region. These are supplemented by structural risk reporting, advice of profit and loss trigger levels and stress test escalation trigger points. Model accreditation has been granted by APRA for the use of an internal model for the determination of regulatory capital for the key classes of interest rate (general market), foreign exchange, commodity and equity risks (including equity specific risk). Under the model, regulatory capital is derived from both the current VaR window and a SVaR window, where these VaR measures are calculated over a 10-day time horizon to a 99th percentile, one-tailed confidence interval. Specific risk refers to the variations in individual security prices that cannot be explained by general market movements, and event and default risk. Interest rate specific risk capital (specific issuer risk) is calculated using the Standard method and is added to the VaR regulatory capital measure. Westpac currently holds an industry-wide capital overlay which was introduced from 31 December 2021 and relates to APRA’s revised risks-not-in-VaR framework. This overlay will be applied until the Group’s revised framework is approved by APRA. Structural foreign exchange rate risk Structural foreign exchange rate risk results from the generation of foreign currency denominated earnings and from Westpac’s capital deployed in offshore branches and subsidiaries, where it is denominated in currencies other than Australian dollars. The Australian dollar equivalent of offshore earnings and capital is subject to change as exchange rates fluctuate, which could introduce significant variability to Westpac’s reported financial results. ALCO provides oversight of the appropriateness of foreign exchange hedges on earnings and capital. Risk mitigation Market risk positions are managed by the trading desks consistent with delegated trading and product authorities. Risk management is carried out by qualified personnel with varying levels of seniority commensurate with the nature and scale of market risks under management. The following controls allow monitoring by management: • trading authorities and responsibilities are clearly delineated at all levels; • a structured system of limits and reporting of risk exposures, including stress testing; • surveillance of dealing room conduct; • all new products and significant product variations undergo a rigorous approval process to identify business risks prior to launch; • models that are used to determine risk or profit and loss for Westpac’s accounts are independently reviewed; • duties are segregated so that employees involved in the origination, processing and valuation of transactions operate under separate reporting lines, minimising the opportunity for collusion; and • legal personnel review documentation for compliance with relevant laws and regulations. In addition, Group Audit provides independent assurance of the governance, risk management and internal controls. Market risk regulatory capital and risk weighted assets The Internal model approach uses VaR and SVaR, while the Standard approach is used for interest rate specific risk. 31 March 30 September 31 March $m 2024 2023 2023 Internal model approach 765 808 1,112 Standard approach 135 115 101 Total capital required 900 923 1,213 Risk weighted assets 11,251 11,538 15,168

76 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT MARKET RISK VaR by risk type For the 6 months ended $m High Low Average Period end 31 March 2024 Interest rate risk 21.2 7.6 13.9 7.6 Foreign exchange risk 7.3 0.9 2.7 1.6 Equity risk - - - - Commodity risk 1.7 0.9 1.5 1.1 Other market risks 10.1 2.6 8.0 2.7 Diversification benefit N/A N/A (9.2) (3.8) Net market riska 23.4 8.8 16.8 9.2 30 September 2023 Interest rate risk 21.8 7.8 12.8 11.3 Foreign exchange risk 3.8 1.1 2.3 3.0 Equity risk 0.1 - - - Commodity risk 1.8 0.9 1.5 1.5 Other market risks 9.4 6.8 8.0 7.9 Diversification benefit N/A N/A (7.1) (6.5) Net market riska 31.8 10.4 17.4 17.2 31 March 2023 Interest rate risk 15.0 7.0 9.0 9.0 Foreign exchange risk 14.0 1.0 6.0 1.0 Equity risk - - - - Commodity risk 4.0 2.0 2.0 2.0 Other market risks 8.0 3.0 4.0 8.0 Diversification benefit N/A N/A (9.0) (7.0) Net market riska 19.0 9.0 13.0 12.0 a. VaR and SVaR measures shown here use a 1 day time horizon. The net market risk measure reflects the aggregate diversified risk position for the period. Therefore, individual risk factors will not sum to this total.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 77 Stressed VaR by risk type For the 6 months ended $m High Low Average Period end 31 March 2024 Interest rate risk 83.6 43.3 61.4 60.8 Foreign exchange risk 16.6 1.7 4.3 2.5 Equity risk - - - - Commodity risk 2.6 1.3 1.8 1.5 Other market risks 18.8 15.1 17.3 17.2 Diversification benefit N/A N/A (18.9) (17.0) Net market riska 87.3 50.7 65.9 65.0 30 September 2023 Interest rate risk 152.8 48.4 79.0 60.1 Foreign exchange risk 10.2 1.0 3.8 3.9 Equity risk 0.2 - - - Commodity risk 3.6 1.2 1.8 1.9 Other market risks 18.0 12.7 15.7 16.7 Diversification benefit N/A N/A (15.8) (28.8) Net market riska 157.8 53.8 84.4 53.8 31 March 2023 Interest rate risk 95.0 36.0 59.0 60.0 Foreign exchange risk 45.0 1.0 15.0 3.0 Equity risk - - - - Commodity risk 3.0 2.0 3.0 2.0 Other market risks 14.0 10.0 12.0 14.0 Diversification benefit N/A N/A (23.0) (13.0) Net market riska 86.0 42.0 66.0 66.0 a. The net market risk measure reflects the aggregate diversified risk position for the period. Therefore, individual risk factors will not sum to this total.

78 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT MARKET RISK Back-testing results The following graph gives a comparison of actual profit and loss to VaR over the 6 months ended 31 March 2024. (50) (40) (30) (20) (10) - 10 20 30 40 50 - 10 20 30 40 50 Actual Profit and Loss ($m) Daily Value at Risk ($m) Traded Risk: Actual Profit and Loss vs. Var 01-Oct-2023 to 28-Mar-2024 Each point on the graph represents 1 day’s trading profit or loss. This result is placed on the graph relative to the associated VaR utilisation. The downward sloping line represents the point where a loss is equal to VaR utilisation.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 79 INTEREST RATE RISK IN THE BANK BOOK (IRRBB) Introduction The Group manages interest rate risk to achieve reasonable earnings stability over time. IRRBB arises from changes in market interest rates that adversely impact the Group’s earnings (net interest income (NII)) or the economic value of the balance sheet. The banking book activities that give rise to this risk include customer lending and deposit taking, balance sheet funding and liquidity management and capital management. Management IRRBB is managed and governed under the Group’s Market Risk Management Framework which is approved by the BRiskC. This framework is supported by a comprehensive IRRBB measurement system that quantifies these risks and the potential impact from changes in market interest rates. Key aspects of this framework include: • risk appetite metrics set by the Board which incorporate limits for changes in NII, embedded losses and economic value at risk; • centralisation of the management of the Group’s interest rate risk profile into Treasury via the Funds Transfer Pricing policy and systems; • day to day management of these risks by Treasury in line with approved limits. This includes the development and execution of the interest rate risk strategy for the Group’s choice of its investment term of capital (ITOC) and the repricing profile for non-rate sensitive deposits; • policies and procedures that support the proactive risk management of IRRBB exposures and the management and performance of models used to capture and measure IRRBB risk; • regular reporting of IRRBB metrics to senior management and the Board; and • independent oversight from the Market Risk and Model Risk functions in line with the Group’s Three Lines of Defence framework. Measurement Westpac has received approval from APRA to use its internal model for the calculation of regulatory capital for IRRBB, under APS117 Capital Adequacy: Interest Rate Risk in the Banking Book. Westpac measures and monitors IRRBB outcomes using the following principal metrics: • Value at Risk (VaR) – potential loss in economic value from adverse market rate movements while maintaining the portfolio for a defined period. Westpac calculates VaR for both internal monitoring and regulatory capital purposes. The regulatory capital VaR measure uses 6 years of historical data with a scaled 1 year holding period and 99% confidence interval. For internal limit monitoring purposes, 1 year of historical data is used with a 1 day holding period and 99% confidence interval; • Single currency basis and credit spread sensitivities – the estimate of a change in economic value of the banking book due to a 1 basis point move in single currency basis and credit spreads. Structural risk limits are in place to manage these sensitivities; • Embedded Gains or Losses (EGL) – EGL is included in the IRRBB capital requirement and is the economic gain or loss implied by a static balance sheet, being the difference between the book value and current economic value of banking book items accounted for on an accrual basis. Sensitivity metrics are in place to monitor the potential risk of loss in economic value from embedded losses; • NII-at-risk (NaR) – NaR is measured using a net interest income sensitivity model. The NaR model combines the underlying statement of financial position data with assumptions about runoff and new business and expected repricing behaviour. This simulates a series of potential NII outcomes over one-to-three-year time horizons subject to 100 and 200 basis point shifts up and down from the current market interest rates in Australia and New Zealand. A NaR limit is in place to monitor this exposure; and • Scenario analysis and Stress Testing – the potential loss in earnings and economic value from large parallel and non-parallel yield curve shocks. Behavioural models are incorporated in the measurement of IRRBB to derive behavioural assumptions where appropriate, such as for products that do not have a contractually defined repricing date (e.g. non-maturity deposits) or where there is potential for variation between contractual and actual repricing dates (e.g. prepayments). Risk reporting The IRRBB measurement comprises the systems, data and models used to measure IRRBB and forms part of the Group’s IRRBB management framework. It includes the capture of retail and other business transactions through the transfer pricing system and the relevant balance sheet management activities of Treasury. The IRRBB measurement system provides regular reporting of the key IRRBB metrics described above, with Market Risk Oversight performing independent monitoring daily of market risk exposures against VaR, structural risk limits and stress testing. Regulatory capital, NaR and EGL sensitivity are monitored on a monthly basis with IRRBB management reports produced for the senior management forums of ALCO, MARCO, RISKCO and BRiskC to provide transparency of compliance with risk appetite, limits and interest rate risk strategy outcomes.

80 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT INTEREST RATE RISK IN THE BANK BOOK (IRRBB) Risk mitigation Market risk arising in the banking book stems from the ordinary course of banking activities, including structural interest rate risk (the mismatch between the duration of assets and liabilities) and capital management. Hedging Westpac’s exposure to interest rate risk is undertaken using derivatives. The hedging strategy adopted utilises a combination of the cash flow and fair value hedge approaches. Some derivatives held for economic hedging purposes do not meet the criteria for hedge accounting as defined under AASB 139 Financial Instruments: Recognition and Measurement is therefore accounted for in the same way as derivatives held for trading. Change in economic value of a sudden upward and downward movement in interest rates1 The table below represents the change in economic value of a sudden upward or downward movement in interest rates based on a 200 basis point parallel shift. The sensitivity to upward or downward movements in interest rates has changed over the year as the net banking book interest rate exposure has adjusted with changes in the interest rate environment. 200bp parallel 200bp parallel $m increase decrease 31 March 2024 AUD 19.2 (20.0) NZD (3.9) 4.4 USD (5.2) 6.7 Total 10.1 (8.9) 200bp parallel 200bp parallel $m increase decrease 30 September 2023 AUD 147.0 (146.5) NZD 6.3 (5.9) USD (3.6) 4.9 Total 149.7 (147.5) 200bp parallel 200bp parallel $m increase decrease 31 March 2023 AUD 40.1 (41.7) NZD (21.3) 22.1 USD (4.3) 4.9 Total 14.5 (14.7) IRRBB regulatory capital and RWA2 This table presents IRRBB regulatory capital and RWA. IRRBB RWA decreased $6.5 billion in the half year ended March 2024 mainly due to a lower regulatory embedded loss from lower interest rates offset by an increase in repricing and yield curve risk from movements in underlying banking book positions. 31 March 30 September 31 March $m 2024 2023 2023 Total capital required 2,688 3,211 2,780 Risk weighted assets 33,599 40,138 34,748 1. Based on measures used for internal management reporting purposes. 2. APRA has approved Westpac's IRRBB EGL model, however Westpac has applied an overlay pending recalibration of the model.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 81 OPERATIONAL RISK Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Approach Westpac is subject to APS115 Capital Adequacy: Standardised Measurement Approach to Operational Risk. Westpac’s Operational Risk Management Framework describes the Group’s approach to managing operational risk. Westpac’s Operational Risk Management Framework This Framework implements the nine components in Westpac’s Risk Management Framework. These components are listed below: Business Strategy - Operational Risk Management is an integral part of the Group’s business strategy, planning and management. Both internal and external factors are considered as part of this. Risk Identification – Operational risk is identified as part of managing business, considering emerging risks, and in response to changes in the business, business strategy and in the external environment. The Group monitors various internal and external data sources for complete, accurate and timely identification of operational risks. Once identified, the Risk and Control Assessment (RCA) process provides a structured and consistent approach for the assessment of non-financial risks and management of controls for risk profiles across the Group. Risk Appetite – Our operational risk qualitative statements of risk appetite, risk appetite measures and thresholds are contained in our Board Risk Appetite Statement. Operational risk appetite measures and thresholds are contained in Divisional and Lines of Business risk appetite statements to support risk-informed decision making within the bounds of the Board Risk Appetite Statement. We use risk appetite dashboards to report performance against risk appetite to support the management of operational risk. Operational risks outside of approved risk appetite thresholds are subject to heightened monitoring, remediation and reporting to the relevant Board and management committees. Stress and Scenario Analysis – We use stress testing and scenario analysis to assess the potential impacts that changes to existing and emerging operational risks may have on our business. Understanding these impacts enables better decision making to deliver fair customer outcomes. They also help us to assess if the group holds capital commensurate with its risk profile and can remain solvent under the stress test. People and Infrastructure – The Group aims to have sufficient people in defined roles and responsibilities with appropriate expertise to exercise those responsibilities for the management of operational risk. Control Definition and Effectiveness – The Group defines, manages, and continually enhances its control environment to mitigate operational risks. Frameworks and policies are used to mitigate risks and manage within acceptable levels. Monitoring and Reporting – Operational risk monitoring and reporting provides comprehensive and timely information to Board, Risk Committees and Senior Management to support the effective management of operational risk. There is a consistent and periodic reporting process in place. Operational Risk Measurement plays a key role in active risk management. This includes measurement of loss data, forward looking scenarios, and Group’s operational risk capital adequacy. Actions and Response – Action plans are designed and implemented to manage operational risk to ensure we remain within our approved risk appetite and/ or to improve our risk profile. Where action plans are established, they are well defined with clear milestones and delivery dates and accountabilities. Governance and Management Control – The Board Risk Committee, Group Executive Risk Committee, Operational Risk, Compliance and Resilience Committee, Divisional Risk and Compliance Committees support the management and oversight of operational risk for the Group.

82 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT OPERATIONAL RISK SMA capital overview Westpac applies the SMA to operational risk capital as required by Prudential Standard APS115 Capital Adequacy: Standardized Measurement Approach to Operational Risk. Westpac is required to calculate operational risk capital annually based on annual audited financial statements. The SMA based operational risk calculation was updated as part of the 31 December 2023 Pillar 3 report. Operational Risk regulatory capital and risk weighted assets 31 March 30 September 31 March $m 2024 2023 2023 Model based capital 3,395 3,414 3,552 Culture, Governance & Accountability Review overlay 500 500 500 Risk governance overlaya 500 500 500 Total capital required 4,395 4,414 4,552 Risk weighted assets 54,934 55,175 56,900 a. This overlay was applied in response to the magnitude and nature of issues that were the subject of the AUSTRAC proceedings. This overlay has been applied from 31 December 2019.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 83 EQUITY RISK Equity risk is defined as the potential for financial loss arising from movements in equity values. The disclosures in this section exclude investments in equities made by Westpac subsidiaries outside the regulatory Level 2 group. Structure and organisation Portfolio and transactional limits for Westpac’s direct equity investments are governed by various supporting policies and delegated approval limits. Where appropriate, the BRiskC (under delegation from the Westpac Board) will consider and approve risks beyond Management’s approval authority. Approach Westpac has established a comprehensive set of policies defining the management of equity risk. These policies are reviewed and approved periodically as required (in most cases annually). Risk mitigation Westpac does not use financial instruments to mitigate its exposure to equities in the banking book. Banking book positions Hybrid equity underwriting and equity warehousing risk – As a financial intermediary Westpac underwrites listed and unlisted hybrid equity securities. Investment securities – Westpac undertakes, as part of the ordinary course of business, certain investments in strategic equity holdings and over time the nature of underlying investments will vary. Measurement of equity securities – Equity securities are generally carried at their fair value. Fair value for equities that have a quoted market price (in an active market) is determined based upon current bid prices. If a market for a financial asset is not active, fair value is determined based upon a valuation technique such as the use of recent arms-length transactions, discounted cash flow analysis, option pricing models or other valuation techniques commonly used by market participants to price similar instruments. Where an investment is held for long term strategic purposes, it is accounted for at fair value through profit and loss, unless the Group makes an irrevocable election to measure them at fair value through other comprehensive income. Where the Group has significant influence, but not control, over the financial and operating policy decisions of the investee, the investment is equity accounted for and recognised as a share in associates. Risk reporting Westpac manages equity risk in two ways, VaR limits and investment limits: • A VaR limit (in conjunction with structural limits) is used to manage traded equity. This limit is a sub-limit of the overall VaR limit for Financial Markets trading activities. Equity trading activity is overseen by the independent Market Risk function applying the same controls used for monitoring other trading book activities in Financial Markets and Treasury; and • Investment exposures are measured and reported annually to MARCO. Gains/losses 31 March 30 September 31 March $m 2024 2023 2023 Cumulative realised gains (losses) - 3 - Total unrealised gains (losses) through profit & loss (5) (2) (30) Total unrealised gains (losses) through equity - - - Total latent revaluation gains (losses) - - - Book value of equity exposures 31 March 30 September 31 March $m 2024 2023 2023 Listed equity exposures (publicly traded) 3 - - Unlisted equity exposures (privately traded) 231 228 209 Total book value of equity exposures 234 228 209

84 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT FUNDING AND LIQUIDITY RISK MANAGEMENT Funding and liquidity risk is the risk that Westpac cannot meet its payment obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. Approach Funding and liquidity risk is measured and managed in accordance with the policies and processes defined in the Board-approved Liquidity Risk Management Framework which is part of the Westpac Board-approved Risk Management Strategy. Responsibility for managing Westpac’s liquidity and funding positions in accordance with the Liquidity Risk Management Framework is delegated to Treasury, under the oversight of the ALCO and Liquidity Risk. Liquidity Risk Management Framework The Liquidity Risk Management Framework sets out Westpac’s funding and liquidity risk appetite, roles and responsibilities of key people managing funding and liquidity risk within Westpac, risk reporting and control processes and limits and targets used to manage Westpac’s balance sheet. Key components of Westpac’s approach to liquidity risk management are listed below. Liquidity reporting Westpac has monitoring and reporting processes in place to ensure it remains within its Board Risk Appetite tolerance and in compliance with its regulatory requirements. Funding strategy Treasury undertakes an annual funding review that outlines Westpac’s funding strategy over a three-year period which is approved by the BRiskC. This review encompasses trends in global markets, peer analysis, wholesale funding capacity, expected funding requirements and a funding risk analysis. This strategy is continuously reviewed to take account of changing market conditions, investor sentiment, estimations of asset and liability growth rates, capacity analysis and results from stress testing. Westpac monitors the composition and stability of its funding so that it remains within its funding risk appetite. This includes compliance with both the LCR and NSFR. Liquid asset holdings Westpac holds a portfolio of liquid assets for several purposes, including as a buffer against unforeseen funding requirements. The level of liquid assets held considers the liquidity requirements of Westpac’s balance sheet under normal, and stressed conditions. Liquidity modelling To support the management of liquidity, Westpac utilises balance sheet forecasts and the maturity profile of Westpac’s wholesale funding portfolio to forecast the Groups liquidity outcomes and metrics. In addition, Westpac conducts weekly liquidity stress testing to assess its ability to meet cash flow obligations under a range of market conditions and scenarios. The Liquidity stress test is also used to inform the Group’s liquidity risk tolerance. Liquidity transfer pricing Westpac’s Liquidity Transfer Pricing framework allocates the costs and benefits of liquidity to business lines in accordance with the underlying liquidity characteristics of its balance sheet assets and liabilities. Contingency planning Westpac’s Liquidity Crisis Management Policy provides guidance on the courses of action to be taken in the event of an emerging liquidity crisis. A liquidity crisis may result from any event that may impact Westpac’s ability to fund assets and meet refinancing obligations as they become due. Supporting action plans in the Liquidity Crisis Management Policy include the Treasury Contingent Funding plan. The Treasury Contingent Funding plan is approved by the Board annually. Sources of fundings Sources of funding include, but are not limited to, customer deposits, short-term and long-term wholesale funding, securitisation, and capital instruments. The Group monitors the composition and stability of its funding so that it remains within the Group's funding risk appetite including compliance with LCR and NSFR.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 85 LIQUIDITY COVERAGE RATIO Liquidity Coverage Ratio 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). Westpac’s average LCR1 for the quarter was 132% (31 December 2023: 133%) and continues to be above the regulatory minimum of 100%. The decrease in average LCR for the quarter ended 31 March 2024 reflects an increase in average NCOs. This was driven by higher wholesale funding outflows mostly from long-term wholesale funding maturities and maturing Term Funding Facility (TFF) drawdowns. Partly offsetting this was an increase in holdings of liquid assets largely driven by higher average issuance of term wholesale funding in the quarter. HQLA averaged $176.7 billion over the quarter (31 December 2023: $172.9 billion), comprising of cash and balances with central banks, Australian government and semi-government bonds. Westpac also holds other HQLA, 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. Westpac maintains a buffer over the regulatory minimum of 100% in line with its liquidity risk tolerance. 31 March 2024 31 December 2023 $m Total unweighted value (average) Total weighted value (average) Total unweighted value (average) Total weighted value (average) Liquid assets, of which: 1 High-quality liquid assets (HQLA) 176,659 172,884 2 Alternative liquid assets (ALA) - - 3 Reserve Bank of New Zealand (RBNZ) securities 4,871 4,729 Cash Outflows 4 Retail deposits and deposits from small business customers, of which: 338,115 30,017 335,665 29,718 5 Stable deposits 163,129 8,156 163,225 8,161 6 Less stable deposits 174,986 21,861 172,440 21,557 7 Unsecured wholesale funding, of which: 172,818 78,521 168,433 75,641 8 Operational deposits (all counterparties) and deposits in networks for cooperative banks 76,920 19,160 75,696 18,853 9 Non-operational deposits (all counterparties) 82,377 45,840 81,798 45,849 10 Unsecured debt 13,521 13,521 10,939 10,939 11 Secured wholesale funding 2,039 341 12 Additional requirements, of which: 216,585 33,024 215,992 32,348 13 Outflows related to derivatives exposures and other collateral requirements 13,890 13,890 12,772 12,772 14 Outflows related to loss of funding on debt products 810 810 1,573 1,573 15 Credit and liquidity facilities 201,885 18,324 201,647 18,003 16 Other contractual funding obligations 8,425 6,186 9,220 6,439 17 Other contingent funding obligations 49,637 4,334 47,592 4,141 18 Total cash outflows 154,121 148,628 Cash inflows 19 Secured lending (e.g. reverse repos) 8,915 - 7,254 - 20 Inflows from fully performing exposures 9,863 5,387 9,779 5,268 21 Other cash inflows 11,626 11,626 10,147 10,147 22 Total cash inflows 30,404 17,013 27,180 15,415 23 Total liquid assets 181,530 177,613 24 Total net cash outflows 137,108 133,213 25 Liquidity Coverage Ratio (%) 132% 133% Number of data points used 63 63 1. Average LCR is calculated as a simple average of the daily observations over the quarter. Number of data points used is reported in the table.

86 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT NET STABLE FUNDING RATIO Net Stable Funding Ratio (NSFR) disclosure The NSFR requires that a bank has sufficient Available Stable Funding (ASF) to cover its Required Stable Funding (RSF) over a one-year horizon. The NSFR requires banks to hold sufficient stable funding to cover long term assets with a duration of greater than one year. Westpac’s NSFR for the quarter was 114%1 (31 December 2023: 114%) and continues to be above the regulatory minimum of 100%. The NSFR for the quarter ended 31 March 2024 held flat on the previous quarter. ASF increased by 1% ($10 billion) due mainly to an increase in wholesale funding and high-quality deposits. This was offset by a 1% increase in RSF ($9 billion) driven by growth in lending, a higher RSF factor applied to residential mortgage securities previously used as collateral for TFF draw-downs and impacts relating to the implementation of regulatory changes from APS112 Capital Adequacy requirements. 31 March 2024 Unweighted value by residual maturity $m No maturity < 6 months 6 months to < 1yr > 1 year Weighted value Available Stable Funding (ASF) Item 1 Capital 71,281 621 - 36,052 107,954 2 Regulatory capital 71,281 621 - 36,052 107,954 3 Other capital instruments - - - - - 4 Retail deposits and deposits from small business customers 327,637 93,482 587 239 389,285 5 Stable deposits 162,177 28,035 4 3 180,708 6 Less stable deposits 165,460 65,447 583 236 208,577 7 Wholesale funding 137,335 178,713 51,422 108,553 223,200 8 Operational deposits 74,277 - - - 37,138 9 Other wholesale funding 63,058 178,713 51,422 108,553 186,062 10 Liabilities with matching interdependent assets - - - - - 11 Other liabilities - 30,800 - 44 44 12 NSFR derivative liabilities 5,067 13 All other liabilities and equity not included in the above categories 25,733 - 44 44 14 Total ASF 720,483 Required Stable Funding (RSF) Item 15 a) Total NSFR (High quality liquid assets - HQLA) 3,938 15 b) Alternative Liquid Assets (ALA) 788 15 c) Reserve Bank of New Zealand (RBNZ) securities 489 16 Deposits held at other financial institutions for operational purposes - - - - - 17 Performing loans and securities 1,836 55,117 45,262 697,683 577,375 18 Performing loans to financial institutions secured by Level 1 HQLA 1,791 12,282 - - 3,020 19 Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions 45 5,080 5,524 25,145 28,714 20 Performing loans to nonfinancial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and public sector entities (PSEs) - 30,893 32,438 144,150 151,482 21 of which: With a risk weight of less than or equal to 35% under APS 112 - 1,290 847 13,554 10,068 22 Performing residential property loans - 5,680 5,657 509,284 376,511 23 of which: are standard loans to individuals with a LVR of 80 per cent or below 337,781 219,558 24 Securities that are not in default and do not qualify as HQLA, including exchange-traded equities - 1,182 1,643 19,104 17,648 25 Assets with matching interdependent liabilities - - - - - 26 Other assets: 8,784 24,424 222 26,352 39,925 27 Physical traded commodities, including gold 363 363 28 Assets posted as initial margin for derivative contracts and contributions to default funds of central counterparties (CCPs) 2,644 2,247 29 NSFR derivative assets 4,467 - 30 NSFR derivative liabilities before deduction of variation margin posted 9,426 1,885 31 All other assets not included in the above categories 8,421 7,887 222 26,352 35,430 32 Off-balance sheet items 198,473 10,260 33 Total RSF 632,775 34 Net Stable Funding Ratio (%) 114% 1. Calculated as total ASF divided by total RSF as at end of the quarter.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 87 31 December 2023 Unweighted value by residual maturity $m No maturity < 6 months 6 months to < 1yr > 1 year Weighted value Available Stable Funding (ASF) Item 1 Capital 70,366 - 621 37,425 108,412 2 Regulatory capital 70,366 - 621 37,425 108,412 3 Other capital instruments - - - - - 4 Retail deposits and deposits from small business customers 325,081 91,536 725 223 385,317 5 Stable deposits 162,101 27,644 6 3 180,266 6 Less stable deposits 162,980 63,892 719 220 205,051 7 Wholesale funding 140,940 188,614 40,887 106,486 216,744 8 Operational deposits 76,211 - - - 38,105 9 Other wholesale funding 64,729 188,614 40,887 106,486 178,639 10 Liabilities with matching interdependent assets - - - - - 11 Other liabilities - 25,550 - 50 50 12 NSFR derivative liabilities 7,558 13 All other liabilities and equity not included in the above categories 17,992 - 50 50 14 Total ASF 710,523 Required Stable Funding (RSF) Item 15 a) Total NSFR (High quality liquid assets - HQLA) 3,923 15 b) Alternative Liquid Assets (ALA) 1,188 15 c) Reserve Bank of New Zealand (RBNZ) securities 519 16 Deposits held at other financial institutions for operational purposes - - - - - 17 Performing loans and securities 2,314 49,984 47,433 689,429 569,720 18 Performing loans to financial institutions secured by Level 1 HQLA 2,256 10,688 - - 3,325 19 Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions 58 3,143 7,132 25,664 29,760 20 Performing loans to nonfinancial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and public sector entities (PSEs) - 29,046 32,989 141,365 151,075 21 of which: With a risk weight of less than or equal to 35% under APS 112 - 8 5 512 339 22 Performing residential property loans - 5,670 5,647 504,330 368,652 23 of which: are standard loans to individuals with a LVR of 80 per cent or below - - - 358,188 232,822 24 Securities that are not in default and do not qualify as HQLA, including exchange-traded equities - 1,437 1,665 18,070 16,908 25 Assets with matching interdependent liabilities - - - - - 26 Other assets: 8,878 26,069 241 23,304 38,379 27 Physical traded commodities, including gold 421 421 28 Assets posted as initial margin for derivative contracts and contributions to default funds of central counterparties (CCPs) 2,356 2,003 29 NSFR derivative assets 3,376 - 30 NSFR derivative liabilities before deduction of variation margin posted 18,222 3,644 31 All other assets not included in the above categories 8,457 2,115 241 23,304 32,311 32 Off-balance sheet items 200,255 10,359 33 Total RSF 624,088 34 Net Stable Funding Ratio (%) 114%

88 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDICES APPENDIX I – REGULATORY CAPITAL RECONCILIATION APPENDIX II – ENTITIES INCLUDED IN REGULATORY CONSOLIDATION APPENDIX III – LEVEL 3 ENTITIES’ ASSETS AND LIABILITIES APPENDIX IV – REGULATORY EXPECTED LOSS APPENDIX V – APS330 QUANTITATIVE REQUIREMENTS APPENDIX VI – EXCHANGE RATES

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 89 APPENDIX I – REGULATORY CAPITAL RECONCILIATION Balance Sheet Reconciliation 31 March 2024 $m Group Balance Sheet Adjustment Level 2 Regulatory Balance Sheet Reconciliation Table Capital Disclosure Template Assets Cash and balances with central banks 95,907 (1) 95,906 Collateral paid 4,671 - 4,671 Due from subsidiaries - 45 45 Trading securities and financial assets measured at fair value through income statement (FVIS) 33,943 (32) 33,911 Derivative financial instruments 15,795 - 15,795 Investment securities 90,587 (251) 90,336 Loans 784,839 - 784,839 Other financial assets 11,266 (276) 10,990 Property and equipment 2,179 - 2,179 Tax assets 1,999 192 2,191 Intangible assets 10,708 - 10,708 Table b Investments in life & general insurance, funds management & securitisation entities - 136 136 Other assets 767 (22) 745 Total assets 1,052,661 (209) 1,052,452 Liabilities Collateral received 2,534 - 2,534 Due to subsidiaries - 505 505 Deposits and other borrowings 702,226 - 702,226 Other financial liabilities 54,392 (28) 54,364 Derivative financial instruments 18,417 - 18,417 Debt issues 159,781 - 159,781 Tax liabilities 459 (3) 456 Provisions 2,414 (13) 2,401 Loan capital 37,280 - 37,280 Table d and e Other liabilities 2,598 (4) 2,594 Total liabilities 980,101 457 980,558 Equity Ordinary share capital 38,944 - 38,944 Row 1 Treasury shares and RSP treasury shares (758) (57) (815) Table f Reserves 2,157 (210) 1,947 Table g Retained Profits 32,179 (399) 31,780 Row 2 Non-controlling interests 38 - 38 Total equity 72,560 (666) 71,894

90 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX I – REGULATORY CAPITAL RECONCILIATION $m 31 March 2024 Capital Disclosure Template Reference Table a Deferred Tax Assets Total Deferred Tax Assets per Group Balance Sheet 1,994 Add: Net Deferred Tax Assets included in other regulatory adjustments or associated with reserves ineligible for inclusion in regulatory capital 192 Total Deferred Tax Assets per level 2 Regulatory Balance Sheet 2,186 Deferred tax asset adjustment before applying prescribed thresholds 2,186 Row 26e Less: Amounts below prescribed threshold - risk weighted (2,186) Row 75 Total per Capital Disclosure Template - Deferred Tax Asset - Row 21 / 25 Table b Goodwill and other intangible assets Total Goodwill and Intangibles Assets per level 2 Regulatory Balance Sheet 10,708 Less: Capitalised Software Disclosed Under Intangibles (2,658) Row 9 Total per Capital Disclosure Template - Goodwill 8,050 Row 8 Table c Equity Investments Equity Investments in non-consolidated subsidiaries 136 Total Significant Investment in financial entities 136 Row 73 Non-significant Investment in financial entities 157 Row 72 Total Investments in financial institutions 293 Row 26d Investment in commercial entities 77 Row 26g Total Equity Investments before applying prescribed threshold 370 Less: Amounts below prescribed threshold (370) Total per Capital Disclosure Template - Equity Investments - Row 18/ 19/ 23 Table d Additional Tier 1 Capital Total Loan Capital per Level 2 Regulatory Balance Sheet 37,280 Less: Tier 2 Capital Instruments Reported Below (26,524) Add: Capitalised Issue Costs for Additional Tier 1 Capital Instrumentsa 59 Less: Fair Value Adjustmentb 141 Total per Capital Disclosure Template - Tier 1 Capital 10,956 Row 36 Additional Tier 1 Capital included in Regulatory Capital USD AT1 securities 1,913 Westpac Capital Notes 5 1,690 Westpac Capital Notes 6 621 Westpac Capital Notes 7 1,723 Westpac Capital Notes 8 1,750 Westpac Capital Notes 9 1,509 Westpac Capital Notes 10 1,750 Total Basel III complying instruments 10,956 Row 30 Total Basel III non complying instruments - Row 33 Total per Capital Disclosure Template - Additional Tier 1 Capital Instruments 10,956 Row 36 a. Unamortised issue costs relating to capital instruments are netted off against each instrument in the Balance Sheet. For regulatory capital purposes, these capital instruments are shown gross of unamortised issue costs. The unamortised issue costs are deducted from CET1 as part of capitalised expenses in Row 26f in the capital disclosure template. b. For regulatory capital purposes, APRA requires these instruments to be included as if they were unhedged.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 91 $m 31 March 2024 Capital Disclosure Template Reference Table e Tier 2 Capital Total Tier 2 Capital per Level 2 Regulatory Balance Sheet 26,524 Add: Capitalised Issue Costs for Tier 2 Capital Instrumentsa (23) Less: Fair Value Adjustmentb 2,778 Less: Cumulative amortisation of Tier 2 Capital Instrumentsc (163) Less: Loan capital not recognised for APRA purposes (1,049) Less: Basel III transitional adjustment - Row 56c Provisions 896 Row 50 / 76 / 78 Total per Capital Disclosure Template - Tier 2 28,963 Row 51 Tier 2 Capital included in Regulatory Capital USD100 million Westpac Subordinated Notes 153 JPY20,000 million Westpac Subordinated Notes 121 JPY10,200 million Westpac Subordinated Notes 62 JPY10,000 million Westpac Subordinated Notes 61 AUD1,500 million Westpac Subordinated Notes 1,498 USD1,500 million Westpac Subordinated Notes 2,294 AUD1,000 million Westpac Subordinated Notes 1,000 AUD350 million Westpac Subordinated Notes 350 AUD185 million Westpac Subordinated Notes 184 AUD130 million Westpac Subordinated Notes 130 AUD300 million Westpac Subordinated Notes 299 AUD1,100 million Westpac Subordinated Notes 1,097 USD1,000 million Westpac Subordinated Notes 1,524 USD1,250 million Westpac Subordinated Notes 1,910 USD1,000 million Westpac Subordinated Notes 1,523 USD1,500 million Westpac Subordinated Notes 2,296 USD1,000 million Westpac Subordinated Notes 1,523 USD1,500 million Westpac Subordinated Notes 2,291 AUD1,250 million Westpac Subordinated Notes 1,249 EUR1,000 million Westpac Subordinated Notes 1,655 USD1,000 million Westpac Subordinated Notes 1,526 USD1,250 million Westpac Subordinated Notes 1,909 JPY26,000 million Westpac Subordinated Notes 262 SGD450 million Westpac Subordinated Notes 510 AUD1,500 million Westpac Subordinated Notes 1,496 USD750 million Westpac Subordinated Notes 1,144 Total Basel III complying instruments 28,067 Row 46 Total Basel III non complying instruments - Less: Basel III transitional adjustment - Row 85 Total Basel III non complying instruments after transitional adjustment - Row 47 Provisions 896 Row 50 / 76 / 78 Total per Capital Disclosure Template - Tier 2 Capital Instruments 28,963 Row 51 Table f Treasury Shares and RSP Treasury Shares Total treasury shares per Level 2 Regulatory Balance Sheet (815) Less: Treasury Shares not included for Level 2 Regulatory Capital - Total per Capital Disclosure Template - Treasury Shares (815) Row 26a Table g Accumulated Other Comprehensive Income (and other reserves) Total reserves per Level 2 Regulatory Balance Sheet 1,947 Less: Share Based Payment Reserve not included within capital (46) Total per Capital Disclosure Template - Accumulated Other Comprehensive Income (and other reserves) 1,901 Row 3 a. Unamortised issue costs relating to capital instruments are netted off against each instrument in the Balance Sheet. For regulatory capital purposes, these capital instruments are shown gross of unamortised issue costs. The unamortised issue costs are deducted from CET1 as part of capitalised expenses in Row 26f in the capital disclosure template. b. For regulatory capital purposes, APRA requires these instruments to be included as if they were unhedged. c. APRA requires these instruments to be amortised by 20% of the original amount during each of the last five years to maturity.

92 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX I – REGULATORY CAPITAL RECONCILIATION The capital disclosure template below represents the post 1 January 2018 Basel III template. $m 31 March 2024 Table Reference Common Equity Tier 1 capital: instruments and reserves 1 Directly issued qualifying ordinary shares (and equivalent for mutually-owned entities) capital 38,944 2 Retained earnings 31,780 3 Accumulated other comprehensive income (and other reserves) 1,901 Table g 4 Directly issued capital subject to phase out from CET1 (only applicable to mutually-owned companies) - 5 Ordinary share capital issued by subsidiaries and held by third parties (amount allowed in group CET1) 38 6 Common Equity Tier 1 capital before regulatory adjustments 72,663 Common Equity Tier 1 capital: regulatory adjustments 7 Prudential valuation adjustments - 8 Goodwill (net of related tax liability) (8,050) Table b 9 Other intangibles other than mortgage servicing rights (net of related tax liability) (2,658) Table b 10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) - 11 Cash-flow hedge reserve (477) 12 Shortfall of provisions to expected losses - 13 Securitisation gain on sale (as set out in paragraph 562 of Basel II framework) - 14 Gains and losses due to changes in own credit risk on fair valued liabilities (153) 15 Defined benefit superannuation fund net assets (146) 16 Investments in own shares (if not already netted off paid-in capital on reported balance sheet) - 17 Reciprocal cross-holdings in common equity - 18 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) - Table c 19 Significant investments in the ordinary shares of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) - Table c 20 Mortgage service rights (amount above 10% threshold) - 21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) - Table a 22 Amount exceeding the 15% threshold - 23 of which: significant investments in the ordinary shares of financial entities - Table c 24 of which: mortgage servicing rights - 25 of which: deferred tax assets arising from temporary differences - Table a 26 National specific regulatory adjustments (sum of rows 26a, 26b, 26c, 26d, 26e, 26f, 26g, 26h, 26i and 26j) (5,415) 26a of which: treasury shares (815) Table f 26b of which: offset to dividends declared under a dividend reinvestment plan (DRP), to the extent that the dividends are used to purchase new ordinary shares issued by the ADI - 26c of which: deferred fee income 305 26d of which: equity investments in financial institutions not reported in rows 18, 19 and 23 (293) Table c 26e of which: deferred tax assets not reported in rows 10, 21 and 25 (2,186) Table a 26f of which: capitalised expenses (2,333) 26g of which: investments in commercial (non-financial) entities that are deducted under APRA prudential requirements (77) Table c 26h of which: covered bonds in excess of asset cover in pools - 26i of which: undercapitalisation of a non-consolidated subsidiary - 26j of which: other national specific regulatory adjustments not reported in rows 26a to 26i (16) 27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions - 28 Total regulatory adjustments to Common Equity Tier 1 (16,899) 29 Common Equity Tier 1 Capital (CET1) 55,764

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 93 $m 31 March 2024 Table Reference Additional Tier 1 Capital: instruments 30 Directly issued qualifying Additional Tier 1 instruments 10,956 Table d 31 of which: classified as equity under applicable accounting standards - 32 of which: classified as liabilities under applicable accounting standards 10,956 Table d 33 Directly issued capital instruments subject to phase out from Additional Tier 1 - Table d 34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) - 35 of which: instruments issued by subsidiaries subject to phase out - 36 Additional Tier 1 Capital before regulatory adjustments 10,956 Table d Additional Tier 1 Capital: regulatory adjustments 37 Investments in own Additional Tier 1 instruments (25) 38 Reciprocal cross-holdings in Additional Tier 1 instruments - 39 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) - 40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - 41 National specific regulatory adjustments (sum of rows 41a, 41b and 41c) (1) 41a of which: holdings of capital instruments in group members by other group members on behalf of third parties - 41b of which: investments in the capital of financial institutions that are outside the scope of regulatory consolidations not reported in rows 39 and 40 (1) 41c of which: other national specific regulatory adjustments not reported in rows 41a and 41b - 42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions - 43 Total regulatory adjustments to Additional Tier 1 capital (26) 44 Additional Tier 1 capital (AT1) 10,930 Table d 45 Tier 1 Capital (T1=CET1+AT1) 66,694 Tier 2 Capital: instruments and provisions 46 Directly issued qualifying Tier 2 instruments 28,067 Table e 47 Directly issued capital instruments subject to phase out from Tier 2 - Table e 48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group T2) - 49 of which: instruments issued by subsidiaries subject to phase out - 50 Provisions 896 Table e 51 Tier 2 Capital before regulatory adjustments 28,963 Table e Tier 2 Capital: regulatory adjustments 52 Investments in own Tier 2 instruments (100) 53 Reciprocal cross-holdings in Tier 2 instruments - 54 Investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) - 55 Significant investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions - 56 National specific regulatory adjustments (sum of rows 56a, 56b and 56c) (310) 56a of which: holdings of capital instruments in group members by other group members on behalf of third parties - 56b of which: investments in the capital of financial institutions that are outside the scope of regulatory consolidation not reported in rows 54 and 55 (310) 56c of which: other national specific regulatory adjustments not reported in rows 56a and 56b - 57 Total regulatory adjustments to Tier 2 capital (410) 58 Tier 2 capital (T2) 28,553 59 Total capital (TC=T1+T2) 95,247 60 Total risk-weighted assets based on APRA standards 444,417

94 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX I – REGULATORY CAPITAL RECONCILIATION $m 31 March 2024 Table Reference Capital ratios and buffers 61 Common Equity Tier 1 (as a percentage of risk-weighted assets) 12.55% 62 Tier 1 (as a percentage of risk-weighted assets) 15.01% 63 Total capital (as a percentage of risk-weighted assets) 21.43% 64 Buffer requirement (minimum CET1 requirement of 4.5% plus capital conservation buffer of 3.75% plus any countercyclical buffer requirements expressed as a percentage of risk-weighted assets)a 10.08% 65 of which: capital conservation buffer requirement 3.75% 66 of which: ADI-specific countercyclical buffer requirements 0.83% 67 of which: G-SIB buffer requirement (not applicable) N/A 68 Common Equity Tier 1 available to meet buffers (as a percentage of risk-weighted assets) 12.55% National minima (if different from Basel III) 69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) N/A 70 National Tier 1 minimum ratio (if different from Basel III minimum) N/A 71 National total capital minimum ratio (if different from Basel III minimum) N/A Amount below thresholds for deductions (not risk-weighted) 72 Non-significant investments in the capital of other financial entities 157 Table c 73 Significant investments in the ordinary shares of financial entities 136 Table c 74 Mortgage servicing rights (net of related tax liability) - 75 Deferred tax assets arising from temporary differences (net of related tax liability) 2,186 Table a Applicable caps on the inclusion of provisions in Tier 2 76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 89 Table e 77 Cap on inclusion of provisions in Tier 2 under standardised approach 389 78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) 807 Table e 79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach 1,852 Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022) 80 Current cap on CET1 instruments subject to phase out arrangements N/A 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) N/A 82 Current cap on AT1 instruments subject to phase out arrangements N/A 83 Amount excluded from AT1 instruments due to cap (excess over cap after redemptions and maturities) N/A 84 Current cap on T2 instruments subject to phase out arrangements N/A 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) N/A Table e a. Includes 1% Domestic Systemically Important Bank (D-SIB) requirement.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 95 Capital Floor APRA’s capital framework incorporates a capital floor which limits the capital benefit available to advanced banks to no more than 72.5 per cent of the RWA outcomes available under the standardised approach. There was no capital floor adjustment as at 31 March 2024 as shown below. $m 31 March 2024 30 Sept 2023 Risk-weighted assets under the Standardised Approach Credit risk 515,884 509,749 Market risk 11,251 11,538 Operational risk 54,934 55,175 Interest rate risk in the banking book - - Other 4,892 4,809 Total 586,961 581,271 $m 31 March 2024 30 Sept 2023 Risk-weighted assets under the IRB Approach Credit risk 339,741 339,758 Market risk 11,251 11,538 Operational risk 54,934 55,175 Interest rate risk in the banking book 33,599 40,138 Other 4,892 4,809 Total 444,417 451,418 Capital floor at 72.5% 425,547 421,421 Capital floor adjustment - - Countercyclical buffer (CCyB) This table sets out the ADI specific countercyclical capital buffer. The countercyclical capital buffer is an additional amount of capital that APRA can require banks to hold or release at certain points in the economic and financial cycle. As part of the capital framework, APRA has set a 1.0% default countercyclical capital buffer. The following table provides a geographic breakdown of RWA associated with private sector credit exposures that are used to calculate the countercyclical capital buffer requirement. 31 March 2024 Jurisdictional buffer% Risk Weighted Assets ($m) ADI-specific buffer% Australia 1.00% 285,464 0.8251% United Kingdom 2.00% 898 0.0052% Netherlands 1.00% 415 0.0012% France 1.00% 287 0.0008% Ireland 1.00% 223 0.0006% Hong Kong SAR 1.00% 102 0.0003% Germany 0.75% 81 0.0002% Denmark 2.50% 74 0.0005% Luxembourg 0.50% 25 0.0000% Sweden 2.00% 14 0.0001% Norway 2.50% 6 0.0000% Other N/A 58,371 - Total 345,960 0.8340%

96 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX II – ENTITIES INCLUDED IN REGULATORY CONSOLIDATION This appendix lists all subsidiaries controlled by Westpac according to their level of regulatory consolidation. Level 1 Entities The following controlled entities have been approved by APRA for inclusion in the Westpac ADI’s ‘Extended Licensed Entity’ (ELE) for the purposes of measuring capital adequacy at Level 1: Westpac Banking Corporation Sixty Martin Place (Holdings) Pty Ltd 1925 (Commercial) Pty Limited St.George Business Finance Pty. Limited 1925 (Industrial) Pty Limited St.George Finance Holdings Limited Bill Acceptance Corporation Pty Limited St. George Security Holdings Pty. Limited Capital Finance Australia Limited Value Nominees Pty. Limited CBA Pty Limited Westpac Administration 2 Pty Limited Challenge Pty Limited Westpac Administration Pty. Limited Mortgage Management Pty Limited Westpac Leasing Nominees-Vic.-Pty Limited Partnership Pacific Pty Limited Westpac Properties Pty Limited Sallmoor Pty Limited Westpac Securitisation Holdings Pty Limited Level 2 Entities The following controlled entities are included in the Level 2 consolidation (along with the ELE entities) for the purposes of measuring capital adequacy: 1925 Advances Pty Limited Series 2008-1M WST Trust Altitude Administration Pty Limited Series 2014-1 WST Trust Altitude Rewards Pty Limited Series 2014-2 WST Trust BT (Queensland) Pty. Limited Series 2015-1 WST Trust BT Financial Group Holdings Pty Ltd Series 2019-1 WST Trust BT Financial Group (NZ) Limited Series 2020-1 WST Trust BT Financial Group Pty Limited Series 2021-1 WST Trust BT Securities Ltd Series 2022-1P WST Trust Crusade Trust No.2P of 2008 Series 2023-1P WST Trust Danaby Pty. Limited Series 2024-1 WST Trust General Credits Pty Limited St. George Finance Limited Net Nominees Limited St.George Motor Finance Limited Number 120 Limited The Home Mortgage Company Limited Qvalent Pty Ltd Westpac (NZ) Investments Limited RAMS Financial Group Pty Limited Westpac Administration 3 Pty Limited Westpac Altitude Rewards Trust Westpac Administration 4 Pty. Limited Westpac Americas Inc. Westpac New Zealand Group Limited Westpac Bank-PNG-Limited Westpac New Zealand Limited Westpac Capital Markets Holding Corp. Westpac Notice Saver PIE Fund Westpac Capital Markets LLC Westpac NZ Covered Bond Holdings Limited Westpac Capital-NZ-Limited Westpac NZ Covered Bond Limited Westpac Cash PIE Fund Westpac NZ Operations Limited Westpac Covered Bond Trust Westpac NZ Securitisation Holdings Limited Westpac Equity Holdings Pty Ltd Westpac NZ Securitisation Limited Westpac Equity Investments NZ Limited Westpac Securitisation Management NZ Limited Westpac Europe GmbH Westpac Overseas Holdings Pty Ltd Westpac Europe Limited Westpac Overseas Holdings No. 2 Pty Limited Westpac Financial Services Group Pty Limited Westpac Securities Limited Westpac Financial Services Group-NZ-Limited Westpac Securities NZ Limited Westpac Group Investment-NZ-Limited Westpac Securitisation Management Pty Limited Westpac Holdings-NZ-Limited Westpac Syndications Management Pty Limited Westpac Investment Capital Corporation Westpac Term PIE Fund RMS Warehouse Trust 2007-1 Westpac USA Inc.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 97 Level 3 Entities The following controlled entities are excluded from the Level 2 consolidation but form part of the conglomerate group at Level 3: Asgard Capital Management Ltd Reinventure Fund II I.L.P Asgard Wealth Solutions Pty Limited Reinventure Fund III I.L.P BT Funds Management (NZ) Limited Reinventure Special Purpose Investment Unit Trust BT Funds Management Limited Securitor Financial Group Pty Limited BT Funds Management No.2 Limited Sydney Capital Corporation Inc. BT Portfolio Services Ltd Waratah Receivables Corporation Pty Limited GIS Private Nominees Pty Limited Waratah Securities Australia Limited Healthpoint Claims Pty. Limited Westpac Financial Services Limited Hyde Potts Insurance Services Pte. Limited Westpac New Zealand Staff Superannuation Scheme Trustee Limited Magnitude Group Pty Limited Westpac RE Limited Pendal Short Term Income Fund Westpac Securities Administration Limited Red Bird Ventures Limited Reinventure Fund, I.L.P.

98 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX III – LEVEL 3 ENTITIES’ ASSETS AND LIABILITIES The following legal entities are excluded from the regulatory scope of consolidation. The total assets and liabilities should not be aggregated because some of the entities are holding companies for other entities in the table shown below. 31 March 2024 Liabilities $m Total Assets (excluding equity) Insurance, funds management and other Asgard Capital Management Limited 44 6 Asgard Wealth Solutions Pty Limited 1 - BT Funds Management (NZ) Limited 54 11 BT Funds Management Limited 235 182 BT Funds Management No.2 Limited 12 2 BT Portfolio Services Limited 122 34 GIS Private Nominees Pty Limited 13 4 Healthpoint Claims Pty. Limited 42 - Hyde Potts Insurance Services Pte. Limited 61 10 Magnitude Group Pty Limited 4 - Pendal Short Term Income Fund 168 168 Red Bird Ventures Limited 11 - Reinventure Fund, I.L.P. 70 10 Reinventure Fund II I.L.P 70 - Reinventure Fund III I.L.P 92 - Reinventure Special Purpose Investment Unit Trust 32 - Securitor Financial Group Pty Limited 3 - Sydney Capital Corporation Inc. - - Waratah Receivables Corporation Pty Limited - - Waratah Securities Australia Limited - - Westpac Financial Services Limited 27 7 Westpac New Zealand Staff Superannuation Scheme Trustee Limited - - Westpac RE Limited 9 - Westpac Securities Administration Limited 7 -

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 99 APPENDIX IV – REGULATORY EXPECTED LOSS Capital deduction for regulatory expected loss For capital adequacy purposes APRA requires the amount of regulatory expected credit losses in excess of eligible provisions to be deducted from capital. The following table shows how the deduction is calculated. 31 March 30 September 31 March $m 2024 2023 2023 Provisions associated with eligible portfolios Total provisions for impairment charges 5,135 4,941 4,923 plus provisions associated with partial write-offs 288 292 381 less ineligible provisionsa (221) (192) (181) Total eligible provisions 5,202 5,041 5,123 Regulatory expected downturn loss 4,383 4,078 4,101 Excess/(shortfall) in eligible provisions compared to regulatory expected downturn loss 819 963 1,022 Common equity Tier 1 capital deduction for regulatory expected downturn loss in excess of eligible provisionsb - - (2) a. Provisions associated with portfolios subject to the Basel standardised approach to credit risk are not eligible. b. Regulatory expected loss is calculated for those portfolios subject to the IRB approach to credit risk. The comparison between regulatory expected loss and eligible provisions is performed separately for defaulted and non-defaulted exposures.

100 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX V – APS330 QUANTITATIVE REQUIREMENTS The following table cross-references the quantitative disclosure requirements given by Attachments A, C, D and E of APS330 to the quantitative disclosures made in this report. The continuous reporting requirements for capital instruments under Attachment B are satisfied separately and can be found on the regulatory disclosures section on the Westpac website1 .. In addition to this report, the regulatory disclosures section of the Westpac website 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). APS330 reference Westpac disclosure Page General requirements Paragraph 12 (a) (c) to (d) Balance Sheet Reconciliation 89 Paragraph 13 Level 3 entities’ assets and liabilities 98 Paragraph 49 Leverage ratio 20 Attachment A: Table 1: Capital disclosure template Capital disclosure template 90 Attachment C: Table 3: Capital adequacy (a) to (e) Capital requirements 16 (f) Westpac’s capital adequacy ratios 17 Capital adequacy ratios of major subsidiary banks 17 Table 4: Credit risk (a) Exposure at Default by major type 31 (b) Non-performing and past due loans by portfolio 38 (c) Provisions held against performing exposures 28 Table 5: Securitisation exposures (a) Banking book summary of securitisation activity by asset type 68 (b) Banking book summary of on and off-balance sheet securitisation by exposure type 69 Trading book summary of on and off-balance sheet securitisation by exposure type 72 Attachment D: Table 6: Capital adequacy (b) to (f) Capital requirements 16 (g) Westpac’s capital adequacy ratios 17 Capital adequacy ratios of major subsidiary banks 17 (h) Residential Mortgage capital requirements under IRB and Standardised approaches 45 (i) Capital floor 95 Table 7: Credit risk - general disclosures (b) Exposure at Default by major type 31 (c) Exposure at Default by geography 36 (d) Exposure at Default by industry classification 33 (e) Exposure at Default by residual contractual maturity 37 (f) Non-performing exposures by industry classification 39 (g) Non-performing exposures by geography 41 (h) Movement in provisions for impairment charges 29 (h) Loan impairment provisions 27 (i) Exposure at Default by measurement method 32 (j) Provisions held against performing exposures 28 Table 8: Credit risk - disclosures for portfolios subject to the standardised approach and supervisory risk-weights in the IRB approaches (b) Portfolios subject to the standardised approach 53 Portfolios subject to supervisory risk weights 49 1. http://www.westpac.com.au/about-westpac/investor-centre/financial-information/regulatory-disclosures/

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 101 APS330 reference Westpac disclosure Page Table 9: Credit risk - disclosures for portfolios subject to IRB approaches (d) Corporate portfolio by external credit rating 42 Business Lending portfolio by external credit rating 43 Property Finance by external credit rating 44 Residential Mortgages portfolio by PD band 45 Australian Credit Cards portfolio by PD band 46 Small Business portfolio by PD band 47 Other Retail portfolio by PD band 48 Sovereign exposures by external credit rating 50 Financial Institution exposures by external credit rating 51 Large Corporate exposures by external credit rating 52 (e) Actual losses 55 (f) Regulatory loss estimates and actual losses 56 Table 10: Credit risk mitigation disclosures (b) to (c) Total exposure covered by collateral, credit derivatives and guarantees 60 Table 11: General disclosure for exposures related to counterparty credit risk (b) Counterparty credit risk summary 62 (c) Credit derivative transactions that create exposures to counterparty credit risk 62 Table 12: Securitisation exposures Banking Book (g) part i and (h) to (i) Summary of assets securitised by Westpac 67 (g) part ii Summary of total Westpac sponsored third party assets securitised 68 (j) Summary of securitisation activity by asset type 68 (k) Summary of on and off-balance sheet securitisation by exposure type 69 (l) part i Securitisation exposure by risk weight band 70 (l) part ii Securitisation exposures deducted from capital 71 (m) Securitisation subject to early amortisation treatment 71 (n) part i Resecuritisation exposure subject to credit risk mitigation 71 (n) part ii Resecuritisation exposure to guarantors 71 Trading Book (o) part i and (p) Summary of assets securitised by Westpac 71 (o) part ii Summary of total Westpac sponsored third party assets securitised 71 (q) Summary of securitisation activity by asset type 71 (r) Aggregate amount of exposures securitised by Westpac and subject to APS116 Capital Adequacy: Market Risk 71 (s) Summary of on and off-balance sheet securitisation by exposure type 72 (t) part i Securitisation exposure retained or purchase subject to specific risk 72 (t) part ii Securitisation exposure subject to APS120 for Specific risk by risk weight band 73 (u) part i Capital requirements for securitisation exposure subject to internal models approach (IMA) by risk classification 73 (u) part ii Capital requirements for securitisation regulatory capital approaches by risk weight band 73 (u) part iii Securitisation exposures deducted from capital 71 (v) Securitisation subject to early amortisation treatment 73 (w) part i Aggregate resecuritisation exposures retain or purchased subject to credit risk mitigation 73 (w) part ii Resecuritisation exposure to guarantors creditworthiness 73

102 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT APPENDIX V – APS330 QUANTITATIVE REQUIREMENTS APS330 reference Westpac disclosure Page Table 13: Market risk - disclosures for ADIs using the standard method (b) Market Risk regulatory capital and risk weighted assets 75 Table 14: Market risk - disclosures for ADIs using the IMA for trading portfolios (f) VaR and Stressed VaR by risk type 76 Table 16: Equities - disclosures for banking book positions (b) to (c) Book value of listed equity exposures by industry classification / Book value of unlisted equity exposures by industry classification 83 (d) to (e) Gains/losses 83 (f) Capital requirement N/A Table 17: Interest rate risk in the banking book (b) Change in economic value of sudden upward and downward movement in interest rates 80 (b) Capital requirement 80 Attachment E: Table 18: Leverage ratio disclosure template Leverage ratio disclosure 20 Table 19: Summary comparison of accounting assets vs leverage ratio exposure measure Summary comparison of accounting assets vs leverage ratio exposure measure 20 Attachment F: Table 20: Liquidity Coverage Ratio disclosure template Liquidity Coverage Ratio disclosure 85 Table 21: Net Stable Funding Ratio template Net Stable Funding Ratio disclosure 86

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 103 APPENDIX VI – EXCHANGE RATES 31 March 30 Sept 31 March $m 2024 2023 2023 USD 0.6528 0.6469 0.6711 GBP 0.5167 0.5285 0.5418 NZD 1.0892 1.0741 1.0680 EUR 0.6033 0.6110 0.6158

104 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT GLOSSARY

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 105 GLOSSARY Term Description Actual losses Represent direct write-offs and write-offs from provisions after adjusting for recoveries. Additional Tier 1 capital (AT1) Comprises high quality components of capital that provide a permanent and unrestricted commitment of funds that are freely available to absorb losses but rank behind claims of depositors and other more senior creditors. They also provide for fully discretionary capital distributions. Alternative Liquid Assets (ALA) Assets that qualify for inclusion in the numerator of the LCR in jurisdictions where there is insufficient supply of HQLA. Assets intended to be securitised Represents securitisation activity from the end of the reporting period to the disclosure date of this report. Australian accounting standards (AAS) A set of Australian reporting standards and interpretations issued by the Australian Accounting Standards Board. Authorised deposit-taking institution (ADI) ADIs are corporations that are authorised under the Banking Act 1959 to carry on banking business in Australia. Banking book The banking book includes all securities that are not actively traded by Westpac. Collectively assessed provisions (CAPs) Collectively assessed provisions for expected credit loss under AASB 9 represent the Expected Credit Loss (ECL) which is collectively assessed in pools of similar assets with similar risk characteristics. This incorporates forward-looking information and does not require an actual loss event to have occurred for an impairment provision to be recognised. Committed Liquidity Facility (CLF) Facility established with the RBA to cover the shortfall in Australian dollars between the ADI’s holding of HQLA and net cash outflows. The CLF is an ALA for the Group’s LCR calculation. Common equity Tier 1 (CET1) capital The highest form of capital. The key components of common equity are shares, retained earnings and undistributed current year earnings. Credit valuation adjustment (CVA) risk Refer to mark-to-market related credit risk. Default From 1 January 2023: Refer to Non-Performing Exposures definition. Defaulted not impaired From 1 January 2023: Equivalent to Non-Performing Exposures that have not been impaired for accounting purposes. Double default rules Double default applies to exposures where a particular obligor’s exposure has been hedged by the purchase of credit protection from a counterparty and loss will only occur if both obligor and counterparty default. In this instance, capital can be reduced. Exposure at default (EAD) EAD is calculated at facility level and includes outstandings as well as the proportion of committed undrawn that is expected to be drawn in the event of a future default. Expected credit loss (ECL) Expected credit losses are a probability-weighted estimate of the cash shortfalls expected to result from defaults over the relevant time frame. They are determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts of future economic conditions. External credit assessment institution (ECAI) ECAI is an external institution recognised by APRA (directly or indirectly) to provide credit assessment in determining the risk-weights on financial institutions’ rated credit exposures (including securitisation exposures). Extended licensed entity (ELE) An extended licensed entity (ELE) comprises an ADI and any subsidiaries of the ADI that have been approved by APRA as being part of a single ‘stand-alone’ entity. Geography Geographic segmentation of exposures is based on the location of the office in which these items were booked. High-quality liquid assets (HQLA) Assets which meet APRA’s criteria for inclusion as HQLA in the numerator of the LCR. Individually assessed provisions (IAPs) Provisions raised for losses on loans that are known to be impaired and are assessed on an individual basis. The estimated losses on these impaired loans is based on expected future cash flows discounted to their present value and, as this discount unwinds, interest will be recognised in the income statement. Impaired exposures Includes exposures that have deteriorated to the point where full collection of interest and principal is in doubt, based on an assessment of the customer’s outlook, cashflow, and the net realisation of value of assets to which recourse is held: • facilities 90 days or more past due, and full recovery is in doubt: exposures where contractual payments are 90 or more days in arrears and the net realisable value of assets to which recourse is held may not be sufficient to allow full collection of interest and principal, including overdrafts or other revolving facilities that remain continuously outside approved limits by material amounts for 90 or more calendar days; • non-accrual facilities: exposures with individually assessed impairment provisions held against them, excluding restructured loans; • restructured facilities: exposures where the original contractual terms have been formally modified to provide for concessions of interest or principal for reasons related to the financial difficulties of the customer; • other assets acquired through security enforcement (includes other real estate owned): includes the value of any other assets acquired as full or partial settlement of outstanding obligations through the enforcement of security arrangements; and • any other facilities where the full collection of interest and principal is in doubt. Industry Exposures to businesses, government and other financial institutions are classified into industry clusters based upon groups of related ANZSIC codes. Companies that operate in multiple industries are classified according to their primary industry. Consumer customers as classified as “retail” and not further broken down. Interest rate risk in the banking book (IRRBB) The risk of loss in earnings or economic value in the banking book as a consequence of movements in interest rates. Internal ratings-based approach (IRB & Advanced IRB) These approaches allow banks to use internal estimates of the risks of their loans as inputs into the determination of the amount of credit risk capital needed to support the organisation. In the Advanced IRB approach, banks must supply their own estimates for all three credit parameters – Probability of Default, Loss Given Default and Exposure at Default.

106 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT GLOSSARY Term Description Leverage ratio The leverage ratio is defined by APRA as Tier 1 capital divided by the “Exposure measure” and is expressed as a percentage. “Exposure measure” includes on-balance sheet exposures, derivatives exposures, securities financing transaction (SFT) exposures, and other off-balance sheet exposures. Liquidity coverage ratio (LCR) An APRA requirement to maintain an adequate level of unencumbered high quality liquid assets, to meet liquidity needs for a 30 calendar day period under an APRA-defined severe stress scenario. Absent a situation of financial stress, the value of the LCR must not be less than 100%. LCR is calculated as the percentage ratio of stock of HQLA, CLF and qualifying Reserve Bank of New Zealand securities over the total net cash out flows in a modelled 30 day defined stressed scenario. Loss given default (LGD) The LGD represents an estimate of the expected severity of a loss to Westpac should a customer default occur during a severe economic downturn. Westpac assigns LGD to each credit facility, assuming an event of default has occurred and taking into account a conservative estimate of the net realisable value of assets to which Westpac has recourse and over which it has security. LGDs also reflect the seniority of exposure in the customer’s capital and debt structure. Maturity The maturity date used is drawn from the contractual maturity date of the customer loans. Mark-to-market related credit risk The risk of mark-to-market losses related to deterioration in the credit quality of a derivative counterparty also referred to as credit valuation adjustment (CVA) risk. Net cash outflows Total expected cash outflows minus total expected cash inflows in the specified LCR stress scenario calculated in accordance with APRA’s liquidity standard. Net interest income at risk (NaR) BRiskC approved limit expressed as a defined basis point shock in interest rates over a one year risk horizon. Net Stable Funding Ratio (NSFR) The NSFR is defined as the ratio of the amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by APRA. The amount of ASF is the portion of an ADI’s capital and liabilities expected to be a reliable source of funds over a one year time horizon. The amount of RSF is a function of the liquidity characteristics and residual maturities of an ADI’s assets and off-balance sheet activities. ADI’s must maintain an NSFR of at least 100%. Non-Performing exposures Credit default exposures, the initial recognition of which under APS220 occurs 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. Non-Performing Exposures – Impaired Exposures that meet the characteristics of Non-Performing exposures and Impaired exposures (see separate definitions). Off-balance sheet exposure Credit exposures arising from facilities that are not recorded on Westpac's balance sheet (under accounting methodology). Undrawn commitments and the expected future exposure calculated for Westpac's derivative products are included in off-balance sheet exposure. On-balance sheet exposure Credit exposures arising from facilities that are recorded on Westpac's balance sheet (under accounting methodology). Potential future credit exposure (PFCE) The PFCE for each transaction is calculated by multiplying the effective notional principal amount by a credit conversion factor specified in APS112. Probability of default (PD) Probability of default is a through-the-cycle assessment of the likelihood of a customer defaulting on its financial obligations within one year. Resecuritisation A resecuritisation exposure is a securitisation exposure in which the risk associated with an underlying pool of exposures is tranched and at least one of the underlying exposures is a securitisation exposure. In addition, an exposure to one or more resecuritisation exposures is a resecuritisation exposure. Risks-not-in-VaR (RNIV) The RNIV framework is a component of APRA’s APS116 internal model approach for market risk regulatory capital. Risk weighted assets (RWA) Assets (both on and off-balance sheet) are risk weighted according to each asset's inherent potential for default and what the likely losses would be in case of default. In the case of non-asset backed risks (i.e. market and operational risk), RWA is determined by multiplying the capital requirements for those risks by 12.5. Securitisation purchased The purchase of third party securitisation exposure, for example residential mortgage backed securities. Securitisation retained Securitisation exposures arising through Westpac originated assets or generated by Westpac third party securitisation activity. Securities financing transactions (SFT) APRA defines SFTs as “transactions such as repurchase agreements, reverse repurchase agreements, and security lending and borrowing, and margin lending transactions, where the value of the transactions depends on the market valuation of securities and the transactions are typically subject to margin agreements.” Sponsor An ADI would generally be considered a sponsor if it, in fact or substance, manages or advises the securitisation program, places securities into the market, or provide liquidity and/or credit enhancements. Standard model The standard model for Market risk applies supervisory risk weights to trading positions. Stressed VaR (SVaR) Stressed VaR uses the approved VaR model but applies a period of significant market stress. Market risk capital is estimated by adding Stressed VaR to regular VaR. Substitution approach Substitutions refers to the rules governing the circumstances when capital can be reduced because an obligor’s exposure has been hedged by the purchase of credit protection from a counterparty and the counterparty’s PD is used in place of the obligors’ PD. Supervisory Formula Approach (SFA) The SFA applicable to unrated securitisation exposures dynamically looks at the type and performance of underlying asset pools funded by the securitisation exposure as well as the structural features of the transaction to determine capital requirements. Synthetic securitisation A securitisation whereby the credit risk, or part of the credit risk, of a pool is transferred to a third party which need not be an SPV. The transfer of credit risk can be undertaken through the use of funded (e.g. credit linked notes) or unfunded (e.g. credit default swaps) credit derivatives or guarantees. Tier 2 capital Includes other capital elements, which, to varying degrees, fall short of the quality of Tier 1 capital but still contribute to the overall strength of an entity as a gone concern capital.

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 107 Term Description Trading book Trading book activity represents dealings that encompass book running and distribution activity. The types of market risk arising from trading activity include interest rate risk, foreign exchange risk, commodity risk, equity price risk, credit spread risk and volatility risk. Financial Markets and Treasury are responsible for managing market risk arising from Westpac’s trading activity. Value at risk (VaR) VaR is a measure of the potential loss in economic value arising from adverse market movements and is calculated over a defined time horizon (typically 1-day or 1-year) at a 99% confidence interval using a minimum of one year of historical data. VaR takes account of all material market variables that may cause a change in the value of the trading portfolio or the banking book including interest rates, foreign exchange rates, price changes, volatility, and the correlation among these variables.

108 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT GLOSSARY Other Term Description AIRB Advanced Internal Rating Based Approach ALCO Group Asset & Liability Committee APRA Australian Prudential Regulatory Authority APS Australian Prudential Standards ASF Available Stable Funding BAC Board Audit Committee BPS Basis Points BRemC Board Remuneration Committee BRiskC Board Risk Committee CCB Capital Conservation Buffer CCFs Credit conversion factors CCP Central counterparty CREDCO Westpac Group Credit Risk Committee CRG Customer Risk Grade CRM Credit risk mitigation DRE Derivative Risk Equivalent DRP Dividend reinvestment plan D-SIBs Domestic Systemically Important Banks EGL Embedded Gains or Losses ERBA External Rating Based Approach ESG Environmental, Social and Governance ET Westpac Executive Team FIRB Foundation Interest-Ratings Based Approach FVOCI Fair value through other comprehensive income FX Foreign Exchange GMRA Global Master Repurchase Agreement G-SIB Global Systemically Important Banks IAA Internal Assessment Approach ICAAP Internal Capital Adequacy Assessment Process IPRE Income-Producing Real Estate ISDA International Swaps and Derivatives Association ITOC Investment Term of Capital LTVR Long Term Variable Reward MARCO Westpac Group Market Risk Committee NII Net Interest Income ORCR Westpac Group Operational Risk, Compliance and Resilience Committee RBA Reserve Bank of Australia RBNZ Reserve Bank of New Zealand RC Revaluation Committee RISKCO Westpac Group Executive Risk Committee ROC Westpac Group Remuneration Oversight Committee ROE Return on average ordinary equity RSF Required Stable Funding S&P S&P Global Ratings SMA Standardised Measurement Approach STVR Short Term Variable Reward TSR Total Shareholder Return WNZL Westpac New Zealand Limited

PILLAR 3 REPORT APPENDICES GLOSSARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 109 DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

110 WESTPAC GROUP MARCH 2024 PILLAR 3 REPORT DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS 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 current intent, belief or expectations with respect to its business and operations, macro and micro economic and market conditions, results of operations and financial condition and performance, 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 Westpac expects 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 2024 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.

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