Westpac Banking Corporation — franchise, risk and transformation record

Scope of this record

This section records Westpac Banking Corporation (ASX: WBC) across the five Group financial years ended 30 September 2021, 2022, 2023, 2024 and 2025. The issuer, fiscal-year end and report boundary are held constant, but the annual-report suite and the management/segment vocabulary changed. Those changes are shown rather than normalised away.

Westpac's annual reports use several different measurement boundaries. The statutory financial report can refer to the Parent Entity and its controlled entities (the Group); operating reviews use management divisions; Westpac New Zealand may use NZ$ and local prudential measures; and capital tables can use an APRA Level 2 basis. A division, a brand, a controlled entity and a prudential consolidation boundary are therefore not treated as synonyms in this report.

Amounts in the five-year English report are AUD millions unless a table expressly identifies another currency or basis. A management measure, including cash earnings, an item described as excluding notable items, a target, a forecast, an announced transaction or a subsequent event remains labelled with that status. It is not silently converted into a statutory FY result.

Five-year issuer and reporting-suite record

Legal and operating-architecture map

Parent, Group and stated principal activities

Westpac Banking Corporation is the reporting parent throughout the record. FY2022 described the Group's principal activities as lending, deposit-taking, payments, investment platforms, superannuation and funds management, insurance, leasing and general finance, interest-rate-risk management and foreign-exchange services. That description is a group-level activity statement; it does not establish a distinct reportable segment for every activity.

For FY2024, the statutory financial statements explicitly describe Westpac Banking Corporation as the Parent Entity and its controlled entities as the Group/Westpac; the entity was described as an Australian incorporated and domiciled for-profit entity. This statutory boundary differs from management segment reporting. The same distinction governs the FY2021–FY2025 record.

Management/segment map by year

The FY2024 and FY2025 maps are materially different from the FY2021–FY2023 six-lane presentation. In particular, Specialist Businesses cannot be treated as merely an earlier spelling of Business & Wealth. Detailed sold, retained, discontinued-operation and controlled-entity treatment belongs in the simplification/divestment section and uses the relevant financial-statement notes.

Geography, brands, currency and measurement controls

Westpac's reported footprint in FY2022 included branches and controlled entities across Australia, New Zealand and the Pacific, together with offices or branches in London, New York and Singapore and a planned Frankfurt office. The Group's core reported markets remained Australia and New Zealand in later reports. This geographic description does not turn all locations into separate reporting segments.

Consumer's Australian brands are a useful example of the distinction: the FY2024/FY2025 segment description includes Westpac, St.George, BankSA and Bank of Melbourne; RAMS was included in FY2024 but closed to new business. A brand name is not, without a separate issuer disclosure, evidence of a separate statutory entity or financial-report segment.

Westpac New Zealand's segment disclosures require extra care. The issuer presents New Zealand operating information separately, and some measures use NZ$ or local regulatory bases. This report never combines an NZ$ segment amount or locally regulated ratio with a Group AUD result or APRA Level 2 ratio without the issuer's stated conversion and basis.

Financial-report, management-measure and later-event controls

The annual-report suite contains both statutory and management material. In FY2021 the divisional review expressly used cash earnings. In FY2023, Westpac stated that some measures and ratios were not defined by Australian Accounting Standards. In FY2024, the financial report is separate from the management segment tables and comparative presentation was revised. Accordingly:

• statutory profit, Parent Entity amounts and consolidated Group amounts are not substituted for one another;
• cash earnings, “excluding notable items”, targets and scorecard outcomes remain management-defined measures;
• APRA capital comparisons retain their applicable prudential framework; and
• forward-looking statements, plans, proposals and commitments retain the issuer's future-oriented status rather than being presented as completed events.

The reporting cutoff for each annual column is its 30 September year end, while the annual-report release or Board-authorisation date is shown separately. A post-balance-date item is not incorporated into a closing FY amount. Examples in the five-year record include the FY2021 October 2021 WCN4 redemption notice, the FY2023 1 October 2023 WIB leadership commencement, the FY2024 announced final dividend/buyback extension and the FY2025 15 October 2025 APRA operational-risk-overlay action. Each is kept in its respective subsequent-event or programme context, not silently moved into the year-end result.

Section conclusion

The five reports support a continuous Westpac Banking Corporation Group record, but not a fixed operating-segment template. The principal structural transition is from the FY2021–FY2023 six-lane map, including Specialist Businesses, to the FY2024–FY2025 Business & Wealth architecture. This report uses the issuer's label for each year, identifies reported recasts and retains statutory, management, local-currency and prudential bases before making any year-to-year comparison.

Section sources — official Westpac documents

• Westpac Group 2021 Annual Report — “About this report” pp.1–2; Group Performance contents p.82; divisional-performance basis p.97. Official issuer PDF
• Westpac Group 2022 Annual Report — “About Westpac” p.2; “Reading this report” p.104; segment and principal-activities material as identified in the report contents. Official issuer PDF
• Westpac Group 2023 Annual Report and Appendix 4E — “About Westpac” p.10; “Reading this report” p.98; performance review and operating-division material. Official issuer PDF
• Westpac 2024 Annual Report — “About Westpac” pp.10–11; “Reading this report” p.100; Segment reporting pp.130–141; Note 2 p.153; financial-report boundary p.149. Official issuer PDF
• Westpac 2025 Group Annual Report and Appendix 4E — “Westpac’s reporting suite”; “Our business segments”; “Segment performance”; contents (including Data, Digital and AI p.41). Official issuer PDF · Westpac annual-report page

Source/page holds

• FY2022 and FY2023 detailed financial segment tables are intentionally left to their respective operating sections; this section cites only the report-architecture pages needed to establish the boundary.
• FY2025's direct issuer PDF has been link-validated. The annual-report landing page is retained as a stable issuer navigation route; the direct PDF is the page-specific document source for this section.
• No ASX announcement ID, extraction identifier, local path or internal source locator is intended for publication.

Scope and basis

This section is a five-year factual record for the consolidated Westpac Group for years ended 30 September 2021–2025. Amounts are A$m unless stated otherwise. It keeps three reporting bases separate:

• Statutory / consolidated financial-statement basis: income statement, balance sheet and cash-flow amounts.
• Management-adjusted basis: net profit excluding Westpac-defined *Notable Items*. This is a non-AAS measure and is not substituted for statutory profit.
• Per-share / capital-action basis: ordinary and special dividends, completed buy-backs and announced or remaining buy-back authority.

Westpac changed its internal key-performance presentation in FY2023: it ceased reporting Group cash earnings as the key Group/segment non-AAS profit measure and used net profit after tax, while continuing to identify Notable Items. Consequently, cash earnings is not constructed as a five-year Group series here. Reported comparisons can also be affected by annual-report presentation changes and accounting classifications; the figures below use the issuer’s stated consolidated bases rather than recasting them independently.

Five-year consolidated income record

Table basis. FY2021–FY2023 are the FY2023 Group performance comparative presentation. FY2024–FY2025 operating lines are the consolidated income statements. The FY2021 $590m entry is a benefit, whereas FY2022–FY2025 entries are charges. Pre-provision profit is a management measure calculated before credit impairment charges/benefits and income tax; it should not be read as a statutory subtotal despite being arithmetically reconcilable to the income-statement lines.

Year-by-year earnings record

• FY2021. Statutory net profit attributable to owners was $5,458m. Westpac reported $16,858m NII and $21,222m net operating income, operating expenses of $13,311m and a $590m impairment benefit. In the annual review, the group identified a prospective software-capitalisation-threshold change from 1 October 2020; Westpac said this increased FY2021 operating expenses and reduced profit before tax by $191m, without a material effect on the financial statements.
• FY2022. Statutory attributable profit was $5,694m, $236m (4%) higher than FY2021. NII rose $303m to $17,161m, while Group NIM fell 13bp to 1.93%. Westpac described increased lending and deposits as partly offsetting the margin decline. Credit impairment moved from the FY2021 benefit to a $335m charge (5bp of gross loans). Non-interest income was $1,919m lower year on year and Westpac reported a $1,120m loss on the Australian life-insurance sale within the stated driver discussion. Operating expenses fell $2,509m to $10,802m.
• FY2023. Statutory attributable profit was $7,195m, up 26%; NII was $18,317m and Group NIM 1.95%. The year’s $648m impairment charge equated to 9bp of average loans. Westpac reported that NII growth reflected higher NIM and a 6% increase in average interest-earning assets. It described core NIM as 1.87%, up 12bp, while keeping it separate from the Group NIM measure. In the same report, Westpac said financial reporting had been simplified and Group cash earnings would no longer be reported as the key Group/segment measure.
• FY2024. Consolidated statutory attributable profit was $6,990m, with NII of $18,753m and an impairment charge of $537m. Westpac reported $7,113m profit after tax excluding Notable Items, compared with $6,990m statutory profit; the $123m difference is a Westpac-defined Notable Items adjustment, not an additional statutory result. Group NIM was 1.93% and core NIM 1.82%; the FY2023 comparatives for those performance measures were revised to the FY2024 presentation.
• FY2025. Consolidated statutory attributable profit was $6,916m, down 1% from FY2024; net profit excluding Notable Items was $6,972m. Consolidated NII was $19,380m, while Westpac’s performance discussion reported NII excluding Notable Items of $19.5bn and a 1.94% NIM. Operating expenses were $11,916m, including a $273m second-half restructuring charge for the Fit for Growth program. The reported credit impairment charge was $424m; Westpac described it as 5bp of average gross loans and reported $4,987m credit-impairment provisions at year end. These explanations are Westpac’s reported descriptions, not an independent causal finding.

Notable Items and adjusted-profit boundary

The table is a reconciliation of Westpac’s own non-AAS presentation: a parenthesised Notable Items amount reduced statutory net profit in each of the five listed years. FY2023’s annual report gives examples of the category boundary: hedge accounting/economic hedge effects; remediation, litigation, fines and penalties; asset sales/revaluations; asset write-downs; and restructuring. The items are not assumed to be recurring or non-recurring beyond Westpac’s stated classification, and adjusted net profit is not used as an earnings forecast or valuation input.

Consolidated balance-sheet and cash-flow record

Balance-sheet boundary. Customer deposits is a management presentation narrower than the accounting balance-sheet liability category deposits and other borrowings; they must not be substituted for one another. The FY2025 annual report gives gross loans of $856.4bn in its performance commentary, while its audited balance-sheet Loans line is $851,853m; the latter is used in this table. Cash flow is volatile in a banking group because changes in loans, deposits, securities, derivatives and collateral flow through operating activities. It is therefore shown as a statutory cash-flow statement measure, not as a proxy for net profit or distributable cash.

Reported balance-sheet and cash events

• FY2021 total assets were $935,877m. Westpac reported loans of $709,784m, deposits and other borrowings of $626,955m and debt issues of $128,779m at 30 September 2021. Net cash provided by operating activities was $50,410m.
• FY2022 total assets were $1,014,198m, up $78.3bn under Westpac’s balance-sheet review. The annual report attributed the movement to higher liquid assets, derivatives and loans. Net operating cash flow was $16,954m; the cash-flow statement shows a $36,345m increase in loans and a $35,054m increase in deposits and other borrowings within operating activity movements.
• FY2023 closing assets were $1,029,774m and loans $773,254m. Total customer deposits were $640,951m; deposits and other borrowings including certificates of deposit were $688,168m. Net operating cash flow was an outflow of $10,796m. The separate average-balance table reported average total assets of $1,023,228m and average loans of $704,759m; those averages are not closing balance-sheet values.
• FY2024 closing assets were $1,077,544m, loans $806,767m and customer deposits $673,615m. The financial statements recorded $1,005,492m total liabilities and $72,052m total equity. Net operating cash flow was an outflow of $19,767m, after $9,784m cash flow before movements in operating assets and liabilities.
• FY2025 closing assets were $1,125,356m, loans $851,853m and deposits and other borrowings $770,457m. Westpac’s performance page reported customer deposits of $723.0bn and gross loans of $856.4bn; the audited statutory amounts retain their different definitions. Net operating cash flow was $9,489m. The cash-flow statement recorded a $50,182m increase in loans and a $51,853m increase in deposits and other borrowings.

Dividends and buy-backs

The dividend payout ratios retain their issuer-defined denominators and share-count adjustments. FY2024’s 15-cent special dividend is not folded into the ordinary-dividend series. FY2025 cash-flow and equity statements record $5,215m dividends paid during the year, relating to the 2025 interim dividend and FY2024 final dividend; this payment timing is distinct from the FY2025 77-cent final dividend declaration.

Comparability notes

• All five years end on 30 September, but the report publication date is later; a dividend declared after the balance date is not automatically a balance-date liability.
• FY2023 introduced the Group’s current net-profit-focused management-performance presentation. It is inappropriate to add divisional cash earnings from FY2021–FY2022 to Group statutory results or to back-cast a cash-earnings series without Westpac’s reconciliation.
• Customer deposits, deposits and other borrowings, gross loans, balance-sheet loans, average loans and total committed exposure each have different issuer-defined boundaries. This section does not merge them.
• Westpac’s Notable Items reconciliation is useful for identifying its adjusted-performance basis, but it does not eliminate the statutory result or establish that an item will not recur.

Section sources

• Westpac 2021 Group Annual Report, Review of Group Operations pp. 86, 93; Income Statements p. 139; Balance Sheets p. 141; Cash Flow Statements p. 143.
• Westpac 2022 Group Annual Report, Review of Group Operations pp. 107–110; Specialist Businesses pp. 131–132 (including the $1,120m Australian life-insurance sale loss); Cash Flow Statements p. 165.
• Westpac 2023 Group Annual Report, Group Performance pp. 102–112; Income Statements p. 168; Cash Flow Statements p. 173.
• Westpac 2024 Group Annual Report, Group Performance pp. 104–108; Balance Sheets p. 145; Cash Flow Statements p. 148.
• Westpac 2025 Annual Report, Financial Performance pp. 17–20; Income Statements p. 104; Balance Sheets p. 106; Statements of Changes in Equity pp. 107–108; Cash Flow Statements p. 109.

Scope and comparability boundary

This section follows the franchise labels that Westpac itself used in each annual report. It is not a reconstruction of a single, unchanged segment series.

• In FY2021–FY2023, Consumer and Business were separately reported Australian operating divisions. In FY2021 Westpac said that Consumer and Business leadership would be brought together, but that this had not changed the FY2021 internal-performance reporting. The FY2023 report then said an August 2023 restructure would separate Consumer and Business Banking and transfer Specialist Businesses into the Business segment, but that the change was not reflected in its FY2023 performance information because the information supplied to key decision makers had not changed.
• From FY2024, Westpac presented Consumer and Business & Wealth. Business & Wealth brought together Business Banking, Wealth Management, Private Wealth, Westpac Pacific and BT Financial Group platform services; it also included the auto-finance portfolio while that portfolio was in runoff. The FY2024 report provided recast comparatives for that reporting basis. They must not be treated as a simple renaming of FY2021–FY2023 Business.
• The FY2025 report retained Consumer and Business & Wealth within a four-segment portfolio. It provides management segment profit/pre-provision summaries and strategy/growth statements, while stating that prior-year comparatives were not restated for FY2025 composition changes. A FY2025 closing segment balance-sheet/product table is not separately disclosed in the selected material, not zero or no activity.

All dollar amounts below are AUD and are Westpac-reported divisional measures unless the table says otherwise. “Net profit attributable to owners of WBC” in the FY2023 financial-statement segment note and “cash earnings” in earlier divisional reviews are distinct presentation labels; neither is Group statutory profit.

Five-year franchise map

Consumer record

FY2021

Consumer reported cash earnings of $3,081m, compared with $2,746m in FY2020. Net interest income was $8,405m and non-interest income $488m. At 30 September 2021, Consumer reported $235.6bn of deposits and other borrowings, $407.8bn of net loans and $415.7bn of total assets. Its cost-to-income ratio was 51.97%.

The division said net loans grew $18.0bn (5%), driven by $19.1bn mortgage growth and partly offset by a $1.4bn decline in other personal lending. Deposits rose $16.3bn (7%), with growth in at-call and offset accounts. Westpac attributed a three-basis-point NIM decline to competitive mortgage pricing, portfolio mix and lower personal lending, partly offset by deposit mix and repricing. Consumer recorded a $125m impairment benefit, compared with a $1,015m charge in FY2020; Westpac attributed that outcome to release of provisions and its reported economic/credit-quality context. Mortgage 90+ day delinquencies were 1.06%, down 54bp, while other consumer 90+ day delinquencies were described as broadly unchanged, down 1bp.

Operationally, Westpac reported rationalisation of a further 80 branches and 129 ATMs, while citing higher mortgage-processing costs, customer-hardship support and risk/compliance programme spending. These are reported actions/cost drivers, not a measure of customer reach or a statement that all channels were closed.

FY2022

Consumer cash earnings were $3,291m, $416m (11%) below the FY2021 comparative used in the FY2022 Consumer review. The same FY2022 table reported $8,985m net interest income, $612m non-interest income, $280.6bn deposits and other borrowings, $474.6bn net loans and $486.9bn total assets. Consumer’s impairment line changed to a $201m charge from a $184m benefit on that report’s FY2021 comparative.

Westpac reported $11.9bn (3%) net-loan growth, predominantly $15.7bn of owner-occupied mortgage growth; investor mortgages declined $2.6bn. Deposits rose $14.2bn (5%), comprising $12.0bn term-deposit and $2.2bn at-call growth. It reported a 17bp NIM reduction, describing mortgage competition, lower-spread product growth, interest-rate/deposit effects and hedged deposits as relevant contributors. The annual report also recorded 119 branch consolidations, a reduction of 199 ATMs, and 53 fewer products in its discussion of the year’s expense movement.

For credit-quality context at the segment level, Westpac reported total stressed exposures to TCE of 0.68%, mortgage 90+ day delinquencies of 0.75%, and other consumer 90+ day delinquencies of 1.35%. These are Consumer measures with Westpac’s definitions; they are not Group ECL coverage ratios.

FY2023 and FY2024 recast boundary

The FY2023 financial-statement segment note recorded Consumer net interest income of $8,966m, net operating income of $9,534m, impairment charges of $200m, net profit attributable to owners of WBC of $3,052m, $492.708bn loans and $308.380bn deposits and other borrowings. This is the FY2023 segment-note basis, before readers apply the later FY2024 presentation recast.

On the FY2024 Consumer reporting basis, Westpac presented FY2023 Consumer net profit of $2,645m, FY2023 net interest income of $8,177m, deposits of $308.3bn and loans of $492.7bn. Westpac’s FY2024 table placed a $148m post-tax Notable Item beside the FY2023 Consumer result. The two FY2023 presentations should therefore not be mechanically combined or treated as a restatement without the issuer’s reconciliation.

For FY2024 itself, Consumer reported $7,632m net interest income, $8,160m net operating income, $2,184m net profit, $334.5bn customer deposits and $510.3bn loans. The loans included $473.5bn housing, $29.8bn RAMS in runoff, $8.8bn other consumer loans and $(1.8)bn provisions. Deposits comprised $46.6bn transactions, $159.0bn savings, $65.6bn term deposits and $63.3bn mortgage offsets. The reported deposit-to-loan ratio was 65.54%; this is a Consumer table ratio, not a Group funding ratio.

Westpac reported FY2024 mortgage 90+ day delinquencies of 1.12%, other consumer 90+ day delinquencies of 1.23%, and total stressed exposures/TCE of 1.10%. It reported average home-loan decision time of under five days, an increase of four percentage points in on-day settlements, 47,500 hardship/disaster support packages and 19,000 accounts in hardship at year end. Each is a stated activity/service metric with its own population and period, rather than a loan-growth or credit-loss measure.

FY2025

FY2025’s segment map described Consumer as serving Australians through the Westpac, St.George, BankSA and Bank of Melbourne brands. The reported execution focus was personalised digital-first service, deeper relationships in priority segments and a higher proportion of proprietary lending. In its FY2025 segment-performance discussion, Westpac reported Consumer net profit of $2,282m, up 4%, and pre-provision profit of $3,492m, up 4%. It said segment-composition changes had a minimal effect, and reported impairment charges/average loans of 4bp, versus 5bp in FY2024. This is Westpac’s FY2025 management segment-performance presentation; prior-year comparatives were not restated for the 2025 composition changes.

Westpac also reported that Consumer deposits increased 10%, and said it was allocating resources to improve its proprietary mortgage offering. The CEO’s report said Consumer NPS improved to equal second place, but did not give a numerical NPS score in the annual-report passage used here.

The annual report records Carolyn McCann’s appointment as Acting Chief Executive, Consumer on 12 May 2025 and permanent Chief Executive, Consumer on 12 August 2025; Jason Yetton ceased as Consumer CEO on 11 May 2025. A FY2025 closing Consumer balance-sheet/product table is not separately inserted here without a separately recovered issuer table.

Business, Private Wealth and later Business & Wealth record

FY2021

FY2021 Business served Australian SME, commercial and agribusiness customers generally up to $200m exposure. It included Private Wealth for high-net-worth individuals and offered cash-flow finance, trade finance, equipment finance and property finance alongside lending, savings and transaction services. Business reported cash earnings of $1,789m, net interest income of $4,065m, deposits and other borrowings of $158.7bn, net loans of $134.0bn and total assets of $138.5bn.

Westpac reported that net loans declined $6.7bn (5%), including a 4% fall in business lending. Deposits rose $6.8bn (4%); at-call balances increased $19.2bn (19%) and term deposits declined $12.4bn (24%). It recorded a $484m impairment benefit, compared with a $1,371m charge in FY2020, and reported stressed exposures/TCE of 3.92%, down 78bp. Westpac’s explanation of portfolio mix, government stimulus and provision releases remains an issuer attribution.

FY2022

FY2022 Business reported cash earnings of $918m, net interest income of $3,027m, deposits and other borrowings of $133.3bn, net loans of $84.9bn and total assets of $87.1bn. The cash-earnings result was $159m (15%) below the FY2021 comparative in that report, with a $143m impairment charge after the reported FY2021 benefit. Westpac recorded $6.5bn (8%) net-loan growth, including commercial-property growth of 13% and agriculture growth of 9%. Deposits increased $4.8bn (4%), split between $2.7bn of term and $2.1bn of at-call growth. Stressed exposures/TCE were 5.05%, down 85bp.

Private Wealth remained within Business. The annual-report operating review used in this record did not separately disclose a standalone Private Wealth revenue, assets-under-management, customer or impairment series; the report therefore does not manufacture one.

FY2023 separate Business reporting

The FY2023 financial-statement segment note reported Business net interest income of $4,238m, net operating income of $4,475m, impairment charges of $263m, net profit attributable to owners of WBC of $1,628m, $88.857bn loans and $130.590bn deposits and other borrowings. The Annual Report then described the announced FY2023 restructure: Consumer and Business Banking would be separated and Specialist Businesses transferred into Business, but the new structure was not reflected in FY2023 information provided internally to key decision makers.

The FY2023 report said Specialist Businesses had completed ten divestments since its May 2020 formation, including three in FY2023. It identified retained Platforms, Westpac Pacific, margin lending and retail auto finance in runoff as businesses to be transferred to the new Business & Wealth segment. This describes the intended operating/segment boundary; disposal status and accounting treatment for those businesses belong in the separate simplification/divestment record.

FY2024 Business & Wealth reporting basis

FY2024 Business & Wealth covered Business Banking, Wealth Management, Private Wealth and Westpac Pacific. Business Banking served commercial, SME and agribusiness customers, generally up to $200m exposure, and included merchant eCommerce and transaction banking. The segment included BT Financial Group platform services and auto finance in runoff. Westpac said the segment operated through the Westpac, St.George, BankSA, Bank of Melbourne and BT brands.

On that reporting basis, FY2024 Business & Wealth reported $5,338m net interest income, $6,136m net operating income, $2,356m net profit, $144.3bn customer deposits, $102.0bn total loans and $107.1bn total assets. It reported $100.4bn business lending, made up of $99.1bn commercial/SME and $1.3bn Pacific lending; auto finance in runoff was $2.1bn, other loans $1.4bn and provisions $(1.9)bn. Deposits comprised $65.2bn transactions, $29.1bn savings and $50.0bn term deposits. The disclosed deposit-to-loan ratio was 141.48%. These are Business & Wealth segment figures and should not be used to backcast the earlier Business division without the issuer’s stated comparative basis.

Westpac reported FY2024 Business & Wealth NIM of 5.35% excluding Notable Items, an impairment charge of $142m, impaired exposures/TCE of 0.68% and total stressed exposures/TCE of 5.56%. It described business-lending growth of 9%, with agriculture, health and professional services named as target-industry growth areas. In October 2024 Westpac entered an agreement to sell the auto-finance portfolio, subject to regulatory approval and expected completion in the first half of 2025; at this point that was an agreement/expected completion, not a completed sale.

FY2025 Business & Wealth

FY2025’s business-segment map says Business & Wealth served SME, commercial and agribusiness customers across Australia, and included Private Wealth, BT Financial Group wealth-platform services and Westpac Pacific in Fiji and Papua New Guinea. Its stated execution focus included lending momentum through BizEdge, transaction banking, and banker presence/training/expertise.

In its FY2025 segment-performance discussion, Westpac reported Business & Wealth net profit of $2,186m, down 7%, and pre-provision profit of $3,383m, down 4%. It reported a 23bp impairment-charge/average-loans measure, compared with 14bp in FY2024, and attributed the change to its downside-scenario weight and higher overlays while saying credit-quality metrics improved. The report said segment-composition changes had an effect and prior-year comparatives were not restated.

Westpac reported Business lending growth of 15% and transaction-deposit growth of 8%, citing momentum in health, professional services and agriculture. It reported that it led in SME and Commercial but needed to improve small-business service; it described MFI progress as encouraging, particularly in Business & Wealth, but below its stated aspiration. These are Westpac-reported performance/commentary statements, not independent market rankings or a forecast. Paul Fowler commenced as Chief Executive, Business & Wealth on 12 May 2025.

The auto-finance portfolio sale completed in March 2025. Westpac stated that its segment contribution was transferred from Business & Wealth to Group Businesses. This is a segment-presentation fact and is not, by itself, an assertion of a discontinued-operation accounting classification.

Five-year selected measures and status

The FY2023–FY2024 reporting-boundary change is material. In particular, FY2024 Business & Wealth figures include components that had been recorded in Specialist Businesses, so the separate-Business FY2023 figures in this table are not a like-for-like predecessor to FY2024 Business & Wealth.

Section sources

• Westpac Group 2021 Annual Report, divisional performance: Consumer pp.103–104; Business pp.104–105.
• Westpac Group 2022 Annual Report, segment reporting: Consumer pp.124–125; Business p.126.
• Westpac Group 2023 Annual Report and Appendix 4E, Note 2 segment reporting and announced operating-segment restructure pp.177–179.
• Westpac 2024 Annual Report, Consumer pp.132–133; Business & Wealth pp.134–135; customer and hardship/service disclosures pp.20–25.
• Westpac 2025 Annual Report, CEO/customer and performance record pp.8–9; business-segment map p.11; segment-performance and auto-finance presentation changes p.21; executive changes p.74.
• Westpac annual-reports archive and Westpac 2025 annual reporting suite.

Section coverage state: all five annual periods searched. Standalone Private Wealth metrics and FY2025 closing Consumer/Business & Wealth balance-sheet/product tables are not separately disclosed in the selected annual-report segment material; they are not assumed to be zero. FY2025 management segment profit and pre-provision measures are included with their non-restated composition boundary. No valuation, recommendation, causal conclusion or forecast is made.

Scope, reporting basis and five-year boundary

Westpac has kept an institutional-banking operating division throughout the FY2021–FY2025 record, but the presentation is not a single untouched financial series. FY2021–FY2024 call the division Westpac Institutional Bank (WIB). The FY2025 business overview and segment note use Institutional; they describe the same three specialist areas — Corporate & Institutional Banking (CIB), Global Transaction Services (GTS) and Financial Markets (FM) — but FY2025 also records a transfer of merchant services from Business & Wealth to Institutional. Westpac said the impact of the FY2025 segment-composition changes was immaterial and did not revise comparatives. The report therefore keeps the issuer's label and year-specific presentation rather than treating every disclosed amount as a fully recast five-year series.

WIB/Institutional provides financial products and services to corporate, institutional and government customers. Its stated client footprint is Australia and New Zealand, with branches or subsidiaries also named in New York, London, Frankfurt and Singapore. That footprint is a service description; it is not a disclosed WIB-only geographic loan or revenue exposure table.

Year-by-year operating record

FY2021 — Asia consolidation and an impairment-affected reported result

• WIB net loans increased $0.8bn (1%), made up of a $4.8bn onshore increase and a $4.0bn offshore decrease, principally in Asia, as Westpac began consolidating operations there.
• Deposits fell $5.1bn (5%), including a $3.9bn reduction in offshore deposits. WIB's reported NIM declined 9bp to 1.26%.
• Westpac reported lower non-customer Markets income in foreign exchange and commodities, including the closure of the energy desk, as well as lower customer Markets income and lower Asia income.
• The FY2021 annual impairment test recognised $831m of Group and Parent Entity intangible impairment in the WIB cash-generating unit: $487m goodwill and $344m computer software. In the division's FY2021 performance bridge, the later FY2022 report described a $991m FY2021 asset write-down effect on cash earnings; the report should not collapse that management-performance bridge into the financial-statement intangible-asset note without its stated classifications.

FY2022 — lending, deposits and reported cash-earnings recovery

• WIB reported $687m cash earnings, $1,220m higher than the prior year's reported result. Westpac attributed the year-on-year comparison principally to the prior-year asset write-down, together with lower expenses, higher net interest income and lower impairment charges; lower derivative valuation-adjustment contribution partly offset those effects.
• Net loans increased $17.5bn (26%). Westpac identified infrastructure, M&A, finance, property and renewable energy as the areas of growth, and attributed most growth to deeper existing relationships and higher facility utilisation. Total committed exposure (TCE) increased 11%.
• Deposits increased $17.3bn (17%) across term and transaction deposits; Westpac said much of transaction-deposit growth was in government balances.
• NIM increased 1bp. The issuer attributed this to improved deposit spreads and $24m higher Markets net interest income, partly offset by liquidity and wholesale-funding costs, bank-levy charges and lower loan spreads.
• Westpac reported stressed exposures to TCE down 29bp to 0.35%, principally attributing the movement to partial write-offs of impaired exposures, including Forum Finance early in the year. This is a division credit-quality ratio, not an all-Group impairment rate.

FY2023 — CIB/GTS/FM architecture and higher activity

• Westpac formally describes CIB as the lending/relationship and specialist-product lane; GTS as payments and liquidity-management solutions plus domestic and international payments infrastructure; and FM as risk-management, investment and debt-capital-markets solutions. FM also provides financial-markets products to Consumer and Business customers.
• Segment net operating income was $2,891m, with $1,525m net interest income and $1,366m non-interest income. Segment net profit was $1,061m and the table reported a 1.50% NIM excluding Notable Items.
• Net loans were $92.6bn, up 9%. Westpac identified property, health and energy as target-sector growth areas and said second-half lending activity increased as relationships deepened. Deposits were $115.1bn, down 1%, with clients using transaction-account cash to repay debt or move into higher-yielding assets; term deposits represented 36% of the deposit base, compared with 34% in FY2022.
• The segment's lending and deposit income contribution was $2,006m and sales and risk-management income $887m. The report attributes improved Financial Markets performance to customer sales volume in credit and foreign-exchange products, franchise improvements, market conditions and tighter credit spreads; it also refers to higher origination, syndication and unused-facility fees.
• The impairment charge was $87m, or 10bp of average loans, versus 11bp in FY2022. Total stressed exposures to TCE were 0.58% and impaired exposures to TCE 0.04%. Westpac attributed the impairment charge to higher collectively assessed provisions as more customers entered watchlist, while stating new individually assessed provisions were very low despite the conditions it described.

FY2024 — segment balance sheet and income detail

Westpac said net loans rose 9% to $100.6bn, attributing growth to deepening existing-client relationships, particularly in property, infrastructure and industrial sectors. It reported lending-and-deposit revenue of $2,561m, sales-and-risk-management income of $846m, and Markets income of $929m. The FY2024 report defines the latter as a segment measure with named components and excludes debt-capital-markets activities; it is not a Group trading-income line.

FY2025 — Institutional presentation and payment-platform scope change

• Westpac's FY2025 strategy table identifies Institutional execution priorities as rollout of Westpac One and payments innovation, deeper client relationships and a larger FX/commodities share, and investment in expert bankers enabled by data, analytics and AI. These are stated focus areas, not reported completion outcomes.
• The FY2025 segment note transferred merchant services from Business & Wealth to Institutional given its stated strategic alignment with payment-infrastructure management. It also realigned certain Institutional Human Resources and Finance expenses to Group Businesses. Westpac said the effects were immaterial and did not recast comparatives.
• FY2025 Institutional net operating income was $3,808m, comprising $2,413m net interest income, $773m net fee income, $577m trading income and $45m other income. These are the issuer's FY2025 segment classifications and should not be relabelled as a stand-alone Financial Markets revenue series.
• The segment reported $1,647m operating expenses, $1 impairment benefit, and $1,575m net profit attributable to owners of WBC (excluding Notable Items; no Institutional Notable Item shown in the table). Closing loans were $117.704bn and deposits and other borrowings $131.379bn.
• FY2025 segment management identifies Nell Hutton as Chief Executive, Westpac Institutional Bank for the full year. The report describes the institutional client footprint as Australia, New Zealand, Asia, Europe and US markets; it does not provide a separate WIB geography-by-geography exposure register in the annual-report material used here.

What the five annual reports do and do not disclose for this section

The five reports provide a detailed division record for reported earnings, lending/deposits, client-product architecture, selected credit-quality ratios, Markets/transaction-banking commentary and operating-structure changes. They do not provide a single consistent five-year WIB-only table for geographic exposures, industry concentrations, liquidity, treasury funding or every Markets sub-product. Group geographic segment revenue in the FY2025 financial statements is not treated here as Institutional revenue, and the division's international office footprint is not converted into an exposure allocation. Where Westpac uses a management explanation for lending, deposits, payment activity or Markets income, that explanation remains attributed to Westpac.

Section sources

• Westpac Banking Corporation, Westpac 2021 Group Annual Report, *Westpac Institutional Bank* pp. 106–107 and Note 25, *Intangible assets*, p. 236. Official Westpac annual-reports archive
• Westpac Banking Corporation, Westpac 2022 Group Annual Report, *Segment reporting — Westpac Institutional Bank* pp. 128–129. Official 2022 annual-report PDF
• Westpac Banking Corporation, Westpac 2023 Group Annual Report, *2.8.3 Westpac Institutional Bank (WIB)* pp. 137–138. Official 2023 annual-report PDF
• Westpac Banking Corporation, Westpac 2024 Group Annual Report, *Westpac Institutional Bank (WIB)* pp. 136–137 and *Segment reporting* pp. 130–141. Official 2024 annual-report PDF
• Westpac Banking Corporation, Westpac 2025 Annual Report, *Our business segments* p. 11 and Note 2, *Segment reporting* pp. 114–117. Official 2025 annual-report PDF

Reporting boundary and reading rules

Westpac treats its New Zealand banking operation as a distinct operating-reporting segment throughout the five-year record. It provides consumer, business and institutional banking and wealth products and services in New Zealand. In FY2022, the Group report described the operating structure as Westpac New Zealand Limited (incorporated in New Zealand) and the Westpac Banking Corporation (New Zealand Branch) (incorporated in Australia), with local branches, ATMs, relationship and specialist-product teams, and its own technology, operations and treasury. This is a locally operated banking perimeter within the Westpac Group; it is not the same measure as the Australian Group, the parent entity, or an APRA Level 2 prudential table.

The currency changes within the reports are material. FY2021–FY2024 operating reviews are shown in NZ$; FY2024 also presents a separate A$-equivalent table. FY2025 Group segment reporting presents the New Zealand segment in A$. No currency conversion has been made in this section. Values are therefore displayed only on the issuer's stated basis, and NZ$ and A$ series must not be added together.

Five-year results and balance-sheet record

The following register preserves the reported basis rather than forcing a single series. FY2021–FY2022 use the cash-earnings measure disclosed in the contemporary division review; FY2023 onward uses the Group's reported New Zealand segment profit basis. FY2025 amounts are A$ segment amounts, unlike the NZ$ operating results in prior rows.

FY2021 — earnings recovery, balances and local workstreams

• Westpac reported NZ$1,013m of cash earnings, an increase of NZ$364m (56%), and NZ$1,010m net profit attributable to owners of WBC. The report keeps those two profit labels separate.
• Customer deposits were NZ$75.9bn, net loans NZ$92.6bn, total assets NZ$112.4bn and total funds NZ$12.0bn at 30 September 2021.
• The division recorded a NZ$84m impairment benefit, compared with a NZ$320m charge in FY2020. Westpac linked the change to collectively assessed provisions no longer required and its reported economic/credit-quality outlook. Stressed exposures to TCE were 1.19%, down 40bp; mortgage 90+ day delinquencies were down 22bp.
• The FY2021 review also identified costs associated with the announced Westpac NZ Life sale, an intangible-asset write-down, customer remediation, and investment in technology, risk, regulatory and compliance work. RBNZ BS11 and section 95 requirements were named local regulatory workstreams. An announced sale is not treated here as a completed sale in FY2021.

FY2022 — NZ Life transaction, loan/deposit mix and RBNZ programme

• Cash earnings rose NZ$152m (15%) to NZ$1,165m. Westpac identified a NZ$126m gain on sale of NZ Life as a principal driver. Excluding that gain, associated costs and remediation provisions, it said cash earnings were NZ$26m (2%) lower, citing a smaller impairment benefit, lower non-interest income and higher regulatory/risk/compliance expenditure.
• Net loans increased NZ$4.2bn (5%), including NZ$2.9bn in mortgages and NZ$1.2bn in business lending. Deposits increased NZ$2.0bn (3%): term deposits increased NZ$4.0bn while at-call accounts declined NZ$2.0bn as interest rates rose.
• Reported net interest margin was 2.00%, unchanged from FY2021; the report said it was 3bp lower excluding the customer-refunds-and-payments effect. The report attributed the lending-side pressure to mortgage competition and noted higher deposit spreads in the rising-rate environment.
• Westpac reported stressed exposures to TCE of 0.97% (down 22bp), mortgage 90+ day delinquencies of 0.22% (down 8bp), and other-consumer 90+ day delinquencies of 1.03% (down 62bp). These are New Zealand division credit-quality indicators, not Group ratios.
• The report described spending to meet RBNZ BS11 outsourcing-policy requirements and to strengthen technology resilience, cyber security and data capability. It also states that section 95 external reviews relating to risk governance and liquidity-risk management/culture applied to WNZL rather than Westpac in Australia or its New Zealand branch; both reviews were completed in 2021–2022 and follow-on work was delivered to the satisfaction of the WNZL Board.

FY2023 — margin, funding and emerging credit stress

• FY2023 New Zealand net interest income was NZ$2,514m, compared with NZ$2,280m in FY2022. Net operating income was NZ$2,774m and total operating expenses NZ$1,295m, producing NZ$1,479m of pre-provision profit.
• Net profit was NZ$963m, down 18% from NZ$1,168m in FY2022. Westpac attributed the reported reduction to lower pre-provision profit and higher loan-impairment charges; it also noted that FY2022 contained the NZ Life sale gain.
• Total loans increased 3% to NZ$99.3bn: mortgages were NZ$65.8bn, business loans NZ$32.8bn, other loans NZ$1.2bn and provisions NZ$(0.5)bn. Westpac said mortgage growth was 0.8x RBNZ system lending growth, while business loans grew 2% across a number of sectors.
• Deposits rose 2% to NZ$79.8bn. Transaction and savings balances decreased while term deposits rose to NZ$38.5bn; Westpac said the shift reflected customer preference for higher-rate accounts. The deposit-to-loan ratio was 80.36%.
• The reported impairment charge was NZ$135m, or 14bp of average loans, compared with a 3bp benefit in FY2022. Westpac attributed it to higher collectively assessed provisions and deterioration in the economic outlook. Stressed exposures to TCE increased 52bp to 1.49%; mortgage 90+ day delinquencies were 0.33% and impaired exposures to TCE 0.06%.
• WNZL issued NZ$600m of Tier 2 capital. It also re-established a US Medium Term Note Programme under Rule 144A and Regulation S, issuing US$750m in February 2023. These are issuer-disclosed local-entity funding/capital actions; they are not added to Westpac Group A$ capital or funding totals.
• Westpac said WNZL completed the work programme required by the RBNZ BS11 outsourcing policy. The policy was described as seeking to reduce disruption to the wider economy if a large bank or a service provider to one failed.

FY2024 — NZ$ operating record and local prudential distinction

• Westpac's FY2024 operating review uses NZ$. It reported net interest income of NZ$2,590m, net operating income of NZ$2,860m, and net profit of NZ$1,055m. The separate A$-equivalent table reported net profit of A$973m, translated at the issuer's stated average/spot-rate convention; it is not a second NZ profit measure.
• Customer deposits were NZ$79.7bn and loans NZ$102.1bn, comprising NZ$68.0bn mortgages, NZ$33.4bn business lending and NZ$1.2bn other lending, less NZ$0.5bn provisions. The reported deposit-to-loan ratio was 78.06%.
• Total assets were NZ$123.5bn, RWA NZ$62.0bn and liquid assets NZ$17.8bn. These New Zealand values remain separate from Westpac Group APRA capital and liquidity measures.
• Credit indicators reported in the operating review were mortgage 90+ day delinquencies 0.49%, other-consumer 90+ day delinquencies 0.87%, impaired exposures/TCE 0.16%, and stressed exposures/TCE 1.73%.
• WNZL issued NZ$375m perpetual preference shares recognised as AT1 under RBNZ criteria. Westpac classified them as non-controlling interests because they did not meet APRA capital requirements. This is an explicit RBNZ/APRA basis difference, not Group APRA AT1 capital.

FY2025 — A$ segment record, macro context and local funding

• FY2025 segment reporting presents New Zealand in A$. It reports A$2,568m net interest income, A$2,814m net operating income, A$1,472m pre-provision profit, an A$41m impairment benefit, and A$1,087m net profit attributable to owners of WBC. It reported A$93.443bn loans and A$72.806bn deposits and other borrowings.
• The Group report says New Zealand provides banking and wealth services through Westpac New Zealand, Westpac Life and BT Funds Management (NZ). Catherine McGrath was CEO, Westpac New Zealand, for the full year.
• Its macroeconomic commentary described New Zealand's recovery as slower than expected. Westpac stated that the RBNZ had delivered 300bp of easing since mid-2024 and that the prevalence of fixed-rate mortgages delayed transmission of rate cuts. These are issuer macroeconomic comments, not reported banking-result measures.
• The same commentary forecast NZ credit growth of 5.7% in 2025 and 6.3% in 2026. These are forecasts published in the FY2025 report, not actual segment growth.
• In the Group's funding/liquidity note, Westpac stated that WNZL had made scheduled repayments under the RBNZ Funding for Lending Programme and had NZ$1,110m outstanding at 30 September 2025, compared with NZ$2,981m a year earlier. The programme detail is a WNZL funding item and has not been merged into Group A$ funding ratios.

Source notes

• FY2021: Westpac, *Westpac Group 2021 Annual Report*, Westpac New Zealand performance pp.108–109. Official issuer PDF.
• FY2022: Westpac, *Westpac Group 2022 Annual Report*, Westpac New Zealand segment reporting pp.129–130. Official issuer PDF.
• FY2023: Westpac, *Westpac Group 2023 Annual Report and Appendix 4E*, Westpac New Zealand NZ$ segment reporting pp.139–140; A$ equivalent p.141; segment note p.179. Westpac annual-reports archive.
• FY2024: Westpac, *Westpac 2024 Annual Report*, Westpac New Zealand operating review and A$ equivalent pp.138–140; funding/capital context p.118 and p.146. Official issuer PDF.
• FY2025: Westpac, *Westpac 2025 Annual Report*, segment reporting pp.114–117 and funding/liquidity note p.178. Official issuer PDF · annual-report landing page.

All material is a transformed factual record drawn from Westpac public reporting. It does not provide a valuation, target price, investment recommendation or a conversion between NZ$ and A$ series.

What this reporting lane does — and does not — represent

Westpac used Specialist Businesses as a management-reporting lane for businesses it had identified as non-core and ultimately planned to divest. It was not a single legal entity, nor does the label by itself establish that a business had been sold. In FY2021, the segment reported cash earnings of $193m, deposits/customer borrowings of $11.0bn, net loans of $13.6bn, and total assets of $15.5bn; its loan measure included assets held for sale. [FY2021 annual report, pp.110–111]

Group Businesses is also a reporting lane, not a legal-entity register. Across the period it contains central functions such as Treasury, customer services and technology, corporate services, enterprise services and other central activities. Many of its costs are allocated to customer-facing segments. Its results therefore cannot be read as the result of a separately controlled operating bank.

The labels changed through the five-year record. Specialist Businesses remained a separately reported segment through FY2023, but Westpac says it was dissolved in FY2024 as Business & Wealth became a new operating segment. This structural change must not be read as evidence that every prior Specialist Businesses activity was either sold or discontinued. [FY2024 annual report, Note 2 p.153]

Five-year status timeline

Named business and transaction register

FY2021: completed sales and pending transactions at the reporting date

The FY2021 annual report gives a useful status cross-section: both General Insurance and Westpac Vendor Finance had completed, while Australian life insurance and Westpac Pacific were still pending/held for sale at the reporting date. The transaction dates, price/gain/loss figures and approval condition must remain separate:

• General Insurance: completed 1 July 2021, $725m consideration, 20-year exclusive distribution agreement.
• Vendor Finance: completed 31 July 2021; $29m pre-tax completion gain and an $81m pre-tax pre-completion loss for write-down/separation/transaction costs.
• Australian life insurance: TAL agreement announced 9 August 2021, $900m price, estimated $1.3bn pre-tax loss; approvals still outstanding at 30 September 2021.
• Westpac Pacific: announced 7 December 2020 for the Fiji branch and 89.9% WPNG stake; still pending at FY2021. The $60m amount in FY2021 was a write-back of prior loss, not transaction consideration.

These were assets held for sale / disposal facts where so stated by Westpac. They do not establish that each transaction was a discontinued operation. That accounting determination depends on the financial-statement disclosure for the particular disposal group.

FY2022–FY2023: the completion phase and residual portfolio

Westpac reported that three further sales were completed in FY2022 and that agreements had been signed for BT Super and Advance Asset Management. The FY2022 Specialist Businesses review specifically says that, for part of the year, the segment included motor-vehicle dealer finance and novated leasing businesses and Westpac Life Insurance Services Limited, all sold during the year. Westpac also reported that it had completed its exit from insurance operations in FY2022.

The FY2022 annual report records the Australian-life disposal loss at $1,120m, and says its finalisation added 17bp to Group CET1. These are two different reported effects: the first is a statutory earnings/notable-item effect and the second is a regulatory-capital effect. They should not be offset or interpreted as the same measure.

FY2023 is the point at which the report says ten business divestments had completed since Specialist Businesses was formed in May 2020. It expressly names two FY2023 actions: the successor-fund transfer of BT personal and corporate superannuation funds to Mercer Super Trust, and the AAML sale to Mercer Australia. At the same time, Westpac identified the residual operations — Platforms, Westpac Pacific, margin lending and retail auto finance in run-off — and said they would be retained and transferred into Business & Wealth management from FY2024.

The Specialist Businesses management segment is not a clean continuing-operations earnings series. Its FY2023 table, for example, includes notable items: NII $429m (FY2022 $474m; FY2021 $512m), non-interest income $650m ($860m; $1,264m), notable items $233m (($1,011)m; $181m), net operating income $1,312m ($323m; $1,957m), operating expenses ($547m) (($683m); ($846m)) and notable-item expenses ($60m) (($365m); ($640m)). These figures retain Westpac’s segment basis and should not be transformed into a simple continuing-business growth rate.

FY2024–FY2025: segment redesign, retained activities and final auto-finance completion

In FY2024, Westpac changed its operating-segment structure. Note 2 says Specialist Businesses was dissolved and Business & Wealth was established. The FY2024 report states that no businesses were sold in FY2024. It separately reports the AAML sale as a prior-year transaction, with a FY2023 gain of $243m, and separately records the 3 October 2024 auto-finance sale agreement as a post-balance-date event.

This produces three distinct auto-finance states:

1. 30 September 2024: run-off portfolio of $2.1bn in Business & Wealth, down from $4.2bn. 2. 3 October 2024: sale agreement announced after the FY2024 balance date. 3. March 2025: completed sale, with the portfolio’s segment contribution moved from Business & Wealth to Group Businesses.

At FY2025, Westpac still describes BT Financial Group platform services and Westpac Pacific in Fiji and Papua New Guinea as part of Business & Wealth. The simplified operating structure therefore contains both historical divestments and named retained activities; it is not accurate to describe the entire historical Specialist Businesses portfolio as sold.

Group Businesses — functional boundary across the record

For scale only, the FY2023 Group Businesses table reported NII of $939m (FY2022 $903m; FY2021 $835m), non-interest income of ($11m) ($70m; $40m), and notable items of ($52m) (($592m); $485m). Its allocations and footnotes are integral to that presentation. The FY2024 Group Businesses pre-provision profit was $346m, versus $438m; excluding Notable Items it was $513m versus $417m. Neither series should be treated as a standalone legal-business earnings history.

Controlled entities, divestment commitments and accounting boundaries

The annual reports distinguish operating-business exits from legal-entity changes. In FY2024, Westpac disclosed formation/acquisition of Series 2024-1 WST Trust and the HealthPoint business through wholly owned Westpac Investment Holdings Pty Ltd. Its ceased-control/deregistration list included Westpac Nominees NZ, Westpac Superannuation Nominees NZ, Aotearoa Financial Services, Westpac USA Inc., Series 2014-1 WST Trust, BT Financial Group Holdings and Westpac Europe. These disclose legal events in the controlled-entity register; a deregistration, dissolution or cessation of control is not by itself an operating-business sale.

FY2023 also says the Group had potential third-party exposure from warranties, indemnities and commitments connected with divestments, including conduct, compliance, regulatory-investigation and litigation matters. It had made payments and was discussing one or more potential claims. That residual contractual exposure does not reverse a sale or demonstrate that Westpac retained control of a divested business.

Similarly, Westpac’s financial-statement policy distinguishes an asset/disposal group held for sale from a discontinued operation: a disposal group may be held for sale without constituting a major line of business. No transaction in this section is labelled a discontinued operation unless the particular financial-statement note expressly makes that classification.

Simplification operations record

The simplification programme included operational changes as well as divestments. In FY2022 Westpac reported 2,667 fewer FTE year on year following organisational-structure changes, additional business sales and cost-plan progress. It also reported 119 branch consolidations, 199 fewer ATMs and 53 fewer products. These are reported operational-change counts, not a quantified measure of transaction benefits.

In FY2024, Westpac said it had divested ten businesses and was accelerating simplification. In FY2025 it identifies simplification as a transformation objective and names UNITE as the programme intended to simplify products, processes and systems. This is programme-in-execution language; it does not prove that all historical simplification, divestment, technology or operating-model actions were complete.

Source notes

• Westpac 2021 Group Annual Report: Specialist Businesses pp.110–111; Group Businesses p.112; assets and liabilities held for sale, Note 37 pp.264–265. Westpac annual-report archive
• Westpac 2022 Group Annual Report: Simplify p.97; Specialist Businesses pp.131–132; Group Businesses pp.169–170; held-for-sale/disposal and controlled-entity material pp.283–284. Westpac annual-report archive
• Westpac 2023 Group Annual Report and Appendix 4E: Specialist Businesses p.132; Group Businesses pp.142–144; operating-segment and divestment/disposal material pp.130–146. Westpac annual-report archive
• Westpac 2024 Group Annual Report and Appendix 4E: businesses sold pp.131, 292; Business & Wealth p.134; Group Businesses pp.140–141; segment change Note 2 p.153; controlled-entity/disposal notes pp.265–267, 291. Westpac annual-report archive
• Westpac 2025 Group Annual Report and Appendix 4E: Our business segments; Segment performance; Delivering the transformation agenda; Our strategy. Westpac 2025 Annual Report (PDF)

Scope, definitions and comparability controls

This section follows Westpac's Australian lending and deposit record across the five years ended 30 September 2021 to 30 September 2025. It uses the issuer's own product labels: housing (including owner-occupied and investor mortgages where separately shown), personal lending, business lending, institutional lending, deposits and other borrowings, and customer deposits. Those labels are not interchangeable.

Westpac's reporting also uses several bases in the same annual report. Consolidated statutory loans can be net of expected-credit-loss (ECL) provisions; a risk or lending table can instead use gross loans, total committed exposure (TCE), average interest-earning balances, or a particular operating division's net loans. Likewise, the statutory balance-sheet line deposits and other borrowings is broader than the operating-review measure customer deposits. The tables below retain those labels rather than adding segment balances to Group balances or deriving unreported end-of-year balances from growth percentages.

The section is primarily Australian because that is the issuer's mortgage and deposit-franchise presentation. New Zealand and other overseas balances are shown only when a Group portfolio table includes them; their separate operating records remain in the Westpac New Zealand and WIB sections. Industry descriptions are Westpac's reported growth/exposure lanes, not a complete industry concentration table. Exact LVR, collateral, arrears and concentration tables are used only where a printed annual-report page was recovered.

Five-year lending and deposit chronology

All dollar figures in the table are AUD and are taken as the issuer presents them. A change described by Westpac is not treated as a rate of system growth unless the report expressly says so.

Portfolio and geography register

FY2021 maturity and product view

The FY2021 loans maturity disclosure provides the earliest recovered five-year point-in-time portfolio register. At 30 September 2021 it showed Australian housing loans of $455.604bn, Australian personal loans of $14.737bn and Australian business loans of $148.453bn, for total Australian loans of $618.794bn. The same table showed New Zealand loans of $89.247bn and other overseas loans of $6.332bn, for total loans of $714.373bn on that table's maturity-segmentation basis.

For loans maturing after one year, the FY2021 table showed Australian housing loans of $448.290bn, comprising $275.772bn variable and $172.518bn fixed; Australian business loans of $99.086bn; and New Zealand housing loans of $57.849bn. This fixed/variable split applies to that after-one-year table subset, not to all Group loans or to a current mortgage mix.

FY2024 consolidated and segment portfolio view

Westpac's FY2024 operating review described Australian loan growth of 6% to $633.772bn, New Zealand loans growth of 6.7% to $92.222bn, and other overseas balances growth of 29% to $7.7bn. The report separately described Australian business-lending growth in agriculture, health and professional services as target industry lanes; it did not turn those descriptions into a complete industry-exposure register in the recovered operating-review material.

Mortgage, personal and business lending record

Housing / mortgages

Westpac's reported mortgage record changed in composition over the five years. In FY2021, owner-occupied growth was larger than the decline in investor balances, producing the $14.7bn Australian housing-loan increase. In FY2022, housing loans increased $11.8bn, again mainly owner-occupied, while investor mortgages declined. Westpac described Australian mortgage growth of 3%, compared with Australian financial-system mortgage growth it described as closer to 7%.

For FY2023, the issuer identified owner-occupied mortgages as a lending-growth driver and described home loans as its largest product. It reported completion of a single mortgage-platform rollout, extension of digital-mortgage capability and rollout of the mortgage-origination platform to third-party brokers. Those are operating actions; this section does not convert them into a quantified approval-time or market-share outcome.

The FY2024 data separates the $503.271bn Group gross Australian housing portfolio from the $473.5bn Consumer housing figure. In FY2025, the issuer's Australian-mortgage scorecard outcome was 0.84x ADI system growth. It is a relative measure and cannot be read as a 0.84% mortgage-balance increase.

Personal lending and auto-finance boundary

Australian personal lending declined by $2.3bn in FY2021, including a $1.1bn auto-finance decrease; it declined a further $1.9bn (13%) in FY2022. Westpac described the later movement as structural personal-loan decline and auto-finance run-off after the sale. FY2024 Australian personal lending was $9.4bn on the growth review and $10.174bn in the consolidated gross-loans table; the difference is a reporting-basis issue, not a value to be averaged or reconciled without the table definitions. Westpac said the FY2024 personal book declined 2% and included auto-finance runoff in its described comparison.

Business and institutional lanes

Westpac reported Australian business and institutional lending growth of 1% in FY2021, while noting that industry-wide Australian business-lending growth was 4.6% for the year to September 2021. In FY2022 it reported 15% Australian business and institutional lending growth, including activity in infrastructure, financing, property and sustainable finance; the Group portfolio movement included the $22.2bn Australian business-lending increase attributed to WIB activity, M&A and higher facility utilisation.

In FY2023, Westpac described business lending to commercial property, agriculture and targeted institutional sectors. In FY2024, the issuer reported 8% Australian business-lending growth to $194.1bn and linked the reported growth narrative to WIB and the target industries of agriculture, health and professional services. FY2025 Business & Wealth reported 15% business-lending growth and the scorecard showed growth at 1.37x ADI financial-system growth. These are reported growth descriptions; no industry balance, facility utilisation or exposure concentration is inferred where the annual report did not provide one in the recovered evidence.

Deposit franchise and mix

The Group's statutory deposits-and-other-borrowings liability balance was $626.955bn at FY2021 and $720.489bn at FY2024. This accounting line is broader than Group customer deposits and should not be used interchangeably with the customer-deposit series below.

FY2022's operating review also recorded other-overseas deposits up $1.7bn (25%), principally term deposits in Europe and Asia that Westpac said supported lending growth. In the FY2021 divisional record, Consumer deposits were $235.6bn and Business deposits/customer borrowings $158.7bn, while WIB deposits declined $5.1bn; these are division measures and are deliberately not summed to form a Group deposit total.

The FY2024 $673.615bn customer-deposit series comprised $593.795bn in Australia, with the reported transaction, savings and term components shown above. It remains a management funding measure rather than a complete measure of Group liabilities or wholesale funding. Detailed funding composition, liquidity and maturity measures are kept in the separate funding/liquidity section.

Mortgage stress, arrears, collateral and disclosure boundary

The annual reports distinguish lending volumes from credit quality. FY2023 reported total stressed exposures of 1.26% of total committed exposures (TCE), mortgage 90+ day delinquencies of 0.81% and an impairment charge/average-loans ratio of 9bp. Westpac said mortgage and business portfolios drove the 19bp increase in stressed exposure. Those ratios are not a mortgage loss rate or a mortgage balance.

FY2024 provides the most detailed recovered mortgage measures in this section. Consumer reported mortgage 90+ day delinquencies of 1.12%, hardship of 1.14% and 201 properties in possession. The Group basis reported mortgage 90+ day delinquencies of 1.05% and other consumer 90+ day delinquencies of 1.40%. Consumer and Group rates have different coverage and are retained separately. In FY2025, Westpac's macroeconomic discussion said mortgage stress remained evident but had begun to decline; it did not provide a replacement arrears figure in the selected operating-review evidence.

The five reports contain credit-risk concentration, collateral, LVR, arrears and credit-commitment disclosures. This section does not reconstruct a five-year LVR or collateral series because the selected evidence ledgers did not yet recover every exact printed table page and definition for those measures. Not separately recovered means neither zero collateral nor the absence of arrears, LVR or industry exposure disclosure.

Section conclusion

Over FY2021–FY2025, Westpac reported owner-occupied mortgage growth in the first three years, a declining personal/auto-finance lane, changing business-lending growth channels and deposit-mix changes as rates moved. The record also shows why a single five-year “loan” or “deposit” series would be misleading: annual reports use held-for-sale-inclusive, gross, net-of-provision, average-balance, Group, operating-segment and management-funding bases. The report preserves those boundaries and records exact product/region figures where the annual-report table basis is available.

Section sources — official Westpac documents

• Westpac Group 2021 Annual Report — net-interest-income / lending review p.88; balance-sheet review p.93; consolidated balance sheet p.141; Note 12 loans p.171; Consumer and Business divisional performance pp.103–105. Official issuer PDF
• Westpac Group 2022 Annual Report — “Review of Group operations / Net interest income — 2022 v 2021” p.109; Note 11 ECL provisions pp.192–196; Note 12 credit-risk management pp.200–204 and following credit-quality pages. Official issuer PDF
• Westpac Group 2023 Annual Report and Appendix 4E — key financial information p.103; average balance sheet p.108; funding profile p.110; credit quality p.118. Official issuer PDF
• Westpac 2024 Annual Report — balance-sheet and funding review pp.105 and 111–112; Consumer pp.132–133; Business & Wealth pp.134–135; WIB pp.136–137; Note 9 loans pp.173–174; credit-quality discussion pp.118–120; consolidated balance sheet p.145. Official issuer PDF
• Westpac 2025 Group Annual Report and Appendix 4E — Group STVR Scorecard; “Performance: Balancing growth with returns”; “Households navigate uneven recovery”; Note 10, *Provision for expected credit losses*, pp.135–145; Note 11, *Risk management, funding and liquidity risk and market risk*, pp.145–152; credit-quality tables from p.150 and collateral p.152. Official issuer PDF

No ASX announcement identifier, extraction identifier, database key, local path or internal locator belongs in the public report.

Record boundary

This section records Westpac Banking Corporation's disclosed Group funding mix, prudential liquidity measures, liquidity facilities, collateral and the limited banking-book interest-rate-risk measures supplied in the FY2021–FY2025 annual reports. Amounts are Australian dollars unless stated otherwise. Funding-composition percentages are shares of total Group funding including equity at the relevant 30 September; they are not statutory balance-sheet liability percentages. LCR is a September-quarter average in the reports cited below; NSFR is the reported prudential ratio. Neither is a forecast of ordinary cash flows.

Westpac describes funding and liquidity risk as the risk that it cannot meet payment obligations, or does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. The Board-approved Liquidity Risk Management Framework sets risk appetite, roles, reporting and controls, limits and targets; Treasury manages the framework under Group ALCO and Treasury Risk. The reports say Treasury uses balance-sheet forecasts and wholesale-funding maturity profiles, local liquidity limits and stress testing. These are Westpac's stated controls, not a statement that liquidity risk is absent.

Five-year funding and prudential-liquidity register

Metric basis and comparability. FY2021 and FY2022 mix figures are from the annual-report funding-composition tables. FY2023's annual report provides the FY2021–FY2023 LCR/NSFR series on a consistent reported basis; it describes LCR as the average for the September quarter and NSFR as the ratio at 30 September. FY2024 and FY2025 retain that distinction. The FY2021 deposit-to-loan figure is shown by Westpac as a rounded 82%; later reports provide one decimal place. It should not be presented as evidence of a mechanical change of exactly 0.9 percentage points.

FY2021 — TFF drawdown and a funding mix still shaped by pandemic-era facilities

At 30 September 2021, customer deposits represented 65.0% of total Group funding including equity. Westpac reported that customer deposits rose by $25 billion during the year and fully funded new lending growth; the deposit-to-loan ratio was shown as 82%, up from 80% a year earlier. Wholesale term funding with more than 12 months' residual maturity was 15.6% of total funding; funding with less than 12 months' residual maturity was 10.8%, and the latter portfolio's weighted-average maturity was 138 days. Securitisation was 0.6% and equity 8.0% of the same funding denominator.

Westpac raised $34.6 billion of long-term wholesale funding in FY2021, including $12 billion drawn under the Reserve Bank of Australia Term Funding Facility (TFF). The report says the TFF closed to new drawdowns on 30 June 2021 and that Westpac had fully drawn its $30 billion allowance by that date. It also describes a return to senior-unsecured and covered-bond markets in the second half. The long-term funding figure included $3.5 billion of Additional Tier 1 and $6.2 billion of Tier 2 securities; those capital instruments are separately covered in the capital section and are not added again to a debt-funding total here.

The FY2021 report gave total Group liquid assets of $227,553 million at year end ($209,386 million average), including $70,381 million cash, $83,032 million investment securities and $66,610 million self-originated AAA-rated mortgage-backed-security loans eligible for central-bank repurchase under stated conditions. It described those holdings as a buffer for unforeseen funding requirements. In the balance-sheet review, Westpac attributed higher liquid assets to deposit inflows exceeding loan growth and additional TFF utilisation, partly offset by net debt-issue maturities.

For collateral, the consolidated carrying value pledged to secure liabilities was $58,245 million at 30 September 2021: cash $4,229 million, securities $1,800 million and securities pledged under repurchase agreements $52,213 million (plus a $3 million cash deposit on stock borrowed). Westpac distinguishes the contractual-maturity cash-flow tables from how it manages inherent liquidity risk: the tables use future undiscounted contractual cash flows, whereas management uses expected cash flows.

FY2022 — deposit growth, a larger short-dated wholesale share and the CLF transition

FY2022 customer deposits increased $32.5 billion and represented 65.1% of total Group funding including equity. Westpac said the deposits fully funded new lending growth and reported a 82.9% deposit-to-loan ratio, versus 81.6% on the FY2021 comparable basis used in its FY2022 table. Long-term wholesale funding with more than 12 months remaining was 14.5% of total funding; less-than-12-month wholesale funding was 12.5%, with a 104-day weighted-average maturity. Securitisation was 0.5% and equity 7.4%.

The Group raised $43.4 billion of long-term wholesale funding, including $4 billion of FY2023 pre-funding. Westpac described the issuance mix as approximately half senior unsecured bonds, one quarter covered bonds and the remainder across Tier 2, Additional Tier 1 and securitisation; it cited issuance across USD, AUD, EUR, GBP, NZD, SGD, JPY and other currencies. The report also says Westpac New Zealand drew on the RBNZ Funding for Lending Programme (FLP). The FLP is a New Zealand facility and must not be relabelled as an Australian TFF balance.

Westpac reported an LCR of 132% and NSFR of 121%. Its FY2023 report records that APRA removed a 10% net-cash-outflow overlay from the Group LCR calculation on 1 September 2022. This is a regulatory calculation change, not a funding inflow. The FY2022 report also said the scheduled Committed Liquidity Facility (CLF) reduction would require more high-quality liquid assets and raise the cost of funding and holding liquid assets; that language is a reported transition consideration, not a quantified realised FY2022 cost.

Consolidated collateral pledged to secure liabilities was $66,690 million at 30 September 2022, comprising $6,215 million cash, $2,572 million securities, $57,902 million securities pledged under repurchase agreements and $1 million cash deposit on stock borrowed. The increase versus FY2021 is a change in carrying value of the disclosed pledge categories, not a measure of total liquidity available.

FY2023 — CLF phase-out, TFF maturities and the reported LCR/NSFR mechanics

Westpac's FY2023 report provides a detailed three-year prudential-liquidity bridge. September-quarter-average LCR was 134%, compared with 132% in FY2022 and 129% in FY2021. It showed HQLA of $181,882 million, no CLF amount, total LCR liquid assets of $181,882 million and modelled 30-day APRA stressed cash outflows of $136,200 million. Within the modelled outflows, the report lists customer deposits of $95,008 million, wholesale funding of $11,249 million and other flows of $29,943 million. “Other flows” include credit and liquidity facilities, collateral outflows and customer inflows. These are inputs to a regulator-defined stress calculation, not an expected 30-day operating cash-flow forecast.

The Group reported an NSFR of 115% at 30 September 2023, with available stable funding of $707,893 million and required stable funding of $615,341 million. Westpac said the ratio declined from 121% in FY2022 as required stable funding increased 6%, citing the completed CLF phase-out by 1 January 2023, maturity of the first TFF allocation, lending growth and APS 112 changes that increased stable-funding requirements for certain mortgages. The report states that the mortgage assets backing matured TFF facilities were no longer used as collateral.

On the funding mix, customer deposits increased $28.1 billion to $640,951 million and represented 66.0% of total funding. Wholesale term funding with more than one year to maturity was $133,979 million (13.8%); short-term wholesale funding was $79,181 million (8.1%) and long-term funding with one year or less remaining was $40,607 million (4.2%). Together, the short-term and less-than-one-year long-term categories represented 12.3% of total funding, with a weighted-average maturity of 149 days. Securitisation was $4,298 million (0.4%) and equity $72,543 million (7.5%).

Westpac raised $35.2 billion of long-term wholesale funding in FY2023. The report says the issuance included senior and covered bonds in AUD, USD, EUR, NZD and GBP, plus $2.9 billion of Australian-parent Tier 2 securities and NZ$600 million of Westpac New Zealand Tier 2 securities. It also records that Westpac New Zealand re-established its US medium-term-note programme and issued USD$750 million in February 2023. These statements describe the instruments and issuer entities as reported; they do not make the NZ subsidiary's funding an Australian-parent regulatory-capital metric.

The consolidated carrying value of assets pledged to secure liabilities was $41,776 million at 30 September 2023: $4,535 million cash, $2,166 million securities and $35,075 million securities pledged under repurchase agreements. In addition, the report identifies $65,155 million of self-originated AAA-rated mortgage-backed-security loans as eligible for RBA/RBNZ repurchase in stated circumstances; it does not equate that eligibility with HQLA or with the pledged-collateral total.

FY2024 — reported funding growth and stress-liquidity inputs

FY2024 customer deposits were $673.615 billion and the deposit-to-loan ratio was 83.50%; the annual report separately reports consolidated deposits and other borrowings of $720.489 billion on the statutory balance sheet. Those are distinct issuer-defined measures and are not interchangeable. Customer deposits represented 66.9% of total Group funding including equity. Westpac raised $41.9 billion of long-term wholesale funding; long-term wholesale funding with more than 12 months remaining represented 13.9% of total funding, securitisation 0.6%, less-than-12-month wholesale funding 11.4% and equity 7.2%.

The September-quarter-average LCR was 133% and NSFR 112%. The LCR table reports $172,722 million HQLA and $129,915 million modelled 30-day APRA stressed cash outflows, producing the 133% ratio. Westpac describes HQLA as including cash, central-bank deposits and government/semi-government securities, recognised at market value for the LCR calculation. It also states that it has non-HQLA assets eligible for central-bank repurchase under conditions, including private securities and self-originated AAA-rated mortgage-backed securities; that supplementary source is not added to HQLA.

The FY2024 report describes the funding/liquidity framework as covering funding mix and tenor, securable assets, LCR/NSFR and liquidity stress scenarios. It identifies securitisation of own assets and Australian/New Zealand residential-mortgage covered-bond programmes as funding and liquidity tools. Controlled securitisation entities are consolidated when control criteria are met, so their assets cannot be summed into an unconsolidated funding total.

FY2025 — higher deposit share, lower wholesale issuance requirement and updated collateral/IRRBB disclosure

The FY2025 annual report shows customer deposits at 68.1% of total Group funding including equity, versus 66.9% in FY2024. Westpac says deposits increased $49.4 billion during the year. Long-term wholesale funding with more than 12 months remaining was 12.9%; funding from securitisation 0.5%; wholesale funding with less than 12 months remaining 11.6%; and equity 6.9%. The report associates the lower equity share with the on-market share buyback, while treating equity as a separate component of its total-funding denominator.

Westpac raised $28.1 billion of long-term wholesale funding in FY2025. It said this was below prior financial years because of strong customer-deposit growth and lower wholesale maturities to refinance. The less-than-12-month wholesale portfolio had a weighted-average maturity of 153 days. Westpac New Zealand made scheduled FLP repayments; the amount outstanding was NZ$1,110 million at 30 September 2025, compared with NZ$2,981 million at 30 September 2024.

The September-quarter-average LCR was 133% and the reported NSFR 113%; the deposit-to-loan ratio was 84.9%. The FY2025 financial-statements note reiterates that LCR and NSFR form part of its funding-risk appetite monitoring. The report's high-level statement that funding and liquidity were above regulatory minimums does not substitute for the published definitions and bases of those ratios.

Consolidated assets pledged to secure liabilities or contingent liabilities totalled $22,474 million at 30 September 2025, versus $27,984 million in FY2024: cash $4,590 million, securities $2,535 million, securities pledged under repurchase agreements $15,230 million and securities pledged on contingent liabilities $119 million. Westpac again states that its contractual-maturity table presents undiscounted cash flows at the earliest contractual date, while inherent liquidity risk is managed using expected cash flows.

Interest-rate-risk boundary — IRRBB is not a liquidity ratio

Westpac places interest-rate risk in the banking book (IRRBB) within non-traded market risk. It defines IRRBB as risk to net interest income or economic value on banking-book items from interest-rate changes. The reports attribute the source of IRRBB to ordinary banking activity, including structural duration mismatch between assets and liabilities and capital management; they say derivatives are used as hedges. This is a risk-management disclosure, not a prediction of net-interest-income direction.

FY2025 also reports a consolidated Net Interest Income-at-Risk “as at” measure of 1.05% of reported NII under its worst-case 100-basis-point up/down shock with a 12-month horizon; the FY2024 comparable “as at” value was 1.84%. These scenario outputs depend on stated runoff, new-business and repricing assumptions. They should not be converted into forecasts, valuations or a claim about interest-rate outcomes.

Section source register

• Westpac Group 2021 Annual Report: printed pp. 92–93 (balance-sheet review), 198–200 (framework), 211–214 (funding mix, TFF, pledged collateral and contractual maturity) and 217 (IRRBB).
• Westpac Group 2022 Annual Report: printed pp. 233–236 (funding mix, wholesale issuance, FLP and collateral) and 240 (IRRBB).
• Westpac Group 2023 Annual Report: printed pp. 122–123 (LCR, NSFR, funding and deposit-to-loan series), 242–246 (liquidity modelling, funding composition and collateral) and 249 (IRRBB).
• Westpac Group 2024 Annual Report: printed pp. 42–43 (risk framework), 105 and 111–112 (key funding measures), 145 (statutory deposits/other borrowings), 201–203 (securitisation/covered bonds) and 215–224 (funding/liquidity and IRRBB).
• Westpac 2025 Annual Report: printed pp. 20 (headline LCR/NSFR and deposit-to-loan), 175–179 (funding, collateral and contractual maturity) and 184 (IRRBB).

This section keeps the period impairment charge, the closing expected-credit-loss (ECL) provision, credit-quality ratios and the classification of exposures separate. They answer different questions and are not added together or treated as interchangeable measures. Unless stated otherwise, amounts are in Australian dollars and relate to Westpac Banking Corporation's consolidated Group.

FY2021 — provision releases while the closing ECL stock remained disclosed

Westpac reported a $590m impairment benefit in FY2021, compared with a $3,178m impairment charge in FY2020. The benefit is an income-statement-period measure; it is not the closing provision balance and it is not a measure of write-offs.

At 30 September 2021, provisions for ECL comprised $4,596m on loans and $403m on credit commitments, or $4,999m in total. The loan ECL balance was reported as $1,496m for housing, $611m for personal lending and $2,489m for business lending. These are provision balances rather than the corresponding loan balances.

The FY2021 note describes movements in ECL as including business activity, credit-quality transfers, forward-looking scenarios, overlays, repayments and drawdowns, and write-offs. It defines write-offs as derecognition of exposures where there is no reasonable expectation of full recovery. Westpac separately disclosed credit ratings, credit-risk mitigation and collateral, concentrations, financial-asset credit quality, non-performing loans and commitments, and collateral held.

FY2022 — a positive charge, alongside lower reported stressed-exposure ratios in named divisions

FY2022 Group credit impairment was a $335m charge, equivalent to 5 basis points of gross loans, following the FY2021 benefit. Westpac attributed the year-on-year shift to updated economic scenarios and a collectively assessed provision (CAP) charge; it said FY2021 had benefited from releases of COVID-related provisions. For the business lines, Westpac described lower new individually assessed provisions (IAPs), partly offset by a CAP charge from greater downside weighting and economic-scenario updates. These are Westpac's descriptions of the reported movement, not an independent forecast.

Reported Consumer metrics were: stressed exposures to total committed exposure (TCE) down 22bp to 0.97%; mortgage 90+-day delinquencies down 8bp to 0.22%; and other-consumer 90+-day delinquencies down 62bp to 1.03%. Business stressed exposures to TCE fell 85bp to 5.05%; Westpac attributed the movement to lower impaired and watchlist exposures, mainly in accommodation, transport and trade. WIB stressed exposures to TCE fell 29bp to 0.35%, which Westpac said primarily reflected partial write-off of impaired exposures including Forum Finance. These are separate divisional measures, not a single Group impaired-asset ratio.

For debt securities at amortised cost, Westpac reported $1,187m of exposures in FY2022, split as $336m strong, $77m good/satisfactory and $774m weak under the issuer's classifications. This is a debt-security credit-quality line, not a statement of total loan credit quality. The report's credit-quality disclosure applies to relevant financial assets at amortised cost or FVOCI that are subject to impairment requirements; it excludes trading securities, financial assets measured at FVIS and derivatives.

Westpac's FY2022 outlook said that the full effect of rising rates on borrowers, spending, investment behaviour and asset quality was unclear. That is retained as issuer-identified uncertainty, without translating it into a loss forecast.

FY2023 — higher charge and provision stock, with separately reported overlays and stress measures

The FY2023 credit impairment charge was $648m, or 9bp of average loans, versus 5bp in FY2022. Westpac attributed the charge to higher CAP, weaker forward-looking economic inputs, modestly higher mortgage delinquencies and increased stress in WIB, Business and New Zealand portfolios; it reported that an $121m IAP benefit moderated the charge. The IAP benefit is a period movement, not an IAP closing balance.

Westpac reported $4,941m of credit impairment provisions, up 7%, and attributed the increase to higher CAP. It reported an overlay reduction of $268m, saying expected risks had either not materialised or were reflected in modelled outcomes. CAP as a percentage of credit RWA was 1.35%, up 19bp; Westpac attributed that ratio movement to higher CAP and lower RWA after adoption of the revised APRA framework. This prudential ratio is distinct from the ECL balance and the impairment charge.

The FY2023 stressed-exposure/TCE ratio was 1.26%, up 19bp, which Westpac said was driven by mortgage and business portfolios. The impaired/TCE ratio was 0.11%, compared with 0.13% in FY2022 and 0.19% in FY2021. Westpac also described a provision cushion of more than $1.5bn above expected losses under its base-case scenario; this is a scenario-specific issuer statement, not a freely distributable surplus.

The IAP movement extract reported new IAPs of $(197)m, write-backs of $127m, recoveries of $191m, and total IAPs/write-backs/recoveries of $121m; CAP write-offs were $(440)m. Signs follow Westpac's movement table. The report distinguishes provision stock, impairment charge, overlays, stressed exposures, credit-RWA ratios and impaired-exposure ratios, so no arithmetic reconciliation between them is asserted here.

FY2024 — lower charge, higher closing provision and stated scenario/overlay changes

Westpac reported a FY2024 credit impairment charge of $537m, or 7bp of average loans, compared with $648m / 9bp in FY2023. It split the charge into $140m IAP and $397m CAP charges. The reported IAP movements were new IAPs of $423m, write-backs of $93m and recoveries of $190m; CAP write-offs were $486m and other CAP changes were $89m. These components should not be confused with the total closing ECL provision.

The total ECL provision was $5,096m, including $5,084m for loans and credit commitments and ECL on debt securities. The loans-and-credit-commitments amount comprised $4,548m collective and $536m individual provisions. Within the consolidated loans balance, ECL was $4,568m and credit-commitment ECL was $516m; those two values should not be added to the $5,084m total again.

For loans, the reported stage provision register was $628m in Stage 1, $2,249m in Stage 2 and $1,691m in Stage 3, against gross loans of $811,335m. Westpac labels Stages 1 and 2 as performing and Stage 3 as non-performing. Its ECL approach considers change in probability of default for significant increase in credit risk, uses base/upside/downside macroeconomic scenarios and may use overlays where modelled outcomes require adjustment. Westpac describes the 30-days-past-due presumption as a backstop rather than its primary significant-increase-in-credit-risk indicator.

Westpac reported that portfolio overlays fell $253m, while downside weighting was reduced by 2.5 percentage points in H1 FY2024. At year end, its Group scenario weights were downside 42.5%, base 52.5% and upside 5.0%. These inputs are model/scenario assumptions, not observed default rates.

Reported gross impaired exposures were $1,955m, gross impaired exposures/gross loans were 0.24%, and total stressed exposures/TCE were 1.45%. Westpac cited mortgage 90+-day delinquencies of 1.05% and described higher mortgage, wholesale/retail-trade and manufacturing exposures, with cost-of-living and interest-rate factors relevant to named portfolios. These explanations remain Westpac's reported account of the measures.

FY2025 — lower charge and lower ECL stock, with higher reported downside weighting and overlays

Westpac reported credit impairment charges of $424m, or 5bp of average gross loans, compared with 7bp in FY2024. It said the decrease primarily reflected higher write-backs and recoveries, partly offset by higher charges from collectively assessed exposures. In its Group credit-quality discussion, Westpac said the low impairment charge reflected its prudent lending practices and customer resilience across households and businesses; it also described a more favourable operating environment and reduced household cost-of-living pressure as inflation eased and interest rates declined in Australia and New Zealand. These are issuer attributions.

Westpac reported total ECL provisions of $4,987m at 30 September 2025, $1.9bn above expected losses under its base-case economic scenario. It said provisions decreased 2% over the year because improved portfolio credit quality more than offset an increase in the downside-scenario weight and higher overlays. This comparison is a scenario-based provision statement, not a forecast or capital-surplus calculation. Stressed exposures/TCE were shown as 1.28%, compared with 1.45% at September 2024.

For consolidated loans and credit commitments, the FY2025 staged provision total was $4,978m: $940m Stage 1, $2,332m Stage 2 and $1,706m Stage 3. The same total comprised $539m individually assessed provisions, $4,201m modelled ECL and $238m overlays. The FY2024 comparison was $5,084m in total, including $536m individually assessed provisions, $4,369m modelled ECL and $179m overlays. The consolidated reconciliation reported $424m impairment charges/(benefits) for FY2025, with $(247)m recoveries; this period charge is not equal to the closing provision stock.

By loan portfolio, FY2025 consolidated loan ECL was $1,605m for housing, $322m for personal lending and $2,582m for business lending, totalling $4,509m. ECL on credit commitments brought the loans-and-credit-commitments total to $4,978m. Total ECL of $4,987m additionally included $3m on debt securities at amortised cost and $6m on debt securities at FVOCI.

Westpac defines its three-stage model as: Stage 1, 12-month ECL for performing assets with no significant increase in credit risk since origination; Stage 2, lifetime ECL for performing assets with a significant increase in credit risk; and Stage 3, lifetime ECL for non-performing assets. It says a Stage 3 default includes circumstances where it considers the customer unable to repay in full, or more than 90 days past due on a material credit obligation. Assets may move in either direction between stages if the relevant assessment changes.

The FY2025 credit-quality table reports consolidated gross credit-risk exposures measured at amortised cost or FVOCI, including $581,666m housing loans, $10,094m personal loans and $264,602m business loans. The table reports $1,260,385m of on- and off-balance-sheet exposure: $826,321m strong, $398,895m good/satisfactory and $35,169m weak. Westpac expressly limits that table to financial assets measured at amortised cost or FVOCI and excludes trading securities, FVIS financial assets and derivatives; it is therefore not the same population as a concentration disclosure.

Westpac describes stressed exposures as watchlist and substandard exposures plus non-performing exposures. It defines impaired exposures as exposures where full collection of interest and principal is in doubt, including named categories such as qualifying 90+-days-past-due facilities, non-accrual facilities with IAPs, hardship restructures, assets acquired through security enforcement and other facilities where full collection is in doubt. Non-performing-but-not-impaired exposures are those in default where full principal and accrued interest are expected to be collected, generally by reference to security held.

For collateral treatment, Westpac says housing loans are secured by a mortgage over property; personal lending is predominantly unsecured, with security when taken limited to specified eligible assets; and business loans may be secured, partly secured or unsecured. It describes its collateral coverage measure as secured loan-to-collateral value: fully secured at 100% or less, partially secured above 100% and up to 150%, and unsecured above 150% or where no security is held. The report notes that housing loans are classified as fully secured for this purpose unless non-performing, when they may be partly secured. These are disclosure definitions and risk-mitigation descriptions, not an assertion that collateral eliminates loss risk.

Source and definition register

• Westpac 2021 Group Annual Report, pp. 86, 139, 173–174 and 199 — FY2021 impairment, ECL, methodology and risk-disclosure map.
• Westpac 2022 Group Annual Report, Note 10 pp. 188–189; Note 11 pp. 190–198; Note 12 pp. 199–208 — lending, ECL and credit-risk/quality disclosures.
• Westpac 2023 Group Annual Report, credit quality pp. 118–120; Note 10 pp. 200–208; Note 11 pp. 209–218 — credit-quality, ECL and credit-risk disclosures.
• Westpac 2024 Annual Report, pp. 105 and 118–121, 175–180 — FY2024 charge, provision, scenarios, credit-quality and ECL methodology.
• Westpac 2025 Annual Report, p. 20; Note 10 pp. 135–145; Note 11 pp. 145–152; glossary pp. 261–262 — FY2025 credit-quality discussion, ECL model/stages/provisions, credit-quality categories, collateral and definitions.
• Westpac annual reports archive — issuer archive for the FY2021–FY2024 reporting suite.

Scope and measurement boundary

This section records Westpac Banking Corporation's regulatory-capital disclosures for the years ended 30 September 2021 through 30 September 2025. Unless otherwise stated, dollar amounts are A$ million and ratios are Westpac Level 2 / APRA prudential measures at the reporting date. They are not Group statutory equity ratios, and they must not be combined with Westpac New Zealand (WNZL) or parent-entity figures.

APRA defines CET1 as the highest-quality capital, after prudential deductions; Tier 1 as CET1 plus Additional Tier 1 (AT1); and total regulatory capital as Tier 1 plus Tier 2. The APRA leverage ratio is Tier 1 capital divided by the APRA exposure measure. The annual reports state industry minimum ratios of 4.5% CET1, 6.0% Tier 1 and 8.0% total capital, but also say that APRA can impose non-disclosed higher requirements on individual ADIs. Westpac is an APRA domestic systemically important bank (D-SIB), so its buffers and operating target must not be confused with those industry minima.

Two comparability boundaries matter in this five-year record.

• APRA's revised Basel III capital framework took effect on 1 January 2023. Westpac says the 30 September 2023 ratios reflect that framework and prior periods were not restated. The revised framework changed credit-RWA classifications and calculations, introduced a 72.5% output floor and a 3.5% minimum leverage ratio, and changed the exposure-measure calculation.
• Westpac also presents an internationally comparable ratio series. That is a separate Australian Banking Association methodology and is not interchangeable with the APRA ratio. The table below uses APRA Level 2 values only unless its label says otherwise.

Five-year Level 2 capital record

FY2021 and FY2022 were reported under the then-applicable APRA framework; FY2023 onward are under revised Basel III. The FY2023 report reproduces FY2021–FY2022 comparative ratios but expressly says the prior periods were not restated. FY2024's annual report separately notes that FY2022 regulatory-capital comparatives in the capital review were not restated for revised Basel III. Accordingly, the table shows the issuer's reported series rather than treating the ratio movements as a fully like-for-like operating trend.

Risk-weighted assets: disclosed composition and framework transition

FY2021 and FY2022 — pre-revised-framework disclosure

The FY2022 report says Westpac used APRA-accredited advanced models for credit risk, the Standardised Measurement Approach for operational risk, and an internal-model approach for IRRBB. It also explicitly says that the amounts in its Level 2 regulatory-capital table are not the same as the Group's consolidated financial-statement amounts.

FY2023 — revised Basel III framework

The FY2023 report gives total RWA of A$451,418m, down from A$477,620m. Its revised-framework table gives credit RWA of A$339,758m, market RWA of A$11,538m, operational RWA of A$55,175m, IRRBB RWA of A$40,138m and other RWA of A$4,809m.

Westpac attributed the A$22.3bn reduction in credit RWA to several issuer-described movements: a A$23.7bn reduction on implementation of the revised framework; A$5.6bn of data refinements in financial institutions, business lending and property finance; a A$2.1bn decrease in counterparty-credit and mark-to-market risk; A$5.7bn from higher lending; A$1.3bn from deteriorating credit quality; and A$2.2bn of foreign-currency translation effects. Those components are the company's stated drivers and should not be independently netted here.

The report says its revised credit-RWA structure changed asset classifications, expanded certain internal modelling in property finance and mortgages, imposed higher requirements for some higher-risk mortgage segments, changed credit-conversion factors for off-balance-sheet exposures and retained New Zealand RWA under Reserve Bank of New Zealand requirements. It also introduced the 72.5% output floor. Because the current credit-asset classes did not align with earlier categories, Westpac did not present the old-category RWA series alongside the new one.

FY2024 and FY2025

FY2024 Level 2 total RWA was A$437,430m and credit RWA was A$345,964m. Westpac's FY2024 CET1 reconciliation described a 36bp RWA movement within the year; it does not make that reconciliation a statement about every individual RWA category.

For FY2025, Westpac reported that its CET1 ratio rose 4bp as net profit was largely offset by dividends and higher RWA. The annual-report capital pages selected for this report do not provide a matching full Level 2 RWA-by-risk-type table; this record therefore does not derive an FY2025 total from the CET1 movement.

Capital ratios, buffers and operating targets by year

FY2021

Westpac reported a 12.32% Level 2 CET1 ratio, 14.65% Tier 1 ratio and 18.86% total regulatory-capital ratio. Total regulatory capital was A$82,368m on A$436,650m RWA. The report described the APRA industry minima of 4.5% CET1, 6.0% Tier 1 and 8.0% total capital, plus applicable buffers and any non-disclosed prudential capital requirements.

FY2022

At 30 September 2022, the reported Level 2 CET1 ratio was 11.29%, within the Board's then stated 11.0%–11.5% normal-operating range for the framework commencing 1 January 2023. The FY2022 report distinguishes this Board range from the minimum regulatory setting. It describes the then D-SIB capital-conservation buffer as 3.5%, including the 1.0% D-SIB surcharge, and states that the countercyclical buffer was then zero for Australian and New Zealand exposures. It also set out the revised-framework D-SIB total CET1 requirement of 10.25% from 1 January 2023, including a 4.75% capital-conservation buffer and 1.0% base countercyclical buffer.

The FY2022 life-insurance sale finalisation added 17bp to Group CET1, according to Westpac. Separately, the report identifies a 29bp Level 2 CET1 impact from the operational-risk capital overlay at 30 September 2022; these are distinct disclosed capital effects.

FY2023

The Level 2 CET1 ratio was 12.38%, 109bp above FY2022. Westpac's bridge attributes 159bp to FY2023 net profit, negative 100bp to the FY2022 final dividend (net of DRP) and FY2023 interim dividend, 62bp to the revised APRA framework, 12bp to RWA movement, negative 27bp to capital deductions and other items, and 3bp to foreign-currency effects. The report says the main deduction drivers were capitalised software and expenditure, deferred-tax assets and other capital deductions; it also says the net-profit and deductions figures included a 10bp AAML divestment effect.

The report identifies a D-SIB total CET1 requirement of at least 10.25%, a Tier 1 requirement of at least 11.75% and a total-capital requirement of at least 13.75%, subject to APRA potentially setting higher individual requirements. It reports a 5.50% leverage ratio, versus the 3.5% minimum introduced in the revised framework. Its separately calculated internationally comparable FY2023 values were 18.73% CET1, 21.76% Tier 1, 29.87% total regulatory capital and 5.98% leverage; these are disclosed here only to make their separate basis explicit, not as replacements for APRA ratios.

FY2024

Westpac reported 12.49% Level 2 CET1 and 18.27% internationally comparable CET1, two different bases. Its Level 2 CET1 bridge begins at 12.38% in FY2023 and ends at 12.49%, with 160bp from FY2024 profit, negative 117bp from ordinary dividends, positive 36bp from RWA movement and negative 54bp from capital return, alongside other disclosed movements. The Board retained the 11.0%–11.5% normal-operating target range, while the report describes a D-SIB total CET1 requirement of at least 10.25%.

On 19 July 2024, APRA reduced Westpac's operational-risk capital overlay by A$500m. Westpac reported an 18bp positive effect on Level 2 CET1 at 30 September 2024. This is a prudential overlay/RWA action, not an accounting profit or dividend.

FY2025 and later regulatory dates

Westpac reported a 12.5% FY2025 CET1 ratio and said it represented A$3.1bn of capital above the Board's post-dividend target after payment of the second-half FY2025 dividend. During FY2025, the Board replaced the prior 11.0%–11.5% operating range with a target above 11.25% in normal operating conditions. The company says the target took account of APRA's 0.25% increase in the minimum CET1 ratio to 10.50%, effective 1 January 2027. The Board target is not a regulatory minimum.

The FY2025 report records APRA's 8 July 2025 consultation on phasing out AT1 eligibility. For large internationally active banks such as Westpac, the proposal was to replace 1.5% AT1 with 1.25% Tier 2 and 0.25% CET1, taking the total CET1 requirement including buffers from 10.25% to 10.50%, without increasing overall total-capital requirements. APRA proposed basing leverage on CET1 rather than Tier 1 while retaining a 3.5% minimum. At the FY2025 report date this was a consultation/proposed framework, not an implemented FY2025 ratio. The report says APRA intended the updated framework to take effect from 1 January 2027 and that existing AT1 instruments would be eligible as Tier 2 until their first scheduled call date if implemented as proposed.

Westpac also records a subsequent event: on 15 October 2025 APRA removed the remaining A$500m operational-risk overlay, effective immediately. Westpac estimates that the action would add about 17bp to CET1 through a A$6,250m reduction in RWA. This is after the 30 September 2025 balance date and is not included as a FY2025 closing-ratio movement.

AT1, Tier 2 and loan-capital record

The following is an accounting loan-capital register from the financial statements, distinct from the net prudential-capital ratios above.

FY2024's WNZL issue of NZ$375m perpetual preference shares is separately described by Westpac as AT1 under RBNZ criteria and as a Group non-controlling interest because it did not meet APRA capital requirements. It is therefore not treated as Group APRA AT1 in this record.

Ordinary dividends and share buy-backs: announcement, completion and payment boundary

Section source notes

• Westpac Banking Corporation, *Westpac 2021 Annual Report*, pp. 94–96 (capital resources and RWA), pp. 187–188 (loan capital), available from Westpac's annual-reports archive and issuer PDF.
• Westpac Banking Corporation, *Westpac 2022 Annual Report*, pp. 114–115 (Level 2 capital and RWA), pp. 266–268 (capital adequacy and dividend framework), pp. 213–217 (loan capital), available from Westpac's annual-reports archive and issuer PDF.
• Westpac Banking Corporation, *Westpac 2023 Annual Report*, pp. 124–129 (capital, dividends, RWA and ratio bridge), pp. 274–275 (capital adequacy and dividends), available from Westpac's annual-reports archive and issuer PDF.
• Westpac Banking Corporation, *Westpac 2024 Annual Report*, pp. 17, 97, 105, 125–126 (capital, RWA, CET1 reconciliation and overlay), p. 146 (buy-back/dividends), pp. 198–201 (loan capital), available from Westpac's issuer annual-report page and issuer PDF.
• Westpac Banking Corporation, *Westpac 2025 Annual Report*, pp. 20–21 (FY2025 CET1/highlights), pp. 101–102 (operating-target change, buy-back status, APRA AT1 consultation and subsequent overlay removal), pp. 158–160 (loan capital and WCN5 redemption), pp. 207–208 (capital adequacy and FY2025 final dividend), available from Westpac's 2025 annual-reporting suite and issuer PDF.

Section completion state: all five annual periods searched. Figures not separately presented in the selected FY2025 annual-report capital pages are labelled as such rather than calculated from another ratio, later disclosure or a non-comparable prudential basis. This factual record contains no valuation, target price, recommendation or investment instruction.

Scope and boundary

This section is a five-year record of the distinct programmes and operating initiatives Westpac identified in its FY2021–FY2025 annual reports. CORE, the FY2022 simplification/performance actions, the FY2024–FY2025 UNITE programme, and data/digital/AI initiatives are not treated as one programme. A stated objective, pilot, completed activity, independent-review status, service measure or issuer-reported benefit is labelled on its own terms. No outcome is retroactively attributed to a later programme.

Programme and operating-technology register

FY2021 — CORE foundation and technology operating boundary

Westpac described CORE as an expanded 2021 programme responding to Westpac- and regulator-identified issues, including APRA’s December 2020 Risk Governance Review/enforceable undertaking. At 30 September 2021, the issuer reported 19 workstreams, 80 deliverables and 327 activities, organised into Design, Implement and Embed stages. It recorded 121 activities as undertaken and submitted to Promontory Australia, with 80% of Design activities complete. Submission to the reviewer is retained as a review-process milestone rather than an implementation or regulatory-closure claim.

Promontory Australia was identified as the independent reviewer. Westpac said quarterly CORE reports were provided to APRA and public reports were released every six months. The Chief Operating Office included Group Technology, Australian banking operations and property services; the annual report described Group Technology’s remit as technology strategy and architecture, infrastructure and operations, application development, and business integration in Australia.

FY2021 technology expenses were $3,128m, including $531m software maintenance/licences, $820m technology services and $96m data processing. These are expense classifications in the Group operating-expense note, not a CORE budget or a count of completed projects.

FY2022 — simplification, customer service and digital-mortgage actions

Westpac’s FY2022 transformation framing used Simplify, Perform and customer/technology actions. It reported 2,667 fewer FTE, 119 branch consolidations, 199 fewer ATMs and 53 fewer products. The issuer said lower expenses partly reflected simplification and completion of several risk and regulatory programmes; that reported explanation is not extended into an independently calculated cost benefit.

The FY2022 report stated that Westpac had completed rollout of a new consumer app and launched a digital mortgage. It said mortgage-decision times had reduced to broadly in line with major banks, while also disclosing that mortgage-growth and service targets were not met. Westpac reported customer-satisfaction improvement but NPS remained below peers. It also reported a Group Organisational Health Index score of 75, up one point, from its independently run Voice+/McKinsey OHI process. These are issuer-presented service or survey measures, not external financial performance rankings.

The report did not use the later FY2025 UNITE or accelerated-AI terminology as the framework for FY2022 activity. Those programme labels are therefore marked not applicable before their later report boundary, rather than treating FY2022 as a missing or failed UNITE year.

FY2023 — CORE late-stage delivery and platform/security use cases

FY2023 recorded CORE under Board oversight, with the Executive Team accountable for delivery; Westpac said CORE outcomes were incorporated into executive remuneration decisions. The issuer reported 19 workstreams and 354 activities, with 94% complete at 30 September 2023. It aimed to complete all activities by the end of calendar 2023, followed by FY2024 work to sustain the changes. Westpac described the programme as having strengthened risk capability, processes, controls, frameworks and governance; this is retained as the issuer’s assessment. It also said that more than 90% of employees had risk goals, with all people expected to have them in FY2024.

Separate from CORE, FY2023 disclosures recorded rollout of a mortgage-origination platform to third-party brokers, completion of a single mortgage-platform rollout, expanded digital-mortgage capability and ongoing corporate cash-management-platform development. Westpac said its banking app was used more than five million times a day and cited a number-one banking-app rating from Forrester’s Q4 2023 Australian Mobile Banking Apps review. The latter is an external-source claim reported by Westpac, not a Group financial metric.

The report also described use of AI/machine learning and behavioural biometrics in security surveillance to identify suspicious fraud and scam patterns. The disclosure identifies use cases; it does not establish system-wide model coverage, accuracy, error rates or savings.

FY2024 — completed Integrated Plan, UNITE launch-period and AI pilots

FY2024 was the first year in this record to name UNITE. Westpac described it as a major business-led technology programme, with a completion expectation over the next four years. Enterprise technology costs related to UNITE were recorded in Group Businesses. The FY2024 report separately said the CORE Integrated Plan had strengthened risk governance, accountability and risk culture, and that it had completed 10 business divestments while accelerating simplification. Neither statement makes the divestments or all prior simplification measures UNITE initiatives.

Technology expenses were $2,764m, up 25%. Westpac cited software, third-party vendor renewals and UNITE among drivers. This is a reported expense movement and management explanation, not UNITE’s total programme cost. For lending operations, Westpac reported average home-loan decision times below five days and same-day settlements up four percentage points. It also reported more than $100m invested in scam prevention across two years; SaferPay had challenged 200,000 payments and prevented $150m from reaching potential scammers. These prevention measures are Westpac-reported activity/outcome measures and are not independently reconstructed counterfactual losses.

On AI, Westpac reported that it was safely and responsibly piloting several use cases for operations and customer service. The disclosure identifies a pilot/ongoing status rather than a realised productivity or revenue benefit.

FY2025 — UNITE execution, named digital initiatives and accelerating AI innovation

The FY2025 report stated that UNITE was central to long-term growth and competitiveness, with intended simplification of products, processes and systems; better customer and employee experiences; and reduced operating costs. Westpac reported eight completed UNITE initiatives and 51 underway across four businesses. The report describes a Board UNITE Oversight Group established in 2024 and a dedicated transformation office supported by independent advice and assurance. The Chief Transformation Office was identified as overseeing UNITE; Westpac One and BizEdge were separately named strategic/digital initiatives.

Westpac reported that it had begun using data analytics and AI to help employees anticipate customer needs and provide safer, more personalised banking experiences. Dr Andrew McMullan commenced as Chief Data, Digital and AI Officer on 1 September 2025. The issuer also described AI and automation supporting fraud/scam teams and said it launched app functionality for reports of scams, fraud and mistaken payments.

For FY2025 operating measures, Westpac attributed prevention of $360m in potential losses to its scam/fraud tools. It stated that 77% of simple business-credit deals were auto-decisioned, and that banker-led approvals had increased from 8% to 28% over two years. Each metric remains Westpac-reported, and the annual report does not support extending these figures into an estimate of total fraud avoided, all-business-credit automation, revenue, or cost reduction.

Programme-status chronology

Section sources

• Westpac 2021 Group Annual Report, pp. 18, 76, 112 and 156 — CORE programme, reviewer process, Group Technology operating boundary and technology-expense classification.
• Westpac annual-reports archive, *Westpac 2022 Group Annual Report*, pp. 44–51 and 134–145 (including CORE/change-risk disclosure at p. 144) — Simplify/Perform, customer/digital, risk transformation and CORE disclosures.
• Westpac annual-reports archive, *Westpac 2023 Group Annual Report and Appendix 4E*, p. 23 and pp. 94–95 — CORE, AI/use-case and APRA/CORE-development disclosures.
• Westpac annual-reports archive, *Westpac 2024 Group Annual Report and Appendix 4E*, pp. 6–8, 15, 20–25, 38–39, 115–116, 141 and 153 — CORE/Integrated Plan, UNITE, customer operations, AI pilots, technology expenses and Group Businesses boundary.
• Westpac 2025 Group Annual Report, pp. 7, 25, 41 and 42–49 — UNITE/transformation, scam and customer protection, Data/Digital/AI, and relevant risk disclosures.

Scope, evidence boundary and status discipline

This section records Westpac Banking Corporation's disclosed risk-governance, conduct, financial-crime, remediation, sustainability and climate material across the five financial years ended 30 September 2021–2025. It is a chronological record of reported programmes, regulatory settings, costs, targets and actual measures. It does not make an independent finding about compliance, liability, programme effectiveness, climate impact or future outcomes.

Dates are kept distinct: the relevant Westpac reporting period, the date of a regulator action where stated, and the annual-report issue date are not interchangeable. Dollar amounts are Australian dollars unless a row says otherwise; m means millions and bn means billions. A target, policy, management assessment, programme activity, independent-review submission, APRA action and completed outcome are separately labelled.

Five-year record at a glance

12.1 Risk governance, culture and the APRA / CORE chronology

Westpac's FY2021 report said the APRA Risk Governance Review completed in December 2020 had resulted in a court-enforceable undertaking (CEU). The bank described the associated work as strengthening non-financial-risk management, accountability and risk culture. CORE — Customer Outcomes and Risk Excellence — had been established in 2020 and was expanded in 2021 to address Westpac- and regulator-identified issues. It was not a generic technology or growth programme: the report identifies it as a risk-and-customer-outcomes programme.

At 30 September 2021, Westpac reported that CORE comprised 19 workstreams, 80 deliverables and 327 activities across Design, Implement and Embed stages. It said 121 activities had been undertaken and submitted to the independent reviewer, and that 80% of Design activities were complete. Promontory Australia was the independent reviewer; Westpac said quarterly CORE reports were provided to APRA and public reports were released every six months. Submission to the reviewer is not presented here as implementation, reviewer approval or regulatory closure.

FY2022 continued to report risk and regulatory programmes and spending, including regulatory, risk, compliance, cyber-security and data-capability spending in Westpac New Zealand. The annual-report record says several programmes had been completed, but does not support treating that statement as completion of every regulatory or customer-remediation matter.

By the FY2023 reporting date, Westpac reported that 94% of 354 CORE activities were complete. It described completion of the integrated plan required under the 2020 APRA undertaking as expected by 31 December 2023, with transition and sustainability activity in calendar 2024 subject to Promontory assurance. The FY2023 status is therefore an expectation and a 30 September progress measure, not a retrospective statement that completion had already occurred.

FY2024 linked the CORE Integrated Plan to risk governance, accountability, risk culture and customer outcomes. It also separately identified operational risk, compliance and conduct risk, financial-crime risk, reputational and sustainability risk, credit risk, funding/liquidity risk, market risk and strategic risk in its risk-management architecture. Those categories show Westpac's disclosure structure; they do not themselves quantify loss events or rank risks.

FY2025 reported the CORE programme as complete and described a CORE transition phase assessed as on target by Promontory in the Group STVR scorecard. In its FY2025 annual-report material, Westpac also described the history of APRA's operational-risk capital overlays: APRA had applied an additional $1.0bn overlay through risk-weighted assets in 2019 and reduced the total overlay to $500m on 19 July 2024. On 15 October 2025 — after the FY2025 balance date but before the annual-report issue date — APRA removed the remaining $500m overlay and lifted the CEU with immediate effect. Westpac said this subsequent event would reduce RWA by $6,250m and increase CET1 by about 17 basis points. It is not included as a 30 September 2025 closing capital-ratio movement.

CORE and APRA chronology

12.2 Financial crime, compliance, conduct and customer-remediation record

FY2021 described a multi-year financial-crime transformation in the context of AUSTRAC civil proceedings begun on 20 November 2019. Westpac stated that it had addressed matters referenced in AUSTRAC's statement of claim and remediated more than 350 issues. This section records the company's disclosure; it does not replace the underlying court or regulator records or make an independent compliance finding. Westpac also described financial crime and cyber as major risks and said the financial-crime programme focused on controls, capability/training and enhanced systems.

The FY2021 operating-expense note reported $359m of compliance, regulation and remediation costs, compared with $317m in FY2020. It showed nil FY2021 estimated AUSTRAC-proceedings cost, compared with $1,478m in FY2020, which included a $1,300m penalty provision. These are expense-note classifications and reported estimates/provisions; they are not a conclusion about ultimate liability or a complete cash-remediation total.

FY2022 performance explanations included provisions for estimated customer refunds, payments, associated costs and litigation. The annual report also referred to lower remediation costs and lower provisions in several year-on-year comparisons. A lower comparative expense/provision is not treated here as proof that all customer remediation, investigation or litigation had completed.

The FY2023 annual report defined financial-crime risk as the risk of failing to prevent financial crime or comply with global financial-crime regulatory obligations. Westpac described a multi-year programme spanning AML/CTF, sanctions, anti-bribery/corruption, FATCA and CRS. Reported activity included customer due diligence and record keeping; screening and transaction-monitoring upgrades; electronic-funds-transfer processes; data reconciliations and completeness checks; and regulatory reporting for international funds-transfer instructions (IFTIs), threshold transaction reports (TTRs) and suspicious-matter reports (SMRs). Westpac said it continued liaison with AUSTRAC, the ATO and local regulators and acknowledged that potential further non-compliance could be identified.

FY2024 reported an escalating scam/fraud threat and prevention/detection investment, and said Westpac worked with government and industry. The report kept customer-remediation boundaries visible: Group Businesses included certain customer-remediation expenses, while prior-year notable items included customer remediation, regulatory investigation and litigation provisions. Neither line is presented as a total programme cost or as a completion declaration.

In FY2025 Westpac's financial-crime disclosure again covered AML/CTF, sanctions, anti-bribery/corruption, FATCA and CRS, and included regulatory-reporting remediation for IFTIs, TTRs, SMRs, FATCA and CRS. It said it continued liaison with AUSTRAC, the ATO and overseas local regulators as potential non-compliance areas were identified and remediated. The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 reforms were described as substantially taking effect from 31 March 2026. Westpac said full implementation required a multi-year programme, including technology upgrades for customer due diligence and reporting. This is an ongoing/future implementation disclosure, not a completed FY2025 result.

Reported remediation, conduct and financial-crime register

12.3 Sustainability, climate, nature and financed-emissions record

FY2021: governance and policy boundary

The FY2021 annual report describes climate-change financial-risk governance through the Climate Change Financial Risk Committee, reporting to CREDCO. It also identifies the ESG Credit Risk Policy and sector policies as guides for credit extension in applicable transactions. These are governance/policy disclosures. A directly comparable Group financed-emissions total was not separately disclosed in the FY2021 annual-report candidate evidence, and later methodology or targets are not backfilled into FY2021.

FY2022: NZBA alignment and financed-emissions disclosure lanes

In FY2022 Westpac joined the NZBA and reported continued work to align its operations and lending portfolio with net zero by 2050. It reported more than $1.9bn in new lending to climate-change solutions. The annual report also included estimated financed-emissions and transition-risk material for Australian business and institutional lending, sector targets aligned with the NZBA commitment, climate-risk analysis and sustainability material-topic assessment. The annual-ledger evidence does not support collapsing those issuer-defined tables, portfolio scopes, scenarios and report boundaries into one unqualified Group financed-emissions figure. Westpac said sustainability assessment used its integrated risk and compliance systems; that is a description of its process, not independent assurance of every climate metric.

FY2023: strategy refresh, targets and nature

Westpac said its FY2023 sustainability strategy was refreshed around six objectives aligned with its strategic pillars, with reporting against related metrics/actions/positions to commence in FY2024. It described an ambition to be a net-zero, climate-resilient bank and to support customers' transition, and reported 12 NZBA targets with further progress in its inaugural 2023 Climate Report.

The FY2023 report said the Group sourced the equivalent of 100% of Australian direct electricity demand from renewables from April 2023. It reported target pathways — from a 2021 baseline — of a 64% reduction in Scope 1 and 2 emissions by 2025, 76% by 2030, and a 50% reduction in Scope 3 upstream emissions by 2030. These are targets, not realised emissions reductions. The report also said the Group released its first Natural Capital Position Statement and estimated that 10% of Group lending was to sectors considered to have material nature-related dependencies and impacts. Its no-deforestation commitment from 31 December 2025 applies to customers in scope of NZBA agricultural targets; the sector/scope boundary remains material.

FY2024: operating-emissions result, sector targets and financial-statement assessment

For FY2024, Westpac reported Scope 1 and 2 emissions down 86% from the 2021 baseline and stated that this achieved its 2030 target. It reported 13 targets across nine NZBA emissions-intensive sectors and a $10bn increase in sustainable-finance lending during the year. The scope of sustainable-finance lending remains governed by Westpac's Sustainable Finance Framework.

Westpac's FY2024 financial-statement assessment said physical and transition climate risks did not have a material impact on the judgements and assumptions used in the FY2024 financial statements. It also noted medium- and long-term uncertainty and ongoing scenario/stress-testing work. This is management's accounting assessment for FY2024, not a finding that climate risk is absent. The annual report records that AASB S1 and S2 were issued in September 2024 and that application to Westpac was described as beginning for the year ending 30 September 2025; this is a future reporting requirement at the FY2024 reporting date.

FY2025: sustainable finance, sector policy and mandatory-reporting preparation

FY2025 named climate transition, housing affordability and regional prosperity as Board sustainability focus areas. Westpac reported sustainable-finance lending up 37% and sustainable-bond facilitation share up 40%. It also reported thermal-coal exposure reduced to zero and said updated lending requirements for carbon-intensive sectors were published in May. The disclosure retains Westpac's definitions and policy scope; it does not establish a portfolio-wide emissions result.

Westpac said it released a Sustainability Report and Climate Transition Plan in readiness for mandatory climate reporting, which its FY2025 Annual Report said would apply to Westpac for the financial year ending 30 September 2026. It also identified climate transition, operational-emissions reduction and climate resilience as environmental commitments. These documents, targets and policies should be read alongside Westpac's issuer-hosted climate/sustainability materials; this five-year record does not reproduce proprietary charts or methodological appendices.

Climate and sustainability register

12.4 Material dated chronology

Section sources and page lineage

All public links below are Westpac issuer-hosted pages or issuer PDFs. Page references are printed PDF pages, not extraction offsets. The page set has been independently recovered for the risk, conduct, remediation and climate material used in this section; page references name the relevant disclosure lane rather than implying that every fact on a cited page has the same accounting or regulatory basis.

Additional issuer source landing pages: Westpac annual-reports archive and Westpac regulatory disclosures.

Section synthesis receipt

• Five annual ledgers searched: FY2021, FY2022, FY2023, FY2024 and FY2025.
• Material chronology preserves historical context, reporting-date status, expected completion, reported completion and post-balance-date APRA action as separate states.
• No valuation, recommendation, target price, probability-weighted outcome or investment conclusion is included.
• Monetary remediation provisions and detailed climate-methodology tables are not reconstructed beyond the verified issuer disclosures and page ranges. Any measure not stated with its issuer-defined scope is not converted to zero or inferred from another year's methodology.
• Public output must not expose extracted-fact ordinals, internal paths, database keys or ASX-hosted fallback documents.

Factual-record purpose; no investment recommendation. This is an independent, descriptive record of public corporate disclosures. It does not provide a valuation, target price, earnings forecast, buy/sell/hold view, personalised advice, offer, solicitation or recommendation regarding Westpac or any financial product.

Accuracy and liability limitation. Information is drawn from publicly available issuer sources considered reliable as of the stated report date. Accuracy, completeness, currency and fitness for any purpose are not guaranteed. To the maximum extent permitted by applicable law, MII and its contributors disclaim liability for loss arising from use of, reliance on or inability to use this report. Nothing excludes or limits liability that cannot lawfully be excluded or limited.

AI and human review. AI was used actively and substantially for evidence extraction, comparison, organisation, drafting and explanatory presentation. A reasonableness review was performed before release, but it is not an audit, assurance engagement, financial-service assessment or a substitute for consulting the cited source material and qualified advisers.

Copyright, affiliation and images. This report is an independent transformative analysis: prose, reconstructed tables and explanatory visual presentation were prepared by MII from reported facts. It does not reproduce long passages, company charts, photographs or logos. Westpac names and document titles are used only to identify sources; all source-material rights remain with their respective owners. MII is not affiliated with, sponsored by or endorsed by Westpac. The lead image is AI-generated and is labelled as such.

Corrections. Please report a specific factual or citation issue to mii.analysis.contact@gmail.com with the report URL, the challenged text and an official supporting source. Corrections may be made without notice where warranted.