6-K - WEBNF - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

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

April 23, 2024

Commission File Number 1-10167

WESTPAC BANKING CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive office)

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

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

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule 101(b)(7): ¨

Index to Exhibits

ExhibitNo.	Description
1	ASX Release – Westpac First Half 2024 Notable Items and reporting changes

SIGNATURES

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

		WESTPAC BANKING CORPORATION
		(Registrant)
Date:	April 23, 2024	By:	/s/ Esther Choi
			Esther Choi
			Tier One Attorney

Exhibit 1

ASX Release<br>23 April 2024<br>Westpac’s First Half 2024 (1H24) Notable Items and Reporting Changes<br>1H24 Notable Items<br>Westpac’s reported net profit after tax in 1H24 will be reduced by $164 million due to<br>Notable Items. All Notable Items relate to unrealised fair value gains and losses on<br>economic hedges and net ineffectiveness on qualifying hedges, which reverse over<br>time.<br>A summary of the impacts is included in Appendix 1.<br>1H24 Reporting Changes<br>Operating segments have been restated following the establishment of separate<br>Consumer and Business & Wealth operating segments and the dissolution of the<br>Specialist Businesses operating segment.<br>Other changes to enhance operating segment financial reporting and assessment<br>include:<br> • Funds transfer pricing refinements, revised capital allocations and enhanced<br>operating expense allocations from Enterprise functions;<br> • Changes in classification of some deposit products from interest bearing to non-interest bearing; and<br> • Revisions to the methodology used to classify credit quality.<br>These changes do not impact the Group’s net profit after tax (NPAT) or the composition<br>of line items at the Group level.<br>A summary of the restatements is included in Appendix 2.<br>Half Year 2024 results are scheduled to be announced on Monday, 6 May 2024.<br>For further information:<br>Hayden Cooper Justin McCarthy<br>Group Head of Media Relations General Manager, Investor Relations<br>0402 393 619 0422 800 321<br>This document has been authorised for release by Tim Hartin, Company Secretary.<br>Level 18, 275 Kent Street<br>Sydney, NSW, 2000
Appendix 1 – Summary of 1H24 Notable Items<br>1H24 ($m)<br>Asset sales<br>and<br>revaluations<br>Provisions<br>for<br>litigation,<br>fines and<br>penalties<br>Restructuring<br>costs<br>Asset<br>write-downs<br>Hedging<br>items Total<br>Net interest income - - - - (224) (224)<br>Non-interest income - - - - (2) (2)<br>Net operating<br>income - - - - (226) (226)<br>Operating expenses - - - - - -<br>Pre-provision<br>profit - - - - (226) (226)<br>Income tax benefit/<br>(expense) - - - - 62 62<br>Net profit/(loss) - - - - (164) (164)<br>1H24 ($m) Consumer Business<br> & Wealth WIB<br>New<br>Zealand<br>(A$)<br>Group<br>Businesses Total<br>Net interest income - - - (6) (218) (224)<br>Non-interest income - - - - (2) (2)<br>Net operating<br>income - - - (6) (220) (226)<br>Operating expenses - - - - - -<br>Pre-provision profit - - - (6) (220) (226)<br>Income tax benefit/<br>(expense) - - - 2 60 62<br>Net profit/(loss) - - - (4) (160) (164)
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1.5.1. Net interest income<br>Half Year Half Year Half Year<br>March Sept March<br>2024 2023 2023<br>Net interest Income ($m)<br>Net interest income 9,204 9,113<br>Core net interest income 8,702 8,817<br>Notable Items (8) (89)<br>Treasury 424 305<br>Markets 86 80<br>Average interest earning assets ($m)<br>Loans 709,756 699,735<br>Housing 488,551 481,538<br>Personal 12,628 13,485<br>Business 208,577 204,712<br>Liquid assets 213,439 208,467<br>Other interest-earning assets 25,310 26,006<br>Average interest earning assets 948,505 934,208<br>NIM (%)<br>NIM 1.94% 1.96%<br>Core NIM 1.83% 1.89%<br>Treasury & Markets impact on NIM 0.11% 0.09%<br>Notable Items impact on NIM - (0.02%)<br>1.5.4. Deposits and other borrowings<br>As at As at As at<br>31 March 30 Sept 31 March<br>$m 2024 2023 2023<br>Customer deposits<br>Australia 557,781 545,090<br>Transactions 97,950 98,762<br>Savings 195,273 191,490<br>Term 144,220 140,704<br>Non-interest bearing 120,338 114,134<br>New Zealand (A$) 74,297 74,703<br>New Zealand (NZ$) 79,783 79,769<br>Transactions 9,373 10,090<br>Savings 19,929 20,230<br>Term 38,472 36,367<br>Non-interest bearing 12,009 13,082<br>Other overseas (A$) 8,873 7,792<br>Total customer deposits 640,951 627,585<br>Certificates of deposit 47,217 48,767<br>Australia 32,947 32,227<br>New Zealand (A$) 2,247 2,618<br>Other overseas (A$) 12,023 13,922<br>Total deposits and other borrowings 688,168 676,352<br>Appendix 2 - Selected comparative disclosures
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2.1. Consumer<br>The Consumer segment provides a full range of banking products and services to customers in Australia through three<br>lines of business consisting of mortgages, consumer finance and deposits. Products and services are provided through<br>a portfolio of brands comprising Westpac, St.George, BankSA, Bank of Melbourne and RAMS using digital channels<br>and branches.<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 3,866 4,311<br>Non-interest income 251 273<br>Net operating income 4,117 4,584<br>Operating expenses (2,307) (2,145)<br>Notable Items (202) -<br>Total operating expenses (2,509) (2,145)<br>Pre-provision profit 1,608 2,439<br>Impairment (charges)/benefits (13) (166)<br>Profit before income tax expense 1,595 2,273<br>Income tax expense and NCI (484) (682)<br>Net profit 1,111 1,591<br>Notable Items (post tax) (148) -<br>Expense to income ratio (Ex Notable Items) 56.04% 46.79%<br>Net interest margin (Ex Notable Items) 1.76% 2.00%<br>FTE 13,472 14,672<br>As at As at As at<br>31 March 30 Sept 31 March<br>$bn 2024 2023 2023<br>Customer deposits<br>Transactions 32.9 35.4<br>Savings 154.9 140.0<br>Term 63.9 64.3<br>Mortgage offsets 56.6 53.8<br>Total customer deposits 308.3 293.5<br>Loans<br>Mortgages 485.6 472.7<br>Other 8.9 9.0<br>Provisions (1.8) (1.9)<br>Total loans 492.7 479.8<br>Deposit to loan ratio 62.58% 61.18%<br>Total assets 504.2 491.9<br>TCE 577.7 567.5<br>Risk weighted assets 174.7 174.6<br>Average interest earning assets 438.2 432.2<br>Average allocated capital 24.0 24.7<br>Credit quality<br>Impairment charges/(benefits) to average loans 0.01% 0.07%<br>Mortgage 90+ day delinquencies 0.86% 0.73%<br>Other consumer loans 90+ day delinquencies 1.01% 1.26%<br>Total stressed exposures to TCE 0.86% 0.75%
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2.2. Business and Wealth<br>The Business and Wealth segment comprises Business Banking, Wealth Management, Private Wealth, Pacific and Auto<br>Finance. Business provides a range of banking services and products to Australian small to medium businesses, including<br>commercial businesses and agribusiness customers. It offers business lending generally up to $200 million in exposure,<br>merchant services using eCommerce solutions and transaction banking services. The segment includes Private Wealth,<br>supporting the needs of high-net-worth individuals, as well as BT Financial Group, which provides wealth management<br>platform services. It also includes Westpac Pacific and our auto finance business, which is in run-off. The segment<br>operates under the Westpac, St.George, BankSA, Bank of Melbourne and BT brands.<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 2,573 2,419<br>Non-interest income 415 429<br>Notable Items (88) -<br>Net operating income 2,900 2,848<br>Operating expenses (1,301) (1,244)<br>Notable Items (64) -<br>Total operating expenses (1,365) (1,244)<br>Pre-provision profit 1,535 1,604<br>Impairment (charges)/benefits (172) (85)<br>Profit before income tax expense 1,363 1,519<br>Income tax expense and NCI (410) (446)<br>Net profit 953 1,073<br>Notable Items (post tax) (107) -<br>Expense to income ratio (Ex Notable Items) 43.54% 43.68%<br>Net interest margin (Ex Notable Items) 5.30% 5.03%<br>FTE 6,008 6,170<br>As at As at As at<br>31 March 30 Sept 31 March<br>$bn 2024 2023 2023<br>Customer deposits<br>Transactions 56.5 59.6<br>Savings 39.6 42.1<br>Term 44.4 41.1<br>Total customer deposits 140.5 142.8<br>Loans<br>Commercial/SME 90.5 87.1<br>Pacific 1.2 1.1<br>Auto Finance 2.5 3.3<br>Business lending 94.2 91.5<br>Other 3.2 4.0<br>Provisions (1.9) (1.8)<br>Total loans 95.5 93.7<br>Deposit to loan ratio 147.08% 152.43%<br>Total assets 101.2 99.3<br>TCE 129.7 127.6<br>Risk weighted assets 87.1 88.7<br>Average interest earning assets 96.8 96.5<br>Average allocated capital 11.7 10.9<br>Credit quality<br>Impairment charges/(benefits) to average loans 0.36% 0.18%<br>Impaired exposures to TCE 0.52% 0.63%<br>Total stressed exposures to TCE 5.46% 5.24%
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2.3. Westpac Institutional Bank<br>The Westpac Institutional Bank (WIB) comprises three lines of business: Corporate & Institutional Bank (CIB);<br>Global Transaction Services (GTS); and Financial Markets (FM). It services predominantly corporate, institutional and<br>government clients. CIB uses dedicated industry relationship and specialist product teams to support clients’ lending<br>needs. GTS is responsible for the provision of payments and liquidity management solutions to WIB’s clients and the<br>group's domestic and international payments infrastructure. FM provides a range of risk management, investment and<br>debt capital markets solutions to WIB clients and access to financial markets products for consumer and business<br>customers. Clients are supported throughout Australia and via branches and subsidiaries located in New Zealand, New<br>York, London, Frankfurt and Singapore.<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 1,019 907<br>Non-interest income 663 704<br>Net operating income 1,682 1,611<br>Operating expenses (679) (619)<br>Notable Items (15) -<br>Total operating expenses (694) (619)<br>Pre-provision profit 988 992<br>Impairment (charges)/benefits (91) 4<br>Profit before income tax expense 897 996<br>Income tax expense and NCI (256) (287)<br>Net profit 641 709<br>Notable Items (post tax) (10) -<br>Expense to income ratio (Ex Notable Items) 40.37% 38.42%<br>Net interest margin (Ex Notable Items) 1.93% 1.86%<br>FTE 2,776 2,758<br>As at As at As at<br>31 March 30 Sept 31 March<br>$bn 2024 2023 2023<br>Customer deposits<br>Transactions and others 64.2 63.6<br>Savings 10.5 10.4<br>Term 41.4 39.5<br>Total customer deposits 116.1 113.5<br>Loans<br>Loans 92.9 85.0<br>Provisions (0.3) (0.3)<br>Total loans 92.6 84.7<br>Deposit to loan ratio 125.37% 133.95%<br>Total assets 106.3 100.0<br>TCE 207.4 205.6<br>Risk weighted assets 82.1 80.2<br>Average interest earning assets 105.3 98.0<br>Average allocated capital 9.6 8.8<br>Credit quality<br>Impairment charges to average loans 0.21% (0.01%)<br>Impaired exposures to TCE 0.04% 0.06%<br>Total stressed exposures to TCE 0.58% 0.28%
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2.4. Westpac New Zealand<br>Westpac New Zealand provides banking and wealth products and services for consumer, business and institutional<br>customers in New Zealand.<br>All figures are in NZ$ unless noted otherwise.<br>Half Year Half Year Half Year<br>March Sept March<br>NZ$m 2024 2023 2023<br>Net interest income 1,267 1,247<br>Non-interest income 134 127<br>Notable Items - -<br>Net operating income 1,401 1,374<br>Operating expenses (662) (624)<br>Notable Items (10) -<br>Total operating expenses (672) (624)<br>Pre-provision profit 729 750<br>Impairment (charges)/benefits 19 (154)<br>Profit before income tax expense 748 596<br>Income tax expense and NCI (213) (168)<br>Net profit 535 428<br>Notable Items (post tax) (7) -<br>Expense to income ratio (Ex Notable Items) 47.25% 45.41%<br>Net interest margin (Ex Notable Items) 2.12% 2.11%<br>FTE 5,288 5,374<br>As at As at As at<br>31 March 30 Sept 31 March<br>NZ$bn 2024 2023 2023<br>Customer deposits<br>Transactions and others 21.4 23.2<br>Savings 19.9 20.2<br>Term 38.5 36.4<br>Total customer deposits 79.8 79.8<br>Loans<br>Mortgages 65.8 65.2<br>Business 32.8 32.3<br>Other 1.2 1.2<br>Provisions (0.5) (0.5)<br>Total loans 99.3 98.2<br>Deposit to loan ratio 80.36% 81.26%<br>Total assets 121.8 121.9<br>TCE 147.1 147.3<br>Risk weighted assets 60.3 58.6<br>Liquid assets 19.2 20.5<br>Average interest earning assets 119.1 118.8<br>Average allocated capital 8.3 7.5<br>Total funds 11.4 11.5<br>Credit quality<br>Impairment charges/(benefits) to average loans (0.04%) 0.32%<br>Mortgage 90+ day delinquencies 0.33% 0.29%<br>Other consumer loans 90+ day delinquencies 0.92% 1.13%<br>Impaired exposures to TCE 0.06% 0.07%<br>Total stressed exposures to TCE 1.49% 1.33%
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2.4. Westpac New Zealand (Continued)<br>2.4.1. Westpac New Zealand segment performance (A$ Equivalent)<br>Results have been translated into Australian dollars (A$) at the average exchange rates for each reporting period,<br>Second Half 2023: $1.0816; First Half 2023: $1.0876. Unless otherwise stated, assets and liabilities have been translated at<br>spot rates as at the end of the period, 30 September 2023: $1.0738; 31 March 2023: $1.0678.<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 1,171 1,146<br>Non-interest income 124 116<br>Notable Items - -<br>Net operating income 1,295 1,262<br>Operating expenses (613) (573)<br>Notable Items (9) -<br>Total operating expenses (622) (573)<br>Pre-provision profit 673 689<br>Impairment (charges)/benefits 18 (142)<br>Profit before income tax expense 691 547<br>Income tax expense and NCI (196) (154)<br>Net profit 495 393<br>Notable Items (post tax) (7) -<br>Expense to income ratio (Ex Notable Items)a 47.25% 45.41%<br>Net interest margin (Ex Notable Items)a 2.12% 2.11%<br>a. Ratios calculated using NZ$.<br>As at As at As at<br>March Sept March<br>$bn 2024 2023 2023<br>Customer deposits 74.3 74.7<br>Loans 92.5 91.9<br>Deposit to loan ratioa 80.36% 81.26%<br>Total assets 113.5 114.1<br>TCE 136.9 137.9<br>Risk weighted assets 56.2 54.9<br>Liquid assets 17.9 19.2<br>Average interest earning assets 110.2 109.3<br>Average allocated capital 7.7 6.9<br>Total funds 10.6 10.7<br>a. Ratios calculated using NZ$.
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2.5. Group Businesses<br>The segment comprises:<br> • Treasury, which is responsible for the management of the Group’s balance sheet including wholesale funding, capital,<br>and liquidity. Treasury also manages interest rate risk and foreign exchange risks;<br> • Technology, except for UNITE, these costs are allocated to segments across the Group;<br> • Customer & Corporate Services, which provides shared corporate functions such as property, procurement, finance<br>services, Corporate Affairs, and HR services. Excluding Corporate Affairs, these costs are allocated to other segments<br>across the Group; and<br> • Enterprise services, which includes earnings on capital not allocated to segments, certain intra-group transactions<br>and gains/losses from asset sales, earnings and costs associated with the Group’s fintech investments and other costs<br>including certain customer remediation expenses and centrally held provisions.<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 583 419<br>Non-interest income 6 147<br>Notable Items 59 132<br>Net operating income 648 698<br>Operating expenses (344) (407)<br>Notable Items (170) -<br>Total operating expenses (514) (407)<br>Pre-provision profit 134 291<br>Impairment (charges)/benefits - (1)<br>Profit before income tax expense 134 290<br>Income tax expense and NCI (140) (55)<br>Net profit/(loss) (6) 235<br>Notable Items (post tax) (79) 178<br>Profit/(loss) attributable to businesses sold 20 111<br>Treasury<br>Half Year Half Year Half Year<br>March Sept March<br>$m 2024 2023 2023<br>Net interest income 404 261<br>Non-interest income 8 6<br>Notable Items 69 (89)<br>Net operating income 481 178<br>Net profit 262 54
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Note 2. Segment reporting<br>The tables present the segment results for the Group:<br>$m Consumer<br>Business and<br>Wealth<br>Westpac<br>Institutional<br>Bank<br>Westpac<br>New<br>Zealand (A$)<br>Group<br>Businesses Total<br>Notable<br>Items<br>(pre-tax)<br>Income<br>statement<br>Half Year Sept 2023<br>Net interest income 3,866 2,573 1,019 1,171 583 9,212 (8) 9,204<br>Net fee income 239 188 301 94 (4) 818 - 818<br>Net wealth<br>management income - 195 - 17 13 225 (10) 215<br>Trading income - 26 317 15 (17) 341 (11) 330<br>Other income 12 6 45 (2) 14 75 - 75<br>Notable Items - (88) - - 59 (29) 29 -<br>Net operating income 4,117 2,900 1,682 1,295 648 10,642 - 10,642<br>Operating expenses (2,307) (1,301) (679) (613) (344) (5,244) (460) (5,704)<br>Notable Items (202) (64) (15) (9) (170) (460) 460 -<br>Total operating expenses (2,509) (1,365) (694) (622) (514) (5,704) - (5,704)<br>Pre-provision profit 1,608 1,535 988 673 134 4,938 - 4,938<br>Impairment<br>(charges)/benefits (13) (172) (91) 18 - (258) - (258)<br>Profit before income<br>tax expense 1,595 1,363 897 691 134 4,680 - 4,680<br>Income tax<br>(expense)/benefita<br>(484) (409) (256) (196) (139) (1,484) - (1,484)<br>Net profit attributable<br>to NCI - (1) - - (1) (2) - (2)<br>Net profit attributable to<br>owners of WBC 1,111 953 641 495 (6) 3,194 - 3,194<br>Notable Items (post-tax)a (148) (107) (10) (7) (79) (351)<br>Balance sheet<br>Loans 492,716 95,548 92,568 92,488 (66) 773,254<br>Deposits and<br>other borrowings 308,342 140,536 116,052 76,544 46,694 688,168<br>a. Includes tax benefits on Notable Items of $138 million.<br>$m Consumer<br>Business and<br>Wealth<br>Westpac<br>Institutional<br>Bank<br>Westpac<br>New<br>Zealand (A$)<br>Group<br>Businesses Total<br>Notable<br>Items<br>(pre-tax)<br>Income<br>statement<br>Half Year March 2023<br>Net interest income 4,311 2,419 907 1,146 419 9,202 (89) 9,113<br>Net fee income 265 172 295 83 12 827 - 827<br>Net wealth<br>management income - 230 - 16 101 347 - 347<br>Trading income - 21 375 18 (5) 409 (22) 387<br>Other income 8 6 34 (1) 39 86 243 329<br>Notable Items - - - - 132 132 (132) -<br>Net operating income 4,584 2,848 1,611 1,262 698 11,003 - 11,003<br>Operating expenses (2,145) (1,244) (619) (573) (407) (4,988) - (4,988)<br>Notable Items - - - - - - - -<br>Total operating expenses (2,145) (1,244) (619) (573) (407) (4,988) - (4,988)<br>Pre-provision profit 2,439 1,604 992 689 291 6,015 - 6,015<br>Impairment<br>(charges)/benefits (166) (85) 4 (142) (1) (390) - (390)<br>Profit before income<br>tax expense 2,273 1,519 996 547 290 5,625 - 5,625<br>Income tax<br>(expense)/benefita<br>(682) (442) (287) (154) (55) (1,620) - (1,620)<br>Net profit attributable<br>to NCI - (4) - - - (4) - (4)<br>Net profit attributable to<br>owners of WBC 1,591 1,073 709 393 235 4,001 - 4,001<br>Notable Items (post-tax)a<br>- - - - 178 178<br>Balance sheet<br>Loans 479,750 93,665 84,697 91,943 (124) 749,931<br>Deposits and<br>other borrowings 293,508 142,773 113,453 77,321 49,297 676,352<br>a. Includes tax benefits on Notable Items of $46 million.
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Note 3. Net interest income and average balance sheet and interest rates<br>Average balance sheet and interest rates<br>Half Year March 2024 Half Year Sept 2023 Half Year March 2023<br>Average<br>balance Interest<br>Average<br>rate<br>Average<br>balance Interest<br>Average<br>rate<br>Average<br>balance Interest<br>Average<br>rate<br>$m $m % $m $m % $m $m %<br>Assets<br>Interest earning assets<br>Loans 709,756 19,306 5.4 699,735 16,276 4.7<br>Housing 488,551 12,186 5.0 481,538 10,174 4.2<br>Personal 12,628 548 8.7 13,485 556 8.3<br>Business 208,577 6,572 6.3 204,712 5,546 5.4<br>Trading securities and financial<br>assets measured at FVIS 31,122 645 4.1 29,044 498 3.4<br>Investment securities 73,745 1,119 3.0 76,015 918 2.4<br>Other interest earning assetsa 133,882 2,843 4.2 129,414 2,147 3.3<br>Total interest earning assets and<br>interest income 948,505 23,913 5.0 934,208 19,839 4.3<br>Non-interest earning assets<br>Derivative financial instruments 21,566 25,290<br>All other assets 58,433 58,425<br>Total non-interest earning assets 79,999 83,715<br>Total assets 1,028,504 1,017,923<br>Liabilities<br>Interest bearing liabilities<br>Deposits and other borrowings 551,676 9,966 3.6 537,110 6,952 2.6<br>Certificates of deposit 50,314 1,122 4.4 45,447 799 3.5<br>Transactions 113,410 1,805 3.2 117,978 1,423 2.4<br>Savings 212,281 3,269 3.1 206,042 2,097 2.0<br>Term 175,671 3,770 4.3 167,643 2,633 3.1<br>Repurchase agreements 38,003 328 1.7 41,310 228 1.1<br>Loan capital 35,115 828 4.7 33,649 620 3.7<br>Other interest bearing liabilitiesb 178,463 3,587 4.0 174,925 2,926 3.4<br>Total interest bearing liabilities and<br>interest expense 803,257 14,709 3.7 786,994 10,726 2.7<br>Non-interest bearing liabilities<br>Deposits and other borrowings 130,232 131,113<br>Derivative financial instruments 22,960 29,765<br>All other liabilities 503 (943)<br>Total non-interest bearing liabilities 153,695 159,935<br>Total liabilities 956,952 946,929<br>Shareholders' equity 71,509 70,947<br>NCI 43 47<br>Total equity 71,552 70,994<br>Total liabilities and equity 1,028,504 1,017,923<br>Loans<br>Australia 611,790 16,373 5.3 602,493 13,791 4.6<br>New Zealand 91,507 2,724 5.9 90,605 2,304 5.1<br>Other overseas 6,459 209 6.5 6,637 181 5.5<br>Deposits and other borrowings<br>Australia 466,499 7,997 3.4 453,962 5,547 2.5<br>New Zealand 64,641 1,447 4.5 63,422 1,017 3.2<br>Other overseas 20,536 522 5.1 19,726 388 3.9<br>a. Interest income includes net ineffectiveness on qualifying hedges.<br>b. Includes net impact of Treasury balance sheet management activities and the Bank Levy.
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Note 10. Credit quality<br>Program-managed portfolio<br>The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit<br>cards) as well as certain small to medium sized enterprise lending. These credit exposures are grouped into pools of<br>similar risk based on the analysis of characteristics that have historically predicted the likelihood of default, and a PD<br>is assigned relative to the credit exposure's pool. The exposure is then assigned to strong, satisfactory or weak by<br>benchmarking that PD against transaction-managed exposures, which are in turn mapped to external ratings per the<br>above table. In addition, any program-managed exposures that are one or more days past due are classified as weak.<br>The following table shows the credit quality of loans and undrawn credit commitments.<br>As at 31 March 2024 As at 30 September 2023a As at 31 March 2023a<br>$m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total<br>Loans - housing<br>Strong 291,914 27,447 - 319,361 284,578 30,261 - 314,839<br>Good/satisfactory 156,836 48,929 - 205,765 155,228 44,137 - 199,365<br>Weak 2,533 14,178 5,237 21,948 2,375 13,021 4,421 19,817<br>Total loans - housing 451,283 90,554 5,237 547,074 442,181 87,419 4,421 534,021<br>Loans - personal<br>Strong 4,318 95 - 4,413 4,347 117 - 4,464<br>Good/satisfactory 6,097 802 - 6,899 6,552 911 - 7,463<br>Weak 252 623 192 1,067 273 711 240 1,224<br>Total loans - personal 10,667 1,520 192 12,379 11,172 1,739 240 13,151<br>Loans - business<br>Strong 80,177 13,564 - 93,741 74,626 10,691 - 85,317<br>Good/satisfactory 63,434 52,477 - 115,911 83,629 30,206 - 113,835<br>Weak 200 5,468 2,914 8,582 196 4,709 3,172 8,077<br>Total loans - business 143,811 71,509 2,914 218,234 158,451 45,606 3,172 207,229<br>Undrawn credit commitments<br>Strong 137,275 11,169 - 148,444 140,574 9,038 - 149,612<br>Good/satisfactory 40,482 15,142 - 55,624 47,842 9,191 - 57,033<br>Weak 214 1,503 366 2,083 251 1,110 397 1,758<br>Total undrawn<br>credit commitments 177,971 27,814 366 206,151 188,667 19,339 397 208,403<br>Total strong 513,684 52,275 - 565,959 504,125 50,107 - 554,232<br>Total good/satisfactory 266,849 117,350 - 384,199 293,251 84,445 - 377,696<br>Total weak 3,199 21,772 8,709 33,680 3,095 19,551 8,230 30,876<br>Total loans and undrawn<br>credit commitments 783,732 191,397 8,709 983,838 800,471 154,103 8,230 962,804<br>a. In 2024, the Group revised the methodology that it uses to classify program-managed exposures as strong, satisfactory, or weak. This is a<br>change in disclosure methodology and does not represent a change in underlying credit quality of the Group’s credit exposures. Comparatives<br>have been revised accordingly.
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