Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 58

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 58
---
 to:●Sovereign;●Australia and New Zealand public sector;●ADIs and overseas banks with a minimum risk grade equivalent of A3 / A–; and●Others with a minimum risk grade equivalent of A3 / A–. Credit Portfolio Management (CPM) manages Westpac’s corporate, sovereign and bank credit portfolios through monitoring the exposure and any offsetting hedge positions. CPM purchases credit protection from entities that meet minimum eligibility requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Offsetting                            ​   Creditworthy customers domiciled in Australia and New Zealand may enter into formal agreements with Westpac, permitting Westpac to set-off gross credit and debit balances in their nominated accounts. Cross-border set-offs are not permitted.Close-out netting is undertaken with counterparties with whom the Group has entered into a legally enforceable master netting agreement for their off-balance sheet financial market transactions in the event of default.Further details of offsetting are provided in Note 23.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Central clearing                      ​   Westpac executes derivative transactions through central clearing counterparties. Central clearing counterparties mitigate risk through stringent membership requirements, the collection of margin against all trades placed, the default fund, and an explicitly defined order of priority of payments in the event of default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
​

​

                                                            ​                    
---------------------------------------------------------------------------------
FINANCIAL   EXHIBITS INDEX   STRATEGIC   PERFORMANCE   EXHIBIT 15.4   ADDITIONAL 
REPORT                       REVIEW      REVIEW                       INFORMATION
​

Note 11.Credit risk management (Continued)
Collateral held against loans
Westpac analyses the coverage of the loan portfolio which is secured by the collateral that it holds. Coverage is measured as follows:

Coverage                Secured loan to collateral value ratio                                                                                                 
Fully secured       ​   Less than or equal to 100%                                                                                                             
Partially secured   ​   Greater than 100% but not more than 150%                                                                                               
Unsecured           ​   Greater than 150%, or no security held (e.g. can include credit cards, personal loans, and exposure to highly rated corporate entities)
​
Westpac and the Parent Entity’s loan portfolio have the following coverage from collateral held:
​

         ​             ​       ​      ​       ​       ​       ​       ​      ​     ​       ​      ​       ​       ​       ​       ​     ​  
-------------------------------------------------------------------------------------------------------------------------------------------
​                       ​         ​    ​                       2025