Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 26

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 26
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ES TO THE FINANCIAL STATEMENTS

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Note 6.Impairment charges
Accounting policy​

Impairment charges are based on an expected loss model which measures the difference between the current carrying amount and the present value of expected future cash flows taking into account past experience, current conditions and multiple probability-weighted macroeconomic scenarios for reasonably supportable future economic conditions. Further details of the calculation of ECL and the critical accounting assumptions and estimates relating to impairment charges are included in Note 10.Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows:●Loans, debt securities at amortised cost and due from subsidiaries balances: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Note 10);●Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security (refer to Note 26); and●Credit commitments: as a provision (refer to Note 25).Uncollectable loansA loan may become uncollectable in full or part if, after following Westpac’s loan recovery procedures, Westpac remains unable to collect that loan’s contractual repayments. Uncollectable amounts are written off against their related provision for ECL, after all possible repayments have been received.Where loans are secured, amounts are generally written off after receiving the proceeds from the security, or in certain circumstances, where the net realisable value of the security has been determined and this indicates that there is no reasonable expectation of full recovery, write-off may be earlier. Unsecured consumer loans are generally written off after 180 days past due.Westpac may subsequently be able to recover cash flows from loans written off. In the period which these recoveries are made, they are recognised in the income statement.
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The following table details impairment charges.
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                ​                   ​      ​     ​      ​     ​      ​     ​      ​      ​       ​  
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​                                                           Consolidated               Parent Entity
$m                                  2025               2024   2023         2025         2024        
Provisions raised/(released)                 ​            ​            ​            ​   ​          ​
Performing                                (36)        (150)   274          14           ​      (142)
Non-performing                      707