Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 46

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 46
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2025 and         4.3% at December 2024 and                 
                                         4.5% at December 2026             4.6% at December 2025                     
New Zealand                              Forecast rate of                  Forecast rate of                          
                                         5.3% at December 2025 and         5.3% at December 2024 and                 
                                         4.6% at December 2026             5.6% at December 2025                     
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The downside scenario is a more severe scenario with expected credit losses higher than the base case. This scenario assumes a recession with a combination of negative GDP growth, declines in commercial and residential property prices and an increase in the unemployment rate, which simultaneously impact expected credit losses across all portfolios from the reporting date. The assumptions used in this scenario and relativities to the base case will be monitored having regard to the emerging economic conditions and updated where necessary. The upside scenario represents a modest improvement to the base case.
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WESTPAC GROUP 2025 ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS

Note 10.Provision for expected credit losses (Continued)
The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios and what the provision for ECL on loans and credit commitments would be assuming a 100% weighting to the base case scenario and to the downside scenario (with all other assumptions held constant).

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​                                                Consolidated               Parent Entity
$m                                  2025         2024           2025         2024        
Reported probability-weighted ECL        4,978          5,084        4,398          4,402
100% base case ECL                       3,031          3,559        2,673          3,089
100% downside ECL                        7,143          7,195        6,316          6,221
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If 1% of Stage 1 loans and credit commitments (calculated on a 12 month ECL) were transferred to Stage 2 (calculated on a lifetime ECL), the provision for ECL on loans and credit commitments would increase by $113 million (2024: $93 million) for Westpac and $97 million (2024: $81 million)