Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 121

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 121
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Westpac applies the same credit policies when entering into these arrangements as it does for on balance sheet instruments. Refer to Note 11 and Note 21 of the 2025 Annual Report for further details of credit risk and liquidity risk management, respectively.
Undrawn credit commitments, excluding derivatives, are disclosed in the below table:

●   Financial guarantees, letters of credit and other credit substitutes support the financial obligations of customers to third parties. Utilisation of these contracts is generally dependent on the creditworthiness of the customer. The Group may hold cash as collateral for certain financial guarantees issued;
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●   Performance-related contingencies support the non-monetary obligations of customers to third parties, where payment will generally need to be made if a customer fails to fulfil a non-monetary contractual obligation to that third party;
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●   Remaining commitments to extend credit mainly comprises various forms of credit facilities.
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                                 ​                                     ​       ​       ​        ​      ​       ​       ​        ​   
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​                                                                      ​                Consolidated   ​               Parent Entity
$m                                                                     2025           2024             2025           2024          
Undrawn credit commitmentsa                                            ​          ​   ​            ​   ​          ​   ​            ​
Financial guarantees, letters of credit and other credit substitutes         15,721           15,220         15,254           14,642
Performance-related contingencies                                             6,709            5,393          6,484            5,369
Remaining commitments to extend creditb                                     198,739          191,498        173,966          167,851
Total undrawn credit commitments                                            221,169          212,111        195,704          187,862
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a.   The composition of undrawn credit commitments has been revised to better reflect the nature of the types of commitments provided. Comparatives have been revised to align with current period presentation.
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b.   Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. In addition to the commitments disclosed above, $7.4 billion (2024: $6.0 billion) for the Group and $6.3 billion (2024: $5.1 billion) for the Parent Entity of credit exposures were offered and accepted but