Analysts at Jefferies are predicting a noticeable deceleration in loan growth and a potential downside risk to net interest margins (NIM), which may adversely impact the second half of 2023 earnings for Australia’s leading banks.

The brokerage also anticipates a moderate increase in bad loans across the banking sector.

According to Jefferies, Westpac (ASX:WBC) might align itself with other banking institutions in the region by launching a buyback valued between A$1 billion and A$2 billion.

The analysts also highlighted that ANZ Group (ASX:ANZ) is currently awaiting a decision from the Australian competition tribunal related to its planned acquisition of the insurer Suncorp (ASX:SUN).

Westpac is expected to release its results on November 6, followed by National Australia Bank (ASX:NAB) on November 9.

Commonwealth Bank of Australia (ASX:CBA), the country’s largest bank, is also scheduled to announce their first-quarter results.

Westpac (ASX:WBC) is one of the top banking companies in Australia, offering a comprehensive range of banking and financial services.