ISLAMABAD: Pakistani banks outperformed all their Asia-Pacific peers in the third quarter of 2025, with several local lenders topping a regional list of best-performing bank stocks, according to data from market analytics firm S&P Global Market Intelligence.
The strong performance reflects growing investor confidence in Pakistan’s financial sector as the country’s economy shows signs of stabilization following last year’s $7 billion International Monetary Fund bailout. The program helped ease fears of default, strengthen foreign reserves and stabilize the rupee after two years of severe fiscal stress. Inflation has eased from record highs, and the government is moving ahead with privatization, tax and energy reforms, and digitalization drives, all aimed at restoring credibility among investors and lenders.
“Pakistan-based lenders dominated a ranking of Asia-Pacific banks with the best-performing stocks in terms of total return in the third quarter,” S&P Global Market Intelligence said in its latest report, noting that local equities had strengthened during the review period.
The market data firm said its quarterly analysis covered publicly traded Asia-Pacific banks with a market capitalization greater than $100 million, using total returns calculated between June 30 and Sept. 30, 2025.
According to the analysis, the Bank of Punjab was the best performer, delivering a total return of 176.4 percent between June 30 and Sept. 30. The Bank of Khyber ranked second with 108.2 percent, while National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd. also featured among the top 15 performers.
A “total return” measures how much value investors gained from both stock price appreciation and dividends over a specific period, a key indicator of confidence in a bank’s financial strength and profitability.
The rally in Pakistani bank shares underscores optimism over the government’s reform trajectory and macroeconomic stability, even as challenges persist in the form of high energy costs, sluggish exports, and vulnerability to climate shocks.
Beyond Pakistan, PT Allo Bank Indonesia Tbk took the third spot with an 89.2 percent total return, while Vietnam Prosperity Joint Stock Commercial Bank, the largest by market capitalization among the top 15, placed seventh with a 68.1 percent gain.
At the other end of the spectrum, Indonesia’s PT Bank Nationalnobu Tbk posted the steepest losses with a negative 31.9 percent total return, followed by several mid-tier Chinese and Indian banks that saw weaker performances amid slower credit growth and domestic market pressures.
