Smaller Pakistani banks among top return performers in Asia-Pacific: S&P Global

Smaller Pakistani banks delivered some of the highest total returns to investors across the Asia-Pacific region in 2025, buoyed by a strong rally in local equity markets and improving macroeconomic indicators, according to an analysis by S&P Global Market Intelligence.

The Bank of Punjab emerged as one of the top-performing banks in the region, posting total returns of 333.8 percent in 2025.

This placed it among Asia-Pacific banks with a market capitalisation exceeding $100 million tracked by S&P Global.

The National Bank of Pakistan (NBP) ranked second, generating 301.3 percent total returns for investors during the year.

Askari Bank Ltd. and The Bank of Khyber followed, recording gains of 194.2 percent and 177.4 percent, respectively.

Other Pakistani lenders also posted strong gains during the year.

United Bank Limited (UBL), with a market capitalisation of $3.8 billion, recorded investor returns of 143 percent. Bank Makramah, with a market capitalisation of around $140 million, delivered 119 percent returns, while Faysal Bank, valued at approximately $500 million, generated 115 percent total returns in 2025.

Overall, Pakistani banks accounted for six of the top 10 return-generating banks in the Asia-Pacific region covered in the S&P Global analysis.

The strong performance mirrored broader gains in Pakistan’s equity market. The benchmark KSE-100 index advanced for a third consecutive year, rising 51.2 percent in 2025 to close at a record high. Market momentum was supported by improved economic indicators, fiscal consolidation and relative political stability.

According to the International Monetary Fund, Pakistan’s economy expanded by 10.5 percent in 2025, marginally higher than the 10.4 percent growth recorded a year earlier. Inflation eased sharply to 3.2 percent, down from 12.6 percent in 2024, improving investor sentiment and lending conditions.

S&P Global noted that more than half of the top 10 gainers in its analysis had market capitalisations below $1 billion, underscoring the outsized returns delivered by smaller lenders amid improving domestic fundamentals.

The findings place Pakistani banks alongside select Japanese lenders as standout performers in the Asia-Pacific banking sector during 2025.