Delivering highest total returns in Asia-Pacific: Banks based in Pakistan account for 6 of top 10 positions: S&P

ISLAMABAD: Smaller Pakistani banks posted some of the best 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 S&P Global Market Intelligence in its report mentioned that the Bank of Punjab emerged as one of the top-performing banks in the region, posting total returns of 333.8percent in 2025. This placed it among Asia-Pacific banks with a market capitalisation exceeding USD100 million tracked by S&P Global.

The National Bank of Pakistan (NBP) ranked second, generating 301.3percent total returns for investors during the year. Askari Bank Ltd. and The Bank of Khyber followed, recording gains of 194.2percent and 177.4percent, respectively.

Other Pakistani banks also posted strong gains during the year. United Bank Limited (UBL), with a market capitalisation of USD 3.8 billion, recorded investor returns of 143percent. Bank Makramah, with a market capitalisation of around USD140 million, delivered 119percent returns, while Faysal Bank, valued at approximately USD500 million, generated 115percent 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 51.2percent 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 10.5percent in 2025, marginally higher than the 10.4percent growth recorded a year earlier. Inflation eased sharply to 3.2percent, down from 12.6percent in 2024, improving investor sentiment and lending conditions.

The S&P Global noted that more than half of the top 10 gainers in its analysis had market capitalisations below USD1 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.

Copyright Business Recorder, 2026