Islamabad, January 9: 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% 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% total returns for investors during the year. Askari Bank Ltd. and The Bank of Khyber followed, recording gains of 194.2% and 177.4%, 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%. Bank Makramah, with a market capitalisation of around $140 million, delivered 119% returns, while Faysal Bank, valued at approximately $500 million, generated 115% 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% 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% in 2025, marginally higher than the 10.4% growth recorded a year earlier. Inflation eased sharply to 3.2%, down from 12.6% 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.
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