ISLAMABAD: Pakistani banks led the Asia-Pacific region in equity performance during the third quarter (July-September) of 2025, according to an analysis[1] by S&P Global Market Intelligence. The Bank of Punjab topped the list of publicly traded banks in the region with a market capitalisation greater than $100 million, delivering a total return of 176.4 per cent during the quarter.
The Lahore-based bank, with a market cap of approximately $320m as of September 30, outperformed other regional lenders. The Bank of Khyber, based in Peshawar, ranked second with a total return of 108.2pc. Other Pakistani banks among the top 15 performers included National Bank of Pakistan, JS Bank, Askari Bank, and Habib Bank, bringing the total number of Pakistani banks in the top rankings to six.
Six banks feature in the region’s top performers list
Pakistan’s benchmark KSE-100 index also saw notable gains[2], advancing 11pc in July and 11.4pc in September. Investor sentiment was bolstered by the resolution of a military conflict[3] with India in May, as well as Pakistan’s growing diplomatic ties with the US. The report cited multiple meetings[4] between key Pakistani leaders and President Donald Trump as key factors contributing to improved market confidence.
Indonesia-based banks also performed well, with PT Allo Bank Indonesia Tbk securing third place with a return of 89.2pc. Other Indonesian lenders like PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk, and PT Bank Ganesha Tbk were also among the top 15. Three banks from Vietnam, including Vietnam Prosperity Joint Stock Commercial Bank, which had the highest market cap of $9.34bn, also made it to the list.
In contrast, banks from China and India faced challenges. Seven Chinese mid-tier banks, including Bank of Jiujiang Co. Ltd and China Everbright Bank Co. Ltd, were among the worst performers, largely due to margin pressures and weak loan demand. Indian banks, such as Aavas Financiers and Dhanlaxmi Bank, also struggled in the rankings.
The worst-performing bank in the region was PT Bank Nationalnobu Tbk of Indonesia, which recorded a total return of -31.9pc. Bangladesh’s Midland Bank, which had topped the rankings in Q2, fell to the third-worst performer in Q3, with a return of -20.9pc. South Korea’s KakaoBank also faced a decline, with a return of -20.8pc.
While the overall performance of the Asia-Pacific region was mixed, Pakistani banks, particularly those in the public sector, performed strongly, benefitting from a favourable market environment and rising investor confidence.
Published in Dawn, October 8th, 2025