Pakistan-based banks have emerged as the top-performing financial institutions across the Asia-Pacific region in terms of total shareholder returns during the third quarter of 2025, supported by a bullish equities market and improving investor sentiment. According to an S&P Global Market Intelligence analysis, Pakistani lenders recorded the highest gains among banks with a market capitalization of over $100 million.
The Bank of Punjab led the list as the single best-performing bank across the region, achieving an impressive total return of 176.4% in Q3. The Lahore-based lender, with a market capitalization of around $320 million as of September 30, outpaced all other banks in the Asia-Pacific region.
Peshawar-headquartered The Bank of Khyber secured second place with a total return of 108.2%. Other Pakistani banks that made it to the top 15 performers include National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd., highlighting a broader trend of strong performance across the sector.
The surge in bank stock performance coincides with a sustained rally in Pakistan’s benchmark KSE-100 Index, which recorded notable gains over the past five months. This upward momentum was driven by improved political stability following the resolution of tensions with India earlier in the year, as well as stronger diplomatic engagement with the United States. The benchmark index climbed 11.0% in July and 11.4% in September, supported by growing foreign investor interest and an improving macroeconomic outlook.
Indonesia also featured prominently in the ranking of best-performing banks. PT Allo Bank Indonesia Tbk ranked third with a total return of 89.2%. Other Indonesian lenders on the list include PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk, and PT Bank Ganesha Tbk.
Vietnamese banks also secured multiple spots. Vietnam Prosperity Joint Stock Commercial Bank, with the highest market capitalization among the top 15 at $9.34 billion, ranked seventh with a total return of 68.1%. Other Vietnam-based lenders, including Fortune Vietnam Joint Stock Commercial Bank and Saigon – Hanoi Commercial Joint Stock Bank, benefited from a 37.2% surge in the VN-Index between May and August.
In contrast, Chinese lenders dominated the list of the worst-performing bank stocks in the region. Bank of Jiujiang Co. Ltd. recorded a total return of negative 18.2% in Q3, with several other mid-tier Chinese banks including China Everbright Bank Co. Ltd., Bank of Beijing Co. Ltd., Hua Xia Bank Co. Ltd., Bank of Shanghai Co. Ltd., Industrial Bank Co. Ltd., and Bank of Jiangsu Co. Ltd. facing pressure due to shrinking margins and weak loan demand.
Indian banks also featured among the bottom performers, including Aavas Financiers Ltd., Dhanlaxmi Bank Ltd., IndusInd Bank Ltd., Equitas Small Finance Bank Ltd., and Bajaj Holdings & Investment Ltd..
The worst-performing bank stock overall in the analysis was PT Bank Nationalnobu Tbk of Indonesia, with a total return of negative 31.9% in the third quarter. Bangladesh-based Midland Bank PLC, which was the top performer in Q2, became the third-worst performer in Q3, with a total return of negative 20.9%. KakaoBank Corp. of South Korea followed closely, posting a negative 20.8% total return.
Pakistan’s strong showing in this regional ranking reflects improving market fundamentals and renewed investor confidence. Analysts point to robust corporate earnings, stronger economic indicators, and positive sentiment as key factors driving the performance of the country’s banking sector.
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