Pakistani banks delivered some of the highest total returns to investors across the Asia-Pacific region in 2025, supported by a sharp rally in local equities and improving macroeconomic conditions, according to an analysis by S&P Global Market Intelligence.

The Bank of Punjab emerged as one of the region’s top-performing banks, posting total returns of 333.8% during the year. The performance placed it among Asia-Pacific banks with a market capitalisation above $100 million tracked by S&P Global.

National Bank of Pakistan (NBP) ranked second, generating investor returns of 301.3% in 2025. Askari Bank Ltd and The Bank of Khyber followed, delivering gains of 194.2% and 177.4%, respectively.

Other Pakistani lenders also recorded strong returns.

United Bank Limited (UBL), with a market capitalisation of $3.8 billion, posted gains of 143%.

Bank Makramah, valued at around $140 million, delivered returns of 119%, while Faysal Bank, with a market value of approximately $500 million, generated total returns of 115%.

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 showing reflected broader momentum in Pakistan’s equity market.

The benchmark KSE-100 index rose for a third straight year, gaining 51.2% in 2025 to close at a record high. Market sentiment 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, slightly higher than the 10.4% growth recorded in 2024.

Inflation eased sharply to 3.2% from 12.6% a year earlier, improving lending conditions and investor confidence.

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

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