Pakistani banks top performers in Asia Pacific in Jul-Sep 2025; India struggles

KARACHI: Pakistani banks outperformed their Asia-Pacific (APAC) peers in the third quarter of 2025 (July to September), delivering the highest total shareholder returns among regional lenders, according to fresh data from S&P Global Market Intelligence.

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Leading the pack was the Bank of Punjab (BoP), which recorded a remarkable 176.4 per cent total return for the quarter, driven by strong performance in the local equities market. The Lahore-based institution, with a market capitalisation of approximately $320 million as of September 30, topped a list of listed banks in the region with market caps above $100 million.

Coming in second was the Bank of Khyber (BoK), based in Peshawar, which posted a total return of 108.2 per cent. Other Pakistani institutions among the top 15 performers included National Bank of Pakistan (NBP), JS Bank Ltd, Askari Bank Ltd (ABL), and Habib Bank Ltd (HBL). This performance of the state-backed and private sector banks also shows renewed investor confidence in the country’s financial sector.

The surge in Pakistani bank stocks coincided with a broader rally in the country’s stock market, Pakistan Stock Exchange (PSX). The benchmark KSE-100 index extended its gains for a fifth consecutive month, fueled by easing geopolitical tensions with India and strengthened diplomatic ties with the United States (US).

July and September saw particularly strong growth, with the index rising 11.0 per cent and 11.4 per cent, respectively.

INDONESIA, VIETNAM FOLLOW SUIT

Indonesian banks also made a strong showing in the rankings. PT Allo Bank Indonesia Tbk secured third place with an 89.2 per cent return, while PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk, and PT Bank Ganesha Tbk also featured among the region’s top gainers.

Vietnamese lenders rounded out the list of regional standouts, with Vietnam Prosperity Joint Stock Commercial Bank ranking seventh after delivering a 68.1 per cent return. With a market cap of $9.34 billion, the largest among the top performers, it was joined by Fortune Vietnam Joint Stock Commercial Bank and Saigon – Hanoi Commercial Joint Stock Bank, buoyed by the VN-Index’s 37.2 per cent surge between May and August.

STRUGGLES IN CHINA AND INDIA

In contrast, several mid-sized Chinese banks were among the poorest performers. Bank of Jiujiang Co Ltd, headquartered in Jiangxi province, posted a total return of negative 18.2 per cent, leading a group of seven Chinese banks affected by ongoing margin compression and soft loan demand. Other Chinese names on the list included China Everbright Bank, Bank of Beijing, Hua Xia Bank, Bank of Shanghai, Industrial Bank, and Bank of Jiangsu.

Indian banks also faced a tough quarter. Five institutions, including Aavas Financiers, Dhanlaxmi Bank, IndusInd Bank, Equitas Small Finance Bank, and Bajaj Holdings & Investment, landed among the bottom 15 performers by total return.

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The worst overall performer was PT Bank Nationalnobu Tbk of Indonesia, which declined 31.9 per cent in the third quarter. Meanwhile, Midland Bank PLC of Bangladesh, which led the region in Q2, saw fortunes reverse sharply, with a 20.9 per cent drop. South Korea’s KakaoBank Corp followed closely, falling 20.8 per cent.