ISLAMABAD: Pakistani banks have emerged as some of the best-performing financial institutions in Asia, according to S&P Global’s Asian Banks 2025 report. The study highlights that banks from Pakistan delivered the highest overall returns to investors across the Asia-Pacific region, marking a significant milestone for the country’s financial sector.
At the top of the rankings, the Bank of Punjab recorded a historic 334 per cent increase in annual profit during 2025. As a result, it secured first place among Asia-Pacific banks with a market capitalisation exceeding $100 million on the S&P Global Market Intelligence list. Analysts noted that improved asset quality, higher interest income, and effective cost management contributed to the bank’s exceptional performance.
Closely following, the National Bank of Pakistan ranked second, posting a profit growth of 301.3 per cent. This strong showing reflected improved recovery of non-performing loans and better balance sheet management. Together, these results positioned Pakistani lenders ahead of several larger regional peers.
Seven Pakistani banks feature among Asia’s top fifteen
The report further revealed that seven of the top fifteen best-performing banks in Asia are from Pakistan. Consequently, Pakistan emerged as the most represented country on the list, underlining the sector’s resilience amid economic and policy challenges.
S&P Global attributed the strong performance to favourable interest rate dynamics, robust capital buffers and increased focus on core banking operations. Moreover, higher government securities yields significantly boosted earnings for local banks over the review period.
Market experts believe the recognition could strengthen investor confidence and attract greater foreign interest in Pakistan’s banking sector. However, they also cautioned that sustaining such growth will depend on macroeconomic stability, regulatory consistency and continued reforms.
Meanwhile, policymakers see the report as validation of recent financial sector measures. They argue that improved governance standards and tighter risk controls have helped banks withstand volatility and deliver strong shareholder returns. As regional competition intensifies, Pakistani banks now face the challenge of maintaining momentum while adapting to evolving economic conditions.
