ISLAMABAD: Pakistani banks have outperformed their Asia-Pacific counterparts, with the Bank of Punjab (BOP) emerging as the top-performing institution in the region, according to the latest report by S&P Global Market Intelligence.
The report highlights that BOP recorded a remarkable 176.4 percent profit growth, making it the most successful publicly traded bank in the Asia-Pacific with a market capitalization exceeding $100 million.
The Bank of Khyber secured the second position with a 108 percent return, while several other Pakistani banks, including the National Bank of Pakistan (NBP), JS Bank, Askari Bank, and Habib Bank Limited (HBL), ranked among the top 15 performers in the region.
S&P Global noted that Pakistani banks achieved the highest returns across the Asia-Pacific during the third quarter, fueled by positive trends in the domestic stock market and improving investor confidence.
While banks in Indonesia and Vietnam also posted notable results, Pakistani institutions outshone them all. The report observed that several banks in China and India lagged behind, underscoring Pakistan’s exceptional growth in the regional financial sector.
Analysts attribute the surge in profitability to strong market dynamics, efficient management, and a favourable economic environment that enabled Pakistani banks to deliver record-breaking returns.
Adding to the positive outlook, global credit rating agency Moody’s recently upgraded Pakistan’s banking sector from stable to positive, citing resilient financial performance and improving macroeconomic conditions.
Moody’s highlighted that Pakistani banks maintain significant exposure to sovereign risk through substantial government securities holdings but continue to demonstrate strong financial resilience.
Economic growth projections for Pakistan have also improved, with Moody’s forecasting a 3% expansion in 2025, up from 2.5% in 2024 and a contraction of 0.2% in 2023. Inflation is expected to ease significantly to around 8% in 2025, down from an average of 23% in 2024, further supporting optimism about the sector’s performance.
The combined impact of robust financial management, positive economic indicators, and favourable market conditions has positioned Pakistani banks as leaders in the Asia-Pacific region, reflecting a remarkable turnaround for the country’s banking industry and boosting investor confidence in its long-term growth prospects.
