Pakistani banks delivered some of the strongest investor returns among publicly traded banks in the Asia-Pacific region during 2025.

The analysis ranked the Bank of Punjab as the top-performing Asia-Pacific bank (with market cap above US$100 million), posting a total return of 333.8% in 2025. The National Bank of Pakistan secured second place with 301.3%, followed by Askari Bank at 194.2% and Bank of Khyber at 177.4%.

Out of the top 15 Asia-Pacific banking performers in 2025, seven were based in Pakistan, underscoring strong sector performance relative to regional peers.

Among the larger names, United Bank Limited (UBL) ranked seventh with a 143.7% return, while Bank Makramah and Faysal Bank placed 10th and 14th with returns of 119.6% and 115.1%, respectively.

The report also noted that the Pakistan Stock Exchange (PSX) continued its upward trend for a third consecutive year, with the KSE-100 Index gaining 51.2% in 2025, supported by improved macroeconomic indicators, better fiscal management and political stability.

More than half of the top 10 banking gainers had market capitalizations under US$1.0 billion, indicating stronger performance among small to mid-cap names.

In contrast, several Indian mid-sized banks were among the region’s weakest performers by total return. Utkarsh Small Finance Bank saw investor returns fall 48.6%, Punjab & Sind Bank declined 42.1%, while ESAF Small Finance Bank dropped 36.6% over the same period.

The 2025 performance rankings reflect a significant outperformance by Pakistani banks within Asia-Pacific capital markets amid improving domestic sentiment and broader investor re-rating.