KARACHI: Pakistani banks have outperformed their regional counterparts across the Asia-Pacific, with the Bank of Punjab (BOP) emerging as the most successful institution in the region, according to a new report by S&P Global Market Intelligence.
The report reveals that the Bank of Punjab (BOP) recorded an impressive 176.4 percent profit growth, making it the top-performing publicly traded bank in the Asia-Pacific with a market capitalization exceeding $100 million.
The Bank of Khyber secured the second position, posting 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) — also ranked among the top 15 performers in the region.
S&P Global noted that Pakistani banks achieved the highest returns in the Asia-Pacific during the third quarter, driven by positive trends in the domestic stock market and improving investor confidence.
While banks in Indonesia and Vietnam also showed notable results, Pakistani institutions outshone them all, the report stated. Interestingly, several banks in China and India lagged behind in performance, highlighting Pakistan’s exceptional growth in the regional financial landscape.
The report attributes the surge in profitability to strong market dynamics, efficient management, and a favourable economic environment that allowed Pakistani banks to deliver record-breaking returns.
Earlier, the Global credit rating agency Moody’s upgraded Pakistan’s banking sector outlook from stable to positive, citing resilient financial performance and improving macroeconomic conditions.
According to Bloomberg, “The positive outlook mirrors the Government of Pakistan’s own positive outlook,” Moody’s stated, noting that Pakistani banks maintain significant exposure to sovereign risk through substantial holdings of government securities.
Economic growth projections have brightened considerably, with Moody’s forecasting a 3% expansion in 2025, up from 2.5% in 2024 and a contraction of 0.2% in 2023.
According to Moody’s, inflation is expected to ease dramatically to around 8% in 2025, down from an average of 23% in 2024.
