Pakistan lenders deliver some of Asia’s biggest bank gains in 2025
BOP, NBP lead regional rankings as markets rebound
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Logos of the Bank of Punjab and the National Bank of Pakistan
Lenders in Pakistan and Japan delivered some of the highest total returns among Asia-Pacific banks in 2025, buoyed by strong local equity market rallies and improving economic conditions, according to data from S&P Global Market Intelligence.
The Bank of Punjab topped the regional rankings, posting total returns of 333.8% in 2025 among Asia-Pacific banks with market capitalizations above $100 million covered by S&P Global Market Intelligence.
"It’s a rarity that banks create such shareholder value, especially being in public sector, alongside creating impact by exceptionally promoting financial inclusion and becoming the number one bank in priority sector financing — something very well recognized inside and outside the country," Zafar Masud, Bank of Punjab’s President, told Nukta.
The National Bank of Pakistan ranked second, with investor returns of 301.3%.
Askari Bank Ltd. and The Bank of Khyber placed third and fourth, gaining 194.2% and 177.4%, respectively. Pakistani lenders accounted for six of the top 10 banks by total returns in the analysis.
Pakistan’s benchmark KSE-100 index rose for a third straight year, climbing 51.2% in 2025 to end at a record high. The rally was supported by improving economic indicators, fiscal discipline and greater political stability.
The International Monetary Fund estimated Pakistan’s economy grew 10.5% in 2025, slightly above the 10.4% expansion recorded a year earlier. Inflation eased sharply to 3.2%, down from 12.6% in 2024.
“Smaller Pakistani banks benefited disproportionately from the equity market rebound as investors priced in improving asset quality, lower inflation and stronger earnings momentum,” said an analyst at S&P Global Market Intelligence. “Their relatively low valuations amplified gains as sentiment shifted.”
More than half of the top 10 gainers had market capitalizations below $1 billion, according to S&P Global Market Intelligence data.
Japanese lenders also featured prominently in the rankings. Tochigi Bank Ltd. ranked fifth overall with a 165.6% gain in 2025 and a market capitalization of about $480 million. Ogaki Kyoritsu Bank Ltd. followed with returns of 151.0%. Hokuhoku Financial Group Inc. and Yamanashi Chuo Bank Ltd. also placed among the top 10.
Japanese bank stocks were supported by tighter monetary policy. On Dec. 19, the Bank of Japan raised its benchmark interest rate by 25 basis points to 0.75%, the highest level in three decades, fueling expectations of improved profitability as lending margins widen.
“Given that real interest rates are at significantly low levels, the Bank, in accordance with improvement in economic activity and prices, will continue to raise the policy interest rate and adjust the degree of monetary accommodation,” the central bank said in a statement.
The shift toward policy normalization, combined with economic measures under Prime Minister Sanae Takaichi’s government, helped lift Japan’s equity markets in 2025.
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