Pakistani banks outperform Asia-Pacific peers in 2025's third quarter

Pakistani banks led the Asia-Pacific region in stock performance during the third quarter of 2025, buoyed by strong gains in the local equities market, according to new data from S&P Global Market Intelligence.

The Bank of Punjab topped the list of best-performing publicly traded banks in the region, delivering the highest total return among banks with a market capitalization above $100 million. It was followed closely by the Bank of Khyber, which posted a total return of 108.2%.

Four other Pakistani lenders—National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd.—also featured among the top 15 performers.

The rally in bank stocks aligns with a broader rebound in Pakistan’s financial markets. The benchmark KSE-100 index has risen for five consecutive months, driven by improved investor sentiment after the resolution of a military conflict with India in May and renewed diplomatic ties with the United States, including several meetings between Pakistani leaders and President Donald Trump.

The index rose 11.0% in July and 11.4% in September, according to S&P Global.

Indonesian banks also had a strong showing. PT Allo Bank Indonesia Tbk ranked third with a total return of 89.2%. Other Indonesian lenders among the top performers included PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk, and PT Bank Ganesha Tbk.

Vietnamese banks were well-represented, with three institutions making the top 15. Vietnam Prosperity Joint Stock Commercial Bank, the largest bank in the ranking by market capitalization at $9.34 billion as of Sept. 30, took seventh place with a return of 68.1%.

Fortune Vietnam Joint Stock Commercial Bank and Saigon-Hanoi Commercial Joint Stock Bank also featured.

In contrast, Chinese and Indian banks dominated the list of worst-performing stocks. Seven of the 15 worst-performing banks were mid-tier lenders from China. PT Bank Nationalnobu Tbk of Indonesia fared the worst, posting a total return of -31.9% for the quarter.

Other poor performers included Bank of Jiujiang Co. Ltd. of China (-18.2%), Bangladesh’s Midland Bank PLC—last quarter’s top performer—which fell to third-worst with a -20.9% return, and South Korea-based KakaoBank Corp, which returned -20.8%.

Five Indian banks also ranked among the bottom 15: Aavas Financiers Ltd., Dhanlaxmi Bank Ltd., IndusInd Bank Ltd., Equitas Small Finance Bank Ltd., and Bajaj Holdings & Investment Ltd.

The data highlights a regional divergence in banking sector performance, with Pakistani banks reaping the benefits of political stability and market optimism, while several Chinese and Indian institutions struggled under macroeconomic and sector-specific pressures.