Karachi, January 9, 2025: Four Pakistani banks have secured spots among the top 10 best-performing lenders in Asia-Pacific for 2024, according to a report by S&P Global Market Intelligence. The report highlights the remarkable performance of banks from emerging economies, with Pakistan leading the charge.
United Bank Limited (UBL) emerged as the standout performer among Pakistani banks, ranking second in the region. UBL recorded a total stock return of 159.7%, trailing only Indonesia’s PT Bank Artha Graha Internasional Tbk, which posted a return of 193.2%. UBL’s market capitalization was reported at $1.68 billion.
Other Pakistani banks in the top 10 include National Bank of Pakistan (NBP) with 108.4% return, Bank Alfalah Ltd (BAFL) with 107.1% return and Bank of Punjab (BoP) with 98.4% return.
Two more Pakistani banks ranked among the top 15: Allied Bank Limited (ABL) and Habib Metropolitan Bank Ltd, with returns of 94.5% and 93.2%, placing 14th and 15th, respectively.
The S&P ranking considered Asia-Pacific lenders with a market capitalization exceeding $100 million as of December 31, 2024. Smaller banks dominated the list, with only six of the top 15 banks surpassing a market capitalization of $1 billion.
Japan was the only country with multiple entries in the top 10, including SBI Sumishin Net Bank Ltd (third place) and Rakuten Bank Ltd (seventh place).
Meanwhile, slower economic growth in China and India impacted their banks’ performance. Notably, no banks from mainland China or India made the top 15 list, while seven Indian banks were among the 15 worst performers.
The strong performance of Pakistani banks reflects a recovery in the country’s economy during the latter half of 2024, supported by an International Monetary Fund (IMF) funding program. After earlier share price slumps driven by inflation and economic challenges, Pakistani banks rebounded to become blue-chip performers on the Pakistan Stock Exchange (PSX), which set new records in the final quarter of the year.
While Pakistani banks outshone their regional counterparts, Indian banks faced significant headwinds. India’s GDP growth rate is projected to slow to 6.6% for 2024–25, compared to 8.2% in the previous year, as per the Reserve Bank of India. Indian banks such as RBL Bank Ltd and IndusInd Bank Ltd suffered total returns declines of 43.1% and 38%, respectively.
The S&P report underscores the growing prominence of banks in developing economies like Pakistan, reflecting resilience and recovery amid global economic uncertainties.
