Four Pakistani banks have emerged as top performers in the Asia-Pacific region, as per the latest report by S&P Global Intelligence. The report highlights the exceptional growth and resilience of Pakistan’s banking sector, with United Bank Limited (UBL), National Bank of Pakistan (NBP), Bank Alfalah, and Bank of Punjab (BoP) securing places among the top 10 best-performing lenders in 2024.
UBL led the pack from Pakistan, ranking second overall with a staggering total stock return of 159.7% and a market capitalization of $1.68 billion. It trailed behind Indonesia’s PT Bank Artha Graha Internasional, which achieved the highest returns in the region at 193.2%. NBP followed closely, posting a return of 108.4%, while Bank Alfalah and BoP recorded returns of 107.1% and 98.4%, respectively.
S&P attributed the success of Pakistani banks to several factors, including the country’s economic recovery in the latter half of 2024. This recovery, bolstered by an International Monetary Fund (IMF) funding program, helped stabilize the financial environment. Additionally, surging inflation and earlier share price recoveries further strengthened the banking sector.
Pakistan’s financial institutions benefited from record highs on the Pakistan Stock Exchange (PSX) in late 2024, cementing their positions as attractive investment opportunities. The report also highlighted that small-cap banks dominated the rankings, but Pakistani banks stood out for achieving significant returns despite having larger market capitalizations.
While banks in countries like China and India struggled with slowing economic growth and declining stock returns, Pakistani banks defied the odds. Their remarkable performance reflects not only the resilience of the sector but also its ability to adapt and thrive in challenging conditions.
As Pakistani banks continue to rise on the global stage, their achievements serve as a testament to the country’s growing economic potential and the strategic excellence of its financial institutions.
