S&P Global Report Highlights Six Pakistani Banks in Top 15 of Asia Pacific

ISLAMABAD: According to the latest S&P Global Intelligence report released on Wednesday, six Pakistani banks have secured spots in the top 15 of Asia-Pacific’s best-performing banks. This marks a significant achievement for Pakistan’s banking sector.

Top 10 Rankings: Pakistani Banks Lead the Charge

Four Pakistani banks were listed among the top 10 best-performing banks in the region. These banks include:

1. United Bank Ltd (UBL)
2. National Bank of Pakistan (NBP)
3. Bank Alfalah Ltd (BAFL)
4. Bank of Punjab (BoP)

Market Capitalization and Stock Return Data

Here’s a breakdown of the key performance metrics for the top Pakistani banks:

United Bank Ltd (UBL) topped the rankings with a remarkable return of 159.7%, placing second in the region’s best-performing bank stocks. UBL followed behind Indonesia’s PT Bank Artha Graha Internasional Tbk, which posted a return of 193.2%.

Aside from the top 10, Allied Bank Ltd (ABL) and Habib Metropolitan Bank Ltd also made the list, achieving returns of 94.5% and 93.2%, respectively.

Insights from S&P Global

The S&P Global report noted that several banks from developing economies in the region performed better than their counterparts in traditional powerhouse nations. “Several banks based in the region’s developing economies performed better on the metric of total returns than those in traditional powerhouse nations,” the report stated.

The rankings were based on banks with a market capitalization exceeding $100 million as of December 31, 2024. It was observed that small-cap banks dominated the list, with only six out of the top 15 exceeding a market cap of $1 billion.

Despite facing challenges in the first half of 2024, including a struggling economy and inflationary pressures, many Pakistani banks experienced a strong recovery. The improvement was attributed to the support of an International Monetary Fund (IMF) funding program, which helped stabilize Pakistan’s economy in the latter half of the year.

Worst-Performing Banks

The S&P Global report also highlighted the worst-performing bank stocks, with most of them based in China and India. According to the data, mainland China’s Jilin Jiutai Rural Commercial Bank Corp. Ltd. recorded the worst performance, with a 52.9% drop in total returns.

Indonesia’s PT Bank Neo Commerce Tbk and PT Allo Bank Indonesia Tbk also faced significant declines of 50% and 45.7%, respectively.

While small-cap banks thrived in 2024, the performance of many larger banks in China and India was hindered by slower economic growth. On the other hand, Pakistan’s banking sector showcased resilience, with several banks making impressive recoveries, strengthening their positions in Asia-Pacific’s top rankings.