Pakistan banks lead Asia-Pacific in Q3 stock performance

October 08, 2025 (MLN): Pakistan-based banks led the Asia-Pacific region in stock performance during the third quarter, supported by a rally in the local equities market and improving investor sentiment.

The Bank of Punjab topped the list of publicly traded banks in the region with market capitalizations above $100 million, according to S&P Global.

 The Lahore-based lender, valued at about $320m as of September 30, recorded a total return of 176.4% in the third quarter.

The Bank of Khyber ranked second with a total return of 108.2%. Other Pakistan-based lenders that appeared among the top 15 included National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd.

The strong performance of these banks coincided with a broader uptrend in Pakistan’s stock market.

 The benchmark KSE-100 index gained for five consecutive months, reflecting improving confidence following the resolution of a military conflict with India in May and stronger diplomatic engagement with the United States, including several meetings between Pakistani leaders and U.S. President Donald Trump.

The index advanced 11% in July and 11.4% in September, Market Intelligence data showed.

Several Indonesia-based banks also featured in the top-performing list. PT Allo Bank Indonesia Tbk ranked third with a total return of 89.2%, followed by PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk, and PT Bank Ganesha Tbk.

Three Vietnamese lenders were also among the top 15 Vietnam Prosperity Joint Stock Commercial Bank, which had the highest market capitalization among the group at $9.34 billion, achieved a total return of 68.1%, while Fortune Vietnam Joint Stock Commercial Bank and Saigon - Hanoi Commercial Joint Stock Bank also made the list.

Vietnam’s VN-Index rose 37.2% between May and August, boosting investor sentiment.

In contrast, Chinese and Indian lenders dominated the ranks of the region’s worst-performing bank stocks in the third quarter.

Seven of the 15 weakest performers were mid-tier Chinese banks, led by Bank of Jiujiang Co. Ltd., which posted a total return of negative 18.2%.

Other underperformers included China Everbright Bank Co. Ltd., Bank of Beijing Co. Ltd., Hua Xia Bank Co. Ltd., Bank of Shanghai Co. Ltd., Industrial Bank Co. Ltd., and Bank of Jiangsu Co. Ltd. Chinese banks continue to face margin pressures and subdued loan demand, which have dampened earnings growth.

Five Indian banks also appeared among the laggards, including Aavas Financiers Ltd., Dhanlaxmi Bank Ltd., IndusInd Bank Ltd., Equitas Small Finance Bank Ltd., and Bajaj Holdings & Investment Ltd. PT Bank Nationalnobu Tbk of Indonesia was the poorest performer overall, with a total return of negative 31.9%.

Bangladesh-based Midland Bank PLC, which was the best-performing Asia-Pacific bank stock in the previous quarter, ranked as the third-worst performer this time with a total return of negative 20.9%, while South Korea’s KakaoBank Corp. recorded a negative 20.8% return.

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