Pakistani banks dominated Asia-Pacific’s best-performing banking stocks in the third quarter, according to new data from S&P Global Market Intelligence, as a rally in the country’s equities market lifted returns well above regional peers.
The Bank of Punjab topped the list of publicly traded Asia-Pacific banks with a market capitalization above $100 million, delivering the highest total return in the region for the quarter, S&P said.
The Bank of Khyber followed in second place, posting a total return of 108.2%. Other Pakistani lenders making the top 15 included National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd.
The surge in Pakistani bank stocks comes as the country’s benchmark KSE-100 Index extended gains for a fifth straight month, buoyed by improved investor sentiment after the resolution of a military standoff with India in May. Diplomatic overtures to the US, including meetings between Pakistani leaders and then-President Donald Trump, also helped fuel optimism. The KSE-100 advanced 11% in July and 11.4% in September, S&P data show.
Indonesian and Vietnamese banks also featured prominently among the region’s top performers. PT Allo Bank Indonesia Tbk ranked third with a total return of 89.2%, while three Vietnamese banks, including Vietnam Prosperity Joint Stock Commercial Bank, which has the largest market cap among the top 15 at $9.34 billion, also made the list.
On the other end of the spectrum, Chinese and Indian banks dominated the region’s worst performers. Seven of the 15 worst-performing Asia-Pacific bank stocks were mid-tier Chinese lenders, led by Bank of Jiujiang Co. Ltd., which posted a negative total return of 18.2% for the quarter. Other Chinese banks on the list 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.
Five Indian banks also ranked among the worst performers: Aavas Financiers Ltd., Dhanlaxmi Bank Ltd., IndusInd Bank Ltd., Equitas Small Finance Bank Ltd., and Bajaj Holdings & Investment Ltd.
Indonesia’s PT Bank Nationalnobu Tbk was the region’s single worst-performing bank stock, with a total return of negative 31.9% in the third quarter. Bangladesh’s Midland Bank PLC, which led the region in the previous quarter, fell to third-worst with a negative return of 20.9%. South Korea’s KakaoBank Corp. was close behind, with a negative return of 20.8%.
