Pakistani Banks Shine in Asia-Pacific Rankings with Outstanding Stock Performance

In a remarkable achievement for Pakistan’s banking sector, six Pakistani banks have secured spots among the top 15 best-performing bank stocks in the Asia-Pacific (APAC) region, according to a report byS&P Global Market Intelligence. The report, released on Tuesday, highlights that four Pakistan-based lenders, led byUnited Bank Limited (UBL), ranked among the top 10 best performers. UBL emerged as the second-best-performing bank stock in the region, recording a total stock return of 159.7%. With a market capitalization of $1.68 billion, UBL was surpassed only by Indonesia’s PT Bank Artha Graha Internasional Tbk, which delivered returns of 193.2%. In addition to UBL, three other Pakistani banks made it to the top 10: Two morePakistani banks, Allied Bank Limited (ABL) and Habib Metropolitan Bank Limited, secured the 14th and 15th positions with returns of 94.5% and 93.2%, respectively. The rankings were based on Asia-Pacific banks with market capitalizations exceeding $100 million as of December 31, 2024. The report attributes the robust performance of Pakistani bank stocks to the country’s economic recovery in the latter half of 2024. This recovery followed a challenging period marked by a weakening economy, surging inflation, and declining stock prices. The International Monetary Fund (IMF) played a crucial role in stabilizing the economy through a 37-month Extended Fund Facility (EFF) signed in July 2023. “Islamabad’s adoption of tight fiscal and monetary policies under the umbrella of the IMF, alongside timely external payments amid a smooth transition of government, led to a rebound in the local stock market,” said Awais Ashraf, Director of Research at AKD Securities Ltd., as quoted in the report. Pakistan’s stockmarket witnessed a historic rally in 2024. The benchmark KSE-100 Index soared by 85% in PKR terms (87% in USD), closing the year at 115,259 points. Despite this impressive performance, the market remains below its last peak, achieved in 2017. While the report highlights the positive trajectory ofPakistan’s banking sectorand stock market, it also underscores the importance of continued reform implementation for sustained economic recovery and poverty reduction. The World Bank reiterated this sentiment on October 10, 2024. This resurgence in banking stocks and overall economic performance signals a promising future for Pakistan’s financial sector, provided the momentum of reforms and economic stability is maintained. Source:Business Recorder