In a positive development for the country’s banking sector, Pakistani banks outshined their regional partners securing six spots in the top 15 of Asia-Pacific (APAC) lenders with the best-performing stocks, according to S&P Global Market Intelligence.

Four Pakistan-based lenders, led by United Bank Ltd., made it into the top 10, showed the S&P Global Market Intelligence data released on Tuesday.

“United Bank, which has a market capitalization of $1.68 billion, recorded a total stock return of 159.7% to place second in a ranking of the region’s best-performing bank stocks,” read the report.

UBL was second only to Indonesia’s PT Bank Artha Graha Internasional Tbk, which has a market cap of $270 million and made total returns of 193.2% in the year, the data showed.

Apart from UBL, three other Pakistani banks in the top ten were the National Bank of Pakistan (NBP), offering a return of 108.4%, Bank Alfalah Limited (107.1%) and Bank of Punjab (98.4%).

Meanwhile, Allied Bank Limited (ABL) and Habib Metropolitan Bank Limited ranked 14th and 15th, after a return of 94.5% and 93.2%, respectively.

As per S&P Global Market Intelligence, the ranking looked at Asia-Pacific lenders with market caps of more than $100 million as of December 31, 2024.

“Many Pakistani banks recovered from an earlier share price slump that came amid the nation’s weakening economy and surging inflation, among other factors. Pakistan’s economy recovered in the second half of 2024, helped by a funding program by the International Monetary Fund (IMF),” read the report.

In July last year, Pakistan inked a 37-month Extended Fund Facility (EFF) with the Washington-based lender.

Quoting Awais Ashraf, director of research at AKD Securities Ltd., the report stated that “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”.

“Nonetheless, reform implementation remains critical for continued economic recovery and poverty reduction, the World Bank said on October 10, 2024,” the report commented.

Last year, the PSX performed exceptionally well as the benchmark KSE-100 Index jumped 85% in PKR terms (87% in USD), concluding 2024 at 115.259.

However, despite the historic run, the market remains below its last peak, which it clinched in 2017.