PBA Congratulates Industry on Historic Performance
The Pakistan Banks’ Association (PBA) extended its heartiest congratulations to the entire banking industry, and specifically to the seven Pakistani banks that have secured positions in the top 15 Asia-Pacific banks in 2025, as ranked by S&P Global Market Intelligence.
This global accolade is not just an institutional victory; it is a win for the common man. With a combined total return of the seven top performing banks alone, the value creation is massive. It directly benefits the small investors holding over 1.5 billion shares at the Pakistan Stock Exchange (PSX), who are the real owners of this success story.
In a statement the CEO and Secretary General of PBA, Muneer Kamal, highlighted that the sheer volume of shares rallying signifies that the benefits of this performance are reaching the grassroots level of the capital market.
United Bank Limited (UBL) leading the industry with the highest market capitalization and continues to balance scale with exceptional returns proving that large-cap stability and agility can go hand in hand.
Public Sector excellence & governance is very much evident in the rankings with historic performance by the public sector banks. The Bank of Punjab topping the entire Asia-Pacific ranking in terms of total percentage return, followed by the National Bank of Pakistan and The Bank of Khyber. This stellar turnout is a testament of good governance and strategic oversight on the part of the Government and the State Bank of Pakistan.
The list also features the epic turn-around of Bank Makramah and emergence of Askari Bank, which have uplifted a massive shareholder base.
In the Islamic banking space, Faysal Bank has set a new benchmark of returns, reinforcing the strength of the Shariah-compliant model.
“It is a rarity that banks create such board-based shareholder value” Mr. Muneer Kamal noted. “Even more remarkable is the fact that this is achieved alongside creating real impact and fueling the real economy.”
Citing the latest industry data, the PBA highlighted that banks are actively deploying liquidity to support economic recovery. In FY25, private sector credit grew by Rs. 1.1 trillion, a massive increase compared to Rs 470 billion in FY24, reflecting a strong uptick in both working capital and fixed investment loans.
This growth is inclusive, with the sector achieving a 57% surge in the SME borrower base and amount to SMEs doubling in two years. Simultaneously, the agriculture sector saw a historic rebound, with the borrower base growing from 2.7 million to nearly 3 million, which was on a sliding slope since 2019, and disbursements reaching a record PKR 2.58 trillion. PBA emphasized that this success is powered by cutting-edge digital solutions like ‘Zarkhez-e’.
While the banking sector has shown this robust performance, certain sections of the media have unfortunately misreported the factual position regarding credit flows in the first half of FY26. Contrary to claims of a decline of 79% in Private Sector Credit, the sector credit expanded by Rs 654 billion in the same period (until December). The decline of 79% is based on misreported number of Rs. 395 billion growth in credit in FY26 while comparing last year’s flows. The total private sector loan book actually grew by 6.75% in FY26 (Jul-Dec). This support to Private Sector Credit, particularly Priority Sector Lending persisted despite intense fiscal crowding out, as banks financed a massive Rs 1.95 trillion government borrowing, proving that the sector remains the primary engine of economic support.
Moving forward, PBA vowed to remain focused to continue value-addition for the people of Pakistan. The overarching goal remains twofold: continuing to reward the small investors, holding these billions of shares, and expanding financial inclusion to ensure that the economic benefits reach every corner of the nation.
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