Pakistan-based lenders dominated a ranking of Asia-Pacific banks with the best-performing stocks in total return during the third quarter, helped by gains in the equities market.
The Bank of Punjab was the best performer among a sample of publicly traded banks headquartered in the Asia-Pacific region with a market capitalization greater than $100 million, according to an S&P Global Market Intelligence analysis. The Lahore-based lender, which had a market cap of about $320 million as of Sept. 30, generated a total return of 176.4% during the third quarter.
Peshawar-based The Bank of Khyber ranked second, with a total return of 108.2%. The other Pakistan-headquartered banks that made it to the list of 15 top performers by total return were National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd. and Habib Bank Ltd.
Pakistan’s benchmark KSE-100 stock index has gained in the past five months as investor sentiment improved following the resolution of a military conflict with India in May. The South Asian country’s diplomatic closeness with the US, including multiple meetings between key Pakistani leaders with President Donald Trump, also helped boost sentiment. The benchmark index advanced 11.0% in July and 11.4% in September, according to Market Intelligence data.
Multiple Indonesia-based lenders also featured in the ranking. PT Allo Bank Indonesia Tbk took the third spot, with a total return of 89.2% during the third quarter. PT Bank Mayapada Internasional Tbk, PT Bank Neo Commerce Tbk and PT Bank Ganesha Tbk were the other Indonesia-based banks that made it to the list.
Also among the top 15 performers were three banks headquartered in Vietnam. Vietnam Prosperity Joint Stock Commercial Bank, with a market capitalization of $9.34 billion as of Sept. 30 — the highest among the top 15 — came in seventh place with a total return of 68.1%. Other Vietnam-based lenders were Fortune Vietnam Joint Stock Commercial Bank and Saigon – Hanoi Commercial Joint Stock Bank.
Vietnam’s benchmark VN-Index gained 37.2% between May and August.
Worst-performing bank stocks
Of the 15 worst-performing Asia-Pacific bank stocks by total return in the third quarter, seven were mid-tier banks based in China, according to Market Intelligence data.
Bank of Jiujiang Co. Ltd., based in the province of Jiangxi, produced a total return of negative 18.2% during the third quarter. Other China-headquartered banks on the list were 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 are still facing margin pressures and weak loan demand, impacting earnings growth.
The list of the 15 worst performers also included five banks based in India, namely 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 worst-performing bank stock in the analysis, with a total return of negative 31.9% in the third quarter.
Bangladesh-based Midland Bank PLC, the best-performing Asia-Pacific bank stock in the second quarter, was the third-worst performer in the third quarter, with a total return of negative 20.9%.
South Korea-based KakaoBank Corp. took the fourth spot, with a total return of negative 20.8%.
source: John Wu and Marissa Ramos