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Why Bank Valuation Starts—and Often Ends—with Dividends
BankingCashflow

Why Bank Valuation Starts—and Often Ends—with Dividends

by Michael LanaNovember 14, 2025January 1, 2026

Question:For banks, is dividends the only practical way to estimate or value future cash flows? Answer:For bank equity, yes – in theory the value is the present value of all future distributions to shareholders –…

How to Value Banks With No Dividends: The PNLF.IDX Problem Explained
Banking

How to Value Banks With No Dividends: The PNLF.IDX Problem Explained

by Michael LanaNovember 14, 2025January 1, 2026

Question: I noticed that when the dividend payout ratio is 0%, the formula breaks—what should I do? And could you also look at PNLF? The bank never pays dividends and just parks the capital, which…

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