Last year, bank profits soared, resulting in a record $1.7 trillion in shareholder payouts.

• In 2023, around 86% of global listed companies either raised or kept their dividends at the same level, according to Janus Henderson.
• According to a report from British asset manager Janus Henderson, banks recorded high payouts due to the increase in interest rates, which in turn improved their margins.
• The global underlying growth rate for the year was negatively impacted by significant dividend cuts from major corporations including BHP, Petrobras, Rio Tinto, Intel, and AT&T.

In 2023, global dividend payouts to shareholders reached a record $1.66 trillion, as stated in a report by British asset manager Janus Henderson.

The Global Dividend Index report, published on Wednesday, stated that payouts increased by 5% year-on-year on an underlying basis, with the fourth quarter experiencing a 7.2% rise from the previous three months.

The figure takes into account exchange rates, special dividends, and technical factors related to dividend calendars, as well as changes to the index.

The report found that the banking sector accounted for nearly half of the world's total dividend growth, with record payouts resulting from high interest rates increasing lenders' margins.

Major banks such as JPMorgan Chase, Wells Fargo, and Morgan Stanley declared plans to increase their quarterly dividends following the passing of the Federal Reserve's annual stress test, which determines the amount of capital banks can distribute to shareholders.

Janus Henderson's report stated that payouts were fully restored, most notably at, due to lingering post-pandemic catch-up effects.

"Though Chinese banks did not participate in the banking-sector's dividend boom, emerging market banks made a particularly strong contribution to the increase."

According to Janus Henderson, the positive impact from banking dividends was "almost entirely offset by cuts from the mining sector."

The global underlying growth rate for the year was diluted by two percentage points due to large dividend cuts by major companies such as , , , and , despite significant broad-based growth in many parts of the world.

'Key engine of growth'

In 2023, around 86% of global listed companies either raised or kept their dividends at the same level, according to Janus Henderson.

Last year, there were record payouts in 22 countries, including the U.S., France, Germany, Italy, Canada, Mexico, and Indonesia.

On an underlying basis, Europe's payouts increased by 10.4% year-on-year, making it a "key driver of growth."

In 2024, Janus Henderson anticipates that total dividends will reach $1.72 trillion, which represents a 5% increase in underlying growth.

— CNBC's Hugh Son contributed to this report.