Bank payouts are expected to rise 6.1% to 88.9 billion pounds ($114.8 billion) in 2023, making HSBC the largest dividend payer for the first time since 2008.

Computershare predicts this increase is 2.7 billion pounds more than its April forecast.

The banking sector is benefiting from the interest-rate medicine the Bank of England is administering to cool inflationary fever.

Bank distributions are now the “biggest engine” of payout growth in the UK, a contrast to three years ago when the COVID-19 crisis prevented institutions from paying dividends.