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The bank is a business, just like any other publicly traded business. If the share dividends cant compete with the others then the shareholders will go elsewhere. Shrug.....

actually looking at the share price it didnt seem that out of line, i invest in order to make money and keep up with inflation so in my golden years i wont have to rely on the tax payers charity to support myself

I can't tell if the OP is asking a question about why the banks do it, offering an explanation to would be askers of the said question, or complaining about it.  
 
That being said, I hold shares and take dividends in several major Canadian banks to the point at which I benefit considerably more than the cost to hold an account at the banks.  
 
You used to be able to make a good interest within a savings account at a bank, but that is a thing of the past and owning several of the bank shares, for me at least, makes WAY more cents (and sense).  
 
Edited by aarman4, 2015-12-01 11:02:01

The reason banks are making record profits has a lot to due with the fact that Canadians have record debt.  
Banks only make money off of you if you let them by borrowing or using their services.  
If you were to use a bank to hold your money withdrew and paid cash instead they wouldn't make very much, but everyone wants a new car, a house that they couldn't afford (unless intrest rates were at record low)& be able to use their debit card and credit card everywhere.  
Blaming banks for consumers bad habits is like blaming Mcdonalds for your fat kids...  
 
Edited by Crash, 2015-12-01 11:59:48

well said...I read just a few days ago at the staggering millions that banks had made last year due to overdraft fees. So why are banks making so much money, you ask? Because a lot of people are dumb enough to live beyond their means. My stomach is ill at just the thought of the bank receiving any money from my account due to my own mismanagement. I think my bank has a $50.00 overdraft fee. Yikes! Don't pay the bank, let the bank pay you!!!!

Dave Geo said "http://www.msn.com/en-ca/money/topstories/bmo-boosts-dividend-as-quarterly-profit-rises-14-per-cent/ar-AAfSw9C?li=AA54rW   Bank of Montreal reported that its profit in the fourth quarter rose to $1.2-billion, up 14 per cent over last year.     After making some adjustments, the bank’s quarterly profit was $1.90 a share, up 17 per cent and easily beating analysts’ expectation of $1.70.     The lender increased its quarterly dividend by 2 cents a share, to 84 cents.     For the full fiscal year, profit rose to $4.4-billion, up 2 per cent.     "

What the banks earn and what the shareholder gets are 2 different things. Most banks share price has lagged in the last year so it is nice to earn a dividend around %4. There is risk involve and anyone can own part of a bank. I own TD and RY and they have a large US and world position. Insurance is becoming larger. More is being done on line all the time. There is going to be less and less actual buildings. Banks have gone thru tough times and those dividends were real important.

The country’s big banks are increasing fees on a range of accounts and transaction types, moves that will help pad the hundreds of millions in annual revenue each bank generates from such charges. They are laying off large numbers of staff and yet their profits soar in the billions. I think it is time the Monopoly of banks and high paid CEOs need more control. Some of you as investors may prosper from this but it is the working poor just keep paying the huge charges just to maintain normal life.

That is why you should invest in the stocks of big banks, but use your local credit union for your day to day needs. The big banks do an excellent job for their shareholders - that is who they work for. Credit Unions work for their members. I'm not slamming the big banks, just pointing out the difference.

withallduerespect said "That is why you should invest in the stocks of big banks, but use your local credit union for your day to day needs. The big banks do an excellent job for their shareholders - that is who they work for. Credit Unions work for their members. I'm not slamming the big banks, just pointing out the difference. "

Credit unions charge too. There are a lot of options out there. Was a member in a town which also had a Royal Bank. Got a trading acount about the time MTS. went pulic. Have served my needs so why change. Warren Buffet says put everything in one basket and keep a good eye on the basket. Have a good one.

Dave Geo said "The country’s big banks are increasing fees on a range of accounts and transaction types, moves that will help pad the hundreds of millions in annual revenue each bank generates from such charges. They are laying off large numbers of staff and yet their profits soar in the billions. I think it is time the Monopoly of banks and high paid CEOs need more control. Some of you as investors may prosper from this but it is the working poor just keep paying the huge charges just to maintain normal life. "

I'm sorry, but I take issue with this comment.  
 
I don't remember the last time somebody held a gun to my head and forced me to use a bank. I've used banks to my advantage, and to my disadvantage in the past. The choice has always been mine.  
 
I hope that the bank you use has record profits every year, so if massive mortgage defaulting occurs, or a bank run, or war, then there will be plenty of cash on hand for them to survive and keep YOUR money safe.  
 
I still keep some of my hard cash in a safe, and invest other lazy money into the ownership of companies such as banks that pay me to own them(as they should, why would I be an ownership partner in a company and not make money???)  
 
As an owner, I'm at higher risk than you if the banks should ever fail, and I sacrifice other aspects of my life for the right to risk my money and reap my rewards.

You miss my point entirely. I am not concerned if you are rich and have money to invest. I am concerned about the poorer working individual who has been bent over by the banks with all the fees and charges etc. I feel if you have that much money to invest you have all your bank fees waived. So when is it going to stop that the banks are more concerned about the share holders excessive profits and overpaid CEOS. Our kids are entering with too much debt as it is and all the banks are doing is getting them in deeper....  

Banks aren't charities, their purpose is to make money. If they are generating good returns for their shareholders, then they are doing a good job. Share holders are the owners, that is who the banks are trying to please.  
 
There are no-fee banking options for those that want it.

Dave Geo said "You miss my point entirely. I am not concerned if you are rich and have money to invest. I am concerned about the poorer working individual who has been bent over by the banks with all the fees and charges etc. I feel if you have that much money to invest you have all your bank fees waived. So when is it going to stop that the banks are more concerned about the share holders excessive profits and overpaid CEOS. Our kids are entering with too much debt as it is and all the banks are doing is getting them in deeper....   "

I feel I completely got your point. People who do not have very much money to go around feel the pain of fees and charges much more than people who have extra. I understand this through experience, not just theoretically.  
 
Tell me Dave Geo, about the fees and charges that you are forced to pay?  
 
I would leave my bank, and take my business elsewhere tomorrow if it forced me to pay charges and fees unnecessarily.  
 
I want to know more about how a company I might own is actually "bending over" the power working people. I have a very large conscience, and won't own companies that bully customers.