JPMorgan Chase, the largest bank in the country, will open 400 branches in 20 new markets across the U.S. in the next five years.
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The bank is making several in-house investments that will amount to roughly $20B, including the expansion of its home lending business and boosting pay for its retail-banking employees. It will also add approximately 3,000 jobs to its roster, the Wall Street Journal reports.
Changes to the tax law have freed up capital for the financial institution. The bank will now have an effective tax rate of between 19% and 20% in the near term, down from 35%. As a result, JPMorgan could see an estimated $3.6B in additional net income in 2018, according to WSJ.
JPMorgan's expansion plans buck the latest trends reverberating throughout the industry. Branch numbers declined by approximately 2,600 in 2017 and by 2027, JLL estimates that number in the U.S. will decrease from 97,000 to 71,000. This trend was attributed to a variety of factors, including the increase in automated branches, bank consolidations and a rise in mobile apps.
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