Today, JPMorgan Chase announced it is investing $20 billion over five years to help its employees and support job and local economic growth in the United States.
The long-term investment aimed at increasing and accelerating the company’s current growth comes on the heels of the Trump administration’s recently enacted Tax Cuts and Jobs Act, and is made possible by the firm’s strong and sustained business performance and a more constructive regulatory and business environment, the company said in a press release.
According to JPMorgan, the $20 billion investment will focus on the following:
- Investing in employees with further increases to wages and benefits. Wages will increase 10% on average – ranging from between $15 and $18 per hour – for 22,000 employees.
- Expanding the branch network into new U.S. markets, leading to increased small business lending and philanthropic investments, and further support for local low-and moderate- income communities.
- Increasing community-based philanthropic investments by 40% to $1.75 billion over five years.
- Increasing small business lending by $4 billion.
- Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communities and (b) accelerating commercial lending to build affordable housing.
For the second time in two years, the firm is increasing and accelerating hourly wages for many of its employees.
Effective Feb. 25, JPMorgan Chase will raise wages from between $12 per hour and $16.50 per hour to between $15 per hour and $18 per hour in more than 100 cities, depending on the cost of living expenses in those cities.
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” said Jamie Dimon, JPMorgan Chase chairman and CEO.
“We are excited about further investing in our outstanding workforce and expanding into new U.S. markets. When we enter a community, we enter it with the full force of JPMorgan Chase behind it. We hire people. We lend to and support local businesses. We help customers with banking, lending and saving. And we align our business and philanthropic efforts to help more communities benefit from a growing economy. This company has made a significant economic impact in all of the communities we operate in, and we are excited to become an even more relevant part of many others,” he said.
What are they doing about housing and lending?
The company said it is increasing the firm’s lending commitment to expand homeownership in low-and moderate-income communities by 25%to $50 billion total over the next five years.
The bank said it intends on hiring 500 new home lending advisors and increase homeownership grants by almost 70%, from $1,500 to $2,500 for customers in low-and-moderate income communities. JPMorgan also announced it is expanding its homeownership grant program from 40 markets to be available throughout the U.S.
The bank also announced a commitment to preserving affordable rental housing in distressed communities by nearly 20% by lending a total of $7 billion over five years through commercial and nonprofit housing partners, the company said.
The bank said it intends to expand its branch network into new U.S. markets and open up to 400 new branches over the next five years, employing about 3,000 people.
“The heart of our company is our retail branches,” said Gordon Smith, CEO of Chase's consumer and community banking. “We are a leader in 23 states, but aren’t yet in major markets like Washington D.C., Boston, Philadelphia, and many others. Now that we are planning to expand into new markets, we will hire thousands of new employees and help consumers and small businesses in these areas.”