Bank plans wage hikes and new branches after tax reform
A global financial services firm with a number of West Michigan locations has announced it will invest $20 billion into raising wages, opening bank branches, hiring workers and more.
New York-based JPMorgan Chase & Co. said yesterday it will invest $20 billion in its workforce, new branches, small business lending, affordable housing lending and philanthropy over a five-year period.
JPMorgan Chase said the moves are intended to “help its employees and support job and local economic growth in the United States.”
The company did not immediately disclose all West Michigan-related details of the plan’s components.
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” said Jamie Dimon, chair and CEO, JPMorgan Chase & Co.
“We are excited about further investing in our outstanding workforce and expanding into new U.S. markets.”
The company said it is making the changes due to “strong and sustained business performance,” the U.S. corporate tax cuts and “a more constructive” regulatory and business environment.
The $20-billion investment includes, but is not limited to, the following areas:
- Increasing wages by 10 percent, to between $15 and $18 an hour for 22,000 hourly employees, depending on cost of living, effective Feb. 25. In the Grand Rapids market, 27 percent of the company’s workforce will see hourly wage increases from $12 per hour to $15 per hour.
- Opening as many as 400 new Chase Bank branches in cities and states where the company does not already have a presence
- Hiring 4,000 employees in new U.S. markets
- Increasing small business lending by $4 billion
- Increasing loans to customers seeking affordable homes by 25 percent, or $50 billion
- Expanding philanthropic investments by 40 percent, or $1.75 billion
JPMorgan Chase & Co.
Founded in 1799, JPMorgan Chase & Co. (NYSE: JPM) is a global financial services firm with assets of $2.5 trillion.
The firm encompasses investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.
The Grand Rapids market consists of 27 branches, 265 employees in branches, business banking, commercial banking, private wealth banking and treasury services, 339,800 consumer clients and 24,400 business clients.