JPMorgan Chase & Co. plans to spend $20 billion over five years to raise pay for some employees, open 400 more branches and increase small-business lending, as the the biggest U.S. bank prepares for an expected windfall from the tax-cut law passed in December.
The New York-based company will increase wages by about 10% on average for about 22,000 employees, according to a statement Tuesday. JPMorgan also will expand its branch network into 15 to 20 new markets and boost small-business lending by $4 billion.
The company also will increase mortgage-lending in low- and moderate-income communities and accelerate commercial lending to build affordable housing, according to the statement. JPMorgan additionally plans to increase community-based philanthropic investments by 40% to $1.75 billion over the five-year period.
The announcement comes as the bank looks to pocket an estimated windfall of roughly $4 billion of additional annual profit -- $20 billion over five years -- due to the cut in the U.S. corporate tax rate to 21% from 35%. Last year, competitors Wells Fargo & Co. and Bank of America Corp. detailed plans to share some of their tax savings with workers.
"Having a healthy, strong company allows us to make these long-term, sustainable investments," CEO Jamie Dimon said in the statement.
Wages for about 22,000 full- and part-time employees will increase to $15 to $18 an hour, from $12 to $16.50 an hour, according to the statement. Eligible employees will receive an annual award of $750 later this month, and workers making less than $60,000 a year will see their medical-insurance deductibles reduced by $750.
The new branches will employ about 3,000 people, according to the statement.
JPMorgan earlier this month said net income in 2017 climbed 1% from a year earlier, as revenue increased by 4% to $99.6 billion. Compensation costs rose by 3% to $31 billion, though the average worker's pay stayed flat as headcount grew by 4% to to about 250,000 employees.
Dimon got a 5% raise in total compensation last year to $29.5 million -- roughly 240 times what the average worker made.
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