- REUTERS/Dylan Martinez
- JPMorgan announced a new $20 billion, five-year investment in its US operations Tuesday.
- As part of the plan, the bank will raise wages for 22,000 branch and customer-service employees to between $15 and $18 an hour.
- The bank also says it will open 400 new branches and hire 4,000 new employees.
JPMorgan Chase on Tuesday announced plans to give pay raises to 22,000 US employees who work in its branches and customer-service centers as part of a $20 billion investment in the business that the firm said was connected to its tax windfall.
These employees will see hourly wages increase to between $15 and $18, up from $12 to $16.50, the company said in a statement. The pay bump, which varies depending on the cost of living, is set to take effect in more than 100 US cities on February 25.
As part of the $20 billion, five-year investment, JPMorgan says it will also open 400 new branches, hire 4,000 new employees, increase lending efforts, and ramp up philanthropic giving.
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” CEO Jamie Dimon said in a statement. “We are excited about further investing in our outstanding workforce and expanding into new US 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.”
Here are other key details from the $20 billion investment plan, from the statement:
- “Expanding the branch network into new US 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.”
The bank said the new investments were “made possible by the firm’s strong and sustained business performance, recent changes to the US corporate tax system and a more constructive regulatory and business environment.”
Dimon hinted at the forthcoming investments earlier this month when the bank released its fourth-quarter earnings report, saying: “We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments.”