J.P. Morgan Chase, one of the largest banks in the United States, reportedly plans to open more than 500 new bank branches over the next three years.
The move aims to expand the bank’s presence in areas where it lacks representation, Reuters reported Tuesday (Feb. 6).
J.P. Morgan’s expansion comes at a time when some lenders are reducing their presence. The number of active branches in the U.S. saw a net decrease of 43 in October, the report said, citing data from S&P Global Market Intelligence. J.P. Morgan has the largest branch network with 4,897 branches, surpassing its rival Bank of America, which has 3,845 branches.
Bank of America is also adding new bank branches, a reversal from a nationwide decline among American banks.
J.P. Morgan’s decision to expand the branch network is driven by several factors, according to the Tuesday report. The bank has experienced resilient consumers and increased revenue from clients’ interest payments due to the Federal Reserve’s raised borrowing costs. The bank achieved a record annual profit in 2023.
J.P. Morgan believes that its branch network plays a role in attracting customers and deposits, the report said.
Marianne Lake, CEO of consumer and community banking at J.P. Morgan, reaffirmed the bank’s commitment to investing in its branch network, per the report. Lake said that the bank has less than a 5% branch share in 17 of the top 50 markets it aims to expand into. Over the past five years, J.P. Morgan added 650 new branches.
In addition to opening new branches, J.P. Morgan plans to renovate nearly 1,700 of its existing branches across the U.S., according to the report. The bank also intends to hire 3,500 more employees for its branch network. As of December, J.P. Morgan employed 309,926 individuals worldwide, making it the largest employer among its peers.
The bank intends to close 30 branches out of the approximately 60 it acquired during the First Republic Bank takeover last year, the report said. It is also working on transforming over 20 of the First Republic locations into J.P. Morgan branches with distinct branding and design, catering to affluent clients.
J.P. Morgan’s integration of First Republic Bank is progressing according to plan, per the report. First Republic was the largest U.S. lender to fail since 2008.