Business General News

JPMorgan Chase announces plans to open branches in four new cities

In its earnings announcement made on Friday, October 12th, JPMorgan Chase’s Jamie Dimon went on to promise “hundreds of new branches” in various new markets.

Also according to regulatory filings, it showed that the company will be aggressively targeting four new cities namely Raleigh, Kansas City, Nashville, and Minneapolis, where the company currently does not have a presence.

“We (JPM) have already previously paved our way into Philadelphia, Boston, and Washington, D.C. as part of our aggressive branch expansion project plan which will help the company to compete with the other large consumer retail banks: Wells Fargo (WFC) and Bank of America (BAC),” according to Jamie Dimon.

According to filings by one of the primary bank regulators, namely the office of the Comptroller of the Currency, it made an announcement stating that the company has planned to launch a branch in Minneapolis and another in St. Paul.

By further expanding its reach into the Minneapolis area, it would mean JPMorgan Chase and U.S. Bancorp (USB), which is headquartered in the region also known as one of the ten largest U.S. banks would be in direct competition.

JPMorgan Chase applications for a branch in Kansas City, along the road that divides the Kansas and Missouri sections of the city, along with opening one branch in the eastern side of Nashville, was also filed by JPMorgan Chase.

Also as per reports, JPMorgan Chase has future plans of opening a branch in Chapel Hill and one in North Carolina’s Research Triangle.

According to Dimon, he claims that the company could make investments mostly due to the changes in corporate taxes and regulatory policy.

In an earnings release, JPMorgan Chase said, “On each occasion that we launch branches in a new market, we introduce the entire force of JPMorgan Chase to that community.”

Given that the company witnessed a partly higher core loan growth of 6% year-on-year, JPMorgan Chase reportedly showed earnings that were better than the forecasts for the third quarter of 2018. However, the company also experienced a 7% year-over-year increase in non-interest expenses, which according to JPMorgan Chase, came from investments like the branch expansion.