Further increasing wages to between $15 and
$18/hour for 22,000 employees
Opening up to 400 new Chase branches in new
cities and states
Hiring 4,000 employees in new U.S. markets and
for home lending, small business growth nationwide
Increasing loans to customers seeking
affordable homes by 25 percent to $50 billion
Expanding philanthropic investments by 40
percent to $1.75 billion
JPMorgan Chase today announced a $20 billion, five-year
comprehensive investment to help its employees, and support job and
local economic growth in the United States. The firm has always
believed that the highest and best use of its capital is to support
employees and local communities and businesses by doing what a bank
is supposed to do: lending and investing.
This long-term investment, which both increases and accelerates
the firm’s current growth, is made possible by the firm’s strong
and sustained business performance, recent changes to the U.S.
corporate tax system and a more constructive regulatory and
business environment.
Through this new investment, the firm will develop hundreds of
new branches in several new U.S. markets, increase wages and
benefits for hourly U.S. employees, make increased small business
and mortgage lending commitments, add 4,000 jobs throughout the
country and increase philanthropic investments.
The investment brings together the best of the firm’s business
and philanthropic efforts to drive inclusive economic growth and
help create opportunity for more Americans.
The $20 billion investment will focus on the following key
areas:
- Investing in employees with further
increases to wages and benefits. Wages will increase 10 percent on
average – ranging from between $15 and $18/hour – for 22,000
employees.
- Expanding the branch network into
new U.S. 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 percent 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.
“Having a healthy, strong company allows us to make these
long-term, sustainable investments,” said Jamie Dimon, Chairman
and CEO, JPMorgan Chase. “We are excited about further
investing in our outstanding workforce and expanding into new U.S.
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. We help customers with banking, lending and
saving. And we align our business and philanthropic efforts to help
more communities benefit from a growing economy. This company has
made a significant economic impact in all of the communities we
operate in, and we are excited to become an even more relevant part
of many others.”
1. Investing in employees with increases to wages and
benefits.
For the second time in two years, the firm is increasing and
accelerating hourly wages for many of its employees. The firm will
raise wages from between $12/hour and $16.50/hour to between
$15/hour and $18/hour in over 100 cities, depending on the local
cost of living, effective February 25. This will benefit 22,000
full-and part-time U.S. hourly employees, notably in branches and
customer service centers, in an effort to attract and retain great
employees.
- Examples: Wages for New York City, San
Francisco, Boston and Jersey City employees will increase to
$18/hour. Wages for Chicago, Detroit and Wilmington, DE employees
will increase wages to $16.50/hour.
- Later this month, eligible employees
will receive an annual award of $750, which was communicated in
December 2017.
- The wage increases and annual award
builds on the $325 million the firm spends annually on employee
training and development.
- The firm’s full benefits package is
valued at on average $12,000 annually per employee in this pay
range. It includes health care coverage and retirement
savings.
The firm will also further enhance and make health care benefits
more affordable.
- To help ease the burden of
out-of-pocket medical expenses, the firm will reduce medical
plan deductibles by $750 per year for employees making less than
$60,000. The firm already subsidizes more than 80 percent of the
medical plan for these employees. Through medical plans offered by
the firm, primary care visits already are exempt from a deductible
and prescription drugs carry a low deductible. Free onsite clinics
are also offered at 28 of the firm’s major U.S. locations.
- In 2017, JPMorgan Chase spent $1.25
billion on medical benefits for employees based in the U.S., where
the medical plan covers almost 300,000 individuals, including
employees and their family members. Plans are designed to encourage
employees to focus on their health and insurance subsidies are
tiered so that higher earners pay more and lower earners pay
less.
2. Expanding the firm’s branch network into new U.S.
markets.
JPMorgan Chase intends to expand its branch network into new
U.S. markets, opening up to 400 new branches over the next five
years. These new branches will directly employ about 3,000
people.
Currently, the firm has 5,130 branches in 23 U.S. states and
intends to expand to 15-20 new markets in several new states over
the next five years. Today, Chase serves 61 million U.S. households
across its Consumer & Community Banking franchise and in 2017
supported over $900 billion in consumer and small business spending
through credit and debit card products. The credit card, home
lending, auto finance, merchant services and business banking
businesses are largely national businesses already. The Consumer
Bank is starting the formal application process for national
expansion.
“The heart of our company is our retail branches,” said
Gordon Smith, CEO of Consumer & Community Banking,
Chase. “We are a leader in 23 states, but aren’t yet in major
markets like Washington D.C., Boston, Philadelphia, and many
others. Now that we are planning to expand into new markets, we
will hire thousands of new employees and help consumers and small
businesses in these areas.”
3. Increasing community investments by 40 percent to
$1.75 billion over five years.
The firm will increase its annual philanthropic investment,
leading to a total investment of $1.75 billion over five years.
Ongoing investments will continue to help drive inclusive economic
growth in local communities.
“Our philanthropy continues to be a strategic investment in
driving inclusive economic growth,” said Peter Scher, Head of
Global Corporate Responsibility, JPMorgan Chase. “We have
established a model to help more people share in the rewards of the
economy, and with this investment we will be able to further scale
meaningful, long-term growth in more communities.”
- The firm’s $150 million investment in
Detroit’s economic recovery continues to make an impact and
establish a model for how to help more people share in the rewards
of a growing economy. Going forward, the firm will continue to
apply this investment model in other cities. For example, the firm
recently announced a $40 million investment in Chicago’s South and
West sides and a $10 million investment in Washington, D.C.’s
underserved neighborhoods.
- The firm also nearly tripled the size
of its Entrepreneurs of Color Fund in Detroit from $6.5 million to
over $18 million and is expanding the Fund to San Francisco and the
South Bronx next month.
Other examples of some new and successful philanthropic
investments in the U.S. include:
- Transforming America’s education and
job training systems through increased investment in skill building
for adults and young people in cities across the U.S. such as
Dallas, Los Angeles, Miami and dozens of others. JPMorgan
Chase is supporting proven and new training strategies and policies
and partnering with community colleges, career technical education
programs, and business to build career pathways to well-paying jobs
in growing fields such as healthcare, advanced manufacturing and
transportation, distribution and logistics.
- Expanding The Fellowship Initiative, an
intensive academic, leadership and professional development program
that contributes to increased education and career opportunities
for young men of color, in Chicago, Dallas, Los Angeles and New
York. This effort helps them build their skills, networks and
ability to access resources.
- The JPMorgan Chase Service Corps is a
three-week, skills-based volunteer program that engages
top-performing employees from around the world who share their
expertise to help nonprofit partners expand their impact in the
community. The Service Corps will be expanded to support more
nonprofits in 2018 including in Chicago, Detroit and the South
Bronx.
4. Increasing small business lending by $4 billion to
help businesses grow.
In addition to incremental small business lending in the new
branches, the firm will hire 500 new bankers dedicated to
supporting local businesses where the firm already has a presence.
These new branches and bankers will help the firm increase small
business lending nearly 20 percent, or $4 billion, over three
years.
“Over 99 percent of American companies are small to mid-sized
businesses and account for over half of the jobs created in the
U.S. This important segment of the economy drives growth and is
critical to the health of our communities,” said Doug Petno,
CEO, Commercial Banking. “Today, we support over 4 million
small and mid-sized business clients, and we will be expanding our
efforts and working even harder to deliver capital and ideas to
support their success.”
- Planning to open offices in Charleston,
SC and Bethesda, MD in 2018 and evaluating several other new
locations across the country.
- Doubling investment in the firm’s Small
Business Forward initiative to $150 million over five years to
provide increased access to technical assistance and capital to
small businesses owned by women, minorities and veterans.
5. Accelerating affordable housing lending.
- Increasing the firm’s lending
commitment to expand homeownership in low-and moderate-income
communities by 25 percent to $50 billion total over the next five
years.
- Hiring 500 new Home Lending
advisors.
- Increasing homeownership grants by
nearly 70 percent from $1,500 to $2,500 for customers in
low-and-moderate income communities. This program reduces the cash
that customers are required to contribute at purchase and can be
used towards closing costs and down payment – two common barriers
to achieving homeownership.
- Expanding the homeownership grant
program from 40 markets to be available nationwide.
- Increasing the firm’s commitment to
preserving affordable rental housing in distressed communities by
nearly 20 percent by lending a total of $7 billion over five years
through commercial and nonprofit housing partners.
Today’s long-term investment builds on the firm’s more than
200-year history of investing in its employees and the communities
and customers it serves.
About JPMorgan Chase & Co.JPMorgan Chase & Co.
(NYSE: JPM) is a leading global financial services firm with assets
of $2.5 trillion and operations worldwide. The Firm is a
leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction
processing, and asset management. A component of the Dow Jones
Industrial Average, JPMorgan Chase & Co. serves millions of
customers in the United States and many of the world's most
prominent corporate, institutional and government clients under its
J.P. Morgan and Chase brands. Information about JPMorgan Chase
& Co. is available at www.jpmorganchase.com.
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Media:For JPMorgan ChaseSteve
O’HalloranSteve.ohalloran@chase.comorTrish
Wexlerpatricia.a.wexler@jpmorgan.comorAndrew
GrayAndrew.s.gray@jpmchase.com
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