JPMorgan hikes pay by 10%, opening hundreds of more branches on tax reform

JPMorgan Chase (NYSE:JPM) will invest $20 billion in the U.S. economy, with this new investment that will further accelerate the company’s growth made possible by the company’s performance as well as tax reform and what the firm calls “a more constructive regulatory and business environment.”

Through this investment, the firm will develop hundreds of new branches in the U.S., increase wages and benefits for hourly U.S. employees, make increased small business and mortgage lending commitments, add 4,000 jobs and increase philanthropic investments.

Highlights of this increased investment include, wages rising by 10% on average for 22,000 employees, expand its branch network into new U.S. markets, increase lending to small businesses by $4 billion and boost community based philanthropic investments by 40% to $1.75 billion over five years.

For hourly employees, wages will be raised from between $12 per hour and $16.50 per hour to between $15 per hour and $18 per hour in more than 100 cities, depending on the local cost of living. This change will be effective Feb. 25. In December, the company noted that certain employees would receive a $750 annual award. The company is also helping employees ease the burden of out-of-pocket medical expenses by reducing medical plan deductibles by $750 per year for employees making less than $60,000.

JPMorgan joins the list of dozens of companies that have announced employee wage increases and/or bonuses on the back of tax reform.

Jamie Dimon previously told FOX Business’ Maria Bartiromo that “a competitive tax system, smarter regulation will help create jobs.”

The bank also noted that it will be increasing the firm’s lending commitment to expand homeownership in low and moderate-income communities by 25% to $50 billion over the next five years, and will offer more home ownership grants among other items to boost home lending.

As previously reported by FOX Business, the company’s chief executive, Jamie Dimon, had mentioned during the company’s earnings call how increasing mortgage lending could boost the U.S. economy, with JPMorgan’s CFO Marianne Lake adding that its impact on growth would be “pretty immediate.”

“We are not [talking] about going back to subprime, but loosening credit to some people,” Dimon said during the Q&A session of JPMorgan’s fourth quarter earnings conference.