JPMorgan Chase to Open 70 New Branches in Washington DC

Investment firm JPMorgan Chase & Co. is opening its first consumer banking branches in Washington, DC, as part of its effort to place brick-and-mortar establishments in 15 to 20 new US markets over the next half-decade.   

JPMorgan Chase chairman and chief executive Jamie Dimon stated that they will be expanding the 

company’s network in DC area by adding 70 new branches, which will help create about 700 jobs.

He added that they were excited to now widen their consumer branch in the region they have been doing business since 1999.

Dimon will be making the formal announcement of the plan on Thursday in DC.

Shares of JPMorgan was up by 1.2 percent to $110.71 on Thursday, following the announcement.

JPMorgan Expanding its Presence in DC

JPMorgan already has a presence in DC through its wealth management division JPMorgan Private Bank, but it never has any retail branches there prior the announcement

Despite having no branches in DC yet, America’s largest bank currently has over 2 million customers and more than 70,000 business clients there. JPMorgan at present has 5,130 branches in 23 states.

The move is part of the bank’s $20 billion plan to broaden its reach in 15 to 20 new markets by adding 400 new branches that is likely to employ 3,000 people in the US within the next five years to benefit from growing local economies.

JPMorgan has been trying to obtain permission to set up new branches in Philadelphia and Boston as well, though Greater Washington will be its first.

Out of its 70 planned branches, seven have been officially approved. These include branches in the Columbia Heights, Logan Circle, Georgetown areas, one near McPherson Square Metro station, one in Ward 7, one in Bethesda, and two in Arlington.

The new branches also offer households and businesses lending opportunities in the region.

As part of the expansion, the New York-based group will commit $4 billion in home and business loans in DC, and increase lending by 50 percent to $500 million within the next five years to sustain affordable housing rental for low to moderate income earners in the region.

JPMorgan will also raise charitable investment from $10 million to $25 million to stir overall economic development in the area.

Executives stated that the DC locations would further strengthen the firm’s foothold in the regional 

market and deepen its relationships to communities.

They also said the move was made possible by savings JPMorgan accomplished under the tax bill that was passed late last year, which cut corporate tax rates from 35 percent to 21 percent.

JPMorgan chairman of the Mid-Atlantic region Peter Scher said the tax reform did open several potential investments for them and what they have seen is a more optimistic business environment locally and nationally.

Moreover, recent development over a regional agreement to provide a steady financing means for the area’s Metrorail system has encouraged executives as well.

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