JPMorgan (JPM) to Open 90 Branches in 2019, Hire New Staff
As part of its broader plan to expand into new
markets, JPMorgan JPM expects to open 90 new
branches by this year end. Additionally, the bank intends to hire
roughly 700 employees to manage these branches.
Starting this summer, several branches will be opened in some of
the top markets in the country – Charlotte and Raleigh, NC;
Greenville, SC; Kansas City, KS; Minneapolis, MN; Nashville, TN;
Pittsburgh, PA; Providence, RI; and St. Louis, MI.Also, JPMorgan
intends to add new branches in locations that are near large
universities including Alabama and Nebraska, with plans for broader
expansionin these states next year.
Moreover, JPMorgan will continue opening dozens of new branches in
Greater Washington, DC, Philadelphia and Boston, as announced last
year. Further, nearly 30% of the company’s new branches (up from
prior expectation of 20%) will be located in low-to-moderate income
communities.
In January 2018, the company had announced its initiative to expand
into 15-20 new markets, open 400 new branches and hire nearly 3,000
employees by 2022. This expansion strategy will enable JPMorgan to
provide retail and business banking services to markets where it
already serves clients through its Investment Bank, Commercial Bank
and Private Bank operations.
JPMorgan plans to open both branch models — traditional branch and
“Everyday Express†branch – to better serve its customers.
Customers will have access to cardless ATMs too.
Our Viewpoint
JPMorgan will be facing fierce competition in all the states where
it plans to open new branches. In majority of the cities mentioned
above, the company is expected to faces tough competition from Bank
of America BAC, Wells Fargo WFC and BB&T BBT, among
others.
At the time when demand for digital offerings is on the rise,
opening of brick and mortar retail branches is a bit surprising.
Nonetheless, the company has been shuttering less profitable
branches as well. As of Dec 31, 2018, the bank had 5,036 branches,
a decline of 2% from 2017-level.
After a disastrous price performance in 2018, the stock has rallied
7% so far this year compared with the industry’s rise of
13.1%.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy)
stocks here.
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