JPMorgan Chase (NYSE: JPM) unveiled a $20-billion investment plan on Tuesday that will increase wages, hire more and open new branches, following sweeping changes to the U.S. tax law.
The bank joined several other U.S. corporations that have already announced investment plans as the new tax law is expected to kick-start economic growth in part by offering new incentives for capital investment.
"Having a healthy, strong company allows us to make these long-term, sustainable investments," JPMorgan Chief Executive Jamie Dimon said in a statement.
"We are excited about further investing in our outstanding workforce and expanding into new U.S. markets."
The largest U.S. bank by assets said it would increase wages for 22,000 employees by an average of 10%, ranging from between $15 and $18 per hour, hire 4,000 employees and open up to 400 Chase branches in new cities.
Later this month, eligible employees will receive an annual award of $750, which was communicated in December 2017.
JPMorgan will also increase small business lending by $4 billion and increase loans to customers seeking affordable homes by 25% to $50 billion.
For its employees, 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% of the medical plan for these employees.
Analysts expect JPMorgan to save about $4 billion a year on taxes because of the new federal tax law.
JPMorgan shares took on 12 cents to $114.45
