JPMorgan Bets on Branches: How Will This Translate to Revenue Growth?

JPMorgan JPM is leaning into an old-school growth lever in a digital era: physical distribution. The bank plans to open more than 160 new branches across more than 30 U.S. states in 2026, paired with renovations of hundreds of existing locations and roughly 1,100 new hires. This is part of the company’s broader branch expansion plan announced in 2024 to open more than 500 branches by 2027. 

JPM’s strategy is to expand wallet share in markets where its presence is underpenetrated. New branches are expected to be front doors for acquiring primary checking relationships and retail deposits, the funding base that drives balance sheet growth and recurring net interest income (NII) over time. Additionally, the bank’s goal is to lift its share of U.S. retail deposits, underscoring how branch density can translate into durable funding advantages.

JPMorgan’s branches also serve as distribution for higher-fee products. In-person interactions can accelerate adoption of credit cards, mortgages, small-business services and wealth offerings, including J.P. Morgan-branded financial centers (21 already operating and 10 to be opened this year) aimed at mass-affluent customers. This cross-sell potential is beneficial as it helps the company to diversify revenue beyond NII and keep customer churn low.

JPMorgan’s footprint expansion targets fast-growing regions and communities where peers have pulled back, allowing the bank to seed relationships early and scale over time. If executed well, each new site can evolve from acquisition outpost to full-service advisory hub. More branches in new neighborhoods can compound into more deposits, more product adoption and a wider revenue base — the building blocks of sustained top-line growth.

What JPM’s Peers are Doing to Expand Cross-Sell Opportunities

The two closest peers of JPM are Bank of America BAC and Citigroup C. 

Bank of America’s new BofA Rewards ties loyalty to checking, turning basic accounts into a cross-sell gateway. By incentivizing direct deposit and bill pay, Bank of America intends to deepen primary-bank relationships, boost card adoption and spend, nudge asset consolidation across BofA/Merrill and pull more loan activity, lifting fees, payments and NII.

Citigroup is widening cross-sell by combining its U.S. retail bank with wealth, aligning Citigold and mass-market clients in one pipeline. Citigroup is also uplifting U.S. consumer cards as a core unit, helping bankers bundle deposits, cards, lending and advice through a centralized client organization across digital channels.

JPMorgan’s Price Performance, Valuation and Estimates

JPMorgan’s shares have gained 16.6% over the past six months.

From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.04X, below the industry average.

The Zacks Consensus Estimate for JPMorgan’s 2026 earnings indicates a 5.5% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 7.6%. In the past week, earnings estimates for 2026 and 2027 have moved upward.

JPM currently 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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This article originally published on Zacks Investment Research (zacks.com).

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