JPMorgan Bets on Branches in Digital Age: A Smart Growth Move?

JPMorgan JPM, the largest U.S. bank, is doubling down on physical expansion to strengthen its competitive edge in relationship banking. With 4,975 branches as of March 31, 2025, more than any other U.S. bank and presence in all 48 contiguous states, the bank continues to invest in brick-and-mortar despite the digital shift.

In May, JPM announced the addition of 14 new JPMorgan Financial Centers across key affluent markets, including California, Florida, Massachusetts and New York. Many of these locations were acquired from First Republic Bank. The bank now operates 16 such centers and plans to double that number by 2026. This underscores its ambition to serve high-net-worth clients through a premium, advisory-driven model.

Complementing this expansion, JPMorgan also operates 14 remote offices across the United States, providing virtual support through dedicated Relationship Managers to meet the needs of affluent clients who prefer digital engagement.

The strategy reflects a hybrid approach: blending digital convenience with in-person expertise. In 2024 alone, JPMorgan opened more than 150 new branches and remains on track to add 500 more by 2027. 

These efforts are part of JPMorgan’s broader strategy to deepen customer relationships and unlock cross-selling opportunities across mortgages, auto loans, investment products and credit cards. This continued investment signals confidence in the long-term value of in-person banking to drive customer loyalty, increase share of wallet and generate sustainable revenue growth.

Similar Steps Taken by JPM’s Competitors

JPMorgan is not the only bank that is expanding its physical footprint. Bank of America BAC and PNC Financial PNC are among other large lenders pursuing meaningful branch expansion. 

Bank of America is expanding its 3,651-location financial center network to strengthen customer relationships and reach new markets. Despite 90% of interactions being digital, the company plans to open 40 new centers this year and 110 more by 2027. Since 2016, Bank of America has invested more than $5 billion to add 471 financial centers and renovate more than 3,000 locations, with 500 more renovations planned through 2026.

In a strategic move to strengthen its presence, PNC Financial is set to expand its 2,299-branch network across the country. The company announced plans to invest $1.5 billion in opening more than 200 branches across 12 cities, including Austin, Dallas, Denver, Houston, Miami and San Antonio, and renovate 1,400 existing locations by 2030. With the addition of these branches, PNC Financial will solidify its position as one of the largest retail banks in the country.

JPM’s Price Performance, Valuation and Estimates

JPMorgan shares have risen 10.3% this year. In contrast, Bank of America rose 1%, and PNC Financial was down 9.3% in the same time frame.

YTD Price Performance
 

From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.80X, slightly below the industry average. 

P/TB Ratio
 

Moreover, the Zacks Consensus Estimate for JPMorgan’s 2025 earnings imply a decline of 7% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 5.2%. In the past week, earnings estimates for 2025 and 2026 have moved marginally upward.

Earnings Estimates
 

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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