J.P. Morgan will pare back its branch expansion strategy across the U.S., concentrating on locations in a few key states, bank officials said yesterday.
Todd Maclin, the firm's head of consumer and business banking who has been in his position for nearly a year, said at the firm's annual investor day that the bank will build 900 branches in 2012 instead of the up to 2,000 his predecessor had pushed for.
The scaled-back strategy, which Chief Executive Jamie Dimon laid out in an earnings call late last year, is being implemented as costs increase due to regulations and the longer amount of time it takes for a branch to reach profitability, Maclin said.
Still, the bank intends to keep expanding in California, Florida and Atlanta, Ga.
"We would acknowledge with everyone else out there that it is entirely possible they will go away some day, and, if they do, we will make a lot more money," Maclin said. "But until they do, we are not going to let others take our locations."
Separately, the firm's investment banking division broke out specific numbers of the unit's personnel makeup. One interesting bit: there are 1,500 more control and risk professionals than traders.
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(Source: CBS Moneywatch)