JPMorgan Chase & Co. (JPM)  plans to spend $20 billion over five years to raise pay for some employees, open 400 more branches and increase small-business lending, as the the biggest U.S. bank prepares for an expected windfall from the tax-cut law passed in December.

The New York-based company will increase wages by about 10% on average for about 22,000 employees, according to a statement Tuesday. JPMorgan also will expand its branch network into 15 to 20 new markets and boost small-business lending by $4 billion. 

The company also will increase mortgage-lending in low- and moderate-income communities and accelerate commercial lending to build affordable housing, according to the statement. JPMorgan additionally plans to increase community-based philanthropic investments by 40% to $1.75 billion over the five-year period. 

The announcement comes as the bank looks to pocket an estimated windfall of roughly $4 billion of additional annual profit -- $20 billion over five years -- due to the cut in the U.S. corporate tax rate to 21% from 35%. Last year, competitors Wells Fargo & Co. (WFC) and Bank of America Corp. (BAC) detailed plans to share some of their tax savings with workers. 

JPMorgan CEO Jamie Dimon.
JPMorgan CEO Jamie Dimon.

"Having a healthy, strong company allows us to make these long-term, sustainable investments," CEO Jamie Dimon said in the statement. 

Wages for about 22,000 full- and part-time employees will increase to $15 to $18 an hour, from $12 to $16.50 an hour, according to the statement. Eligible employees will receive an annual award of $750 later this month, and workers making less than $60,000 a year will see their medical-insurance deductibles reduced by $750.

The new branches will employ about 3,000 people, according to the statement.  

JPMorgan earlier this month said net income in 2017 climbed 1% from a year earlier, as revenue increased by 4% to $99.6 billion. Compensation costs rose by 3% to $31 billion, though the average worker's pay stayed flat as headcount grew by 4% to to about 250,000 employees. 

Dimon got a 5% raise in total compensation last year to $29.5 million -- roughly 240 times what the average worker made. 

Jim Cramer and the AAP team hold positions in JPMorgan and Citigroup for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells JPM or C? Learn more now.

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