Chase Exec: “Branches are Good Investments”

May 15, 2012 at 2:02 pm

Re-posting today from Bank Talk about the benefits of bank branches:

JP Morgan Chase’s annual report makes a persuasive argument for the profitability of bank branches.

“Branches are good investments,” says Todd Maclin, CEO for Consumer & Business Banking.

Todd Maclin: “Branches are Good Investments”

“Most break even within three years and contribute $1 million in pretax earnings after 10 years.”

Maclin offers a number of data points to support his opinion:

      • Branches bring in about 20 percent of US retail assets.
      • Forty-five percent of Chase-branded credit cards are sold through branches.
      • About 50 percent of retail mortgages are originated in branches.
      • In Treasury & Securities Services, about thirty percent of commercial dollars are deposited in branches.

This comes at a time when many banks are closing branches. Currently-large but lately shrinking Bank of America just announced that they are going to close eight branches in North Carolina. I understand that banks often close branches that are not profitable, but one of those branches is in downtown Chapel Hill!

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