BAC Cutting Branches, While JPM Keeps Growing

[Stocks-to-Watch]

Bank of America (BAC) continues to cut back on the number of branches in its network, even as competitor JPMorgan Chase (JPM) adds top its branch network, new data from SNL shows.

Last year, JP Morgan surpassed Bank of America for the highest number of branches in the U.S., and the company has continued to add more. In the third quarter, JPM added 62 branches and in the fourth it added 116, and added a net 166 branches in the second half of the year. The majority were in Florida and California. It expects to open 175 in 2012.

“The average branch when it is fully mature makes $1 million, and it’s also critical for credit cards, small business, mortgage and middle market and private banking,” CEO Jamie Dimon told investors at a December presentation.

Bank of America, meanwhile, closed a net 36 branches in the second half of the year, as the company continues to pull back. Still, Bank of America has more than 5,800 branches nationwide.



Original Article Source by Barrons.com