JPMorgan Chase unveiled a $20bn investment plan yesterday to increase wages, hire more, open new branches and expand its business as it takes advantage of sweeping changes to the US tax law and improved regulatory environment.

The bank joined several other US corporations that have already announced spending plans as the new tax law is expected to kick-start economic growth in part by offering new incentives for capital investment.

As part of the five-year plan, the largest US bank by assets will increase wages for 22,000 employees by an average of 10 per cent, ranging between $15 and $18 per hour, hire 4,000 employees and open up to 400 Chase branches in new cities. JPMorgan will also increase small business lending by $4 billion and increase loans to customers seeking affordable homes by 25 per cent to $50bn.

Analysts expect JPMorgan to save about $4 billion a year on taxes because of the new federal tax law, but have been worried that banks will quickly “compete away” the savings from the new tax law in a bid to take business from one another. Chief executive Jamie Dimon has acknowledged that some of that will happen, but to varying degrees and at different rates in the bank’s assorted business lines.