Zurück
Chase bids for bigger market share with 26 new Bay Area branches in 2011, hiring 235 for the new offices
Chase Bank has embarked on a campaign to increase the number of branches it is opening in the Bay Area, as it attempts pull closer to market leaders Bank of America and Wells Fargo.
During 2010, Chase opened 15 branches in the Bay Area. In 2011, that number is slated to nearly double to 26 new branches. And 2012 should roughly match the 2011 pace.
For consumers, Chase's push means more convenience and banking services closer to where they live or work, bank executives say.
"The Bay Area is a place where we don't have a large footprint," said Don Bausley, branch manager of Chase's San Francisco-Oakland market. "There are tremendous opportunities here."
Prior to its 2008 purchase of failed thrift Washington Mutual, Chase was primarily an East Coast branch with no presence in the western United States.
"Chase is in catch-up mode," said Michael Yoshikami, chief investment strategist with Walnut Creek-based YCMNet Advisors, an investment firm. "They face big competitors, Wells Fargo and Bank of America, that have an established presence" in the Bay Area.
Contra Costa County, Santa Clara County and San Francisco will land the most new Chase branches by the end of 2011, with five more offices in each county, Chase reported.
Alameda County and Sonoma County each will gain four new branches. Solano County will gain two new branches and San Mateo County will add one.
"This will take time for Chase," Yoshikami said.
"They are just starting to enter into this strategy. The Washington Mutual deal was a way to buy market penetration."
"We have some very large gaps in our coverage area," Bausley said. "We want to fill in the gaps."
The 26 new branches also mean 210 to 260 additional jobs, the bank estimated. On average, Chase hires eight to 10 new employees with each branch it opens.
"This is the second year of a 10-year build-out," said Eileen Leveckis, a spokeswoman for Chase Bank.
Chase has a long way to go to become a major player locally, an analysis of statistics compiled by the FDIC shows. It has more than 160 branches in the Bay Area, but that's about 100 fewer than Wells Fargo and Bank of America. And its share of deposits in the region is far lower than those two rivals.
In 2008, Chase jumped into California through its $1.9 billion purchase of WaMu, a bank that was seized by regulators. Washington Mutual's collapse marked the nation's largest banking failure.
Chase is investing more than $1 billion in California by adding more products and services, Leveckis said.
"The Bay Area is very attractive, with customers that have a high net worth," Yoshikami said.
Chase's expansion comes at a time when a big foe in the market, Bank of America, looks to retrench locally.
Bank of America in 2008 had 6,100 branches and now has 5,700 nationwide. Recently, the bank said it would chop 10 percent of its branches. BofA also intends to slash 30,000 jobs.
Analysts believe other banks could cut branches. And banks have been adding automated teller machines that can handle an array of basic functions besides dispensing cash. Customers often use ATMs to deposit checks and cash. Full-service branches could yield to ATM-only outlets.
The Bank of America cutbacks could help Chase fill a vacuum, said Hans Schroeder, portfolio manager with the San Francisco office of Green Street Capital.
www.mercurynews.com/rss/ci_18938500?source=rss
Chase Bank has embarked on a campaign to increase the number of branches it is opening in the Bay Area, as it attempts pull closer to market leaders Bank of America and Wells Fargo.
During 2010, Chase opened 15 branches in the Bay Area. In 2011, that number is slated to nearly double to 26 new branches. And 2012 should roughly match the 2011 pace.
For consumers, Chase's push means more convenience and banking services closer to where they live or work, bank executives say.
"The Bay Area is a place where we don't have a large footprint," said Don Bausley, branch manager of Chase's San Francisco-Oakland market. "There are tremendous opportunities here."
Prior to its 2008 purchase of failed thrift Washington Mutual, Chase was primarily an East Coast branch with no presence in the western United States.
"Chase is in catch-up mode," said Michael Yoshikami, chief investment strategist with Walnut Creek-based YCMNet Advisors, an investment firm. "They face big competitors, Wells Fargo and Bank of America, that have an established presence" in the Bay Area.
Contra Costa County, Santa Clara County and San Francisco will land the most new Chase branches by the end of 2011, with five more offices in each county, Chase reported.
Alameda County and Sonoma County each will gain four new branches. Solano County will gain two new branches and San Mateo County will add one.
"This will take time for Chase," Yoshikami said.
"They are just starting to enter into this strategy. The Washington Mutual deal was a way to buy market penetration."
"We have some very large gaps in our coverage area," Bausley said. "We want to fill in the gaps."
The 26 new branches also mean 210 to 260 additional jobs, the bank estimated. On average, Chase hires eight to 10 new employees with each branch it opens.
"This is the second year of a 10-year build-out," said Eileen Leveckis, a spokeswoman for Chase Bank.
Chase has a long way to go to become a major player locally, an analysis of statistics compiled by the FDIC shows. It has more than 160 branches in the Bay Area, but that's about 100 fewer than Wells Fargo and Bank of America. And its share of deposits in the region is far lower than those two rivals.
In 2008, Chase jumped into California through its $1.9 billion purchase of WaMu, a bank that was seized by regulators. Washington Mutual's collapse marked the nation's largest banking failure.
Chase is investing more than $1 billion in California by adding more products and services, Leveckis said.
"The Bay Area is very attractive, with customers that have a high net worth," Yoshikami said.
Chase's expansion comes at a time when a big foe in the market, Bank of America, looks to retrench locally.
Bank of America in 2008 had 6,100 branches and now has 5,700 nationwide. Recently, the bank said it would chop 10 percent of its branches. BofA also intends to slash 30,000 jobs.
Analysts believe other banks could cut branches. And banks have been adding automated teller machines that can handle an array of basic functions besides dispensing cash. Customers often use ATMs to deposit checks and cash. Full-service branches could yield to ATM-only outlets.
The Bank of America cutbacks could help Chase fill a vacuum, said Hans Schroeder, portfolio manager with the San Francisco office of Green Street Capital.
www.mercurynews.com/rss/ci_18938500?source=rss
