The Bank of America Corp (NYSE:BAC): What does the crystal ball say?

The Bank of America Corp (NYSE:BAC) is known to have a mixed reputation when it comes to the market. While the Wall Street is quite pleased with it, it generates equal amounts of negative feedback from the Main Street. Bank of America Corp (NYSE:BAC) is accounted for 194% return since 2012, which is an amazing feat in itself. But with such a turbulent reputation in the market, what the future has in store for Bank of America Corp (NYSE:BAC) is yet to be seen.

Bank of America Corp (NYSE:BAC) is doing great in the credit and debit card business and their revenue figures suggest an upward surge. And if these figures are considered, one can say that Bank of America Corp (NYSE:BAC) is expected to go far in the banking sector.

Bank of America Corp (NYSE:BAC) has been cross selling credit cards to its customers, which has brought a boom in the credit card sector for the bank. The second quarter of this year accounted for 1.1 new credit card accounts, out of which; two- thirds belong to existing clients. The previous big number was 800,000 cards issued, back in 2012.

Bank of America Corp (NYSE:BAC) is also known for bringing the subject of card security to attention. They were also the first to introduce the secure chip-and-pin credit cards back in 2012. They’ve announced that this technology will also be available in debit cards starting this month. Addressing the security concern, when it wasn’t even highlighted shows the sincerity that the Bank of America Corp (NYSE:BAC) has for its clients.

Bank of America Corp (NYSE:BAC)’s mortgage unit at present is waning. Also the billion dollar losses are doing significant harm to the organization. But once that is taken care of, Bank of America Corp (NYSE:BAC) is expected to be looking at huge profits. Most of its losses occur because the bank isn’t paying cash taxes. When the litigation costs fade away, it can accumulate tons of cash and ask the Federal Reserve for large capital returns.

In five years, the bank can be one of the most profitable contenders in the market. The company has a history of surviving large financial crises in the past. They are lauded by every investor and though the mortgage division isn’t doing too good, they are expected to have much larger dividends and a strong share buyback program.

Bank of America Corp (NYSE:BAC) is a troubled bank. It lacked the ideology of rejecting little profits to save massive losses in the future. It also lacked the idea of risk management and credit quality. However, they’re on a learning curve. The investors are learning too, about where and how to spend.

Bank of America Corp (NYSE:BAC) is the next big thing, however, it remains to be seen if it will succeed in changing the client perception in light of recent mishaps. Clients are aware of its turbulent reputation and retaining and making new clients may prove to be the real challenge for the bank.