Tomahawk, WI 11/15/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) with a market cap of $159.39 billion is among the four largest banks in the U.S. The bank is lately known for its string of cases resulting from poor mortgage loans, pitting the financial institution against the government and investors. Bank of America Corp (NYSE:BAC) has in recent times been forced to pay billions of dollars in suit settlements, legal fees and shares buyback all in efforts to salvage its business and reputation. Although these huge financial losses have caused a dent in the banks cash reserve, there is no doubt that the bank is quickly getting back in shape in terms of profitability and customer count.

BAC ranks second in profits among the large banks in the U.S.

According to the third quarter data for the banking sector, Bank of America Corp (NYSE:BAC) earned the second most profits. BAC’s profit came in at $2.5 billion, only second to Citigroup’s $3.2 billion. The other larger banks such as Morgan Stanley and Goldman Sachs earned profits of $1 billion and $1.52 billion respectively in the quarter. JPMorgan failed to make it to the profitable list largely due to the saturation of lawsuits its facing, also related to mortgage transactions which ate much of the money it made in the quarter, thus reporting a loss. As we can see, while Bank of America Corp (NYSE:BAC) is equally marred in numerous lawsuits, but it’s been able to keep its head up and earn shareholders significant profits.

Since the mortgage crisis hit, BAC has lost about 50% of its stock value, however, in the past 12 months, the bank has been able to remain stable in stock price, currently trading just less than a dollar below its 52 week high. This is unlike most of its peers that have been bleeding profusely in the past 12 months. It thus means that if Bank of America Corp (NYSE:BAC) is able to get these litigations behind, it has the potential of outperforming the market. This can be proven by how the bank has been able to add its customer count in the face of the crisis as well as the rebound in its wealth management segment.

BAC expects strong growth in wealth management business

Bank of America Corp (NYSE:BAC) has one of the strongest, vibrant and stable wealth management businesses in the industry. The bank recently announced that it was using its leadership position in this segment to realized revenue growth. Lately, BAC has recruited new talents into its wealth management business to help turn the segment profitable. Coupled with its growing customer base that spread across its various financial services, Bank of America Corp (NYSE:BAC) is poised for strong profit growth moving forward.

Expense Reduction Is Key to BAC’s Rebound

There is no doubt that BAC is staring at a bright future considering the speed at which it’s getting the string of cases that it faces behind. Since the bank is likely to incur a lot of cost in future settlements, reduction of expenses should keep it in the profitable zone even in the face of these crises.

I think this far, Bank of America Corp (NYSE:BAC) requires a round of applause. It’s been able to continue making profits in very unfavorable condition. Moreover, it has maintained its stock price better than most of its peers in the industry.

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