Tomahawk, WI 11/25/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC)’s asset value has declined about 2% in the past two year, leading to its exit from the top to pave way for JPMorgan and Chase. But I see the bank reclaiming its top slot position. Looking at year to date, Bank of America Corp (NYSE:BAC) has had a remarkable performance which can be traced to several things happening in the bank lately.

The bank is going greatly in settling its legal issues with Fed as concerns highly criticized mortgage loans which it transacted just before the financial crisis. Bank of America Corp (NYSE:BAC) has also been seeking to repair its tainted image at the same time. Moreover, the bank’s CEO Brian Moynihan has been doing a lot of tweaks to the bank’s operation to ensure speedy recovery from stock collapse. So far, these have paid off really well and looking forward, the bank is solidifying base for more exploits. I will explain why BAC is up so far in the year and why investors should pay attention to this amazing recovery.

BAC changes tack to focus on small businesses

Being the big bank that it is, Bank of America Corp (NYSE:BAC) had been known to give far too much attention to big business while ignoring the small business. That is changing, the banks small business desk is growing ever business. According to the bank’s small business executives Robb Hilson, BAC is committed to bolstering small businesses towards attaining their growth objectives in 2014 and beyond. There a lot of benefits for BAC in working closely with small businesses. This explains why investors are keen on growing their stake on the bank.

Increased quarterly dividend

In KBW analysis is anything to go by, Bank of America Corp (NYSE:BAC) is expected to increase its dividend payout in the coming quarters. This is doing to the banks efforts to overcome the challenges which caused its stock collapse and minimizing loss of finances. Thus this saving environment is expected to result in more free cash to return to investors.

Investment in Green energy

Bank of America Corp (NYSE:BAC) like most every business today is seeking footprint in green energy. Going green is one image booster which the bank cannot resist especially now that it’s facing a string of lawsuits which no doubt have damaging impact in its image. The bank has announced its $50 billion support for green energy projects in the next ten years. To achieve this, Bank of America Corp (NYSE:BAC) this month issued fixed rate senior bonds known as “green bond” valued at $500 million and maturing in three years. While bonds are helping the bank meet its commitment for the support of green environment causes, it also hopes to expand its investor base in the process.

Suspending acquisitions

Bank of America Corp (NYSE:BAC) has not made any big acquisitions lately and it looks it like it’s not going to do so in the near future either. This is strategy that cuts across most of the major banks in the U.S. given the toxic acquisitions they made just before the financial crisis which has caused most of the banks huge financial losses and image dent. BAC and JPMorgan have been the hard hit institutions due to their heavy investment in risky mortgages. By avoiding acquisitions, the bank is consolidating its financial base which makes sense going into the future.

In view of the aforementioned efforts and tweaks by the bank in its operations, the stock is recovered greatly considering that it’s up more than 30% in the first nine months of the current fiscal year. The stock is now trading around $15 having started the year below $10. Investor confidence is set to continue growing as the banks seeks to settle its legal issues with the governments rather than put up a fight which is good for its future.

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