Bank of America Revamps Credit Card Strategy to Boost Profits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy BAC?
Source: seekingalpha
- Profit Target Increase: Bank of America aims to boost annual profits from its consumer business to $20 billion by 2030, with a current net income of $12.2 billion for 2025 reflecting a 14% year-over-year growth, indicating strong growth potential in the consumer market.
- Customer Base Expansion: Currently serving approximately 69 million consumer customers, the bank targets an increase to 75 million by 2030, aiming to attract new clients efficiently through data-driven strategies while reducing operational costs.
- AI Utilization: The bank employs artificial intelligence to assess potential default risks among customers, optimizing outreach timing and enhancing risk management capabilities in its credit card business, thereby strengthening its competitive position in the market.
- Partnership Enhancement: Bank of America plans to expand collaborations with existing co-brand partners such as Alaska Air, Royal Caribbean, and Norwegian Cruise Line, aiming to increase market share in the credit card sector while addressing competitive pressures from other major issuers.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 47.010
Low
55.00
Averages
61.64
High
71.00
Current: 47.010
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Inflation Expectations: The disruption in energy supply due to the Iran war is leading the market to price in higher inflation rates, which may compel the Federal Reserve to halt or reverse its dovish monetary policy, putting pressure on the stock market.
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- Decline in New Signatories: The pace of new signatories has slowed significantly since the Pledge's inception in 2010, with only 43 joining in the last five years compared to 113 in the first five, suggesting a changing perspective among billionaires regarding charitable commitments.
- Cultural and Social Shifts: Sociologists note that billionaires now prefer to give back through business success rather than charity, reflecting a broader cultural shift that may influence future philanthropic norms and societal expectations.
See More
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- Investor Strategies: Amid escalating war-induced market uncertainty, investors are advised to evaluate portfolio risks, raise cash levels, and wait for positive market developments to mitigate potential recession risks.
- Rising Cash Levels: A Bank of America survey indicates that fund managers have increased their cash levels from 3.4% to 4.3%, marking the sharpest rise since the Covid sell-off in March 2020, reflecting heightened investor concerns over market volatility.
- Geopolitical Impact: The Israeli attack on Iran's South Pars gas field signifies a major escalation in the war, potentially leading to long-term damage to energy infrastructure, which could disrupt global energy supply and pricing, further increasing market uncertainty.
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See More
