"Quite frankly, the banking industry across the board is doing extraordinarily well," Bove told CNBC's "Squawk on the Street" Thursday. "If you look at some of the core statistics, for 14 quarters bank earnings have been up year-over-year in every quarter. In 2012, the industry had a 19 percent increase in earnings and it was the second best year in the banking industry in the United States."
"In the first quarter of 2013, the banking industry will make more money than in any quarter in the history of American banking," he said. "You have so much excess capital in the banking industry at the present time that you have to go back to 1938 to find a year in which the percentage of capital to assets was as high as it is now."
Late on Thursday, the Federal Reserve is expected to reveal how much capital 18 large banks would maintain under a hypothetical severe economic downturn. A week later, the agency plans to disclose how the banks would have fared if they had first spent some of their capital buying back shares or paying higher dividends.
Investors in U.S. bank stocks are expecting volatility in the interim as the process is spread out. Last year, the Fed disclosed all of the information on the same day.