"For 14 quarters in a row, the banking industry has shown earnings increases on a year-over-year basis. In 2012, the banking industry earned $122 billion, which is in fact the second-highest ever in the industry for a full year," he said.
"In the first quarter of 2013, the banking industry earned more money than it's ever earned in any quarter ever."
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On CNBC's "Fast Money," the banking analyst said that the reason was simple.
"It's because there's an overall improvement of every facet of banking at the present time," he said.
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Bove noted rising prices for banking products, a decline in operating costs and understated values of existing assets as headwinds for financial stocks.
Among his top banking picks were: