Continuing to use the analogy of financial services as widgets manufactured in a factory, Bove said the outlook for banks was good.
"So, they're going to sell more widgets at higher margins. They're going to do it on balance sheets that are highly liquid, overcapitalized. They're in a position to increase their dividends, not just this year but for the next three, four, five years," he said.
Valuations were also key. "The stocks are selling at premiums to book value, which are so low relative to history, that there is significant opportunity for at least them to double from this level," Bove said.
Bove also said he expected that bank lending would be greater than at any time since 2007.
"I think we're looking at a capital expenditure boom in 2014," he said. "I think that housing should creep up a little bit. I think that auto sales are going to be a little better. I think that the energy sector is going to utilize more funds. I think there's going to be an M&A explosion this year. That's where the widgets are going to go. The widgets are going to go to funding all those events."
—By CNBC's Bruno J. Navarro. Follow him on Twitter