Bank of America CEO: We Can Deliver Significant Excess Capital

Banks (NYSE:XLF) are leading markets higher this morning as financial supermarket Bank of America (NYSE:BAC) CEO had some upbeat comments for shareholders.

At an Investor Day presentation, CEO Brian Moynihan said:

“We can generate significant excess capital and return it to shareholders,” according to a presentation Moynihan gave today for investors in the Charlotte, North Carolina-based bank. Normalized pretax income could range from $35 billion to $40 billion.”

That’s a far cry from CEO-speak during the economic crisis when banks were slashing dividends, raising capital, and doing everything possible to stay afloat.

Bank of America (NYSE:BAC) shares are up over 3% on the upbeat comments.

Financial Select Sector SPDR (NYSE:XLF) is up over 1.5%. Monster banks Citgroup (NYSE:C), Wells Fargo (NYSE:WFC), and JP Morgan (NYSE:JPM) are up in sympathy.