Goldman Sachs Chief Executive David Solomon said Tuesday that both stock and M&A deals could exceed the 10-year average next year.
“I think we will definitely reach the 10-year average level in 2025. We may even surpass the past 10-year average,” Solomon said in an interview at the Reuters NEXT conference in New York. .
Bankers have become more bullish on the deal in the weeks since Donald Trump's presidential election victory.
Some expected friendly regulators to be installed at the top of key government agencies to wipe out regulations some see as onerous, but it remains to be seen what kind of economic policy the incoming administration will implement. Many said it was too early to judge.
“I'm very optimistic that this administration will implement very, very pro-growth policies,” Solomon said.
“The first 100 days will, of course, give us some hints about the balance of trade policy, immigration policy, energy policy, tax policy, and how that combination will come together.”
Goldman Sachs benefited from a recovery in investment banking last year, cementing its place at the top of the global rankings of mergers and acquisitions advisory firms.
In one of the year's biggest deals, Mr. Goldman advised Cheez-It maker Keranova, which agreed to be acquired by candy giant Mars Inc. in August for about $36 billion.
Acquisitions by private equity firms have slowed, but bankers expect more activity next year.
Meanwhile, Goldman continues to shrink the consumer business that Solomon once championed.
Retail businesses lost billions of dollars, and banks were forced to sell assets and write down assets.
Goldman has since shifted its focus back to its traditional core investment banking and trading businesses.
