Goldman Sachs CEO David Solomon said on Tuesday that dealmaking in equities, mergers, and acquisitions could surpass 10-year averages in 2025.
“I believe in 2025, we will certainly meet the 10-year averages, and we might even exceed them,” Solomon remarked during an interview at the Reuters NEXT conference in New York.
Since Donald Trump’s U.S. presidential election win, bankers have grown more optimistic about deals. Many anticipate that a friendlier regulatory environment will emerge, with new leadership at key government agencies potentially rolling back regulations seen as burdensome. However, many still believe it’s too early to predict the economic policies of the incoming administration.
“I am very optimistic that this administration will focus on a strongly pro-growth agenda,” Solomon said.
“The first 100 days will give us some indication of how trade, immigration, energy, and tax policies will come together,” he added.
Goldman Sachs has seen a rebound in investment banking over the past year, solidifying its position as a top advisor in mergers and acquisitions. One of the year’s biggest deals saw Goldman advise Kellanova, the maker of Cheez-Its, on its nearly $36 billion sale to candy giant Mars.
Chief Financial Officer Denis Coleman previously stated at Goldman’s financial services conference that “strategic” deals, including large-scale mergers and acquisitions, are expected to pick up in 2025.
Although private equity buyouts have been slow, bankers predict increased activity in the coming year.
Meanwhile, Goldman continues to scale back its consumer business, which had previously been championed by Solomon. The bank’s retail operations suffered significant losses, leading to asset sales and writedowns. As a result, Goldman has shifted its focus back to its core strengths in investment banking and trading.
On the topic of cryptocurrencies, Solomon mentioned that changes in regulations would be needed for the bank to start trading them.
“That’s a question for regulators. As a regulated banking institution, we’re not allowed to own cryptocurrencies like Bitcoin as a principal,” he explained.
“We assist our clients with various technologies and related issues, and we will continue to do so. However, our ability to participate in these markets is heavily constrained by regulatory limitations.”
Solomon, who became CEO in 2018, stated that he will continue leading Goldman Sachs as long as the board wants him in the role.
“I’ve got a great job and will be the CEO as long as the board wants me to be,” he said.