Goldman Sachs sees ‘upswing’ in investment banking to continue

Goldman Sachs Group Inc. expects the “upswing” in investment banking to continue for the next 12 months as the Wall Street titan flagged the milestone of having advised more than $1 trillion of deals this year.

Speaking on a post-earnings analyst call on Tuesday, Chief Executive Officer David Solomon said he had seen momentum in investment banking through the summer and September along with a shift in attitude among decision makers at businesses since the market tumult earlier this year.

“Many of our clients have navigated and adapted to the current state of play,” Solomon said. “Many CEOs have shifted focus back to long-term decision making.”

Mergers and acquisitions and initial public offerings are rebounding following a prolonged period of slump, thanks to transactions like the roughly $55 billion take-private of video game maker Electronic Arts Inc. That’s put M&A values on track for their best finish since the heyday of 2021.

Goldman Chief Financial Officer Denis Coleman said that an “improving regulatory backdrop” has allowed his firm to “be on offense.” He added that the quarter-end backlog of deals was at its highest in three years.