Investment Banking Income Expected to Surge in 2025

With President-elect Donald Trump's anticipated return to the White House, global investment banking income is projected to rise by approximately 5.7% in 2025, reaching about $316 billion. Mergers and acquisitions (M&A) are expected to contribute around $27.6 billion in fees, marking potentially the second-best year for M&A bankers in two decades. Trump's pro-business stance is predicted to stimulate a more favorable environment for deal-making, especially for cross-border investments, as European firms seek growth opportunities. Analysts note a significant backlog of demand that could be unleashed in 2025, particularly from private equity and sectors like healthcare and technology. Additionally, revenue from debt sales may hit a record $49 billion, while trading of securities is expected to generate $220 billion, the highest since 2022. Overall, Wall Street is preparing for a significant deal-making boom in the coming year.