Investment Banks Anticipate 2025 Income Surge Amid Deal Rebound and Ongoing Volatility
Investment banking income is set to rise 5.7% to $316 billion in 2025, driven by strong M&A and securities trading activity, though geopolitical risks and market volatility persist.
Published on April 6, 2025
Investment banks are projecting robust earnings for 2025 with global income expected to reach $316 billion—a 5.7% rise from 2024. Data from Coalition Greenwich points to strong performance in mergers and acquisitions fees, which could hit $27.6 billion, marking one of the best fee years in two decades. Additionally, securities trading revenue is forecast to hit $220 billion, the highest since 2022, buoyed by renewed cross-border dealmaking and European investment encouraged by President Trump’s pro-business policies.
However, amid these optimistic forecasts, there are concerns over emerging geopolitical risks and market volatility. Recent reports from early April 2025 have highlighted the impact of aggressive tariffs and trade tensions—factors that have already dampened deal activity in some regions. As the global economy adjusts to these challenges, banks are also planning increased hiring and salary hikes, even as bonus levels remain below their 2021 peaks.