Wall Street's dealmaking boom stalled in Q3, but it's likely not over: 'Delayed rather than canceled'
Wall Street banks reported Q3 dealmaking fees totaling $8.47B, up 15% YoY but down 7.5% QoQ. Goldman Sachs (GS) saw a 22% YoY increase, while JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC) also reported gains. Executives suggest deals are delayed, not canceled, due to market volatility.
How this was made
The 30-second read
Why it matters
The mixed results provide insight into the health of the M&A advisory market and may affect equity valuations of the banks.
Market read
First‑time disclosure of Q3 fee performance provides fresh data for traders assessing banking sector momentum.
What to watch
Higher borrowing costs and market volatility may suppress future fee growth, especially for mid‑cap and cross‑border transactions.
Background
Wall Street banks released Q3 investment‑banking fee numbers, showing overall growth YoY but mixed sequential trends.
Ticker impact
Goldman Sachs reported Q3 investment banking fees of $3.2 billion, up 22% YoY but down 5% QoQ.
likely modest pressure as market prices in the QoQ decline
YoY growth is positive but the sequential drop may temper investor enthusiasm.
JPMorgan disclosed Q3 dealmaking fees of $8.47 billion total for the four banks, with a slowdown noted in late September.
slight downside risk as investors weigh the slowdown
The slowdown signal from CFO Jeremy Barnum may temper expectations despite YoY growth.
Citigroup's investment banking fees rose 9% YoY to $1.35 billion, but fell 13% from the prior year.
potential slight pressure as market digests the mixed trend
The decline from the prior year suggests weaker underlying deal flow.
Wells Fargo's Q3 investment banking fees rose to $894 million, a 30% YoY increase.
likely modest upside as investors view the YoY jump favorably
A 30% YoY increase is sizable and could boost sentiment.
Market effects
The data suggest that investment‑banking revenue remains resilient, supporting a bullish view on the M&A advisory sector.
U.S. banks dominate the figures, reinforcing confidence in domestic deal flow despite higher borrowing costs.
Strong U.S. banking fees may influence global capital‑raising activity and set a benchmark for peers worldwide.
Counterpoint
The sequential declines for Goldman and JPMorgan could signal an emerging slowdown in deal activity, outweighing the YoY gains.
Key entities
- BankGoldman Sachs
Reported $3.2 billion in fees, up 22% YoY.
- BankJPMorgan Chase
Part of the $8.47 billion total fee pool; noted slowdown in September.
- BankCitigroup
Fees rose 9% YoY to $1.35 billion.
- BankWells Fargo
Fees rose 30% YoY to $894 million.
