Things are looking up on Wall Street. Goldman's 3Q results show why.

• Goldman Sachs reported a 45% rise in profits on Tuesday, raising hopes of a rebound in deals.
• The company pointed to growth in core businesses such as M&A advisory and equity and bond issuance.
• Here are five takeaways from the results shared by CEO David Solomon.

In the latest sign of a revival in Wall Street business, Goldman Sachs reported a 45% jump in profits, driven by gains in key business areas including M&A advisory and equity and debt underwriting.

The bank on Tuesday reported a profit of $2.99 ​​billion for the three months ended in September, up 45% from the same period last year. Revenue rose 7% year over year to $12.7 billion.

The results beat analysts' expectations and set the stage for Goldman executives to discuss why Wall Street may be on the cusp of a surge in corporate deals. They pointed to lower interest rates, a strong economy and higher demand for corporate financing.

“We see significant pent-up demand from our customers,” CEO David Solomon said in an earnings call. “The start of the interest rate cutting cycle has raised optimism for a soft landing, which should boost economic activity.”

Solomon said the M&A market still has a long way to go to reach historical 10-year averages. However, he suggested there was reason for hope when an equity analyst asked on a conference call about the potential for an “M&A supercycle.” (Solomon didn't dismiss the idea, saying that the 10-year averages could theoretically rise if much of the pent-up demand was released all at once.)

It's not just M&A that shows signs of a comeback. Lower interest rates could also increase demand for corporate loans, initial public offerings, stock offerings and more.

Here are five key takeaways from the company's third-quarter earnings release.