GOLDMAN SACHS GROUP INC Annual Report, Year Ended Dec 31, 2016

Goldman Sachs Group, Inc. reported a significant increase in net earnings for 2016, reaching $7.4 billion, a 22% rise from $6.08 billion in 2015, driven by a 22% increase in net earnings and a 34% rise in diluted EPS. The firm's Return on Average Common Shareholders' Equity (ROE) improved to 9.4% from 7.4% in the prior year. Despite a 9% decrease in net revenues to $30.61 billion, largely attributed to a challenging operating environment in the first half of the year, particularly in Investing & Lending, the firm successfully reduced operating expenses by 19% to $20.30 billion. This reduction was primarily due to significantly lower non-compensation expenses, including reduced provisions for mortgage-related litigation and regulatory matters. The firm maintained strong capital ratios, with a Common Equity Tier 1 (CET1) ratio of 14.5% (Standardized approach) as of December 2016. Capital was returned to shareholders through $7.2 billion in share repurchases and dividends. While Investment Banking and Investment Management revenues saw declines, Institutional Client Services showed resilience, with market-making revenues up 4%. The firm also highlighted its robust liquidity position with $226 billion in global core liquid assets.