GOLDMAN SACHS GROUP INC Annual Report, Year Ended Dec 31, 2020

Goldman Sachs Group, Inc. (GS) reported a solid financial performance for the fiscal year ended December 30, 2020, with net earnings of $9.46 billion, an increase of 12% compared to 2019. Diluted EPS rose by 18% to $24.74, and the Return on Average Common Shareholders' Equity (ROE) improved to 11.1% from 10.0% in the prior year. This growth was primarily driven by strong client activity and significantly higher net revenues in both Global Markets (specifically FICC and Equities) and Investment Banking, benefiting from robust underwriting volumes. Despite a substantial increase in provisions for litigation and regulatory proceedings to $3.42 billion, the firm managed to improve its efficiency ratio to 65.0% due to increased net revenues. The company also highlighted strategic initiatives aimed at achieving expense efficiencies and funding optimization, with a stated goal of $1.3 billion in annual run-rate expense efficiencies and $1.0 billion in annual run-rate interest expense savings by year-end 2022. Goldman Sachs demonstrated strong capital and liquidity positions throughout the year, even as it navigated the economic uncertainties presented by the COVID-19 pandemic.