Goldman Sachs 2007 Annual Report Download - page 5

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In last year’s letter, we discussed
Goldman Sachs’ performance
within the context of favorable
market and economic conditions.
We also said that our job is to
plan for markets and conditions
that won’t always be as benign.
While the first half of 2007 was largely
characterized by a positive operating environment,
the latter half of the year saw significant
turbulence across global markets. Despite these
more difficult conditions, Goldman Sachs
produced very strong performance for the year
because of the talent and dedication of our
people, a culture of teamwork and a deep and
broad client franchise.
In 2007, net revenues increased 22 percent to
$46.0 billion and net earnings rose 22 percent to
$11.6 billion. Diluted earnings per common
share were $24.73, an increase of 26 percent from
$19.69 for the previous year. Our return on
average common shareholders’ equity was
32.7 percent. The firm also returned $9 billion
of capital to shareholders by repurchasing
41 million shares of our common stock. Book
value per common share increased 25 percent
during 2007, and has grown from $20.94 at the
Fellow
Shareholders:
3Goldman Sachs 2007 Annual Report
Gary D. Cohn, President and Co-Chief Operating Officer
Jon Winkelried, President and Co-Chief Operating Officer
3Goldman Sachs 2007 Annual Report