Goldman Sachs 2015 Annual Report Download - page 4

2 Goldman Sachs 2015 Annual Report
Letter to Shareholders
In this year’s letter to our shareholders, we cover a
wide array of topics, including an overview of our
financial profile, a review of our strong and diverse
client franchise, as well as our thoughts on the forward
outlook, particularly how we are thinking about
navigating these uncertain times.
Financial Profile
As we manage our financial profile, our strategy is
predicated on carefully delineating between structural
and cyclical factors affecting our businesses. Accordingly,
in 2015, we continued to adjust our franchise to address
structural changes in the regulatory environment, and
we will continue to do so as needed. From a cyclical
perspective, it certainly feels like the cycle has been
prolonged, particularly as interest rates in many parts
of the world remain at — or even below — zero, and
growth and deflation concerns, among other worries,
have persisted.
It is important to remember that cycles do turn, even if
the timing of such inflections may be difficult to predict.
As we look to deliver value to our shareholders over the
long term, our focus continues to be on managing to
both the structural and cyclical forces we see at play,
while remaining flexible enough to capture future
growth opportunities.
Our efforts in this regard have yielded solid results. Over
the past four years, we have diversified our franchise
while holding net revenues steady. We have increased our
capital and liquidity, decreased our risk, and have stayed
focused on efficiently and prudently managing our
resources — all while helping our clients to execute their
long-term goals and strategic objectives. Over the same
four-year period, we returned approximately $25 billion
in capital to our shareholders, increased dividends per
common share by 44 percent and reduced our basic
share count by 14 percent.
In response to structural changes resulting from new
regulations, since the end of 2007, we have reduced
our balance sheet by approximately one-quarter, while
nearly doubling common shareholders’ equity — cutting
gross leverage by more than 60 percent — and tripling
our liquidity position to almost $200 billion. These
measures have strengthened our long-term financial
safety and soundness.
Lloyd C. Blankfein
Chairman and
Chief Executive Officer
(right)
Gary D. Cohn
President and
Chief Operating Officer
(left)