Your company earned a record $19.0 billion in 2011, up 9% from the record earnings of $17.4 billion in 2010. 

Our return on tangible equity for 2011 was 15% — the same as last year. Relative to our competitors and given the prevailing economic environment, this is a good result. On an absolute and static basis, we believe that our earnings should be $23 billion – $24 billion. The main reason for the di ff erence between what we a r e  earning and what we s hou l d  be earning continues to be high costs and losses in mortgage and mortgage-related issues. While these losses are increasingly less severe, they will still persist at elevated levels for a while longer. Looking ahead, we believe our earnings power should grow over time, though we always expect volatility in our earnings — it is the nature of the various businesses we operate. 

2011 was another year of challenges for JPMorgan Chase, the financial services industry and the economies of many countries around the world. In addition to the ongoing global economic uncertainty, other traumatic events — such as the earthquake and tsunami in Japan, the debt ceiling fiasco in the United States, revolutions in the Middle East and the European debt crisis — have impeded recovery. In the face of these tragic events and unfortunate setbacks, the frustration with — and hostility toward — our industry continues. We acknowledge it and respect people’s right to express themselves. However, we all have an interest in getting the economy and job creation growing again. 

In the face of many di ffi cult challenges, JPMorgan Chase is trying to do its part. We have not retrenched. Just the opposite — we have stepped up. 

Over the past year, our people demonstrated once again that the work we do matters. We positively impact the lives of millions of people and the communities in which they live. Our duty is to serve them by stepping into the arena each day and putting our resources and our voices to work on their behalf. For us, standing on the sidelines simply is not an option. 

