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. 2