“What does ‘customer-focused’mean, and what are youdoing to make it real?”
In 2010, we established a clear goal — to be the ﬁnestﬁnancial services ﬁrm in the world in the eyes of our custom-ers, our employees and each of you as shareholders. Thereis ample evidence that we are making progress on the coursewe set. Our focus and strategy are clear: We deliver to threegroups of customers and clients the leading capabilities theyneed to manage their ﬁnancial lives and businesses. Simplyput: We can do more for people, companies and institutionalinvestors than any other ﬁnancial services company. And dayafter day, we are proving it in the marketplace.Our ﬁnancial results for 2011 show both the progress wehave made and the challenges that remain. For the full year,the company reported net income of $1.4 billion, or $0.01per diluted share, compared with a net loss of $2.2 billion,or $0.37 per diluted share, in 2010. Revenue, net of interest expense, on an FTE basis
, declined 15 percentto $94.4 billion, reﬂecting, among other things, increasedreserves for mortgage-related matters.Obviously, our stock price does not yet reﬂect the work weare doing to strengthen capital, reduce risk and attract morebusiness from our customers. There are many issuesweighing not only on us, but on the entire ﬁnancial servicesindustry. These include concerns about the global economy;a sustained period of near-record low interest rates; theimplementation of new regulations and capital requirements;how these new rules may affect our ability to deliver for ourcustomers and clients; and the time it will take to resolvemortgage issues.There is more work to do, but today we are better organizedto serve our customers and clients; to offer customers morereasons to do more business with us; to earn the proﬁts ourshareholders expect; and to contribute to economic growth inall of the communities we serve.
Continue to build a fortress balance sheet
When we set out to transform our company two years ago,our ﬁrst urgent challenge was to strengthen our foundation —the balance sheet. We focused on selling non-core assets,increasing capital ratios, building liquidity and reducing risk.
“We listen to our customers and clients, learn whattheir needs are, and do all we can to provide the advice,services and products that respond to those needs.To do that best, we want to have the broadest possibleﬁnancial relationship with our customers and clients.Simply put: We can do more for them than anyone else,wherever they are in their ﬁnancial lives.”
Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliationto GAAP financial measures, refer to Supplemental Financial Data on page 32 andStatistical Table XV in the 2011 Financial Review section.