dear shareholder:
Despite a year of unprecedented events, 2001 was the best year in Charter One’s history. Perhaps more importantly, many of this year’s successes were built on momentum from the past and laid a firm foundation for years to come. Because of record-setting deposit growth and asset generation, along with the cultural and operational components that made them possible, we now have an enhanced franchise and a much stronger balance sheet than a year ago.

performance
We reported net income above $500 million for the first time, and posted industry-leading retail deposit and revenue growth while maintaining one of the best efficiency ratios in the industry. Our earnings per share increased 11% again this year, and contributed to a 12% compounded growth rate (on an originally stated operating basis) over the past ten years.

the consumer banking niche and efficiency
This year’s performance reinforces the importance of our consumer banking niche. We describe ourselves as retailers delivering attractive banking products to consumers and small businesses in the markets we serve. For the past several years, we have been dedicated to building a highly effective sales force and sales culture. But without terrific products, you get only mediocre results. For results, we focus on the best checking and lending products and services, often with pricing as our entry vehicle. + The key to our product pricing is our cost structure. We reported a 42% efficiency ratio this year – among the best in banking. With an industry average of 55%, this is an important competitive advantage and translates into powerful pricing power.