The performance represents the third straight quarterly drop for the bank, with income falling from $1.21 billion from $5.26 billion compared with the year-ago period.
Revenue, meanwhile, dropped six per cent to $17.3 billion bringing earnings per share down from $1.16 to 23 cents.
The latest results were beyond analysts' expectations and prompted the bank's stock to fall 2.5 per cent in New York trading to $37.61.
Chief executive Kenneth Lewis said: "These results clearly did not meet our expectations.
"The weakness in the economy and the prolonged disruptions in the capital markets took their toll."
The last two quarters have witnessed the worst performances for the bank since Mr Lewis assumed charge in 2001.
He has said he now expects the bank to post "sequential profit improvement" for the rest of the year.