The bank reported an adjusted pretax profit of $19.9 billion, down 18 percent versus 2007 but said that profit had slumped 62 percent to $9.3 billion from $24.2 billion a year earlier once it had included the impact of a goodwill impairment charge of $10.6 billion.
Pretax profit had been expected to drop to about $19 billion, according to the average forecast from Reuters Estimates.
The bank also cut its dividend for the full year by 29 percent to $0.64 per share and said it would close its troubled U.S. consumer loans business.
The company said that losses in the United States last year amounted to $15.5 billion, including the $10.6 billion goodwill impairment charge.
(Reporting by Steve Slater and Myles Neligan, writing by Paul Hoskins)