Bank of America reported a 36% drop in Q1 earnings, weighed down in part by the mortgage crisis and its acquisition of Countrywide Financial.  The bank lost $2.4 billion in its consumer real estate group, vs. a $2 billion loss one year earlier.  Income from credit cards, however, rose to $1.7 billion, while commercial banking showed a $923 million profit.  BofA's 17 cents a share earnings fell short of analysts' expectations, which averaged out at 27 a share.

Total revenue dropped, as well, to $27 billion from $32 billion - partly attributable to the weak economic recovery.  The bank, facing new government regulations, also missed out on millions of dollars in overdraft fees and other charges once levied on consumers.

On the flip side, BofA's merger with Merrill Lynch, another marriage forged amid the financial crisis, has fared far better than its takeover of Countrywide.  The global wealth management group, which includes Merrill, reported record revenue of $4.5 billion, versus $4 billion a year ago.  Earnings rose more than 22 percent.

Net-net, Bank of America's quarterly profit can be seen as a positive, considering it had recorded 2 straight quarterly losses totaling $8.5 billion.   [NYT Dealbook, 4/15]