Bank of America Corp. (BAC) said Thursday its second-quarter earnings rose 5 percent, as growth in capital markets activity and consumer fees offset an increase in credit losses.

Like some of its banking rivals, the No. 2 U.S. bank by assets also boosted its provisions for loan losses, an indication that it too sees higher risks from lending.

Net income climbed to $5.76 billion, or $1.28 per share, from $5.48 billion, or $1.19 per share, a year ago.

The Charlotte-based bank's revenue grew 8 percent to $19.96 billion from $18.52 billion last year.

Analysts estimated earnings of $1.20 per share on revenue of $18.58 billion, according to a poll by Thomson Financial.

The bank cited revenue increases in its three main business lines: consumer and small business banking, corporate and investment banking and wealth and investment management, as reasons for the quarter's results.

"Our businesses are doing a good job of attracting new customers and expanding our relationships with existing clients," Chairman and Chief Executive Officer Kenneth D. Lewis said in a statement accompany the earnings results.

Investment banking revenue rose 26 percent from a year ago and retail product sales added 8 percent.

Noninterest income rose 17 percent to $11.18 billion from $9.59 billion in the second quarter of 2006, driven by increases in equity investment gains, other income, investment banking and service charges.

Strong originations of first mortgages were boosted by the successful launch of the bank's No Fee Mortgage Plus program, which accounted for 11 percent of first mortgage production in the quarter.

Bank of America set aside $1.81 billion overall for credit losses, up from $1.24 billion in the first quarter and $1.01 billion in the second quarter of 2006. Net charge-offs rose to $1.5 billion.