Bank of America 2Q Profit Up 5 Percent

CHARLOTTE, N.C. - Bank of America Corp. recorded another profitable quarter Thursday, but gave investors reason to worry as it fattened its provisions for loan losses, an indication it sees lending risks growing.

Bank of America, the No. 2 U.S. bank by assets, reported a 5 percent rise in earnings from growth in capital markets activity and consumer fees, offsetting an increase in credit losses.

But its provision for credit losses ballooned 79.2 percent to $1.81 billion, up from $1.24 billion in the first quarter and $1.01 billion in the second quarter of 2006. Net charge-offs, or bad loans, rose to $1.5 billion, compared with $1.43 billion in the first quarter and $1.02 …