July 16 Reuters Bank of America39;s profit fell in the second quarter as its income from interest on loans shrank and it set aside more money to cover potential credit losses.

A betterthanexpected forecast for fourthquarter net interest income NII, however, sent shares up 1 in premarket trade.

The strength and earnings power of our leading consumer banking business is complemented by the growth and profitability of our global markets, global banking, and wealth management businesses, CEO Brian Moynihan said in a statement on Tuesday.

The second biggest U.S. lender earned 6.9 billion, or 83 cents per share, in the second quarter ended June 30, compared with 7.4 billion, or 88 cents per share, a year earlier, it said in a statement.

Banks are shelling out more on deposits as interest rates are at their highest since 2007, which have boosted returns on bonds, making alternatives such as money market funds more attractive.

The cost of preventing a deposit drain has eroded banks39; gains from the rising interest payments that they are charging borrowers.

The second biggest U.S. lender earned 6.9 billion, or 83 cents per share, in the second quarter ended June 30, compared with 7.4 billion, or 88 cents per share, a year earlier, it said in a statement.

Banks are shelling out more on deposits as interest rates are at their highest since 2007, which have boosted returns on bonds, making alternatives such as money market funds more attractive.

The cost of preventing a…