Wells Fargo reported Friday that its second-quarter profits declined 48% from a year earlier as the bank set aside funds for bad loans and was hurt by declines in its equity holdings. According to a survey of analysts by Refinitiv, the company’s results were in line with what was expected by Wall Street: Earnings per share was 82 cents adjusted vs 80 cents expected, and revenue was $17.03 billion vs $17.53 billion expected. Profit of $3.12 billion, or 74 cents per share, fell sharply compared with $6.04 billion, or $1.38, a year earlier, the bank said in a statement. Considering the impairment, the bank would have earned 82 cents per share in the quarter, topping analysts estimates of 80 cents per share.

Shares of the company jumped 6.6%, a sharp rebound from declines in premarket trading. “While our net income declined in the second quarter, our underlying results reflected our improving earnings capacity with expenses declining and rising interest rates driving strong net interest income growth,” CEO Charlie Scharf said in the release. Investors and analysts have been closely watching bank results for signs of economic stress on the U.S. economy. Although borrowers of all types have continued to repay their loans, signs of a possible recession triggered by rising interest rates and a decline in asset values have begun to appear in recent results. According to Wells Fargo, “market conditions” forced the bank to post an impairment charge of $576 million for equity securities related to its venture capital operations during the second quarter. The bank also recorded a $580 million provision for credit losses in the quarter, a sharp change from a year earlier, when it benefited from releasing reserves as borrowers repaid their loans.