Wells Fargo stock took a hit Wednesday, as a surge in bad loans overshadowed record profit, sending its shares down 5.3 percent.
But some of that pressure may be profit-taking by investors who were expecting a robust profit for the quarter, and going forward the bank's profitability remains “very strong,” Howard Atkins, the company’s chief financial officer told CNBC on Wednesday.
The California-based bank, which acquired Wachovia last year, reported an 81 percent increase in profits this quarter, topping Wall Street’s expectations. But nonperforming assets, where borrowers are not making payments, soared 45 percent from the first quarter, to $18.34 billion, including a 69 percent jump from commercial and commercial real estate loans. (Read full story on earnings here)