July 15 (Reuters) - Wells Fargo's WFC.N profit rose in the second quarter as it set aside less money to shield for potential bad loans.

Shares of the San Francisco, California-based bank fell 2.7% in premarket trading. The stock has jumped nearly 19% as of last close.

Last month, the U.S. Federal Reserve lifted Wells Fargo's seven-year-long $1.95 trillion asset cap, allowing the bank to pursue unimpeded growth.

The bank has closed seven regulatory punishments, known as consent orders, this year and 13 since 2019. It still has one remaining consent order from 2018.

Consumers and businesses have continued to repay loans, allaying concern that shifting U.S. trade policies would trigger a recession. Still, uncertainty around the economic outlook persists.

Wells Fargo executives have previously said their efforts to tighten credit over the past couple of years should help the bank to weather a potential economic downturn.

Provision for credit losses fell to $1.01 billion in the quarter from $1.24 billion a year ago.

The fourth-largest U.S. lender's net income was $5.49 billion, or $1.60 a share, in the three months ended June 30, it said on Tuesday. That compares with $4.91 billion, or $1.33 a share, a year earlier.