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Goldman's loan provisions increase but Marcus more stable

Goldman Sachs Group Inc.'s provisions for credit losses jumped in the third quarter, but the company has seen stabilization in the performance of its online platform Marcus, CFO Stephen Scherr said during the company's earnings conference call.

Goldman's provision for credit losses increased 36% quarter over quarter and 67% year over year to $291 million. Scherr noted that the increase was partly related to four idiosyncratic corporate impairments that were less than $30 million each, and he does not believe the performance of those credits are part of a larger trend.

In its earnings investor presentation, Goldman Sachs said its net interest income from its investing and lending segment produced a quarterly record of $891 million in the third quarter.

Scherr added that the provisions in the Marcus unsecured portfolio were relatively flat quarter over quarter, and the portfolio is now performing much more in line with the company's initial modeled expectations. "You've heard me talk before about some of the earlier vintages performing at a worse loss rate," he said.

Scherr noted that provisions will grow as the portfolio grows. The Marcus platform has made $5 billion in loans, but Scherr said in July that Goldman has slowed the loan growth of that platform. The company is looking to boost deposits. Goldman has raised $55 billion in deposits through Marcus and hopes to add $10 billion annually.