NEW YORK (Reuters) – Goldman Sachs CFO Stephen Scherr told investors on Wednesday that the bank’s exposure to loans to energy, hotel, gaming and airline companies was manageable and that the bank would not seek to increase its portfolio of loans to individuals given conditions.

FILE PHOTO: FILE PHOTO: The Goldman Sachs Company logo is seen in the company’s space on the floors of the New York Stock Exchange (NYSE) in New York, United States, April 17, 2018. REUTERS / Brendan McDermid

Scherr said these lending areas were small compared to Goldman’s overall business loan portfolio, with loans to gaming companies, airlines, hotels and energy making up just 10% of the total loan portfolio. form the bank.

Nonetheless, the bank has doubled the provisioning of its exposure to loans to oil and gas companies, Scherr said on a conference call, as he sought to reassure investors that the bank is on a solid financial footing despite the fallout. of the novel coronavirus pandemic.

The Federal Reserve chief warned on Wednesday that a growing number of economic indicators point to a prolonged period of weak economic growth, as the coronavirus continues to keep workers and consumers at home.

The pandemic has killed 82,030 people in the United States and 291,808 people worldwide. Monitoring the spread of the new coronavirus here

Epidemiologists fear there will be future outbreaks as some U.S. states begin to reopen their businesses, which would delay economic recovery. More than 32 million Americans have applied for unemployment benefits since the end of March.

Scherr said the bank was prepared for the worst and was not taking “high losses” on its consumer loan products.

Goldman has made growing its consumer banking business a key pillar of its growth strategy, and last month it reported that more of those customers have seen their credit scores drop. A lower credit score indicates that a customer may have trouble paying off loans on time. reut.rs/35GAGXe

Scherr said the bank will take out fewer installment loans and credit cards in the coming months out of “an abundance of caution.”

In a highlight, Scherr said consumer deposits now account for nearly a third of the bank’s funding.

Goldman is counting on increasing deposits at its consumer bank Marcus and its corporate cash management platform to offset the cost of funding the bank.

Reporting by Elizabeth Dilts Marshall; Editing by Chizu Nomiyama and Paul Simao

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