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CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Finance and other interest income $ 591 $ 858 $ 1,364 $ 1,765
Interest expense on debt held by:        
Interest expense 353 467 732 966
Net interest income 238 391 632 799
Provision for credit losses 267 [1] 738 [1],[2] 291 [1] 1,529 [1],[2]
Net interest income (loss) after provision for credit losses (29) (347) 341 (730)
Other revenues:        
Derivative related income (expense) 186 (424) 86 (219)
Gain (loss) on debt designated at fair value and related derivatives 119 92 135 (304)
Servicing and other fees from HSBC affiliates 6 9 13 18
Lower of amortized cost or fair value adjustment on receivables held for sale 372 (1,547) 826 (1,547)
Other income (loss) (55) 5 (78) (8)
Total other revenues 628 (1,865) 982 (2,060)
Operating expenses:        
Salaries and employee benefits 51 35 115 79
Occupancy and equipment expenses, net 9 11 18 21
Real estate owned expenses 20 20 42 49
Other servicing and administrative expenses 48 94 153 160
Support services from HSBC affiliates 67 79 135 145
Total operating expenses 195 239 463 454
Income (loss) from continuing operations before income tax 404 (2,451) 860 (3,244)
Income tax (expense) benefit (133) 939 (285) 1,227
Income (loss) from continuing operations 271 (1,512) 575 (2,017)
Discontinued operations (Note 2):        
Income (loss) from discontinued operations before income tax (76) 2,164 (195) 2,721
Income tax benefit (expense) 25 (910) 66 (1,117)
Income (loss) from discontinued operations (51) 1,254 (129) 1,604
Net income (loss) 220 (258) 446 (413)
Debt issued to HSBC affiliates [Member]
       
Interest expense on debt held by:        
Interest expense 50 40 101 80
Debt issued to non-affiliates [Member]
       
Interest expense on debt held by:        
Interest expense $ 303 $ 427 $ 631 $ 886
[1] These amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis is then applied to these groups of TDR Loans. The receivable balance above excludes TDR Loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $726 million and $671 million at June 30, 2013 and 2012, respectively. The reserve component above excludes credit loss reserves for TDR Loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $51 million and $41 million at June 30, 2013 and 2012, respectively. These credit loss reserves are reflected within receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell in the table above.
[2] The three and six months ended June 30, 2012 includes $112 million related to the lower of amortized cost or fair value attributable to credit for personal non-credit card receivables transferred to held for sale at June 30, 2012. See Note 6, "Receivables Held for Sale," for additional information.