XML 53 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Interest income $ 473 $ 557 $ 1,471 $ 1,921
Interest expense on debt held by:        
Interest expense 263 328 804 1,060
Net interest income 210 229 667 861
Provision for credit losses (43) (160) (238) 131
Net interest income after provision for credit losses 253 389 905 730
Other revenues:        
Derivative related income (expense) (7) 1 (187) 87
Gain on debt designated at fair value and related derivatives 72 33 145 168
Servicing and other fees from HSBC affiliates 6 6 20 19
Lower of amortized cost or fair value adjustment on receivables held for sale 84 66 292 892
Other income (loss) 14 8 28 (70)
Total other revenues 169 114 298 1,096
Operating expenses:        
Salaries and employee benefits 47 51 154 166
Occupancy and equipment expenses, net 8 8 26 26
Real estate owned expenses 2 16 14 58
Other servicing and administrative expenses 52 63 120 216
Support services from HSBC affiliates 65 78 198 213
Total operating expenses 174 216 512 679
Income from continuing operations before income tax 248 287 691 1,147
Income tax expense 87 91 182 376
Income from continuing operations 161 196 509 771
Discontinued operations (Note 2):        
Loss from discontinued operations before income tax (4) (33) (24) (228)
Income tax benefit (expense) (5) 4 2 70
Loss from discontinued operations (9) (29) (22) (158)
Net income 152 167 487 613
Debt issued to HSBC affiliates [Member]
       
Interest expense on debt held by:        
Interest expense 53 48 161 149
Debt issued to non-affiliates [Member]
       
Interest expense on debt held by:        
Interest expense $ 210 $ 280 $ 643 $ 911