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CONSOLIDATED STATEMENT OF INCOME (LOSS) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Interest income $ 1,598 $ 1,926 $ 2,438
Interest expense on debt held by:      
Interest expense 895 1,058 1,370
Net interest income 703 868 1,068
Provision for credit losses 250 [1] (365) (21)
Net interest income after provision for credit losses 453 1,233 1,089
Other revenues:      
Derivative related income (expense) (97) (303) 145
Gain on debt designated at fair value and related derivatives 213 208 228
Servicing and other fees from HSBC affiliates 20 28 26
Lower of amortized cost or fair value adjustment on receivables held for sale (130) 201 536
Other income (loss) 85 92 (54)
Total other revenues 91 226 881
Operating expenses:      
Salaries and employee benefits 196 197 229
Occupancy and equipment expenses, net 30 36 36
Real estate owned expenses 19 19 74
Other expenses 940 165 312
Support services from HSBC affiliates 224 271 281
Total operating expenses 1,409 688 932
Income (loss) from continuing operations before income tax (865) 771 1,038
Income tax expense (benefit) (471) 224 325
Income (loss) from continuing operations (394) 547 713
Discontinued operations:      
Loss from discontinued operations before income tax (54) (27) (249)
Income tax benefit 17 3 72
Loss from discontinued operations (37) (24) (177)
Net income (loss) (431) 523 536
Debt issued to non-affiliates [Member]      
Interest expense on debt held by:      
Interest expense 688 836 1,141
Debt issued to HSBC affiliates [Member]      
Interest expense on debt held by:      
Interest expense $ 207 $ 222 $ 229
[1] The provision for credit losses and charge-offs for real estate secured receivables during the year ended December 31, 2015 includes $234 million related to the lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 7, "Receivables Held for Sale," for additional information. The provision for credit losses for real estate secured receivables during the year ended December 31, 2015 was impacted by a release of approximately $19 million associated with an out of period adjustment to our credit loss reserve calculation for a segment of our portfolio.