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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2015
Receivables [Abstract]  
Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product
The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three and nine months ended September 30, 2015 and 2014:
 
Commercial
 
Consumer
 
 
  
Construction
and Other
Real Estate
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm’l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Card
 
Other
Consumer
 
Total
 
(in millions)
Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
89

 
$
260

 
$
130

 
$
18

 
$
83

 
$
27

 
$
33

 
$
8

 
$
648

Provision charged (credited) to income
(3
)
 
32

 
16

 
(1
)
 
(3
)
 
(2
)
 
7

 
1

 
47

Charge offs
—

 
(11
)
 
—

 
—

 
(3
)
 
(1
)
 
(8
)
 
(1
)
 
(24
)
Recoveries
1

 
2

 
—

 
—

 
2

 
1

 
1

 
—

 
7

Net (charge offs) recoveries
1

 
(9
)
 
—

 
—

 
(1
)
 
—

 
(7
)
 
(1
)
 
(17
)
Allowance for credit losses – end of period
$
87

 
$
283

 
$
146

 
$
17

 
$
79

 
$
25

 
$
33

 
$
8

 
$
678

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
94

 
$
180

 
$
96

 
$
13

 
$
149

 
$
42

 
$
39

 
$
11

 
$
624

Provision charged (credited) to income
(9
)
 
36

 
—

 
1

 
(11
)
 
(5
)
 
9

 
2

 
23

Charge offs
—

 
(5
)
 
—

 
—

 
(9
)
 
(3
)
 
(10
)
 
(2
)
 
(29
)
Recoveries
1

 
2

 
—

 
3

 
3

 
2

 
2

 
—

 
13

Net (charge offs) recoveries
1

 
(3
)
 
—

 
3

 
(6
)
 
(1
)
 
(8
)
 
(2
)
 
(16
)
Allowance for credit losses – end of period
$
86

 
$
213

 
$
96

 
$
17

 
$
132

 
$
36

 
$
40

 
$
11

 
$
631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
89

 
$
275

 
$
107

 
$
21

 
$
107

 
$
32

 
$
39

 
$
10

 
$
680

Provision charged (credited) to income
(4
)
 
54

 
39

 
(3
)
 
(9
)
 
(4
)
 
14

 
7

 
$
94

Charge offs
(2
)
 
(55
)
 
—

 
(1
)
 
(27
)
 
(6
)
 
(24
)
 
(11
)
 
(126
)
Recoveries
4

 
9

 
—

 
—

 
8

 
3

 
4

 
2

 
30

Net (charge offs) recoveries
2

 
(46
)
 
—

 
(1
)
 
(19
)
 
(3
)
 
(20
)
 
(9
)
 
(96
)
Allowance for credit losses – end of period
$
87

 
$
283

 
$
146

 
$
17

 
$
79

 
$
25

 
$
33

 
$
8

 
$
678

Ending balance: collectively evaluated for impairment
$
86

 
$
269

 
$
146

 
$
17

 
$
41

 
$
24

 
$
32

 
$
8

 
$
623

Ending balance: individually evaluated for impairment
1

 
14

 
—

 
—

 
38

 
1

 
1

 
—

 
55

Total allowance for credit losses
$
87

 
$
283

 
$
146

 
$
17

 
$
79

 
$
25

 
$
33

 
$
8

 
$
678

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,980

 
$
19,325

 
$
29,787

 
$
3,328

 
$
15,801

 
$
1,561

 
$
677

 
$
409

 
$
82,868

Individually evaluated for impairment(2)
116

 
189

 
21

 
6

 
214

 
5

 
5

 
—

 
556

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
1,445

 
73

 
—

 
—

 
1,518

Total loans
$
12,096

 
$
19,514

 
$
29,808

 
$
3,334

 
$
17,460

 
$
1,639

 
$
682

 
$
409

 
$
84,942

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
 
  
Construction
and Other
Real Estate
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm’l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Card
 
Other
Consumer
 
Total
 
(in millions)
Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
108

 
$
112

 
$
68

 
$
20

 
$
186

 
$
49

 
$
50

 
$
13

 
$
606

Provision charged (credited) to income
(1
)
 
111

 
36

 
(12
)
 
(20
)
 
(11
)
 
18

 
3

 
124

Charge offs
(24
)
 
(16
)
 
(8
)
 
—

 
(45
)
 
(11
)
 
(33
)
 
(7
)
 
(144
)
Recoveries
3

 
6

 
—

 
9

 
11

 
9

 
5

 
2

 
45

Net (charge offs) recoveries
(21
)
 
(10
)
 
(8
)
 
9

 
(34
)
 
(2
)
 
(28
)
 
(5
)
 
(99
)
Allowance for credit losses – end of period
$
86

 
$
213

 
$
96

 
$
17

 
$
132

 
$
36

 
$
40

 
$
11

 
$
631

Ending balance: collectively evaluated for impairment
$
84

 
$
206

 
$
96

 
$
16

 
$
81

 
$
34

 
$
38

 
$
11

 
$
566

Ending balance: individually evaluated for impairment
2

 
7

 
—

 
1

 
51

 
2

 
2

 
—

 
65

Total allowance for credit losses
$
86

 
$
213

 
$
96

 
$
17

 
$
132

 
$
36

 
$
40

 
$
11

 
$
631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
9,459

 
$
17,318

 
$
24,001

 
$
3,035

 
$
14,662

 
$
1,753

 
$
679

 
$
465

 
$
71,372

Individually evaluated for impairment(2)
202

 
37

 
—

 
10

 
224

 
5

 
7

 
—

 
485

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
1,516

 
66

 
—

 
—

 
1,582

Total loans
$
9,661

 
$
17,355

 
$
24,001

 
$
3,045

 
$
16,402

 
$
1,824

 
$
686

 
$
465

 
$
73,439

 
(1) 
Global Banking includes loans to HSBC affiliates totaling $5,447 million and $4,821 million at September 30, 2015 and December 31, 2014, respectively, for which we do not carry an associated allowance for credit losses.
(2) 
For consumer loans and certain small business loans, 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 analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $858 million and $741 million at September 30, 2015 and 2014, respectively.