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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Allowance for Credit Losses
 Allowance for Credit Losses
 

The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2016 and 2015:
 
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 March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
86

 
$
434

 
$
240

 
$
19

 
$
68

 
$
24

 
$
32

 
$
9

 
$
912

Provision charged (credited) to income
9

 
(46
)
 
196

 
(3
)
 
(9
)
 
3

 
5

 
2

 
$
157

Charge-offs(1)
—

 
(28
)
 
(7
)
 
—

 
(9
)
 
(3
)
 
(8
)
 
(1
)
 
(56
)
Recoveries
—

 
2

 
—

 
—

 
5

 
1

 
2

 
—

 
10

Net (charge-offs) recoveries
—

 
(26
)
 
(7
)
 
—

 
(4
)
 
(2
)
 
(6
)
 
(1
)
 
(46
)
Allowance for credit losses – end of period
$
95

 
$
362

 
$
429

 
$
16

 
$
55

 
$
25

 
$
31

 
$
10

 
$
1,023

Ending balance: collectively evaluated for impairment
$
94

 
$
279

 
$
257

 
$
15

 
$
25

 
$
24

 
$
30

 
$
10

 
$
734

Ending balance: individually evaluated for impairment
1

 
83

 
172

 
1

 
30

 
1

 
1

 
—

 
289

Total allowance for credit losses
$
95

 
$
362

 
$
429

 
$
16

 
$
55

 
$
25

 
$
31

 
$
10

 
$
1,023

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(2)
$
10,067

 
$
19,059

 
$
28,716

 
$
3,057

 
$
16,244

 
$
1,467

 
$
655

 
$
395

 
$
79,660

Individually evaluated for impairment(3)
103

 
353

 
250

 
7

 
191

 
5

 
5

 
—

 
914

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

 
—

 
—

 
—

 
1,086

 
72

 
—

 
—

 
1,158

Total loans
$
10,170

 
$
19,412

 
$
28,966

 
$
3,064

 
$
17,521

 
$
1,544

 
$
660

 
$
395

 
$
81,732

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
89

 
$
275

 
$
107

 
$
21

 
$
107

 
$
32

 
$
39

 
$
10

 
$
680

Provision charged (credited) to income
2

 
24

 
21

 
1

 
—

 
(2
)
 
3

 
4

 
53

Charge-offs
(1
)
 
(6
)
 
—

 
(1
)
 
(14
)
 
(2
)
 
(8
)
 
(6
)
 
(38
)
Recoveries
—

 
2

 
—

 
—

 
2

 
1

 
1

 
2

 
8

Net (charge-offs) recoveries
(1
)
 
(4
)
 
—

 
(1
)
 
(12
)
 
(1
)
 
(7
)
 
(4
)
 
(30
)
Allowance for credit losses – end of period
$
90

 
$
295

 
$
128

 
$
21

 
$
95

 
$
29

 
$
35

 
$
10

 
$
703

Ending balance: collectively evaluated for impairment
$
87

 
$
272

 
$
128

 
$
20

 
$
53

 
$
28

 
$
33

 
$
10

 
$
631

Ending balance: individually evaluated for impairment
3

 
23

 
—

 
1

 
42

 
1

 
2

 
—

 
72

Total allowance for credit losses
$
90

 
$
295

 
$
128

 
$
21

 
$
95

 
$
29

 
$
35

 
$
10

 
$
703

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(2)
$
10,702

 
$
19,155

 
$
28,016

 
$
3,459

 
$
15,281

 
$
1,640

 
$
674

 
$
424

 
$
79,351

Individually evaluated for impairment(3)
199

 
96

 
13

 
7

 
217

 
5

 
6

 
—

 
543

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

 
—

 
—

 
—

 
1,493

 
71

 
—

 
—

 
1,564

Total loans
$
10,901

 
$
19,251

 
$
28,029

 
$
3,466

 
$
16,991

 
$
1,716

 
$
680

 
$
424

 
$
81,458

 
(1) 
For collateral dependent loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer are recognized as a charge-off. We transferred to held for sale certain residential mortgage loans during the three months ended March 31, 2016 and, accordingly, we recognized the existing allowance for credit losses on these loans as additional charge-off totaling $2 million during the three months ended March 31, 2016.
(2) 
Global Banking includes loans to HSBC affiliates totaling $5,107 million and $5,016 million at March 31, 2016 and 2015, respectively, for which we do not carry an associated allowance for credit losses.
(3) 
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 $771 million and $778 million at March 31, 2016 and 2015, respectively.