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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 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 June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
95

 
$
362

 
$
429

 
$
16

 
$
55

 
$
25

 
$
31

 
$
10

 
$
1,023

Provision charged (credited) to income
(3
)
 
4

 
137

 
(1
)
 
(7
)
 
(6
)
 
9

 
1

 
134

Charge offs
—

 
(11
)
 
(78
)
 
—

 
—

 
(2
)
 
(8
)
 
(4
)
 
(103
)
Recoveries
—

 
3

 
—

 
—

 
2

 
2

 
1

 
1

 
9

Net (charge offs) recoveries
—

 
(8
)
 
(78
)
 
—

 
2

 
—

 
(7
)
 
(3
)
 
(94
)
Allowance for credit losses – end of period
$
92

 
$
358

 
$
488

 
$
15

 
$
50

 
$
19

 
$
33

 
$
8

 
$
1,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
90

 
$
295

 
$
128

 
$
21

 
$
95

 
$
29

 
$
35

 
$
10

 
$
703

Provision charged (credited) to income
(3
)
 
(2
)
 
2

 
(3
)
 
(6
)
 
—

 
4

 
2

 
(6
)
Charge offs
(1
)
 
(38
)
 
—

 
—

 
(10
)
 
(3
)
 
(8
)
 
(4
)
 
(64
)
Recoveries
3

 
5

 
—

 
—

 
4

 
1

 
2

 
—

 
15

Net (charge offs) recoveries
2

 
(33
)
 
—

 
—

 
(6
)
 
(2
)
 
(6
)
 
(4
)
 
(49
)
Allowance for credit losses – end of period
$
89

 
$
260

 
$
130

 
$
18

 
$
83

 
$
27

 
$
33

 
$
8

 
$
648

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
86

 
$
434

 
$
240

 
$
19

 
$
68

 
$
24

 
$
32

 
$
9

 
$
912

Provision charged (credited) to income
6

 
(42
)
 
333

 
(4
)
 
(16
)
 
(3
)
 
14

 
3

 
291

Charge-offs
—

 
(39
)
 
(85
)
 
—

 
(9
)
 
(5
)
 
(16
)
 
(5
)
 
(159
)
Recoveries
—

 
5

 
—

 
—

 
7

 
3

 
3

 
1

 
19

Net (charge-offs) recoveries
—

 
(34
)
 
(85
)
 
—

 
(2
)
 
(2
)
 
(13
)
 
(4
)
 
(140
)
Allowance for credit losses – end of period
$
92

 
$
358

 
$
488

 
$
15

 
$
50

 
$
19

 
$
33

 
$
8

 
$
1,063

Ending balance: collectively evaluated for impairment
$
90

 
$
255

 
$
241

 
$
14

 
$
22

 
$
18

 
$
32

 
$
8

 
$
680

Ending balance: individually evaluated for impairment
2

 
103

 
247

 
1

 
28

 
1

 
1

 
—

 
383

Total allowance for credit losses
$
92

 
$
358

 
$
488

 
$
15

 
$
50

 
$
19

 
$
33

 
$
8

 
$
1,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,875

 
$
18,574

 
$
25,714

 
$
3,130

 
$
16,423

 
$
1,433

 
$
663

 
$
421

 
$
77,233

Individually evaluated for impairment(2)
98

 
501

 
643

 
8

 
188

 
5

 
5

 
—

 
1,448

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

 
—

 
—

 
—

 
1,056

 
73

 
—

 
—

 
1,129

Total loans
$
10,973

 
$
19,075

 
$
26,357

 
$
3,138

 
$
17,667

 
$
1,511

 
$
668

 
$
421

 
$
79,810

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
89

 
$
275

 
$
107

 
$
21

 
$
107

 
$
32

 
$
39

 
$
10

 
$
680

Provision charged (credited) to income
(1
)
 
22

 
23

 
(2
)
 
(6
)
 
(2
)
 
7

 
6

 
47

Charge-offs
(2
)
 
(44
)
 
—

 
(1
)
 
(24
)
 
(5
)
 
(16
)
 
(10
)
 
(102
)
Recoveries
3

 
7

 
—

 
—

 
6

 
2

 
3

 
2

 
23

Net (charge-offs) recoveries
1

 
(37
)
 
—

 
(1
)
 
(18
)
 
(3
)
 
(13
)
 
(8
)
 
(79
)
Allowance for credit losses – end of period
$
89

 
$
260

 
$
130

 
$
18

 
$
83

 
$
27

 
$
33

 
$
8

 
$
648

Ending balance: collectively evaluated for impairment
$
86

 
$
257

 
$
130

 
$
17

 
$
42

 
$
26

 
$
32

 
$
8

 
$
598

Ending balance: individually evaluated for impairment
3

 
3

 
—

 
1

 
41

 
1

 
1

 
—

 
50

Total allowance for credit losses
$
89

 
$
260

 
$
130

 
$
18

 
$
83

 
$
27

 
$
33

 
$
8

 
$
648

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,388

 
$
19,624

 
$
28,929

 
$
3,415

 
$
15,478

 
$
1,610

 
$
686

 
$
410

 
$
81,540

Individually evaluated for impairment(2)
132

 
88

 
13

 
7

 
262

 
5

 
6

 
—

 
513

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

 
—

 
—

 
—

 
1,493

 
71

 
—

 
—

 
1,564

Total loans
$
11,520

 
$
19,712

 
$
28,942

 
$
3,422

 
$
17,233

 
$
1,686

 
$
692

 
$
410

 
$
83,617

 
(1) 
Global Banking includes loans to HSBC affiliates totaling $5,072 million and $4,607 million at June 30, 2016 and 2015, 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 $763 million and $775 million at June 30, 2016 and 2015, respectively.