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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2017
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, 2017 and 2016:
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking(1)
 
Global
Banking(1)
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Provision charged (credited) to income
1

 
(42
)
 
(39
)
 
2

 
—

 
(2
)
 
3

 
—

 
(77
)
Charge-offs
(1
)
 
(21
)
 
—

 
—

 
(3
)
 
(2
)
 
(8
)
 
(1
)
 
(36
)
Recoveries
—

 
12

 
1

 
—

 
1

 
1

 
2

 
—

 
17

Net (charge-offs) recoveries
(1
)
 
(9
)
 
1

 
—

 
(2
)
 
(1
)
 
(6
)
 
(1
)
 
(19
)
Allowance for credit losses – end of period
$
92

 
$
266

 
$
470

 
$
15

 
$
24

 
$
17

 
$
31

 
$
6

 
$
921

Ending balance: collectively evaluated for impairment
$
86

 
$
230

 
$
247

 
$
14

 
$
16

 
$
16

 
$
30

 
$
6

 
$
645

Ending balance: individually evaluated for impairment
6

 
36

 
223

 
1

 
8

 
1

 
1

 
—

 
276

Total allowance for credit losses
$
92

 
$
266

 
$
470

 
$
15

 
$
24

 
$
17

 
$
31

 
$
6

 
$
921

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(2)
$
10,758

 
$
12,828

 
$
21,974

 
$
3,508

 
$
16,181

 
$
1,271

 
$
642

 
$
383

 
$
67,545

Individually evaluated for impairment(3)
44

 
324

 
553

 
7

 
57

 
4

 
4

 
—

 
993

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

 
—

 
—

 
—

 
981

 
69

 
—

 
—

 
1,050

Total loans
$
10,802

 
$
13,152

 
$
22,527

 
$
3,515

 
$
17,219

 
$
1,344

 
$
646

 
$
383

 
$
69,588

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
86

 
$
407

 
$
267

 
$
19

 
$
68

 
$
24

 
$
32

 
$
9

 
$
912

Provision charged (credited) to income
9

 
(47
)
 
197

 
(3
)
 
(9
)
 
3

 
5

 
2

 
157

Charge-offs
—

 
(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

 
$
334

 
$
457

 
$
16

 
$
55

 
$
25

 
$
31

 
$
10

 
$
1,023

Ending balance: collectively evaluated for impairment
$
94

 
$
251

 
$
285

 
$
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

 
$
334

 
$
457

 
$
16

 
$
55

 
$
25

 
$
31

 
$
10

 
$
1,023

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

 
$
14,364

 
$
28,304

 
$
8,164

 
$
16,244

 
$
1,467

 
$
655

 
$
395

 
$
79,660

Individually evaluated for impairment(3)
103

 
306

 
297

 
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

 
$
14,670

 
$
28,601

 
$
8,171

 
$
17,521

 
$
1,544

 
$
660

 
$
395

 
$
81,732

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
During the fourth quarter of 2016, we transferred certain client relationships from CMB to GB&M as discussed further in Note 13, "Business Segments." As a result, we reclassified $4.7 billion of loans and $28 million of allowance for credit losses from business and corporate banking to global banking at March 31, 2016 to conform with the current year presentation.
(2) 
During the first quarter of 2017, in conjunction with the creation of the new Corporate Center segment as discussed further in Note 13, "Business Segments," we reclassified loans to HSBC affiliates from global banking to other commercial and revised the prior period to conform with the current year presentation. As a result, other commercial includes loans to HSBC affiliates totaling $939 million and $5,107 million at March 31, 2017 and 2016, 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 $681 million and $771 million at March 31, 2017 and 2016, respectively.