The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:



	Group Reporting Basis Consolidated Amounts
	RBWM			CMB			GB&M			PB			CC			Adjustments/ Reconciling Items		Total			Group Reporting Basis Adjustments⁽⁵⁾			Group Reporting Basis Reclassi- fications⁽⁶⁾			U.S. GAAP Consolidated Totals
	(in millions)
Three Months Ended March 31, 2018
Net interest income⁽¹⁾	$	216		$	186		$	149		$	47		$	15		$	—	$	613		$	8		$	(69	)	$	552
Other operating income	93			55			197			20			83			—		448			(11		)	76			513
Total operating income	309			241			346			67			98			—		1,061			(3		)	7			1,065
Expected credit losses / provision for credit losses	3			(10		)	(14		)	(3		)	3			—		(21		)	(51		)	1			(71		)
	306			251			360			70			95			—		1,082			48			6			1,136
Operating expenses⁽²⁾	325			151			216			61			532			—		1,285			(9		)	6			1,282
Profit (loss) before income tax expense	$	(19	)	$	100		$	144		$	9		$	(437	)	$	—	$	(203	)	$	57		$	—		$	(146	)
Balances at end of period:
Total assets	$	18,533		$	24,421		$	85,481		$	7,356		$	77,074		$	—	$	212,865		$	(30,830	)	$	—		$	182,035
Total loans, net⁽³⁾	16,665			23,402			18,100			6,132			1,791			—		66,090			(683		)	1,332			66,739
Goodwill	581			358			—			321			—			—		1,260			347			—			1,607
Total deposits⁽³⁾	34,822			23,573			33,778			7,970			3,635			—		103,778			(2,803		)	16,978			117,953

Three Months Ended March 31, 2017
Net interest income⁽¹⁾	$	213		$	180		$	152		$	53		$	8		$	—	$	606		$	(13	)	$	4		$	597
Other operating income⁽⁴⁾	148			52			142			21			94			—		457			140			(4		)	593
Total operating income	361			232			294			74			102			—		1,063			127			—			1,190
Loan impairment charges / provision for credit losses	9			(36		)	(35		)	2			(1		)	—		(61		)	(27		)	11			(77		)
	352			268			329			72			103			—		1,124			154			(11		)	1,267
Operating expenses⁽²⁾⁽⁴⁾	286			139			224			61			110			—		820			10			(11		)	819
Profit (loss) before income tax expense	$	66		$	129		$	105		$	11		$	(7	)	$	—	$	304		$	144		$	—		$	448
Balances at end of period:
Total assets	$	19,057		$	24,175		$	84,949		$	7,808		$	103,804		$	—	$	239,793		$	(38,255	)	$	45		$	201,583
Total loans, net	16,802			23,170			21,108			5,928			3,564			—		70,572			(323		)	(1,582		)	68,667
Goodwill	581			358			—			325			—			—		1,264			348			—			1,612
Total deposits	34,811			19,914			22,960			11,355			6,638			—		95,678			(4,430		)	38,010			129,258

⁽¹⁾

Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of the segments.


⁽²⁾	Expenses for the segments include fully apportioned corporate overhead expenses.

⁽³⁾

In addition to the changes discussed above, in conjunction with HSBC's adoption of the requirements of IFRS 9 we also adopted changes in presentation under the Group Reporting Basis related to affiliate loans and deposits as well as cash collateral posted and received. Beginning January 1, 2018, affiliate loans have been reclassified from other assets to loans, affiliate deposits have been reclassified from other liabilities to deposits, cash collateral posted has been reclassified from loans to other assets and cash collateral received has been reclassified from deposits to other liabilities. As a result of these changes, total loans, net and total deposits in the GB&M segment increased $0.2 billion and $10.8 billion, respectively, and total loans, net and total deposits in the CC segment decreased $3.0 billion and $0.9 billion, respectively, at March 31, 2018.

⁽⁴⁾

During the fourth quarter of 2017, we changed our presentation for certain cost reimbursements that were previously netted as an offset to affiliate expense and began presenting these reimbursements gross in affiliate income. As a result, we have reclassified prior period amounts in order to conform to the current year presentation, which increased both RBWM other operating income and RBWM operating expenses $11 million and also increased both GB&M other operating income and GB&M operating expenses $21 million during the three months ended March 31, 2017. See Note 14, "Related Party Transactions," for additional information.


⁽⁵⁾	Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.


⁽⁶⁾	Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.