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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2018
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, 2018 and 2017:
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
207

 
$
211

 
$
19

 
$
18

 
$
10

 
$
38

 
$
4

 
$
599

Provision charged (credited) to income
(4
)
 
(27
)
 
(25
)
 
—

 
(4
)
 
—

 
13

 
2

 
(45
)
Charge-offs
—

 
(6
)
 
(32
)
 
—

 
(1
)
 
(2
)
 
(7
)
 
(2
)
 
(50
)
Recoveries
—

 
22

 
—

 
—

 
2

 
1

 
1

 
1

 
27

Net (charge-offs) recoveries
—

 
16

 
(32
)
 
—

 
1

 
(1
)
 
(6
)
 
(1
)
 
(23
)
Allowance for credit losses – end of period
$
88

 
$
196

 
$
154

 
$
19

 
$
15

 
$
9

 
$
45

 
$
5

 
$
531

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
266

 
$
470

 
$
15

 
$
24

 
$
17

 
$
31

 
$
6

 
$
921

Provision charged (credited) to income
(9
)
 
(5
)
 
—

 
—

 
(8
)
 
(4
)
 
6

 
(1
)
 
(21
)
Charge-offs
(2
)
 
(2
)
 
(45
)
 
(1
)
 
—

 
(2
)
 
(8
)
 
(1
)
 
(61
)
Recoveries
—

 
2

 
—

 
—

 
4

 
1

 
1

 
1

 
9

Net (charge-offs) recoveries
(2
)
 
—

 
(45
)
 
(1
)
 
4

 
(1
)
 
(7
)
 
—

 
(52
)
Allowance for credit losses – end of period
$
81

 
$
261

 
$
425

 
$
14

 
$
20

 
$
12

 
$
30

 
$
5

 
$
848

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
6

 
(61
)
 
(74
)
 
1

 
(14
)
 
(1
)
 
25

 
2

 
(116
)
Charge-offs
—

 
(31
)
 
(37
)
 
—

 
(1
)
 
(4
)
 
(15
)
 
(3
)
 
(91
)
Recoveries
—

 
44

 
1

 
—

 
5

 
3

 
3

 
1

 
57

Net (charge-offs) recoveries
—

 
13

 
(36
)
 
—

 
4

 
(1
)
 
(12
)
 
(2
)
 
(34
)
Allowance for credit losses – end of period
$
88

 
$
196

 
$
154

 
$
19

 
$
15

 
$
9

 
$
45

 
$
5

 
$
531

Ending balance: collectively evaluated for impairment
$
87

 
$
169

 
$
139

 
$
19

 
$
10

 
$
8

 
$
44

 
$
5

 
$
481

Ending balance: individually evaluated for impairment
1

 
27

 
15

 
—

 
5

 
1

 
1

 
—

 
50

Total allowance for credit losses
$
88

 
$
196

 
$
154

 
$
19

 
$
15

 
$
9

 
$
45

 
$
5

 
$
531

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,234

 
$
11,852

 
$
18,704

 
$
4,612

 
$
16,397

 
$
1,019

 
$
837

 
$
303

 
$
64,958

Individually evaluated for impairment(2)
11

 
257

 
173

 
—

 
59

 
3

 
4

 
—

 
507

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

 
—

 
—

 
—

 
870

 
64

 
—

 
—

 
934

Total loans
$
11,245

 
$
12,109

 
$
18,877

 
$
4,612

 
$
17,326

 
$
1,086

 
$
841

 
$
303

 
$
66,399

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Provision charged (credited) to income
(8
)
 
(47
)
 
(39
)
 
2

 
(8
)
 
(6
)
 
9

 
(1
)
 
(98
)
Charge-offs
(3
)
 
(23
)
 
(45
)
 
(1
)
 
(3
)
 
(4
)
 
(16
)
 
(2
)
 
(97
)
Recoveries
—

 
14

 
1

 
—

 
5

 
2

 
3

 
1

 
26

Net (charge-offs) recoveries
(3
)
 
(9
)
 
(44
)
 
(1
)
 
2

 
(2
)
 
(13
)
 
(1
)
 
(71
)
Allowance for credit losses – end of period
$
81

 
$
261

 
$
425

 
$
14

 
$
20

 
$
12

 
$
30

 
$
5

 
$
848

Ending balance: collectively evaluated for impairment
$
74

 
$
221

 
$
223

 
$
14

 
$
13

 
$
11

 
$
29

 
$
5

 
$
590

Ending balance: individually evaluated for impairment
7

 
40

 
202

 
—

 
7

 
1

 
1

 
—

 
258

Total allowance for credit losses
$
81

 
$
261

 
$
425

 
$
14

 
$
20

 
$
12

 
$
30

 
$
5

 
$
848

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,197

 
$
12,584

 
$
20,446

 
$
4,427

 
$
16,114

 
$
1,215

 
$
643

 
$
424

 
$
66,050

Individually evaluated for impairment(2)
43

 
284

 
601

 
6

 
58

 
3

 
4

 
—

 
999

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

 
—

 
—

 
—

 
947

 
67

 
—

 
—

 
1,014

Total loans
$
10,240

 
$
12,868

 
$
21,047

 
$
4,433

 
$
17,119

 
$
1,285

 
$
647

 
$
424

 
$
68,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Other commercial includes loans to HSBC affiliates totaling $1,895 million and $1,423 million at June 30, 2018 and 2017, 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 $635 million and $670 million at June 30, 2018 and 2017, respectively.