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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product
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 nine months ended September 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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
88

 
$
196

 
$
154

 
$
19

 
$
15

 
$
9

 
$
45

 
$
5

 
$
531

Provision charged (credited) to income
24

 
9

 
(16
)
 
(4
)
 
(5
)
 
(1
)
 
14

 
(1
)
 
20

Charge-offs
—

 
(3
)
 
(11
)
 
—

 
(2
)
 
(2
)
 
(10
)
 
—

 
(28
)
Recoveries
—

 
2

 
—

 
—

 
5

 
2

 
2

 
1

 
12

Net (charge-offs) recoveries
—

 
(1
)
 
(11
)
 
—

 
3

 
—

 
(8
)
 
1

 
(16
)
Allowance for credit losses – end of period
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
81

 
$
261

 
$
425

 
$
14

 
$
20

 
$
12

 
$
30

 
$
5

 
$
848

Provision charged (credited) to income
(1
)
 
(9
)
 
(21
)
 
(1
)
 
4

 
(2
)
 
8

 
—

 
(22
)
Charge-offs
(4
)
 
(7
)
 
(14
)
 
—

 
—

 
(1
)
 
(8
)
 
(1
)
 
(35
)
Recoveries
—

 
2

 
—

 
—

 
2

 
1

 
2

 
1

 
8

Net (charge-offs) recoveries
(4
)
 
(5
)
 
(14
)
 
—

 
2

 
—

 
(6
)
 
—

 
(27
)
Allowance for credit losses – end of period
$
76

 
$
247

 
$
390

 
$
13

 
$
26

 
$
10

 
$
32

 
$
5

 
$
799

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
30

 
(52
)
 
(90
)
 
(3
)
 
(19
)
 
(2
)
 
39

 
1

 
(96
)
Charge-offs
—

 
(34
)
 
(48
)
 
—

 
(3
)
 
(6
)
 
(25
)
 
(3
)
 
(119
)
Recoveries
—

 
46

 
1

 
—

 
10

 
5

 
5

 
2

 
69

Net (charge-offs) recoveries
—

 
12

 
(47
)
 
—

 
7

 
(1
)
 
(20
)
 
(1
)
 
(50
)
Allowance for credit losses – end of period
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

Ending balance: collectively evaluated for impairment
$
111

 
$
180

 
$
127

 
$
15

 
$
10

 
$
7

 
$
50

 
$
5

 
$
505

Ending balance: individually evaluated for impairment
1

 
24

 
—

 
—

 
3

 
1

 
1

 
—

 
30

Total allowance for credit losses
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,877

 
$
12,618

 
$
18,541

 
$
3,897

 
$
16,460

 
$
962

 
$
903

 
$
263

 
$
65,521

Individually evaluated for impairment(2)
5

 
113

 
131

 
1

 
57

 
4

 
4

 
—

 
315

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

 
—

 
—

 
—

 
859

 
61

 
—

 
—

 
920

Total loans
$
11,882

 
$
12,731

 
$
18,672

 
$
3,898

 
$
17,376

 
$
1,027

 
$
907

 
$
263

 
$
66,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Provision charged (credited) to income
(9
)
 
(56
)
 
(60
)
 
1

 
(4
)
 
(8
)
 
17

 
(1
)
 
(120
)
Charge-offs
(7
)
 
(30
)
 
(59
)
 
(1
)
 
(3
)
 
(5
)
 
(24
)
 
(3
)
 
(132
)
Recoveries
—

 
16

 
1

 
—

 
7

 
3

 
5

 
2

 
34

Net (charge-offs) recoveries
(7
)
 
(14
)
 
(58
)
 
(1
)
 
4

 
(2
)
 
(19
)
 
(1
)
 
(98
)
Allowance for credit losses – end of period
$
76

 
$
247

 
$
390

 
$
13

 
$
26

 
$
10

 
$
32

 
$
5

 
$
799

Ending balance: collectively evaluated for impairment
$
75

 
$
196

 
$
228

 
$
13

 
$
19

 
$
9

 
$
31

 
$
5

 
$
576

Ending balance: individually evaluated for impairment
1

 
51

 
162

 
—

 
7

 
1

 
1

 
—

 
223

Total allowance for credit losses
$
76

 
$
247

 
$
390

 
$
13

 
$
26

 
$
10

 
$
32

 
$
5

 
$
799

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,425

 
$
13,008

 
$
19,434

 
$
4,408

 
$
16,207

 
$
1,164

 
$
652

 
$
379

 
$
65,677

Individually evaluated for impairment(2)
17

 
320

 
516

 
—

 
59

 
3

 
4

 
—

 
919

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

 
—

 
—

 
—

 
930

 
67

 
—

 
—

 
997

Total loans
$
10,442

 
$
13,328

 
$
19,950

 
$
4,408

 
$
17,196

 
$
1,234

 
$
656

 
$
379

 
$
67,593

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Other commercial includes loans to HSBC affiliates totaling $1,557 million and $1,820 million at September 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 $623 million and $662 million at September 30, 2018 and 2017, respectively.