XML 14 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONSOLIDATED STATEMENT OF INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Interest income:      
Loans $ 2,589 $ 2,241 $ 2,284
Securities 1,131 952 956
Trading securities 213 209 262
Short-term investments 645 669 365
Other 77 52 43
Total interest income 4,655 4,123 3,910
Interest expense:      
Deposits 1,072 703 468
Short-term borrowings 172 124 79
Long-term debt 1,123 998 864
Other 36 25 15
Total interest expense 2,403 1,850 1,426
Net interest income 2,252 2,273 2,484
Provision for credit losses (73) (165) 372
Net interest income after provision for credit losses 2,325 2,438 2,112
Other revenues:      
Other revenues 1,236 1,233 1,235
Trading revenue 625 354 227
Other securities gains, net 24 52 70
Gain (loss) on instruments designated at fair value and related derivatives 19 43 (71)
Other income (loss) 6 334 (37)
Total other revenues [1] 1,899 2,002 1,404 [2]
Operating expenses:      
Salaries and employee benefits 830 1,077 981
Support services from HSBC affiliates 1,603 1,549 1,495
Occupancy expense, net 185 202 171
Other expenses 1,020 563 651
Total operating expenses [1] 3,638 3,391 [3] 3,298 [3]
Income before income tax 586 1,049 218
Income tax expense 266 1,228 89
Net income (loss) 320 (179) 129
Credit card fees, net [Member]      
Other revenues:      
Other revenues 50 46 52
Trust and investment management fees [Member]      
Other revenues:      
Other revenues 135 156 153
Other fees and commissions [Member]      
Other revenues:      
Other revenues 684 669 721
Servicing and other fees from HSBC affiliates [Member]      
Other revenues:      
Other revenues $ 356 $ 348 $ 289
[1] Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis. These adjustments, which are more fully described above, consist of the following: NetInterestIncome OtherRevenues Provisionfor CreditLosses OperatingExpenses Profit (Loss)before IncomeTax Expense TotalAssets (in millions)December 31, 2018 Deposit incentives$9 $— $— $20 $(11) $(10)Derivatives— — — — — (30,866)Expected credit losses / loan impairment(6) — 118 — (124) (386)Goodwill— — — — — 347Loan origination(29) (3) — (14) (18) 45Loans held for sale9 6 (3) — 18 45Pension and other postretirement benefit costs— — — 8 (8) (44)Property— — — (8) 8 7Securities transferred to held-to-maturity— — — — — (76)Other1 (12) — (3) (8) 11Total adjustments$(16) $(9) $115 $3 $(143) $(30,927) December 31, 2017 Derivatives$— $— $— $— $— $(32,900)Expected credit losses / loan impairment(43) — (72) — 29 (332)Goodwill— (1) — — (1) 347Loan origination(19) — — (14) (5) 42Loans held for sale9 141 — — 150 21Pension and other postretirement benefit costs— — — 94 (94) (263)Property— — — (11) 11 8Structured notes and deposits— 85 — — 85 —Other5 (25) — 6 (26) (1)Total adjustments$(48) $200 $(72) $75 $149 $(33,078) December 31, 2016 Derivatives$— $— $— $— $— $(44,911)Expected credit losses / loan impairment(57) 7 (58) 1 7 (326)Goodwill— — — — — 348Loan origination(21) — — (19) (2) 35Loans held for sale— (80) (20) — (60) (31)Pension and other postretirement benefit costs— — — 19 (19) (191)Property— — — (19) 19 16Unquoted equity securities— — — — — (163)Other2 (31) — (8) (21) (11)Total adjustments$(76) $(104) $(78) $(26) $(76) $(45,234)
[2] See Note 23, "Business Segments," for a reconciliation of total other revenues on a U.S. GAAP basis to other operating income for each business segment under the Group Reporting Basis.
[3] Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.