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Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 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 years ended December 31, 2018, 2017 and 2016:
 
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)
Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
34

 
(31
)
 
(109
)
 
(3
)
 
(18
)
 
(3
)
 
55

 
2

 
(73
)
Charge-offs
—

 
(41
)
 
(48
)
 
—

 
(7
)
 
(7
)
 
(35
)
 
(4
)
 
(142
)
Recoveries
—

 
47

 
1

 
—

 
13

 
6

 
6

 
2

 
75

Net (charge-offs) recoveries
—

 
6

 
(47
)
 
—

 
6

 
(1
)
 
(29
)
 
(2
)
 
(67
)
Allowance for credit losses – end of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Ending balance: collectively evaluated for impairment
$
115

 
$
201

 
$
108

 
$
15

 
$
10

 
$
6

 
$
57

 
$
5

 
$
517

Ending balance: individually evaluated for impairment
1

 
18

 
—

 
—

 
3

 
1

 
1

 
—

 
24

Total allowance for credit losses
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,338

 
$
12,971

 
$
20,034

 
$
4,764

 
$
16,486

 
$
919

 
$
1,016

 
$
252

 
$
67,780

Individually evaluated for impairment(2)
6

 
95

 
133

 
1

 
56

 
4

 
3

 
—

 
298

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

 
—

 
—

 
—

 
841

 
59

 
—

 
—

 
900

Total loans
$
11,344

 
$
13,066

 
$
20,167

 
$
4,765

 
$
17,383

 
$
982

 
$
1,019

 
$
252

 
$
68,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Provision charged (credited) to income
(3
)
 
(59
)
 
(116
)
 
6

 
(7
)
 
(8
)
 
22

 
—

 
(165
)
Charge-offs
(7
)
 
(37
)
 
(141
)
 
(1
)
 
(4
)
 
(6
)
 
(30
)
 
(4
)
 
(230
)
Recoveries
—

 
23

 
13

 
—

 
10

 
5

 
6

 
2

 
59

Net (charge-offs) recoveries
(7
)
 
(14
)
 
(128
)
 
(1
)
 
6

 
(1
)
 
(24
)
 
(2
)
 
(171
)
Allowance for credit losses – end of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Ending balance: collectively evaluated for impairment
$
82

 
$
199

 
$
182

 
$
18

 
$
18

 
$
10

 
$
31

 
$
5

 
$
545

Ending balance: individually evaluated for impairment
—

 
45

 
82

 
—

 
7

 
1

 
1

 
—

 
136

Total allowance for credit losses
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,522

 
$
12,254

 
$
19,651

 
$
9,910

 
$
16,308

 
$
1,121

 
$
717

 
$
343

 
$
70,826

Individually evaluated for impairment(2)
11

 
250

 
437

 
—

 
57

 
4

 
4

 
—

 
763

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

 
—

 
—

 
—

 
908

 
66

 
—

 
—

 
974

Total loans
$
10,533

 
$
12,504

 
$
20,088

 
$
9,910

 
$
17,273

 
$
1,191

 
$
721

 
$
343

 
$
72,563

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
86

 
$
407

 
$
267

 
$
19

 
$
68

 
$
24

 
$
32

 
$
9

 
$
912

Provision charged (credited) to income(3)
—

 
10

 
348

 
(6
)
 
(9
)
 
(1
)
 
26

 
4

 
372

Charge-offs(3)(4)
(1
)
 
(110
)
 
(107
)
 
—

 
(45
)
 
(8
)
 
(30
)
 
(8
)
 
(309
)
Recoveries
7

 
10

 
—

 
—

 
12

 
5

 
6

 
2

 
42

Net (charge-offs) recoveries
6

 
(100
)
 
(107
)
 
—

 
(33
)
 
(3
)
 
(24
)
 
(6
)
 
$
(267
)
Allowance for credit losses – end of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Ending balance: collectively evaluated for impairment
$
91

 
$
262

 
$
257

 
$
12

 
$
17

 
$
19

 
$
33

 
$
7

 
$
698

Ending balance: individually evaluated for impairment
1

 
55

 
251

 
1

 
9

 
1

 
1

 
—

 
319

Total allowance for credit losses
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,847

 
$
13,738

 
$
22,820

 
$
5,758

 
$
16,165

 
$
1,335

 
$
683

 
$
382

 
$
71,728

Individually evaluated for impairment(2)
43

 
342

 
661

 
7

 
60

 
3

 
5

 
—

 
1,121

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

 
—

 
—

 
—

 
956

 
70

 
—

 
—

 
1,026

Total loans
$
10,890

 
$
14,080

 
$
23,481

 
$
5,765

 
$
17,181

 
$
1,408

 
$
688

 
$
382

 
$
73,875

 

(1) 
Other commercial includes loans to HSBC affiliates totaling $2,274 million, $6,750 million and $3,274 million at December 31, 2018, 2017 and 2016, 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 $615 million, $655 million and $672 million at December 31, 2018, 2017 and 2016, respectively.
(3) 
The provision for credit losses and charge-offs for residential mortgage loans during 2016 includes $11 million related to the lower of amortized cost or fair value adjustment attributable to credit factors for loans transferred to held for sale. See Note 7, "Loans Held for Sale," for additional information.
(4) 
For collateral dependent loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer are recognized as a charge-off. We transferred to held for sale certain residential mortgage loans during 2016 and, accordingly, we recognized the existing allowance for credit losses on these loans as additional charge-offs totaling $22 million during 2016.