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Business Segments (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Summary on Reconciliation of Results under Group Reporting Basis to US GAAP
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(2)
 
Group Reporting Basis
Reclassi-
fications(3)
 
U.S. GAAP
Consolidated
Totals
 
(in millions)
Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
889

 
$
797

 
$
610

 
$
172

 
$
91

 
$
—

 
$
2,559

 
$
(16
)
 
$
(291
)
 
$
2,252

Other operating income
297

 
226

 
751

 
73

 
257

 
—

 
1,604

 
(9
)
 
304

 
1,899

Total operating income
1,186

 
1,023

 
1,361

 
245

 
348

 
—

 
4,163

 
(25
)
 
13

 
4,151

Expected credit losses / provision for credit losses
38

 
(43
)
 
(194
)
 
(4
)
 
4

 
—

 
(199
)
 
115

 
11

 
(73
)
 
1,148

 
1,066

 
1,555

 
249

 
344

 
—

 
4,362

 
(140
)
 
2

 
4,224

Operating expenses
1,286

 
589

 
834

 
236

 
688

 
—

 
3,633

 
3

 
2

 
3,638

Profit (loss) before income tax expense
$
(138
)
 
$
477

 
$
721

 
$
13

 
$
(344
)
 
$
—

 
$
729

 
$
(143
)
 
$
—

 
$
586

Balances at end of period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
19,000

 
$
25,047

 
$
73,187

 
$
6,797

 
$
79,344

 
$
—

 
$
203,375

 
$
(30,927
)
 
$
—

 
$
172,448

Total loans, net(1)
16,918

 
23,913

 
18,895

 
5,715

 
1,599

 
—

 
67,040

 
(2,428
)
 
3,825

 
68,437

Goodwill
581

 
358

 
—

 
321

 
—

 
—

 
1,260

 
347

 
—

 
1,607

Total deposits(1)
32,612

 
23,604

 
30,181

 
8,193

 
2,781

 
—

 
97,371

 
(2,017
)
 
15,601

 
110,955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
886

 
$
739

 
$
585

 
$
217

 
$
(40
)
 
$
—

 
$
2,387

 
$
(48
)
 
$
(66
)
 
$
2,273

Other operating income
526

 
216

 
617

 
94

 
274

 
—

 
1,727

 
200

 
75

 
2,002

Total operating income
1,412

 
955

 
1,202

 
311

 
234

 
—

 
4,114

 
152

 
9

 
4,275

Expected credit losses / provision for credit losses
25

 
(52
)
 
(94
)
 
2

 
—

 
—

 
(119
)
 
(72
)
 
26

 
(165
)
 
1,387

 
1,007

 
1,296

 
309

 
234

 
—

 
4,233

 
224

 
(17
)
 
4,440

Operating expenses
1,185

 
558

 
881

 
244

 
465

 
—

 
3,333

 
75

 
(17
)
 
3,391

Profit (loss) before income tax expense
$
202

 
$
449

 
$
415

 
$
65

 
$
(231
)
 
$
—

 
$
900

 
$
149

 
$
—

 
$
1,049

Balances at end of period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
18,707

 
$
23,644

 
$
72,734

 
$
8,190

 
$
97,038

 
$
—

 
$
220,313

 
$
(33,078
)
 
$
—

 
$
187,235

Total loans, net
16,685

 
22,444

 
19,125

 
6,405

 
3,556

 
—

 
68,215

 
(1,397
)
 
5,064

 
71,882

Goodwill
581

 
358

 
—

 
321

 
—

 
—

 
1,260

 
347

 
—

 
1,607

Total deposits
34,186

 
24,239

 
25,476

 
8,470

 
4,923

 
—

 
97,294

 
(3,261
)
 
24,669

 
118,702

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
818

 
$
749

 
$
567

 
$
207

 
$
132

 
$
(2
)
 
$
2,471

 
$
(76
)
 
$
89

 
$
2,484

Other operating income
363

 
229

 
785

 
89

 
127

 
2

 
1,595

 
(104
)
 
(87
)
 
1,404

Total operating income
1,181

 
978

 
1,352

 
296

 
259

 
—

 
4,066

 
(180
)
 
2

 
3,888

Expected credit losses / provision for credit losses
70

 
50

 
383

 
—

 
(9
)
 
—

 
494

 
(78
)
 
(44
)
 
372

 
1,111

 
928

 
969

 
296

 
268

 
—

 
3,572

 
(102
)
 
46

 
3,516

Operating expenses
1,131

 
591

 
986

 
232

 
338

 
—

 
3,278

 
(26
)
 
46

 
3,298

Profit (loss) before income tax expense
$
(20
)
 
$
337

 
$
(17
)
 
$
64

 
$
(70
)
 
$
—

 
$
294

 
$
(76
)
 
$
—

 
$
218

Balances at end of period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
19,618

 
$
25,082

 
$
85,215

 
$
7,714

 
$
108,877

 
$
—

 
$
246,506

 
$
(45,234
)
 
$
29

 
$
201,301

Total loans, net
16,889

 
24,125

 
21,914

 
6,024

 
3,512

 
—

 
72,464

 
(405
)
 
799

 
72,858

Goodwill
581

 
358

 
—

 
325

 
—

 
—

 
1,264

 
348

 
—

 
1,612

Total deposits
32,472

 
22,005

 
22,260

 
11,618

 
6,989

 
—

 
95,344

 
(4,379
)
 
38,283

 
129,248

 
(1)
In addition to the changes discussed above, in conjunction with HSBC's adoption of the requirements of IFRS 9 HUSI 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 decreased $0.1 billion and increased $8.3 billion, respectively, and total loans, net and total deposits in the CC segment decreased $2.2 billion and increased $0.3 billion, respectively, at December 31, 2018.
(2) 
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:
 
Net
Interest
Income
 
Other
Revenues
 
Provision
for Credit
Losses
 
Operating
Expenses
 
Profit (Loss)
before Income
Tax Expense
 
Total
Assets
 
(in millions)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Deposit incentives
$
9

 
$
—

 
$
—

 
$
20

 
$
(11
)
 
$
(10
)
Derivatives
—

 
—

 
—

 
—

 
—

 
(30,866
)
Expected credit losses / loan impairment
(6
)
 
—

 
118

 
—

 
(124
)
 
(386
)
Goodwill
—

 
—

 
—

 
—

 
—

 
347

Loan origination
(29
)
 
(3
)
 
—

 
(14
)
 
(18
)
 
45

Loans held for sale
9

 
6

 
(3
)
 
—

 
18

 
45

Pension and other postretirement benefit costs
—

 
—

 
—

 
8

 
(8
)
 
(44
)
Property
—

 
—

 
—

 
(8
)
 
8

 
7

Securities transferred to held-to-maturity
—

 
—

 
—

 
—

 
—

 
(76
)
Other
1

 
(12
)
 
—

 
(3
)
 
(8
)
 
11

Total 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
)
 
347

Loan origination
(19
)
 
—

 
—

 
(14
)
 
(5
)
 
42

Loans held for sale
9

 
141

 
—

 
—

 
150

 
21

Pension and other postretirement benefit costs
—

 
—

 
—

 
94

 
(94
)
 
(263
)
Property
—

 
—

 
—

 
(11
)
 
11

 
8

Structured notes and deposits
—

 
85

 
—

 
—

 
85

 
—

Other
5

 
(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
—

 
—

 
—

 
—

 
—

 
348

Loan origination
(21
)
 
—

 
—

 
(19
)
 
(2
)
 
35

Loans held for sale
—

 
(80
)
 
(20
)
 
—

 
(60
)
 
(31
)
Pension and other postretirement benefit costs
—

 
—

 
—

 
19

 
(19
)
 
(191
)
Property
—

 
—

 
—

 
(19
)
 
19

 
16

Unquoted equity securities
—

 
—

 
—

 
—

 
—

 
(163
)
Other
2

 
(31
)
 
—

 
(8
)
 
(21
)
 
(11
)
Total adjustments
$
(76
)
 
$
(104
)
 
$
(78
)
 
$
(26
)
 
$
(76
)
 
$
(45,234
)

(3) 
Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.