XML 109 R97.htm IDEA: XBRL DOCUMENT v3.10.0.1
Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses and Related Loan Balance by Product (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       $ 681       $ 1,017 $ 681 $ 1,017 $ 912      
Provision charged (credited) to income $ 23 $ 20 $ (45) (71) $ (45) $ (22) $ (21) (77) (73) (165) 372      
Charge offs                 (142) (230) (309)      
Recoveries                 75 59 42      
Net (charge offs) recoveries                 (67) (171) (267)      
Balance at end of period 541       681       541 681 1,017      
Ending balance: collectively evaluated for impairment                       $ 517 $ 545 $ 698
Ending balance: individually evaluated for impairment                       24 136 319
Total allowances for credit losses 541     681 681     1,017 681 1,017 912 541 681 1,017
Collectively evaluated for impairment [1]                       67,780 70,826 71,728
Individually evaluated for impairment [2]                       298 763 1,121
Loans carried at the lower of amortized cost or fair value less cost to sell                       900 974 1,026
Total loans                       68,978 72,563 73,875
Commercial Loans [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Total loans                       49,342 53,035  
Commercial Loans [Member] | Real Estate, Including Construction [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       82       92 82 92 86      
Provision charged (credited) to income                 34 (3) 0      
Charge offs                 0 (7) (1)      
Recoveries                 0 0 7      
Net (charge offs) recoveries                 0 (7) 6      
Balance at end of period 116       82       116 82 92      
Ending balance: collectively evaluated for impairment                       115 82 91
Ending balance: individually evaluated for impairment                       1 0 1
Total allowances for credit losses 116     82 82     92 82 92 86 116 82 92
Collectively evaluated for impairment [1]                       11,338 10,522 10,847
Individually evaluated for impairment [2]                       6 11 43
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       11,344 10,533 10,890
Commercial Loans [Member] | Business and Corporate Banking [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       244       317 244 317 407      
Provision charged (credited) to income                 (31) (59) 10      
Charge offs                 (41) (37) (110)      
Recoveries                 47 23 10      
Net (charge offs) recoveries                 6 (14) (100)      
Balance at end of period 219       244       219 244 317      
Ending balance: collectively evaluated for impairment                       201 199 262
Ending balance: individually evaluated for impairment                       18 45 55
Total allowances for credit losses 219     244 244     317 244 317 407 219 244 317
Collectively evaluated for impairment [1]                       12,971 12,254 13,738
Individually evaluated for impairment [2]                       95 250 342
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       13,066 12,504 14,080
Commercial Loans [Member] | Global Banking [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       264       508 264 508 267      
Provision charged (credited) to income                 (109) (116) 348      
Charge offs                 (48) (141) (107)      
Recoveries                 1 13 0      
Net (charge offs) recoveries                 (47) (128) (107)      
Balance at end of period 108       264       108 264 508      
Ending balance: collectively evaluated for impairment                       108 182 257
Ending balance: individually evaluated for impairment                       0 82 251
Total allowances for credit losses 108     264 264     508 264 508 267 108 264 508
Collectively evaluated for impairment [1]                       20,034 19,651 22,820
Individually evaluated for impairment [2]                       133 437 661
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       20,167 [3] 20,088 [3] 23,481
Commercial Loans [Member] | Other Commercial [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       18       13 18 13 19      
Provision charged (credited) to income                 (3) 6 (6)      
Charge offs                 0 (1) 0      
Recoveries                 0 0 0      
Net (charge offs) recoveries                 0 (1) 0      
Balance at end of period 15       18       15 18 13      
Ending balance: collectively evaluated for impairment                       15 18 12
Ending balance: individually evaluated for impairment                       0 0 1
Total allowances for credit losses 15     18 18     13 18 13 19 15 18 13
Collectively evaluated for impairment [1]                       4,764 9,910 5,758
Individually evaluated for impairment [2]                       1 0 7
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       4,765 [4] 9,910 [4] 5,765
Consumer Loans [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Total loans                       19,636 19,528  
Consumer Loans [Member] | Residential Mortgages [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       25       26 25 26 68      
Provision charged (credited) to income                 (18) (7) (9)      
Charge offs                 (7) (4) (45)      
Recoveries                 13 10 12      
Net (charge offs) recoveries                 6 6 (33)      
Balance at end of period 13       25       13 25 26      
Ending balance: collectively evaluated for impairment                       10 18 17
Ending balance: individually evaluated for impairment                       3 7 9
Total allowances for credit losses 13     25 25     26 25 26 68 13 25 26
Collectively evaluated for impairment [1]                       16,486 16,308 16,165
Individually evaluated for impairment [2]                       56 57 60
Loans carried at the lower of amortized cost or fair value less cost to sell                       841 908 956
Total loans                       17,383 17,273 17,181
Consumer Loans [Member] | Home Equity Mortgages [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       11       20 11 20 24      
Provision charged (credited) to income                 (3) (8) (1)      
Charge offs                 (7) (6) (8)      
Recoveries                 6 5 5      
Net (charge offs) recoveries                 (1) (1) (3)      
Balance at end of period 7       11       7 11 20      
Ending balance: collectively evaluated for impairment                       6 10 19
Ending balance: individually evaluated for impairment                       1 1 1
Total allowances for credit losses 7     11 11     20 11 20 24 7 11 20
Collectively evaluated for impairment [1]                       919 1,121 1,335
Individually evaluated for impairment [2]                       4 4 3
Loans carried at the lower of amortized cost or fair value less cost to sell                       59 66 70
Total loans                       982 [5] 1,191 1,408
Consumer Loans [Member] | Credit Cards [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       32       34 32 34 32      
Provision charged (credited) to income                 55 22 26      
Charge offs                 (35) (30) (30)      
Recoveries                 6 6 6      
Net (charge offs) recoveries                 (29) (24) (24)      
Balance at end of period 58       32       58 32 34      
Ending balance: collectively evaluated for impairment                       57 31 33
Ending balance: individually evaluated for impairment                       1 1 1
Total allowances for credit losses 58     32 32     34 32 34 32 58 32 34
Collectively evaluated for impairment [1]                       1,016 717 683
Individually evaluated for impairment [2]                       3 4 5
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       1,019 [6] 721 688
Consumer Loans [Member] | Other consumer [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       5       7 5 7 9      
Provision charged (credited) to income                 2 0 4      
Charge offs                 (4) (4) (8)      
Recoveries                 2 2 2      
Net (charge offs) recoveries                 (2) (2) (6)      
Balance at end of period 5       5       5 5 7      
Ending balance: collectively evaluated for impairment                       5 5 7
Ending balance: individually evaluated for impairment                       0 0 0
Total allowances for credit losses $ 5     $ 5 $ 5     $ 7 $ 5 $ 7 $ 9 5 5 7
Collectively evaluated for impairment [1]                       252 343 382
Individually evaluated for impairment [2]                       0 0 0
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       $ 252 $ 343 $ 382
[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] Represents large multinational firms including globally focused U.S. corporate and financial institutions, U.S. dollar lending to multinational banking clients managed by HSBC on a global basis and complex large business clients supported by Global Banking and Markets relationship managers.
[4] Includes loans to HSBC affiliates which totaled $2,274 million and $6,750 million at December 31, 2018 and 2017, respectively. See Note 22, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
[5] Home equity mortgage maturities reflect estimates based on historical payment patterns.
[6] As credit card receivables do not have stated maturities, the table reflects estimates based on historical payment patterns.