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CONSOLIDATED STATEMENT OF INCOME - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Interest income:        
Loans $ 743 $ 637 $ 1,459 $ 1,235
Securities 298 278 602 531
Trading securities 67 53 130 102
Short-term investments 173 157 349 315
Other 20 22 38 38
Total interest income 1,301 1,147 2,578 2,221
Interest expense:        
Deposits 380 258 713 480
Short-term borrowings 68 43 130 76
Long-term debt 306 283 618 540
Other 7 8 15 18
Total interest expense 761 592 1,476 1,114
Net interest income 540 555 1,102 1,107
Provision for credit losses 46 (45) 104 (116)
Net interest income after provision for credit losses 494 600 998 1,223
Other revenues:        
Other revenues 303 323 575 634
Trading revenue 123 192 256 355
Other securities gains, net 23 10 30 15
Gain (loss) on instruments designated at fair value and related derivatives (17) 4 (26) 34
Other income (loss) 8 11 (3) 18
Total other revenues [1] 436 537 826 [2] 1,050 [2]
Operating expenses:        
Salaries and employee benefits 221 212 431 419
Support services from HSBC affiliates 411 405 791 816
Occupancy expense, net 48 45 93 88
Other expenses 94 124 209 745
Total operating expenses [2] 774 786 1,524 2,068 [3]
Income before income tax 156 351 300 205
Income tax expense 35 82 70 174
Net income 121 269 230 31
Credit card fees, net [Member]        
Other revenues:        
Other revenues 18 15 30 26
Trust and investment management fees [Member]        
Other revenues:        
Other revenues 31 34 61 72
Other fees and commissions [Member]        
Other revenues:        
Other revenues 162 184 309 344
Servicing and other fees from HSBC affiliates [Member]        
Other revenues:        
Other revenues $ 88 $ 87 $ 169 $ 186
[1] See Note 15, "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.
[2] Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.
[3] Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.