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Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Summary of Related Party Transactions
The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:

June 30, 2019

December 31, 2018
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
250

 
$
245

Interest bearing deposits with banks
790

 
1,000

Trading assets
298

 
102

Loans
3,096

 
2,274

Other(1)
289

 
169

Total assets
$
4,723

 
$
3,790

Liabilities:
 
 
 
Deposits
$
13,301

 
$
12,000

Trading liabilities
157

 
349

Short-term borrowings
1,518

 
638

Long-term debt
7,847

 
7,845

Other(1)
392

 
333

Total liabilities
$
23,215

 
$
21,165

 

(1) 
Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Income (Expense):
 
 
 
 
 
 
 
Interest income
$
47

 
$
24

 
$
90

 
$
46

Interest expense
(152
)
 
(90
)
 
(276
)
 
(168
)
Net interest expense
(105
)
 
(66
)
 
(186
)
 
(122
)
Trading revenue (expense)
(9
)
 
(627
)
 
(1,523
)
 
531

Servicing and other fees from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Bank plc
46

 
43

 
81

 
84

HSBC Markets (USA) Inc. ("HMUS")
27

 
30

 
57

 
61

Other HSBC affiliates
15

 
14

 
31

 
41

Total servicing and other fees from HSBC affiliates
88

 
87

 
169

 
186

Gain (loss) on instruments designated at fair value and related derivatives
412

 
135

 
1,420

 
(303
)
Support services from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Technology & Services (USA) ("HTSU")
(298
)
 
(310
)
 
(575
)
 
(608
)
HMUS
(23
)
 
(25
)
 
(50
)
 
(56
)
Other HSBC affiliates
(90
)
 
(70
)
 
(166
)
 
(152
)
Total support services from HSBC affiliates
(411
)
 
(405
)
 
(791
)
 
(816
)
Rental income from HSBC affiliates, net(1)
12

 
14

 
24

 
26

Stock based compensation expense(2)
(8
)
 
(10
)
 
(14
)
 
(15
)

 

(1) 
We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income.
(2) 
Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income. Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At June 30, 2019 and December 31, 2018, we had the following loan balances outstanding with HSBC affiliates:
 
June 30, 2019
 
December 31, 2018
 
(in millions)
HMUS and subsidiaries
$
2,835

 
$
2,235

HSBC Bank Canada
250

 
—

Other short-term affiliate lending
11

 
39

Total loans
$
3,096

 
$
2,274