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Business Segments
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Business Segments
Business Segments
 
We have five distinct business segments that we utilize for management reporting and analysis purposes, which are aligned with HSBC's global business strategy: Retail Banking and Wealth Management ("RBWM"), Commercial Banking ("CMB"), Global Banking and Markets ("GB&M"), Private Banking ("PB") and a Corporate Center ("CC"). There have been no changes in the basis of our segmentation as compared with the presentation in our Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K").
Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for a funding charge or credit that includes both interest rate and liquidity components. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates that incorporate both repricing (interest rate risk) and tenor (liquidity) characteristics. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management, recognize term funding costs/benefits and more appropriately reflect the profitability of the segments.
Certain other revenue and operating expense amounts are also apportioned among the business segments based upon the benefits derived from this activity or the relationship of this activity to other segment activity. These inter-segment transactions have not been eliminated, and we generally account for them as if they were with third parties.
Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply IFRSs as issued by the IASB and endorsed by the EU, and, as a result, our segment results are prepared and presented using financial information prepared on the Group Reporting Basis as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. We continue, however, to monitor capital adequacy and report to regulatory agencies on a U.S. GAAP basis.
There have been no changes in the measurement of segment profit as compared with the presentation in our 2018 Form 10-K.
A summary of significant differences between U.S. GAAP and the Group Reporting Basis as they impact our results is presented below:
Net Interest Income
Loan origination - The scope of loan origination costs deferred is more stringent under the Group Reporting Basis and generally results in lower costs being deferred than permitted under U.S. GAAP. In addition, deferred loan origination fees, costs and loan premiums are generally amortized to earnings based on the expected life of the loan under the Group Reporting Basis as part of the effective interest calculation, while under U.S. GAAP, they are generally amortized to earnings based on either a contractual or expected life basis. In the case of credit cards, while under the Group Reporting Basis deferred costs are amortized over the expected life of the credit card relationship, they are amortized over a shorter period of one year under U.S. GAAP.
Leases - In January 2019, new accounting guidance was adopted for leases under both the Group Reporting Basis and U.S. GAAP. Under the Group Reporting Basis, all leases are recognized as financing arrangements with interest expense on the lease liability recognized separately from depreciation of the ROU asset, which generally results in a front-loaded pattern of total lease expense. Under U.S. GAAP, expense on operating leases is generally recognized on a straight-line basis in operating expenses.
Deposit incentives - Under the Group Reporting Basis, costs associated with cash back incentives offered on customer deposits are deferred and amortized to interest expense over the incentive period, while under U.S. GAAP, such costs are recognized immediately in operating expenses.
Expected credit losses / loan impairment - As discussed more fully below under "Expected Credit Losses (Provision for Credit Losses)," under the Group Reporting Basis the amount of impairment relating to the discounting of future cash flows unwinds with the passage of time. There is no similar requirement under U.S. GAAP.
Other Operating Income (Total Other Revenues)
Debt extinguishment - During the fourth quarter of 2019, extinguishment of long-term debt resulted in a gain under U.S. GAAP compared with a loss under the Group Reporting Basis. As we previously elected to apply fair value option accounting to this debt, under U.S. GAAP, the extinguishment resulted in the realization of a gain associated with our own credit spread that was previously recorded in accumulated other comprehensive loss which more than offset the premium paid to extinguish the debt. Under the Group Reporting Basis, the gain associated with our own credit spread remains in equity and does not get recognized in earnings.
Loans held for sale - For loans transferred to held for sale subsequent to origination, the Group Reporting Basis requires these loans to be reported separately on the balance sheet when certain criteria are met which are generally more stringent than those under U.S. GAAP, but does not change the recognition and measurement criteria. Accordingly, for the Group Reporting Basis, such loans continue to be accounted for and credit losses continue to be measured in accordance with IFRS 9, "Financial Instruments" ("IFRS 9"), (or for 2017, IAS 39, "Financial Instruments: Recognition and Measurement" ("IAS 39")), with any gain or loss recorded at the time of sale. U.S. GAAP requires loans that meet the held for sale classification requirements be transferred to a held for sale category and subsequently be measured at the lower of amortized cost or fair value. Under U.S. GAAP, the component of the lower of amortized cost or fair value adjustment upon transfer to held for sale related to credit risk is recorded in provision for credit losses while the component related to interest rates and liquidity factors is recorded in other revenues. Changes in the lower of amortized cost or fair value after the initial transfer to held for sale are recorded in other revenues to the extent permissible.
For loans originated with the intent to sell, the Group Reporting Basis requires these loans to be classified as trading assets and recorded at their fair value, with gains and losses recorded in trading revenue. Under U.S. GAAP, such loans are classified as loans held for sale and, with the exception of certain loans accounted for under FVO accounting, are recorded at the lower of amortized cost or fair value, with changes in the lower of amortized cost or fair value adjustment recorded in other revenues to the extent permissible.
Renewable energy tax credit investments - As a result of adopting IFRS 9 under the Group Reporting Basis, effective January 1, 2018, renewable energy tax credit investments are measured at fair value, with changes in fair value recognized in earnings. Prior to January 1, 2018, under the Group Reporting Basis, renewable energy tax credit investments were reported as available-for-sale securities and measured at fair value, with changes in fair value recognized in equity. Under U.S. GAAP, certain of these investments are accounted for under the equity method, with the amortization of our investment balance presented in other revenues and the tax benefits obtained presented in income tax expense.
Low income housing tax credit investments - Under the Group Reporting Basis, the amortization of our investment balance and associated tax benefits are presented net in other operating income. Under U.S. GAAP, amortization of our investment balance and associated tax benefits are presented net in income tax expense.
Structured notes and deposits - Beginning January 1, 2018, HSBC concluded that a change in accounting policy and presentation from trading liabilities to liabilities designated under the fair value option for structured notes and deposits under the Group Reporting Basis would be appropriate since it would better align with the presentation of similar financial instruments by peers under IFRSs and therefore provide more relevant information about the effect of these financial liabilities on reported financial position and performance. As a result, the fair value movement on structured notes and deposits attributable to our own credit spread is now being recorded in other comprehensive income under the Group Reporting Basis, consistent with U.S. GAAP. Prior to January 1, 2018, structured notes and deposits were classified as trading liabilities under the Group Reporting Basis and carried at fair value with changes in fair value recorded in earnings. During 2017, total other revenues under the Group Reporting Basis in GB&M included losses of $85 million from the fair value movement on structured notes and deposits attributable to our own credit spread.
Expected Credit Losses (Provision for Credit Losses)
Expected credit losses / loan impairment - On January 1, 2018, we adopted new accounting guidance under the Group Reporting Basis in conjunction with HSBC's adoption of the requirements of IFRS 9 with the exception of the provisions relating to the presentation of gains and losses on financial instruments designated at fair value which were previously adopted in 2017.
Under IFRS 9, expected credit losses ("ECL") are recognized for a) financial assets measured at amortized cost, including loans, securities purchased under agreements to resell and certain debt securities; b) financial assets measured at fair value with changes in fair value recorded through other comprehensive income, primarily debt securities; and c) certain loan commitments and financial guarantee contracts. Financial assets which have not experienced a significant increase in credit risk since initial recognition are considered to be in 'stage 1'; financial assets which are considered to have experienced a significant increase in credit risk are in 'stage 2'; and financial assets for which there is objective evidence of impairment so are considered to be in default or otherwise credit-impaired are in 'stage 3'. At initial recognition and for financial assets that remain in stage 1, an allowance (or provision in the case of some loan commitments and financial guarantees) is required for ECL resulting from default events that are possible within the next 12 months ("12-month ECL"). In the event of a significant increase in credit risk, an allowance (or provision) is required for ECL resulting from all possible default events over the expected life of the financial instrument ("lifetime ECL") and financial assets are moved to stage 2 or stage 3.
The adoption of the new accounting guidance on January 1, 2018 on our customer loan portfolio resulted in an increase to our customer loan allowance for ECL of approximately $60 million with a corresponding charge to equity under the Group Reporting Basis. The impact of adoption on the allowance for other financial assets was not significant. Prior to 2018, impairment under the Group Reporting Basis was measured in accordance with IAS 39 and recognized when there was objective evidence of impairment.
Under U.S. GAAP, we maintain an allowance for credit losses that reflects our estimate of probable incurred losses in the existing loan portfolio. For commercial loans collectively evaluated for impairment, we utilize a loss emergence period greater than 12 months for calculating the allowance for credit losses under U.S. GAAP, while under the Group Reporting Basis, a loss emergence period is not applicable under IFRS 9. Under IFRS 9, a majority of our commercial loans are considered to be in stage 1 and a 12-month ECL is recorded for these loans under the Group Reporting Basis. As a result of the different approaches, the allowance for credit losses for commercial loans is currently higher under U.S. GAAP than under the Group Reporting Basis. Prior to 2018, we utilized different loss emergence periods for calculating the allowance for credit losses under U.S. GAAP and the Group Reporting Basis. On an annual basis, we conduct reviews of our loss emergence period estimate used for U.S. GAAP reporting purposes based upon regulatory guidance and bank industry practice in the United States and, prior to 2018, we separately conducted annual reviews of the loss emergence period estimate under the Group Reporting Basis. These reviews resulted in a longer emergence period under U.S. GAAP than under the Group Reporting Basis and, therefore, the allowance for credit losses for commercial loans collectively evaluated for impairment was higher under U.S. GAAP than under the Group Reporting Basis. This difference in loss emergence period was primarily attributable to the different approaches used for U.S. GAAP and the Group Reporting Basis. We determined that, based on the judgment involved and the practice which had evolved in different jurisdictions, both approaches for estimating loss emergence periods resulted in an appropriate allowance for credit losses under the reporting basis to which each was being applied.
In addition to the differences discussed above related to loss emergence period and from using an ECL approach under the Group Reporting Basis, beginning in 2018, compared with an incurred loss approach under U.S. GAAP, the Group Reporting Basis utilizes discounting for estimating credit losses on customer loans including recovery estimates. The amount of impairment relating to the discounting unwinds with the passage of time. Under U.S. GAAP, discounting is applied only to the extent loans are considered TDR Loans. Also under the Group Reporting Basis, if the fair value on secured loans previously written down increases because collateral values have improved and the improvement can be related objectively to an event occurring after recognition of the write-down, such write-down is reversed, which is not permitted under U.S. GAAP. Additionally under the Group Reporting Basis, future recoveries on charged-off loans or loans written down to fair value less cost to obtain title and sell are accrued for on a discounted basis and a recovery asset is recorded. Subsequent recoveries are recorded to earnings when received under U.S. GAAP, but are adjusted against the recovery asset under the Group Reporting Basis.
Operating Expenses
Goodwill impairment - Under the Group Reporting Basis, goodwill was amortized until 2005, however goodwill was amortized under U.S. GAAP until 2002, which resulted in a lower carrying amount of goodwill and, therefore, a lower impairment charge under the Group Reporting Basis.
Deposit incentives - As discussed more fully above under "Net Interest Income," incentive costs on customer deposits are deferred and amortized to interest expense under the Group Reporting Basis, while under U.S. GAAP, such costs are recognized immediately in operating expenses.
Loan origination - As discussed more fully above under "Net Interest Income," loan origination cost deferrals are more stringent under the Group Reporting Basis and generally result in lower costs being deferred than permitted under U.S. GAAP.
Pension and other postretirement benefit costs - Pension expense under U.S. GAAP is generally higher than under the Group Reporting Basis as a result of the amortization of the amount by which actuarial losses exceeds the higher of 10 percent of the projected benefit obligation or fair value of plan assets (the corridor). In addition, under the Group Reporting Basis, pension expense is determined using a finance cost component comprising the net interest on the net defined benefit liability which does not reflect the benefit from the expectation of higher returns on plan assets. In 2019, pension expense was lower under U.S. GAAP due primarily to a higher expected return on plan assets. In 2018, pension expense was higher under U.S. GAAP due primarily to the impact of an immaterial out of period adjustment which increased pension expense under U.S. GAAP by $10 million in connection with pension valuation changes related to prior years. Under the Group Reporting Basis, this expense was recorded directly to retained earnings. In 2017, pension expense was higher under U.S. GAAP due primarily to the impact of HSBC North America completing a limited-time lump sum offer to former vested HSBC North America Pension Plan employees. Under the Group Reporting Basis, completion of the offer resulted in a benefit from reducing HSBC North America's net under-funded status, while under U.S. GAAP, this benefit was more than offset by expense from an acceleration of a portion of the Plan's actuarial losses which had been reflected in HSBC North America's accumulated other comprehensive income. Under the Group Reporting Basis, these actuarial losses are recorded directly to retained earnings.
Leases - As discussed more fully above under "Net Interest Income," beginning in 2019, all leases are recognized as financing arrangements under the Group Reporting Basis with interest expense on the lease liability recognized separately from depreciation of the ROU asset. Under U.S. GAAP, expense on operating leases is generally recognized on a straight-line basis in operating expenses.
Property - The sale and leaseback of our 452 Fifth Avenue property, including the 1 W. 39th Street building, in 2010 resulted in the recognition of a gain under the Group Reporting Basis, while under U.S. GAAP, such gain was historically deferred and was being recognized over the lease term. As a result of adopting the new accounting guidance for leases under U.S. GAAP as discussed above, we recorded a cumulative effect adjustment to recognize the previously deferred gain in retained earnings as of January 1, 2019.
Litigation expense - Under U.S. GAAP, litigation accruals are recorded when it is probable a liability has been incurred and the amount is reasonably estimable. Under the Group Reporting Basis, a present obligation and a probable outflow of economic benefits must exist for an accrual to be recorded. This may create differences in the timing of accrual recognition between the Group Reporting Basis and U.S. GAAP. Additionally, under the Group Reporting Basis, legal costs to defend litigation are accrued at the time that a liability is recorded for the related litigation, while under U.S. GAAP, these costs are recognized as services are performed.
Assets
Derivatives - Under U.S. GAAP, derivative receivables and payables with the same counterparty may be reported on a net basis in the balance sheet when there is a legally enforceable netting agreement in place. In addition, under U.S. GAAP, fair value amounts recognized for the obligation to return cash collateral received or the right to reclaim cash collateral paid are offset against the fair value of derivative instruments. Under the Group Reporting Basis, these agreements do not necessarily meet the requirements for offset, and therefore such derivative receivables and payables are presented gross on the balance sheet.
Loans - As discussed more fully above under "Other Operating Income (Total Other Revenues)," on a Group Reporting Basis, loans designated as held for sale at the time of origination and accrued interest are classified as trading assets. However, the accounting requirements governing when loans previously held for investment are transferred to a held for sale category are more stringent under the Group Reporting Basis than under U.S. GAAP which results in loans generally being reported as held for sale later than under U.S. GAAP.
Precious metal loans - Under U.S. GAAP, precious metals leased or loaned to customers are reclassified from trading precious metals into loans and are carried at amortized cost, while under the Group Reporting Basis, precious metals leased or loaned to customers continue to be part of the precious metal inventory recorded in other assets and are carried at fair value.
Loan allowance - As discussed more fully above under "Expected Credit Losses (Provision for Credit Losses)," beginning in 2018, we use an ECL approach for estimating credit losses under the Group Reporting Basis compared with an incurred loss approach under U.S. GAAP. In addition, for commercial loans collectively evaluated for impairment, we utilize a loss emergence period greater than 12 months for calculating the allowance for credit losses under U.S. GAAP, while under the Group Reporting Basis, a loss emergence period is not applicable under IFRS 9. Prior to 2018, we utilized different loss emergence periods for U.S. GAAP and the Group Reporting Basis.
Goodwill - The Group Reporting Basis and U.S. GAAP require goodwill to be tested for impairment at least annually, or more frequently if circumstances indicate that goodwill may be impaired. Under the Group Reporting Basis, goodwill was amortized until 2005, however goodwill was amortized under U.S. GAAP until 2002, which resulted in a lower carrying amount of goodwill under the Group Reporting Basis. Methods, assumptions and reporting groups used to calculate impairment under the Group Reporting Basis may differ locally from that utilized by HSBC.
Securities transferred to held-to-maturity - During 2014, we transferred securities from available-for-sale to held-to-maturity and, as a result, AOCI under both the Group Reporting Basis and U.S. GAAP included net pretax unrealized losses related to the transferred securities which were being amortized over the remaining contractual life of each security as an adjustment of yield. As a result of adopting IFRS 9 under the Group Reporting Basis, effective January 1, 2018, the remaining unamortized net pretax unrealized losses were reclassified out of AOCI and adjusted against the carrying value of the securities held-to-maturity, while under U.S. GAAP, such unrealized losses remain in AOCI and continue to amortize as an adjustment to yield.
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
 
Total
 
Group Reporting Basis
Adjustments(1)
 
Group Reporting Basis
Reclassi-
fications(2)
 
U.S. GAAP
Consolidated
Totals
 
(in millions)
Year Ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
843

 
$
815

 
$
458

 
$
136

 
$
51

 
$
2,303

 
$
13

 
$
(204
)
 
$
2,112

Other operating income
225

 
226

 
840

 
68

 
178

 
1,537

 
102

 
215

 
1,854

Total operating income
1,068

 
1,041

 
1,298

 
204

 
229

 
3,840

 
115

 
11

 
3,966

Expected credit losses /
provision for credit losses
114

 
55

 
1

 
1

 

 
171

 
32

 
(8
)
 
195

 
954

 
986

 
1,297

 
203

 
229

 
3,669

 
83

 
19

 
3,771

Operating expenses
1,419

 
576

 
825

 
212

 
281

 
3,313

 
169

 
19

 
3,501

Profit (loss) before income tax expense
$
(465
)
 
$
410

 
$
472

 
$
(9
)
 
$
(52
)
 
$
356

 
$
(86
)
 
$

 
$
270

Balances at end of period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
19,429

 
$
25,737

 
$
88,440

 
$
7,326

 
$
73,291

 
$
214,223

 
$
(38,848
)
 
$

 
$
175,375

Total loans, net
17,639

 
24,465

 
16,740

 
6,089

 
1,516

 
66,449

 
(2,965
)
 
4,432

 
67,916

Goodwill
372

 
358

 

 
321

 

 
1,051

 
191

 

 
1,242

Total deposits
37,009

 
29,632

 
27,605

 
6,539

 
2,804

 
103,589

 
(4,747
)
 
20,851

 
119,693

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
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
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

 

(1)
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, 2019
 
 
 
 
 
 
 
 
 
 
 
Debt extinguishment
$

 
$
123

 
$

 
$

 
$
123

 
$

Deposit incentives
15

 

 

 
32

 
(17
)
 
(23
)
Derivatives

 

 

 

 

 
(38,651
)
Expected credit losses / loan impairment
(3
)
 
(1
)
 
32

 

 
(36
)
 
(357
)
Goodwill impairment

 

 

 
156

 
(156
)
 
191

Leases
25

 

 

 
8

 
17

 
15

Loan origination
(27
)
 

 

 
(19
)
 
(8
)
 
38

Loans held for sale
2

 
(1
)
 

 

 
1

 
(5
)
Pension and other postretirement benefit costs

 

 

 
(12
)
 
12

 

Renewable energy tax credit investments

 
(7
)
 

 

 
(7
)
 
3

Securities transferred to held-to-maturity

 

 

 

 

 
(65
)
Other
1

 
(12
)
 

 
4

 
(15
)
 
6

Total adjustments
$
13

 
$
102

 
$
32

 
$
169

 
$
(86
)
 
$
(38,848
)
 
 
 
 
 
 
 
 
 
 
 
 
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

Renewable energy tax credit investments

 
(10
)
 

 

 
(10
)
 
3

Securities transferred to held-to-maturity

 

 

 

 

 
(76
)
Other
1

 
(2
)
 

 
(3
)
 
2

 
8

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

Renewable energy tax credit investments
(4
)
 
(7
)
 

 

 
(11
)
 
9

Structured notes and deposits

 
85

 

 

 
85

 

Other
9

 
(18
)
 

 
6

 
(15
)
 
(10
)
Total adjustments
$
(48
)
 
$
200

 
$
(72
)
 
$
75

 
$
149

 
$
(33,078
)

(2) 
Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.