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Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product
The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product or line of business during the years ended December 31, 2019, 2018 and 2017:
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Year Ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Provision charged (credited) to income
37

 
62

 
1

 
(6
)
 
(3
)
 
(2
)
 
101

 
5

 
195

Charge-offs
—

 
(45
)
 
(3
)
 
—

 
(8
)
 
(4
)
 
(60
)
 
(5
)
 
(125
)
Recoveries
—

 
3

 
—

 
—

 
10

 
5

 
6

 
2

 
26

Net (charge-offs) recoveries
—

 
(42
)
 
(3
)
 
—

 
2

 
1

 
(54
)
 
(3
)
 
(99
)
Allowance for credit losses – end of period
$
153

 
$
239

 
$
106

 
$
9

 
$
12

 
$
6

 
$
105

 
$
7

 
$
637

Ending balance: collectively evaluated for impairment
$
153

 
$
216

 
$
91

 
$
9

 
$
8

 
$
5

 
$
104

 
$
7

 
$
593

Ending balance: individually evaluated for impairment
—

 
23

 
15

 
—

 
4

 
1

 
1

 
—

 
44

Total allowance for credit losses
$
153

 
$
239

 
$
106

 
$
9

 
$
12

 
$
6

 
$
105

 
$
7

 
$
637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,496

 
$
13,389

 
$
17,742

 
$
5,316

 
$
16,955

 
$
798

 
$
1,401

 
$
283

 
$
67,380

Individually evaluated for impairment(2)
5

 
90

 
173

 
—

 
51

 
4

 
4

 
—

 
327

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
795

 
51

 
—

 
—

 
846

Total loans
$
11,501

 
$
13,479

 
$
17,915

 
$
5,316

 
$
17,801

 
$
853

 
$
1,405

 
$
283

 
$
68,553

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
34

 
(31
)
 
(109
)
 
(3
)
 
(18
)
 
(3
)
 
55

 
2

 
(73
)
Charge-offs
—

 
(41
)
 
(48
)
 
—

 
(7
)
 
(7
)
 
(35
)
 
(4
)
 
(142
)
Recoveries
—

 
47

 
1

 
—

 
13

 
6

 
6

 
2

 
75

Net (charge-offs) recoveries
—

 
6

 
(47
)
 
—

 
6

 
(1
)
 
(29
)
 
(2
)
 
(67
)
Allowance for credit losses – end of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Ending balance: collectively evaluated for impairment
$
115

 
$
201

 
$
108

 
$
15

 
$
10

 
$
6

 
$
57

 
$
5

 
$
517

Ending balance: individually evaluated for impairment
1

 
18

 
—

 
—

 
3

 
1

 
1

 
—

 
24

Total allowance for credit losses
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,338

 
$
12,971

 
$
20,034

 
$
4,764

 
$
16,486

 
$
919

 
$
1,016

 
$
252

 
$
67,780

Individually evaluated for impairment(2)
6

 
95

 
133

 
1

 
56

 
4

 
3

 
—

 
298

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
841

 
59

 
—

 
—

 
900

Total loans
$
11,344

 
$
13,066

 
$
20,167

 
$
4,765

 
$
17,383

 
$
982

 
$
1,019

 
$
252

 
$
68,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
317

 
$
508

 
$
13

 
$
26

 
$
20

 
$
34

 
$
7

 
$
1,017

Provision charged (credited) to income
(3
)
 
(59
)
 
(116
)
 
6

 
(7
)
 
(8
)
 
22

 
—

 
(165
)
Charge-offs
(7
)
 
(37
)
 
(141
)
 
(1
)
 
(4
)
 
(6
)
 
(30
)
 
(4
)
 
(230
)
Recoveries
—

 
23

 
13

 
—

 
10

 
5

 
6

 
2

 
59

Net (charge-offs) recoveries
(7
)
 
(14
)
 
(128
)
 
(1
)
 
6

 
(1
)
 
(24
)
 
(2
)
 
$
(171
)
Allowance for credit losses – end of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Ending balance: collectively evaluated for impairment
$
82

 
$
199

 
$
182

 
$
18

 
$
18

 
$
10

 
$
31

 
$
5

 
$
545

Ending balance: individually evaluated for impairment
—

 
45

 
82

 
—

 
7

 
1

 
1

 
—

 
136

Total allowance for credit losses
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
10,522

 
$
12,254

 
$
19,651

 
$
9,910

 
$
16,308

 
$
1,121

 
$
717

 
$
343

 
$
70,826

Individually evaluated for impairment(2)
11

 
250

 
437

 
—

 
57

 
4

 
4

 
—

 
763

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
908

 
66

 
—

 
—

 
974

Total loans
$
10,533

 
$
12,504

 
$
20,088

 
$
9,910

 
$
17,273

 
$
1,191

 
$
721

 
$
343

 
$
72,563

 

(1) 
Other commercial includes loans to HSBC affiliates totaling $2,343 million, $2,274 million and $6,750 million at December 31, 2019, 2018 and 2017, 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 $557 million, $615 million and $655 million at December 31, 2019, 2018 and 2017, respectively.