XML 53 R97.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
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, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       $ 541       $ 681 $ 541 $ 681 $ 1,017      
Provision charged (credited) to income $ (3) $ 94 $ 46 58 $ 23 $ 20 $ (45) (71) 195 (73) (165)      
Charge offs                 (125) (142) (230)      
Recoveries                 26 75 59      
Net (charge offs) recoveries                 (99) (67) (171)      
Balance at end of period 637       541       637 541 681      
Ending balance: collectively evaluated for impairment                       $ 593 $ 517 $ 545
Ending balance: individually evaluated for impairment                       44 24 136
Total allowances for credit losses 637     541 541     681 637 541 681 637 541 681
Collectively evaluated for impairment [1]                       67,380 67,780 70,826
Individually evaluated for impairment [2]                       327 298 763
Loans carried at the lower of amortized cost or fair value less cost to sell                       846 900 974
Total loans                       68,553 68,978 72,563
Commercial Loans [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Total loans                       48,211 49,342  
Commercial Loans [Member] | Real Estate, Including Construction [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       116       82 116 82 92      
Provision charged (credited) to income                 37 34 (3)      
Charge offs                 0 0 (7)      
Recoveries                 0 0 0      
Net (charge offs) recoveries                 0 0 (7)      
Balance at end of period 153       116       153 116 82      
Ending balance: collectively evaluated for impairment                       153 115 82
Ending balance: individually evaluated for impairment                       0 1 0
Total allowances for credit losses 153     116 116     82 153 116 82 153 116 82
Collectively evaluated for impairment [1]                       11,496 11,338 10,522
Individually evaluated for impairment [2]                       5 6 11
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       11,501 11,344 10,533
Commercial Loans [Member] | Business and Corporate Banking [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       219       244 219 244 317      
Provision charged (credited) to income                 62 (31) (59)      
Charge offs                 (45) (41) (37)      
Recoveries                 3 47 23      
Net (charge offs) recoveries                 (42) 6 (14)      
Balance at end of period 239       219       239 219 244      
Ending balance: collectively evaluated for impairment                       216 201 199
Ending balance: individually evaluated for impairment                       23 18 45
Total allowances for credit losses 239     219 219     244 239 219 244 239 219 244
Collectively evaluated for impairment [1]                       13,389 12,971 12,254
Individually evaluated for impairment [2]                       90 95 250
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       13,479 13,066 12,504
Commercial Loans [Member] | Global Banking [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       108       264 108 264 508      
Provision charged (credited) to income                 1 (109) (116)      
Charge offs                 (3) (48) (141)      
Recoveries                 0 1 13      
Net (charge offs) recoveries                 (3) (47) (128)      
Balance at end of period 106       108       106 108 264      
Ending balance: collectively evaluated for impairment                       91 108 182
Ending balance: individually evaluated for impairment                       15 0 82
Total allowances for credit losses 106     108 108     264 106 108 264 106 108 264
Collectively evaluated for impairment [1]                       17,742 20,034 19,651
Individually evaluated for impairment [2]                       173 133 437
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       17,915 [3] 20,167 [3] 20,088
Commercial Loans [Member] | Other Commercial [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       15       18 15 18 13      
Provision charged (credited) to income                 (6) (3) 6      
Charge offs                 0 0 (1)      
Recoveries                 0 0 0      
Net (charge offs) recoveries                 0 0 (1)      
Balance at end of period 9       15       9 15 18      
Ending balance: collectively evaluated for impairment                       9 15 18
Ending balance: individually evaluated for impairment                       0 0 0
Total allowances for credit losses 9     15 15     18 9 15 18 9 15 18
Collectively evaluated for impairment [1]                       5,316 4,764 9,910
Individually evaluated for impairment [2]                       0 1 0
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       5,316 [4] 4,765 [4] 9,910
Consumer Loans [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Total loans                       20,342 19,636  
Consumer Loans [Member] | Residential Mortgages [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       13       25 13 25 26      
Provision charged (credited) to income                 (3) (18) (7)      
Charge offs                 (8) (7) (4)      
Recoveries                 10 13 10      
Net (charge offs) recoveries                 2 6 6      
Balance at end of period 12       13       12 13 25      
Ending balance: collectively evaluated for impairment                       8 10 18
Ending balance: individually evaluated for impairment                       4 3 7
Total allowances for credit losses 12     13 13     25 12 13 25 12 13 25
Collectively evaluated for impairment [1]                       16,955 16,486 16,308
Individually evaluated for impairment [2]                       51 56 57
Loans carried at the lower of amortized cost or fair value less cost to sell                       795 841 908
Total loans                       17,801 17,383 17,273
Consumer Loans [Member] | Home Equity Mortgages [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       7       11 7 11 20      
Provision charged (credited) to income                 (2) (3) (8)      
Charge offs                 (4) (7) (6)      
Recoveries                 5 6 5      
Net (charge offs) recoveries                 1 (1) (1)      
Balance at end of period 6       7       6 7 11      
Ending balance: collectively evaluated for impairment                       5 6 10
Ending balance: individually evaluated for impairment                       1 1 1
Total allowances for credit losses 6     7 7     11 6 7 11 6 7 11
Collectively evaluated for impairment [1]                       798 919 1,121
Individually evaluated for impairment [2]                       4 4 4
Loans carried at the lower of amortized cost or fair value less cost to sell                       51 59 66
Total loans                       853 [5] 982 1,191
Consumer Loans [Member] | Credit Cards [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       58       32 58 32 34      
Provision charged (credited) to income                 101 55 22      
Charge offs                 (60) (35) (30)      
Recoveries                 6 6 6      
Net (charge offs) recoveries                 (54) (29) (24)      
Balance at end of period 105       58       105 58 32      
Ending balance: collectively evaluated for impairment                       104 57 31
Ending balance: individually evaluated for impairment                       1 1 1
Total allowances for credit losses 105     58 58     32 105 58 32 105 58 32
Collectively evaluated for impairment [1]                       1,401 1,016 717
Individually evaluated for impairment [2]                       4 3 4
Loans carried at the lower of amortized cost or fair value less cost to sell                       0 0 0
Total loans                       1,405 [6] 1,019 721
Consumer Loans [Member] | Other consumer [Member]                            
Allowance for Loan and Lease Losses [Roll Forward]                            
Balance at beginning of period       5       5 5 5 7      
Provision charged (credited) to income                 5 2 0      
Charge offs                 (5) (4) (4)      
Recoveries                 2 2 2      
Net (charge offs) recoveries                 (3) (2) (2)      
Balance at end of period 7       5       7 5 5      
Ending balance: collectively evaluated for impairment                       7 5 5
Ending balance: individually evaluated for impairment                       0 0 0
Total allowances for credit losses $ 7     $ 5 $ 5     $ 5 $ 7 $ 5 $ 5 7 5 5
Collectively evaluated for impairment [1]                       283 252 343
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                       $ 283 $ 252 $ 343
[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.
[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] See Note 23, "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 an average estimate based on historical payment patterns.