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Loans (Tables)
 9 Months Ended
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
September 30, 2020December 31, 2019
 (in millions)
Commercial loans:
Real estate, including construction$11,283 $11,501 
Business and corporate banking(1)
15,164 13,479 
Global banking(2)
15,505 17,915 
Other commercial:
Affiliates(3)
1,180 2,343 
Other2,651 2,973 
Total other commercial3,831 5,316 
Total commercial45,783 48,211 
Consumer loans:
Residential mortgages18,439 17,801 
Home equity mortgages765 853 
Credit cards1,107 1,405 
Other consumer(4)
315 283 
Total consumer20,626 20,342 
Total loans$66,409 $68,553 
(1)Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $1,186 million at September 30, 2020. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met.
(2)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.
(3)See Note 14, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
(4)Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $34 million at September 30, 2020. See Note 10, "Fair Value Option," for further details.
Summary of Past Due Status of Loans The following table summarizes the past due status of our loans at September 30, 2020 and December 31, 2019. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current. For COVID-19 related loan modifications in the form of a payment deferral, the borrower’s past due status will not be impacted during the deferral period.
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At September 30, 2020
Commercial loans:
Real estate, including construction$47 $— $47 $11,236 $11,283 
Business and corporate banking
21 50 71 15,093 15,164 
Global banking— 7 7 15,498 15,505 
Other commercial70 — 70 3,761 3,831 
Total commercial138 57 195 45,588 45,783 
Consumer loans:
Residential mortgages
364 349 713 17,726 18,439 
Home equity mortgages10 28 38 727 765 
Credit cards16 19 35 1,072 1,107 
Other consumer6 5 11 304 315 
Total consumer396 401 797 19,829 20,626 
Total loans$534 $458 $992 $65,417 $66,409 
At December 31, 2019
Commercial loans:
Real estate, including construction$7 $1 $8 $11,493 $11,501 
Business and corporate banking
60 35 95 13,384 13,479 
Global banking— — — 17,915 17,915 
Other commercial22 — 22 5,294 5,316 
Total commercial89 36 125 48,086 48,211 
Consumer loans:
Residential mortgages
342 272 614 17,187 17,801 
Home equity mortgages10 24 34 819 853 
Credit cards24 24 48 1,357 1,405 
Other consumer5 5 10 273 283 
Total consumer381 325 706 19,636 20,342 
Total loans$470 $361 $831 $67,722 $68,553 
(1)      Loans less than 30 days past due are presented as current.
Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:
Nonaccrual LoansAccruing Loans Contractually Past Due 90 Days or MoreNonaccrual Loans With No Allowance For Credit Losses
 (in millions)
At September 30, 2020
Commercial:
Real estate, including construction$13 $— $2 
Business and corporate banking225 1 10 
Global banking363 — 115 
Total commercial601 1 127 
Consumer:
Residential mortgages(1)(2)(3)
553 — 207 
Home equity mortgages(1)(2)
42 — 31 
Credit cards— 19 — 
Other consumer— 2 — 
Total consumer595 21 238 
Total nonperforming loans$1,196 $22 $365 
At December 31, 2019
Commercial:
Real estate, including construction$6 $— $3 
Business and corporate banking82 1 19 
Global banking149 — 117 
Total commercial237 1 139 
Consumer:
Residential mortgages(1)(2)(3)
381 — 257 
Home equity mortgages(1)(2)
46 — 32 
Credit cards— 24 — 
Other consumer— 5 — 
Total consumer427 29 289 
Total nonperforming loans$664 $30 $428 
(1)    At September 30, 2020 and December 31, 2019, nonaccrual consumer mortgage loans include $324 million and $289 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell. The decrease in nonaccrual consumer mortgage loans with no allowance for credit losses at September 30, 2020 reflects the impact of adopting new accounting guidance which requires expected recoveries related to subsequent increases in the fair value of collateral for collateral-dependent loans to be recognized in the allowance for credit losses beginning January 1, 2020. See Note 21, "New Accounting Pronouncements," for additional discussion.
(2)    Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent. At September 30, 2020, nonaccrual consumer mortgage loans also include $24 million of loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months and, as a result, have been placed on nonaccrual status.
(3)    Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.
Schedule of Additional Information on Nonaccrual Loans
The following table provides additional information on our nonaccrual loans:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period$10 $10 $29 $26 
Interest income that was recorded on nonaccrual loans and included in interest income during the period2 4 8 10 
Summary of TDR Loans
The following table summarizes our TDR Loans at September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
 (in millions)
Commercial loans:
Business and corporate banking$120 $36 
Global banking35 68 
Total commercial(1)(2)
155 104 
Consumer loans:
Residential mortgages(3)(4)
553 580 
Home equity mortgages(3)(4)
31 32 
Credit cards5 4 
Total consumer589 616 
Total TDR Loans(5)
$744 $720 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $99 million and $222 million at September 30, 2020 and December 31, 2019, respectively.
(2)Not included in the table at September 30, 2020 are $1,103 million of commercial loans that were exempted from TDR assessment due to our CARES Act election.
(3)At September 30, 2020 and December 31, 2019, the carrying value of consumer mortgage TDR Loans includes $490 million and $557 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
(4)Not included in the table at September 30, 2020 are $24 million of consumer mortgage loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months that were exempted from TDR assessment due to our CARES Act election.
(5)At September 30, 2020 and December 31, 2019, the carrying value of TDR Loans includes $359 million and $230 million, respectively, of loans which are classified as nonaccrual.
Summary of Receivables which were Modified and as a Result became Classified as TDR Loans
The following table presents information about loans which were modified during the three and nine months ended September 30, 2020 and 2019 and as a result of this action became classified as TDR Loans:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Commercial loans:
Business and corporate banking$41 $— $45 $— 
Global banking— — 44 — 
Total commercial41 — 89 — 
Consumer loans:
Residential mortgages20 2 27 3 
Home equity mortgages— — 2 — 
Credit cards1 1 3 3 
Total consumer21 3 32 6 
Total$62 $3 $121 $6 
Loans Classified as TDR Loans in Previous 12 Months that became 60 Days or Greater Delinquent
The following table presents consumer loans which were classified as TDR Loans during the previous 12 months which subsequently became 60 days or greater contractually delinquent during the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Consumer loans:
Residential mortgages$2 $— $3 $3 
Total consumer$2 $— $3 $3 
Commercial Loans [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Real estate, including construction:
Special mention$— $290 $244 $81 $45 $312 $— $— $972 $516 
Substandard— 130 — 122 — 52 — — 304 203 
Doubtful— — — — — 25 — — 25 — 
Total real estate, including construction— 420 244 203 45 389 — — 1,301 719 
Business and corporate banking:
Special mention1 91 39 13 43 489 736 59 1,471 467 
Substandard— 71 25 23 1 124 442 1 687 386 
Doubtful— — — — — 31 125 — 156 23 
Total business and corporate banking1 162 64 36 44 644 1,303 60 2,314 876 
Global banking:
Special mention— — — — — 128 486 — 614 184 
Substandard— — 62 — — 1 79 — 142 196 
Doubtful— — — — — 137 101 — 238 15 
Total global banking— — 62 — — 266 666 — 994 395 
Other commercial:
Special mention— — — — — 55 40 — 95 11 
Substandard— — — — — 70 — — 70 — 
Doubtful— — — — — — — — — — 
Total other commercial— — — — — 125 40 — 165 11 
Total commercial:
Special mention1 381 283 94 88 984 1,262 59 3,152 1,178 
Substandard— 201 87 145 1 247 521 1 1,203 785 
Doubtful— — — — — 193 226 — 419 38 
Total commercial$1 $582 $370 $239 $89 $1,424 $2,009 $60 $4,774 $2,001 
Summary of Credit Quality Indicators Commercial loans are assigned a credit rating based on the estimated probability of default. Investment grade includes loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system. The following table shows the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Real estate, including construction:
Investment grade$357 $1,368 $1,216 $529 $180 $832 $6 $— $4,488 $6,332 
Non-investment grade192 2,541 1,898 884 88 1,095 75 22 6,795 5,169 
Total real estate, including construction549 3,909 3,114 1,413 268 1,927 81 22 11,283 11,501 
Business and corporate banking:
Investment grade346 267 44 49 27 1,795 2,415 73 5,016 6,029 
Non-investment grade836 395 221 305 139 2,547 5,426 279 10,148 7,450 
Total business and corporate banking1,182 662 265 354 166 4,342 7,841 352 15,164 13,479 
Global banking:
Investment grade218 691 49 231 29 4,769 5,228 — 11,215 12,981 
Non-investment grade65 33 158 — 76 1,912 2,046 — 4,290 4,934 
Total global banking283 724 207 231 105 6,681 7,274 — 15,505 17,915 
Other commercial:
Investment grade45 142 126 105 110 603 1,821 — 2,952 4,649 
Non-investment grade7 282 115 7 8 97 363 — 879 667 
Total other commercial52 424 241 112 118 700 2,184 — 3,831 5,316 
Total commercial:
Investment grade966 2,468 1,435 914 346 7,999 9,470 73 23,671 29,991 
Non-investment grade1,100 3,251 2,392 1,196 311 5,651 7,910 301 22,112 18,220 
Total commercial$2,066 $5,719 $3,827 $2,110 $657 $13,650 $17,380 $374 $45,783 $48,211 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Real estate, including construction:
Performing loans$549 $3,909 $3,114 $1,413 $267 $1,915 $81 $22 $11,270 $11,495 
Nonaccrual loans— — — — 1 12 — — 13 6 
Accruing loans contractually past due 90 days or more— — — — — — — — — — 
Total real estate, including construction549 3,909 3,114 1,413 268 1,927 81 22 11,283 11,501 
Business and corporate banking:
Performing loans1,182 647 252 295 166 4,324 7,721 351 14,938 13,396 
Nonaccrual loans— 15 13 59 — 18 119 1 225 82 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 1 
Total business and corporate banking1,182 662 265 354 166 4,342 7,841 352 15,164 13,479 
Global banking:
Performing loans283 724 203 100 105 6,681 7,046 — 15,142 17,766 
Nonaccrual loans— — 4 131 — — 228 — 363 149 
Accruing loans contractually past due 90 days or more— — — — — — — — — — 
Total global banking283 724 207 231 105 6,681 7,274 — 15,505 17,915 
Other commercial:
Performing loans52 424 241 112 118 700 2,184 — 3,831 5,316 
Nonaccrual loans— — — — — — — — — — 
Accruing loans contractually past due 90 days or more— — — — — — — — — — 
Total other commercial52 424 241 112 118 700 2,184 — 3,831 5,316 
Total commercial:
Performing loans2,066 5,704 3,810 1,920 656 13,620 17,032 373 45,181 47,973 
Nonaccrual loans— 15 17 190 1 30 347 1 601 237 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 1 
Total commercial$2,066 $5,719 $3,827 $2,110 $657 $13,650 $17,380 $374 $45,783 $48,211 
Consumer Loans [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of TDR Loans The following table summarizes TDR Loans in our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Total at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Residential mortgages$— $2 $2 $1 $2 $546 $— $553 $580 
Home equity mortgages— — — — — 31 — 31 32 
Credit cards— — — — — — 5 5 4 
Total consumer$— $2 $2 $1 $2 $577 $5 $589 $616 
Summary of Credit Quality Indicators The following table summarizes dollars of two-months-and-over contractual delinquency for our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Total at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Residential mortgages(1)(2)
$7 $20 $21 $24 $25 $334 $— $431 $350 
Home equity mortgages(1)(2)
— — — — — 31 — 31 25 
Credit cards25 25 34 
Other consumer1 — — — — 4 2 7 7 
Total consumer$8 $20 $21 $24 $25 $369 $27 $494 $416 
(1)At September 30, 2020 and December 31, 2019, consumer mortgage loan delinquency includes $283 million and $256 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)At September 30, 2020 and December 31, 2019, consumer mortgage loans include $115 million and $142 million, respectively, of loans that were in the process of foreclosure.
Summary of Nonperforming Status The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2020 and in total as of December 31, 2019:
20202019201820172016PriorRevolving
Loans		Total at Sep. 30, 2020Total at Dec. 31, 2019
 (in millions)
Residential mortgages:
Performing loans$3,526 $2,603 $1,504 $1,751 $2,053 $6,449 $— $17,886 $17,420 
Nonaccrual loans
20 35 27 38 31 402 — 553 381 
Total residential mortgages3,546 2,638 1,531 1,789 2,084 6,851 — 18,439 17,801 
Home equity mortgages:
Performing loans42 54 39 37 48 503 — 723 807 
Nonaccrual loans
— — 1 — — 41 — 42 46 
Total home equity mortgages42 54 40 37 48 544 — 765 853 
Credit cards:
Performing loans— — — — — — 1,088 1,088 1,381 
Accruing loans contractually past due 90 days or more
— — — — — — 19 19 24 
Total credit cards— — — — — — 1,107 1,107 1,405 
Other consumer:
Performing loans73 45 1 — 5 132 57 313 278 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 5 
Total other consumer73 45 1 — 5 132 59 315 283 
Total consumer:
Performing loans3,641 2,702 1,544 1,788 2,106 7,084 1,145 20,010 19,886 
Nonaccrual loans20 35 28 38 31 443 — 595 427 
Accruing loans contractually past due 90 days or more
— — — — — — 21 21 29 
Total consumer$3,661 $2,737 $1,572 $1,826 $2,137 $7,527 $1,166 $20,626 $20,342