Retained Earnings and Regulatory Capital Requirements (Tables)

9 Months Ended

Sep. 30, 2020

Retained Earnings Note Disclosure [Abstract]

Capital Amounts and Ratios in Accordance With Current Banking Regulations

The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with the Basel III rule at September 30, 2020 and December 31, 2019:


	September 30, 2020												December 31, 2019
	Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio		Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio
	(dollars are in millions)
Common equity Tier 1 ratio:
HSBC USA	$	15,808	4.5	%	⁽²⁾	14.2	%	$	15,876	4.5	%	⁽²⁾	13.1	%
HSBC Bank USA	18,054		6.5			16.5		18,043		6.5			15.2
Tier 1 capital ratio:
HSBC USA	17,073		6.0			15.3		17,141		6.0			14.1
HSBC Bank USA	20,554		8.0			18.8		20,543		8.0			17.3
Total capital ratio:
HSBC USA	20,641		10.0			18.5		19,743		10.0			16.3
HSBC Bank USA	23,220		10.0			21.2		22,724		10.0			19.2
Tier 1 leverage ratio:
HSBC USA	17,073		4.0		⁽²⁾	8.4		17,141		4.0		⁽²⁾	9.9
HSBC Bank USA	20,554		5.0			10.2		20,543		5.0			12.0
Supplementary leverage ratio ("SLR"):
HSBC USA	17,073		3.0		⁽³⁾	7.6		17,141		3.0		⁽³⁾	6.9
HSBC Bank USA	20,554		3.0		⁽³⁾	9.2		20,543		3.0		⁽³⁾	8.4
Risk-weighted assets:⁽⁴⁾
HSBC USA	111,467							121,407
HSBC Bank USA	109,565							118,618
Adjusted quarterly average assets:⁽⁵⁾
HSBC USA	202,252							173,270
HSBC Bank USA	202,404							170,722
Total leverage exposure:⁽⁶⁾
HSBC USA	225,722							247,590
HSBC Bank USA	223,754							244,008

⁽¹⁾HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels.

⁽²⁾There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown are the regulatory minimums.

⁽³⁾There is no SLR component in the definition of a well-capitalized banking institution. The ratios shown are the regulatory minimums.

⁽⁴⁾Calculated using the generally-applicable Standardized Approach.

⁽⁵⁾Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital.

⁽⁶⁾Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures.