XML 51 R41.htm IDEA: XBRL DOCUMENT v3.21.1
Related Party Transactions (Tables)
 3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]  
Summary of Related Party Transactions
March 31, 2021December 31, 2020
 (in millions)
Assets:
Cash and due from banks$607 $516 
Interest bearing deposits with banks104 187 
Securities purchased under agreements to resell(1)
724 3,941 
Trading assets98 314 
Loans1,652 1,100 
Other(2)
402 319 
Total assets$3,587 $6,377 
Liabilities:
Deposits$15,943 $15,163 
Trading liabilities(3)
44 2,375 
Short-term borrowings660 270 
Long-term debt3,528 2,878 
Other(2)
269 268 
Total liabilities$20,444 $20,954 
(1)Reflects purchases of securities under which other HSBC affiliates have agreed to repurchase.
(2)Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables.
(3)The decrease in trading liabilities at March 31, 2021 primarily reflects a decrease in borrowing of gold inventory from HSBC Bank plc to support client activity levels.
Three Months Ended March 31,20212020
 (in millions)
Income (Expense):
Interest income$7 $26 
Interest expense(73)(120)
Net interest expense(66)(94)
Trading revenue (expense)131 (261)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc48 47 
HSBC Markets (USA) Inc. ("HMUS")22 24 
Other HSBC affiliates13 17 
Total servicing and other fees from HSBC affiliates83 88 
Gain (loss) on instruments designated at fair value and related derivatives468 (1,606)
Support services from HSBC affiliates:
HTSU(244)(263)
HMUS(28)(27)
Other HSBC affiliates(95)(92)
Total support services from HSBC affiliates(367)(382)
Rental income from HSBC affiliates, net(1)
13 12 
Stock based compensation expense(2)
(6)(6)
(1)We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss).
(2)Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At March 31, 2021 and December 31, 2020, we had the following loan balances outstanding with HSBC affiliates:
March 31, 2021December 31, 2020
 (in millions)
HMUS and subsidiaries$1,591 $1,088 
Other short-term affiliate lending61 12 
Total loans$1,652 $1,100