Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2021

The following tables present related party balances and the income (expense) generated by related party transactions:


	September 30, 2021		December 31, 2020
	(in millions)
Assets:
Cash and due from banks	$	313	$	516
Interest bearing deposits with banks	2		187
Securities purchased under agreements to resell(1)	873		3,941
Trading assets	190		314
Loans	2,857		1,100
Other(2)	289		319
Total assets	$	4,524	$	6,377
Liabilities:
Deposits	$	15,624	$	15,163
Trading liabilities(3)	223		2,375
Short-term borrowings	390		270
Long-term debt	5,528		2,878
Other(2)	203		268
Total liabilities	$	21,968	$	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 September 30, 2021 primarily reflects a decrease in borrowing of gold inventory from HSBC Bank plc to support client activity levels.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in millions)
Income (Expense):
Interest income	$	6	$	9	$	20	$	47
Interest expense	(52)		(77)		(185)		(276)
Net interest expense	(46)		(68)		(165)		(229)
Trading revenue (expense)	(1,116)		(1,755)		(2,106)		(2,372)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc	44		43		124		131
HSBC Markets (USA) Inc. ("HMUS")	22		27		70		84

Other HSBC affiliates	13		9		38		40
Total servicing and other fees from HSBC affiliates	79		79		232		255
Gain (loss) on instruments designated at fair value and related derivatives	(62)		307		803		(203)
Support services from HSBC affiliates:
HTSU	(242)		(285)		(754)		(820)
HMUS	(26)		(17)		(72)		(63)
Other HSBC affiliates	(121)		(89)		(322)		(279)
Total support services from HSBC affiliates	(389)		(391)		(1,148)		(1,162)
Rental income from HSBC affiliates, net(1)	12		13		32		31
Stock based compensation expense(2)	(1)		(3)		(12)		(16)

(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 13, "Pension and Other Postretirement Benefits."

Schedule of Loan Balances Outstanding with Affiliates

At September 30, 2021 and December 31, 2020, we had the following loan balances outstanding with HSBC affiliates:


	September 30, 2021		December 31, 2020
	(in millions)

HMUS and subsidiaries	$	1,755	$	1,088

HSBC North America	1,000		—



Other short-term affiliate lending	102		12
Total loans	$	2,857	$	1,100