Retained Earnings and Regulatory Capital Requirements (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021 and December 31, 2020:

	September 30, 2021							December 31, 2020
	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:(4)
HSBC USA	$	16,393	4.5	%	(2)	15.9	%	$	15,891	4.5	%	(2)	14.5	%
HSBC Bank USA	18,664		6.5			18.3		18,180		6.5			16.4
Tier 1 capital ratio:(4)
HSBC USA	17,658		6.0			17.1		17,156		6.0			15.6
HSBC Bank USA	21,164		8.0			20.8		20,680		8.0			18.7
Total capital ratio:(4)
HSBC USA	19,910		10.0			19.3		20,680		10.0			18.8
HSBC Bank USA	23,193		10.0			22.7		23,303		10.0			21.1
Tier 1 leverage ratio:
HSBC USA	17,658		4.0		(2)	9.1		17,156		4.0		(2)	8.6
HSBC Bank USA	21,164		5.0			11.0		20,680		5.0			10.3
Supplementary leverage ratio ("SLR"):
HSBC USA	17,658		3.0		(3)	7.0		17,156		3.0		(3)	7.8
HSBC Bank USA	21,164		3.0		(3)	8.5		20,680		3.0		(3)	9.3
Risk-weighted assets:(4)(5)
HSBC USA	103,018							109,809
HSBC Bank USA	101,993							110,682
Adjusted quarterly average assets:(6)
HSBC USA	193,984							198,698
HSBC Bank USA	192,501							200,026
Total leverage exposure:(7)
HSBC USA	252,239							221,216
HSBC Bank USA	250,003							221,334

(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 maintain capital equal to or in excess of 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)During the first quarter of 2021, it was determined that certain collateral did not qualify for risk-weighted asset reduction purposes under U.S. capital rules. As a result, reported risk-weighted assets were understated and reported Common equity Tier 1 capital, Tier 1 capital and Total capital ratios were overstated at HSBC USA and HSBC Bank USA at December 31, 2020. We have revised December 31, 2020 amounts to conform to the current period presentation. The following table summarizes the impact of this change on reported risk-weighted assets and capital ratios as of December 31, 2020:

	December 31, 2020
	As Previously Reported						As Revised
	HSBC USA			HSBC Bank USA			HSBC USA			HSBC Bank USA
	(in millions)
Common equity Tier 1 ratio	14.7		%	17.2		%	14.5		%	16.4		%
Tier 1 capital ratio	15.9		%	19.6		%	15.6		%	18.7		%
Total capital ratio	19.2		%	22.0		%	18.8		%	21.1		%
Risk-weighted assets	$	107,808		$	105,681		$	109,809		$	110,682

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

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

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