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Loans (Tables)
 6 Months Ended
Jun. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
June 30, 2023December 31, 2022
 (in millions)
Commercial loans:
Real estate, including construction$7,185 $7,963 
Business and corporate banking16,169 16,075 
Global banking(1)
10,127 10,578 
Other commercial:
Affiliates(2)
3,067 3,557 
Other3,263 3,644 
Total other commercial6,330 7,201 
Total commercial39,811 41,817 
Consumer loans:
Residential mortgages17,452 16,838 
Home equity mortgages364 370 
Credit cards197 213 
Other consumer(3)
121 142 
Total consumer18,134 17,563 
Total loans$57,945 $59,380 
(1)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.
(2)See Note 14, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
(3)Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $17 million and $20 million at June 30, 2023 and December 31, 2022, respectively. See Note 11, "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 June 30, 2023 and December 31, 2022. 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.
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At June 30, 2023
Commercial loans:
Real estate, including construction$168 $106 $274 $6,911 $7,185 
Business and corporate banking
110 3 113 16,056 16,169 
Global banking11 47 58 10,069 10,127 
Other commercial209 — 209 6,121 6,330 
Total commercial498 156 654 39,157 39,811 
Consumer loans:
Residential mortgages160 88 248 17,204 17,452 
Home equity mortgages1 3 4 360 364 
Credit cards2 3 5 192 197 
Other consumer4 2 6 115 121 
Total consumer167 96 263 17,871 18,134 
Total loans$665 $252 $917 $57,028 $57,945 
At December 31, 2022
Commercial loans:
Real estate, including construction$27 $1 $28 $7,935 $7,963 
Business and corporate banking
13 23 36 16,039 16,075 
Global banking— 8 8 10,570 10,578 
Other commercial464 — 464 6,737 7,201 
Total commercial504 32 536 41,281 41,817 
Consumer loans:
Residential mortgages
180 105 285 16,553 16,838 
Home equity mortgages2 3 5 365 370 
Credit cards2 2 4 209 213 
Other consumer2 1 3 139 142 
Total consumer186 111 297 17,266 17,563 
Total loans$690 $143 $833 $58,547 $59,380 
(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 June 30, 2023
Commercial loans:
Real estate, including construction$107 $— $43 
Business and corporate banking145 1 28 
Global banking55 — 53 
Other commercial1 — 1 
Total commercial308 1 125 
Consumer loans:
Residential mortgages(1)(2)(3)
204 — 90 
Home equity mortgages(1)(2)
11 — 5 
Credit cards— 3 — 
Total consumer215 3 95 
Total nonperforming loans$523 $4 $220 
At December 31, 2022
Commercial loans:
Real estate, including construction$45 $— $43 
Business and corporate banking116 1 62 
Global banking54 — 40 
Total commercial215 1 145 
Consumer loans:
Residential mortgages(1)(2)(3)
213 — 79 
Home equity mortgages(1)(2)
7 — 5 
Credit cards— 2 — 
Other consumer— 1 — 
Total consumer220 3 84 
Total nonperforming loans$435 $4 $229 
(1)At June 30, 2023 and December 31, 2022, nonaccrual consumer mortgage loans include $120 million and $109 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.
(3)Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.
Summary of Modified Loans
The following table presents information about loan payment modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023 by type of modification, including the period-end carrying value and as a percentage of total loans:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended June 30, 2023
Commercial loans:
Real estate, including construction$— $— $235 $— $235 3.3 %
Business and corporate banking— — 44 — 44 .3 
Global banking— — 5 — 5 .0 
Total commercial— — 284 — 284 .7 
Consumer loans:
Residential mortgages(2)
— — 7 1 8 .0 
Total consumer— — 7 1 8 .0 
Total$— $— $291 $1 $292 .5 
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Six Months Ended June 30, 2023
Commercial loans:
Real estate, including construction$— $— $235 $— $235 3.3 %
Business and corporate banking— — 97 12 109 .7 
Global banking— — 5 — 5 .0 
Total commercial— — 337 12 349 .9 
Consumer loans:
Residential mortgages(2)
— — 7 1 8 .0 
Total consumer— — 7 1 8 .0 
Total$— $— $344 $13 $357 .6 
(1)Represents loans with more than one type of payment modification during the period.
(2)During both the three and six months ended June 30, 2023, the carrying value of consumer mortgage loans with a payment modification included $8 million of loans that were recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
The following table summarizes the financial effect of loan payment modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023 by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)		Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended June 30, 2023
Commercial loans:
Real estate, including construction— %$— 0.4
Business and corporate banking— — 1.8
Global banking— — 1.5
Consumer loans:
Residential mortgages1.7 — 2.1
Six Months Ended June 30, 2023
Commercial loans:
Real estate, including construction— %$— 0.4
Business and corporate banking— 2 2.1
Global banking— — 1.5
Consumer loans:
Residential mortgages2.2 — 2.2
The following table summarizes our TDR Loans at December 31, 2022:
December 31, 2022
 (in millions)
Commercial loans:
Business and corporate banking$382 
Global banking6 
Total commercial(1)
388 
Consumer loans:
Residential mortgages(2)
136 
Home equity mortgages(2)
12 
Credit cards2 
Total consumer150 
Total TDR Loans(3)
$538 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $38 million at December 31, 2022.
(2)At December 31, 2022, the carrying value of consumer mortgage TDR Loans included $99 million of loans that were recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
(3)At December 31, 2022, the carrying value of TDR Loans included $122 million of loans which were classified as nonaccrual.
Summary of Past Due Status of Loans with Payment Modification
The following table presents the past due status of loans to borrowers experiencing financial difficulty with a payment modification during the previous six months at June 30, 2023:
 Past Due  
30 - 89 Days90+ Days
Current(1)
Total
 (in millions)
At June 30, 2023
Commercial loans:
Real estate, including construction$— $64 $171 $235 
Business and corporate banking
— — 109 109 
Global banking— — 5 5 
Total commercial— 64 285 349 
Consumer loans:
Residential mortgages— — 8 8 
Total consumer— — 8 8 
Total loans$— $64 $293 $357 
(1)Loans less than 30 days past due are presented as current.
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 six months ended June 30, 2022 and as a result of this action became classified as TDR Loans:
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
(in millions)
Commercial loans:
Business and corporate banking$99 $101 
Total commercial99 101 
Consumer loans:
Residential mortgages5 12 
Home equity mortgages2 2 
Credit cards1 3 
Total consumer8 17 
Total$107 $118 
Commercial loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of June 30, 2023 and December 31, 2022:
20232022202120202019PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2023
 (in millions)
Real estate, including construction:
Special mention$— $96 $— $69 $263 $65 $54 $3 $550 
Substandard— — — 1 57 1,071 18 — 1,147 
Doubtful— — — — — 64 — — 64 
Total real estate, including construction— 96 — 70 320 1,200 72 3 1,761 
Business and corporate banking:
Special mention— 20 — 10 — 191 353 — 574 
Substandard— 13 — 27 — 145 655 1 841 
Doubtful— — 72 9 — 8 43 — 132 
Total business and corporate banking— 33 72 46 — 344 1,051 1 1,547 
Global banking:
Special mention2 — — — — — 23 — 25 
Substandard— 218 — — 15 99 47 — 379 
Doubtful— — — — — 29 12 — 41 
Total global banking2 218 — — 15 128 82 — 445 
Other commercial:
Substandard— — — — — 3 — — 3 
Doubtful— — — — — 13 12 — 25 
Total other commercial— — — — — 16 12 — 28 
Total commercial:
Special mention2 116 — 79 263 256 430 3 1,149 
Substandard— 231 — 28 72 1,318 720 1 2,370 
Doubtful— — 72 9 — 114 67 — 262 
Total commercial$2 $347 $72 $116 $335 $1,688 $1,217 $4 $3,781 
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2022
 (in millions)
Real estate, including construction:
Special mention$204 $— $22 $212 $27 $19 $63 $3 $550 
Substandard1 — 48 64 677 891 19 — 1,700 
Total real estate, including construction205 — 70 276 704 910 82 3 2,250 
Business and corporate banking:
Special mention1 — 16 1 34 116 182 — 350 
Substandard3 43 26 1 10 138 548 1 770 
Doubtful— — 9 — 15 — 24 4 52 
Total business and corporate banking4 43 51 2 59 254 754 5 1,172 
Global banking:
Special mention— — — — — 8 182 — 190 
Substandard232 — — 16 — 2 186 — 436 
Doubtful— — — — — — 15 — 15 
Total global banking232 — — 16 — 10 383 — 641 
Other commercial:
Substandard— — — — — — 7 — 7 
Doubtful31 — — — — — 7 — 38 
Total other commercial31 — — — — — 14 — 45 
Total commercial:
Special mention205 — 38 213 61 143 427 3 1,090 
Substandard236 43 74 81 687 1,031 760 1 2,913 
Doubtful31 — 9 — 15 — 46 4 105 
Total commercial$472 $43 $121 $294 $763 $1,174 $1,233 $8 $4,108 
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 June 30, 2023 and December 31, 2022:
20232022202120202019PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2023
 (in millions)
Real estate, including construction:
Performing loans$56 $1,262 $960 $388 $1,483 $2,885 $41 $3 $7,078 
Nonaccrual loans— — — — 41 66 — — 107 
Total real estate, including construction56 1,262 960 388 1,524 2,951 41 3 7,185 
Business and corporate banking:
Performing loans490 1,089 816 319 647 4,762 7,626 274 16,023 
Nonaccrual loans— 14 21 9 — 22 79 — 145 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking490 1,103 837 328 647 4,784 7,706 274 16,169 
Global banking:
Performing loans448 1,512 610 162 199 4,067 3,074 — 10,072 
Nonaccrual loans— — — — 10 38 7 — 55 
Total global banking448 1,512 610 162 209 4,105 3,081 — 10,127 
Other commercial:
Performing loans16 288 290 701 420 909 3,705 — 6,329 
Nonaccrual loans— — — — — 1 — — 1 
Total other commercial16 288 290 701 420 910 3,705 — 6,330 
Total commercial:
Performing loans1,010 4,151 2,676 1,570 2,749 12,623 14,446 277 39,502 
Nonaccrual loans— 14 21 9 51 127 86 — 308 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$1,010 $4,165 $2,697 $1,579 $2,800 $12,750 $14,533 $277 $39,811 
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2022
 (in millions)
Real estate, including construction:
Performing loans$1,315 $854 $520 $1,671 $1,803 $1,710 $42 $3 $7,918 
Nonaccrual loans— — — 43 — 2 — — 45 
Total real estate, including construction1,315 854 520 1,714 1,803 1,712 42 3 7,963 
Business and corporate banking:
Performing loans1,107 828 443 815 292 4,995 7,275 203 15,958 
Nonaccrual loans9 — 32 — 16 24 31 4 116 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking1,116 828 475 815 308 5,019 7,307 207 16,075 
Global banking:
Performing loans2,026 449 212 177 114 4,122 3,424 — 10,524 
Nonaccrual loans8 — — — — 30 16 — 54 
Total global banking2,034 449 212 177 114 4,152 3,440 — 10,578 
Other commercial:
Performing loans283 354 607 403 86 1,114 4,354 — 7,201 
Total other commercial283 354 607 403 86 1,114 4,354 — 7,201 
Total commercial:
Performing loans4,731 2,485 1,782 3,066 2,295 11,941 15,095 206 41,601 
Nonaccrual loans17 — 32 43 16 56 47 4 215 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$4,748 $2,485 $1,814 $3,109 $2,311 $11,997 $15,143 $210 $41,817 
Summary of Credit Quality Indicators The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2023 and December 31, 2022:
20232022202120202019PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2023
 (in millions)
Real estate, including construction:
Investment grade$— $20 $25 $188 $115 $994 $— $— $1,342 
Non-investment grade56 1,242 935 200 1,409 1,957 41 3 5,843 
Total real estate, including construction56 1,262 960 388 1,524 2,951 41 3 7,185 
Business and corporate banking:
Investment grade374 325 495 61 362 2,556 3,647 34 7,854 
Non-investment grade116 778 342 267 285 2,228 4,059 240 8,315 
Total business and corporate banking490 1,103 837 328 647 4,784 7,706 274 16,169 
Global banking:
Investment grade297 1,376 481 157 184 3,129 2,652 — 8,276 
Non-investment grade151 136 129 5 25 976 429 — 1,851 
Total global banking448 1,512 610 162 209 4,105 3,081 — 10,127 
Other commercial:
Investment grade16 230 70 539 311 743 3,623 — 5,532 
Non-investment grade— 58 220 162 109 167 82 — 798 
Total other commercial16 288 290 701 420 910 3,705 — 6,330 
Total commercial:
Investment grade687 1,951 1,071 945 972 7,422 9,922 34 23,004 
Non-investment grade323 2,214 1,626 634 1,828 5,328 4,611 243 16,807 
Total commercial$1,010 $4,165 $2,697 $1,579 $2,800 $12,750 $14,533 $277 $39,811 
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2022
 (in millions)
Real estate, including construction:
Investment grade$80 $45 $305 $178 $783 $278 $— $— $1,669 
Non-investment grade1,235 809 215 1,536 1,020 1,434 42 3 6,294 
Total real estate, including construction1,315 854 520 1,714 1,803 1,712 42 3 7,963 
Business and corporate banking:
Investment grade491 484 122 444 71 2,758 3,657 21 8,048 
Non-investment grade625 344 353 371 237 2,261 3,650 186 8,027 
Total business and corporate banking1,116 828 475 815 308 5,019 7,307 207 16,075 
Global banking:
Investment grade1,814 449 212 146 84 2,911 3,006 — 8,622 
Non-investment grade220 — — 31 30 1,241 434 — 1,956 
Total global banking2,034 449 212 177 114 4,152 3,440 — 10,578 
Other commercial:
Investment grade267 77 518 81 74 935 4,110 — 6,062 
Non-investment grade16 277 89 322 12 179 244 — 1,139 
Total other commercial283 354 607 403 86 1,114 4,354 — 7,201 
Total commercial:
Investment grade2,652 1,055 1,157 849 1,012 6,882 10,773 21 24,401 
Non-investment grade2,096 1,430 657 2,260 1,299 5,115 4,370 189 17,416 
Total commercial$4,748 $2,485 $1,814 $3,109 $2,311 $11,997 $15,143 $210 $41,817 
The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination, during the six months ended June 30, 2023:
20232022202120202019PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
 (in millions)
Business and corporate banking$— $— $— $— $— $3 $3 $— $6 
Total commercial$— $— $— $— $— $3 $3 $— $6 
Consumer loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
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 June 30, 2023 and December 31, 2022:
20232022202120202019PriorRevolving
Loans		Total at Jun. 30, 2023
 (in millions)
Residential mortgages:
Performing loans$1,183 $2,800 $4,186 $2,853 $1,266 $4,960 $— $17,248 
Nonaccrual loans
— 14 7 17 17 149 — 204 
Total residential mortgages1,183 2,814 4,193 2,870 1,283 5,109 — 17,452 
Home equity mortgages:
Performing loans29 66 11 24 28 195 — 353 
Nonaccrual loans
— 5 — — — 6 — 11 
Total home equity mortgages29 71 11 24 28 201 — 364 
Credit cards:
Performing loans— — — — — — 194 194 
Accruing loans contractually past due 90 days or more
— — — — — — 3 3 
Total credit cards— — — — — — 197 197 
Other consumer:
Performing loans— 13 8 8 4 79 9 121 
Total other consumer— 13 8 8 4 79 9 121 
Total consumer:
Performing loans1,212 2,879 4,205 2,885 1,298 5,234 203 17,916 
Nonaccrual loans— 19 7 17 17 155 — 215 
Accruing loans contractually past due 90 days or more
— — — — — — 3 3 
Total consumer$1,212 $2,898 $4,212 $2,902 $1,315 $5,389 $206 $18,134 
20222021202020192018PriorRevolving
Loans		Total at Dec. 31, 2022
 (in millions)
Residential mortgages:
Performing loans$2,885 $4,272 $2,936 $1,300 $729 $4,503 $— $16,625 
Nonaccrual loans
2 8 13 23 22 145 — 213 
Total residential mortgages2,887 4,280 2,949 1,323 751 4,648 — 16,838 
Home equity mortgages:
Performing loans74 12 24 32 13 208 — 363 
Nonaccrual loans
— — — — — 7 — 7 
Total home equity mortgages74 12 24 32 13 215 — 370 
Credit cards:
Performing loans— — — — — — 211 211 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 
Total credit cards— — — — — — 213 213 
Other consumer:
Performing loans14 10 9 6 — 91 11 141 
Accruing loans contractually past due 90 days or more
— — — — — — 1 1 
Total other consumer14 10 9 6 — 91 12 142 
Total consumer:
Performing loans2,973 4,294 2,969 1,338 742 4,802 222 17,340 
Nonaccrual loans2 8 13 23 22 152 — 220 
Accruing loans contractually past due 90 days or more
— — — — — — 3 3 
Total consumer$2,975 $4,302 $2,982 $1,361 $764 $4,954 $225 $17,563 
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 June 30, 2023 and December 31, 2022:
20232022202120202019PriorRevolving
Loans		Total at Jun. 30, 2023
 (in millions)
Residential mortgages(1)(2)
$— $7 $3 $10 $2 $100 $— $122 
Home equity mortgages(1)(2)
— — — — — 3 — 3 
Credit cards— — — — — — 4 4 
Other consumer— — — — — 2 — 2 
Total consumer$— $7 $3 $10 $2 $105 $4 $131 
20222021202020192018PriorRevolving
Loans		Total at Dec. 31, 2022
 (in millions)
Residential mortgages(1)(2)
$6 $4 $8 $16 $10 $97 $— $141 
Home equity mortgages(1)(2)
— — — — — 3 — 3 
Credit cards— — — — — — 3 3 
Other consumer— — — — — 2 1 3 
Total consumer$6 $4 $8 $16 $10 $102 $4 $150 
(1)At June 30, 2023 and December 31, 2022, consumer mortgage loan delinquency includes $57 million and $60 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 June 30, 2023 and December 31, 2022, consumer mortgage loans include $24 million and $21 million, respectively, of loans that were in the process of foreclosure.
The following table summarizes gross charge-off dollars in our consumer loan portfolio, disaggregated by year of origination, during the six months ended June 30, 2023:
20232022202120202019PriorRevolving
Loans		Total
 (in millions)
Residential mortgages$— $— $— $— $— $4 $— $4 
Home equity mortgages— — — — — 1 — 1 
Credit cards— — — — — — 4 4 
Other consumer— — — — — 1 — 1 
Total consumer$— $— $— $— $— $6 $4 $10