Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Summary of Related Party Transactions

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

	June 30, 2023		December 31, 2022
	(in millions)
Assets:
Cash and due from banks	$	290	$	313
Interest bearing deposits with banks	118		21
Securities purchased under agreements to resell(1)	569		756
Trading assets	113		20
Loans	3,067		3,557
Other(2)	577		744
Total assets	$	4,734	$	5,411
Liabilities:
Deposits	$	11,769	$	11,357
Trading liabilities	62		110
Short-term borrowings	1,374		1,009
Long-term debt	6,010		6,011
Other(2)	300		326
Total liabilities	$	19,515	$	18,813

(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. Other assets also includes receivables from HSBC Bank plc associated with certain client share repurchase transactions.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Income (Expense):
Interest income	$	57	$	16	$	114	$	22
Interest expense	(124)		(60)		(243)		(112)
Net interest expense	(67)		(44)		(129)		(90)
Trading revenue (expense)	(637)		1,330		(1,415)		2,605
Servicing and other fees from HSBC affiliates:
HSBC Bank plc	37		48		78		108
HSBC Markets (USA) Inc. ("HMUS")	19		17		37		42
Other HSBC affiliates	21		22		36		38
Total servicing and other fees from HSBC affiliates	77		87		151		188
Gain (loss) on instruments designated at fair value and related derivatives	268		(894)		700		(1,290)
Support services from HSBC affiliates:
HTSU	(245)		(244)		(465)		(504)
HMUS	(55)		(46)		(108)		(83)
Other HSBC affiliates	(125)		(129)		(236)		(250)
Total support services from HSBC affiliates	(425)		(419)		(809)		(837)
Rental income from HSBC affiliates, net(1)	7		9		16		19
Stock based compensation expense(2)	(5)		(3)		(10)		(7)

(1)We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income.

(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. 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 22, "Pension and Other Postretirement Benefits," in our 2022 Form 10-K.

Schedule of Loan Balances Outstanding with Affiliates

At June 30, 2023 and December 31, 2022, we had the following loan balances outstanding with HSBC affiliates:

	June 30, 2023		December 31, 2022
	(in millions)
HMUS and subsidiaries	$	1,495	$	2,243
HSBC North America	1,550		1,250
Other short-term affiliate lending	22		64
Total loans	$	3,067	$	3,557