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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, 2023December 31, 2022
 (in millions)
Assets:
Cash and due from banks$290 $313 
Interest bearing deposits with banks118 21 
Securities purchased under agreements to resell(1)
569 756 
Trading assets113 20 
Loans3,067 3,557 
Other(2)
577 744 
Total assets$4,734 $5,411 
Liabilities:
Deposits$11,769 $11,357 
Trading liabilities62 110 
Short-term borrowings1,374 1,009 
Long-term debt6,010 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,
2023202220232022
 (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 plc37 48 78 108 
HSBC Markets (USA) Inc. ("HMUS")19 17 37 42 
Other HSBC affiliates21 22 36 38 
Total servicing and other fees from HSBC affiliates77 87 151 188 
Gain (loss) on instruments designated at fair value and related derivatives268 (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 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, 2023December 31, 2022
 (in millions)
HMUS and subsidiaries$1,495 $2,243 
HSBC North America
1,550 1,250 
Other short-term affiliate lending22 64 
Total loans$3,067 $3,557