Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Summary of Related Party Transactions

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

At December 31,	2023		2022
	(in millions)
Assets:
Cash and due from banks	$	133	$	313
Interest bearing deposits with banks	90		21
Securities purchased under agreements to resell(1)	406		756
Trading assets	57		20
Loans	2,618		3,557
Other(2)	491		744
Total assets	$	3,795	$	5,411
Liabilities:
Deposits	$	9,110	$	11,357
Trading liabilities	321		110
Short-term borrowings	1,014		1,009
Long-term debt	6,511		6,011
Other(2)	331		326
Total liabilities	$	17,287	$	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.

Year Ended December 31,	2023		2022		2021
	(in millions)
Income (Expense):
Interest income	$	223	$	116	$	26
Interest expense	(501)		(298)		(237)
Net interest expense	(278)		(182)		(211)
Trading revenue (expense)	(3,287)		1,753		(3,182)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc	180		190		176
HSBC Markets (USA) Inc. ("HMUS")	81		76		91
Other HSBC affiliates	66		77		54
Total servicing and other fees from HSBC affiliates	327		343		321
Gain (loss) on instruments designated at fair value and related derivatives	936		(1,256)		1,128
Support services from HSBC affiliates:
HTSU	(952)		(1,018)		(1,061)
HMUS	(230)		(191)		(118)
Other HSBC affiliates	(489)		(553)		(441)
Total support services from HSBC affiliates	(1,671)		(1,762)		(1,620)
Rental income from HSBC affiliates(1)	33		39		42
Stock based compensation expense(2)	(19)		(15)		(15)

(1)We receive rental income from our affiliates for certain office space, which 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."

Schedule of Loan Balances Outstanding with Affiliates

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

At December 31,	2023		2022
	(in millions)
HMUS and subsidiaries	$	1,318	$	2,243
HSBC North America	1,300		1,250
Other short-term affiliate lending	—		64
Total loans	$	2,618	$	3,557