Financial Statements of HSBC USA Inc. (Parent) (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed parent company financial statements follow:


Balance Sheet At December 31,	2023		2022
	(in millions)
Assets:




Securities held-to-maturity (fair value of $1 million at both December 31, 2023 and 2022)	$	1	$	1

Receivables and balances due from subsidiaries	14,437		13,605
Receivables and balances due from other HSBC affiliates	2,663		3,519
Investment in subsidiaries:
Banking	15,527		15,941
Other	99		62

Other assets	257		175
Total assets	$	32,984	$	33,303
Liabilities:
Interest, taxes and other liabilities	$	83	$	58
Payables due to subsidiaries	7		23
Payables due to other HSBC affiliates	76		44
Short-term borrowings	5,440		4,818
Short-term borrowings due to subsidiaries(1)	—		1,500
Long-term debt(2)	9,240		8,748
Long-term debt due to other HSBC affiliates(2)	6,499		5,999
Total liabilities	21,345		21,190
Total equity	11,639		12,113
Total liabilities and equity	$	32,984	$	33,303

(1)Reflected a borrowing from HSBC Bank USA which matured in July 2023.

(2)Contractual scheduled maturities for the debt over the next five years are as follows: 2024 – $4.7 billion; 2025 – $6.3 billion; 2026 – $1.1 billion; 2027 – $0.8 billion; 2028 – $0.9 billion; and thereafter – $1.9 billion.

Schedule of Condensed Income (Loss)


Statements of Income and Comprehensive Income (Loss) Year Ended December 31,	2023		2022		2021
	(in millions)
Income:
Dividends from banking subsidiaries	$	1,940	$	143	$	102
Dividends from other subsidiaries	15		15		—
Interest from subsidiaries	526		101		28
Interest from other HSBC affiliates	194		89		23


Other income (loss) from subsidiaries	—		(1)		—
Other income (loss) from other HSBC Affiliates	951		(1,046)		1,027
Other income (loss)	(961)		998		(1,023)
Total income	2,665		299		157
Expenses:
Interest to subsidiaries	54		46		16
Interest to other HSBC Affiliates	172		140		128
Other interest expense	1,091		305		40


Other expenses with subsidiaries	13		15		19

Other expenses	2		2		1
Total expenses	1,332		508		204
Income (loss) before taxes and equity in undistributed income (loss) of subsidiaries	1,333		(209)		(47)
Income tax benefit	(143)		(88)		(33)
Income (loss) before equity in undistributed income (loss) of subsidiaries	1,476		(121)		(14)
Equity in undistributed income (loss) of subsidiaries	(1,083)		669		702
Net income	$	393	$	548	$	688
Other comprehensive income (loss)	649		(2,396)		(858)
Comprehensive income (loss)	$	1,042	$	(1,848)	$	(170)

Schedule of Condensed Cash Flow Statement


Statement of Cash Flows Year Ended December 31,	2023		2022		2021
	(in millions)
Cash flows from operating activities:
Net income	$	393	$	548	$	688
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	3		1		1
Net change in other assets and liabilities	794		(2,073)		(313)
Undistributed (income) loss of subsidiaries	1,083		(669)		(702)

Other, net	(9)		2		(4)
Cash provided by (used in) operating activities	2,264		(2,191)		(330)
Cash flows from investing activities:


Sales and maturities of securities	—		—		1

Net change in investments in and balances due from subsidiaries	(889)		2,291		2,713
Net change in balances due from other HSBC affiliates	875		(888)		(1,345)
Other, net	—		14		—
Cash provided by (used in) investing activities	(14)		1,417		1,369
Cash flows from financing activities:
Net change in deposits from other HSBC affiliates	41		(17)		13
Net change in short-term borrowings	(878)		1,135		(815)
Issuance of long-term debt	4,546		5,824		6,844
Repayment of long-term debt	(4,435)		(3,089)		(6,000)

Preferred stock redemption	—		(1,000)		—
Return of capital to parent	—		(2,000)		(1,000)

Other decreases in capital surplus	(8)		(2)		(4)
Dividends paid	(1,516)		(77)		(77)
Cash provided by (used in) financing activities	(2,250)		774		(1,039)
Net change in cash and due from banks and interest bearing deposits with banks	—		—		—
Cash and due from banks and interest bearing deposits with banks at beginning of year	—		—		—
Cash and due from banks and interest bearing deposits with banks at end of year	$	—	$	—	$	—
Cash paid for:
Interest	$	1,178	$	373	$	167