XML 40 R30.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Loans (Tables)
3 Months Ended
Mar. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
March 31, 2024December 31, 2023
 (in millions)
Commercial loans:
Real estate, including construction$7,071 $7,087 
Business and corporate banking16,047 15,724 
Global banking(1)
10,522 10,725 
Other commercial:
Affiliates(2)
3,442 2,618 
Other3,223 3,803 
Total other commercial6,665 6,421 
Total commercial40,305 39,957 
Consumer loans:
Residential mortgages18,825 18,341 
Home equity mortgages382 389 
Credit cards189 199 
Other consumer(3)
96 101 
Total consumer19,492 19,030 
Total loans$59,797 $58,987 
(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 12, "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 $14 million and $15 million at March 31, 2024 and December 31, 2023, respectively. See Note 9, "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 March 31, 2024 and December 31, 2023. 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 March 31, 2024
Commercial loans:
Real estate, including construction$7 $205 $212 $6,859 $7,071 
Business and corporate banking
1 3 4 16,043 16,047 
Global banking23 4 27 10,495 10,522 
Other commercial36  36 6,629 6,665 
Total commercial67 212 279 40,026 40,305 
Consumer loans:
Residential mortgages163 91 254 18,571 18,825 
Home equity mortgages3 3 6 376 382 
Credit cards2 3 5 184 189 
Other consumer8 2 10 86 96 
Total consumer176 99 275 19,217 19,492 
Total loans$243 $311 $554 $59,243 $59,797 
At December 31, 2023
Commercial loans:
Real estate, including construction$— $206 $206 $6,881 $7,087 
Business and corporate banking
15,720 15,724 
Global banking— 10,724 10,725 
Other commercial350 — 350 6,071 6,421 
Total commercial351 210 561 39,396 39,957 
Consumer loans:
Residential mortgages
174 91 265 18,076 18,341 
Home equity mortgages12 15 374 389 
Credit cards193 199 
Other consumer96 101 
Total consumer192 99 291 18,739 19,030 
Total loans$543 $309 $852 $58,135 $58,987 
(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 March 31, 2024
Commercial loans:
Real estate, including construction$228 $ $41 
Business and corporate banking170  34 
Global banking246  44 
Total commercial644  119 
Consumer loans:
Residential mortgages(1)(2)(3)
167  77 
Home equity mortgages(1)(2)
6  5 
Credit cards 3  
Other consumer 1  
Total consumer173 4 82 
Total nonperforming loans$817 $4 $201 
At December 31, 2023
Commercial loans:
Real estate, including construction$229 $— $40 
Business and corporate banking143 29 
Global banking49 — 48 
Other commercial— 
Total commercial424 119 
Consumer loans:
Residential mortgages(1)(2)(3)
172 — 81 
Home equity mortgages(1)(2)
— 
Credit cards— — 
Other consumer— — 
Total consumer178 86 
Total nonperforming loans$602 $$205 
(1)At March 31, 2024 and December 31, 2023, nonaccrual consumer mortgage loans include $103 million and $108 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 months ended March 31, 2024 and 2023 by type of modification, including the period-end carrying value and as a percentage of total loans. During the three months ended March 31, 2024, loan payment modifications made to consumer borrowers experiencing financial difficulty were nil.
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended March 31, 2024
Commercial loans:
Business and corporate banking$ $ $65 $ $65 .4 %
Total commercial$ $ $65 $ $65 .2 
Three Months Ended March 31, 2023
Commercial loans:
Real estate, including construction$— $— $96 $— $96 1.2 %
Business and corporate banking— — 49 12 61 .4 
Total commercial— — 145 12 157 .4 
Consumer loans:
Residential mortgages(2)
— — — .0 
Credit cards— — — .5 
Total consumer— — .0 
Total$— $— $146 $13 $159 .3 
(1)Represents loans with more than one type of payment modification during the period.
(2)During the three months ended March 31, 2023, the carrying value of consumer mortgage loans with a payment modification included loans that were carried 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 months ended March 31, 2024 and 2023 by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)
Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended March 31, 2024
Commercial loans:
Business and corporate banking %$ 1.8
Three Months Ended March 31, 2023
Commercial loans:
Real estate, including construction— %$— 0.4
Business and corporate banking— 2.3
Consumer loans:
Residential mortgages3.0 — 7.6
Credit cards— — 0.5
The following table presents loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months which subsequently became 90 days or greater contractually delinquent during the three months ended March 31, 2024 by type of modification:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total
(in millions)
Three Months Ended March 31, 2024
Commercial loans:
Global banking$ $ $1 $ $1 
Total commercial$ $ $1 $ $1 
(1)Represents loans with more than one type of payment modification during the period.
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 12 months at March 31, 2024 and December 31, 2023:
 Past Due  
30 - 89 Days90+ Days
Current(1)
Total
 (in millions)
At March 31, 2024
Commercial loans:
Real estate, including construction$ $166 $3 $169 
Business and corporate banking  409 409 
Global banking 1 42 43 
Total commercial 167 454 621 
Consumer loans:
Residential mortgages  12 12 
Total consumer  12 12 
Total loans$ $167 $466 $633 
At December 31, 2023
Commercial loans:
Real estate, including construction$— $166 $$168 
Business and corporate banking
— — 398 398 
Global banking— — 50 50 
Total commercial— 166 450 616 
Consumer loans:
Residential mortgages
— — 12 12 
Total consumer— — 12 12 
Total loans$— $166 $462 $628 
(1)Loans less than 30 days past due are presented as current.
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 March 31, 2024 and December 31, 2023:
20242023202220212020PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2024
 (in millions)
Real estate, including construction:
Special mention$32 $ $39 $ $35 $42 $3 $3 $154 
Substandard4 11    872   887 
Doubtful     166 17  183 
Total real estate, including construction36 11 39  35 1,080 20 3 1,224 
Business and corporate banking:
Special mention34 22 114 34 3 148 221 8 584 
Substandard24 64 21  27 149 767 9 1,061 
Doubtful   34  14 82  130 
Total business and corporate banking58 86 135 68 30 311 1,070 17 1,775 
Global banking:
Special mention     45 41 99 185 
Substandard  2  20 107 131  260 
Doubtful     194 9  203 
Total global banking  2  20 346 181 99 648 
Total commercial$94 $97 $176 $68 $85 $1,737 $1,271 $119 $3,647 
Total commercial:
Special mention$66 $22 $153 $34 $38 $235 $265 $110 $923 
Substandard28 75 23  47 1,128 898 9 2,208 
Doubtful   34  374 108  516 
Total commercial$94 $97 $176 $68 $85 $1,737 $1,271 $119 $3,647 
20232022202120202019PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2023
 (in millions)
Real estate, including construction:
Special mention$— $40 $— $104 $92 $42 $$$284 
Substandard— — — 821 — — 824 
Doubtful— — — — — 166 18 — 184 
Total real estate, including construction40 — 105 92 1,029 21 1,292 
Business and corporate banking:
Special mention38 103 12 20 126 296 607 
Substandard31 22 — 27 — 156 746 983 
Doubtful— — 36 — — 71 — 116 
Total business and corporate banking69 125 48 31 20 291 1,113 1,706 
Global banking:
Special mention— — — — — 45 62 — 107 
Substandard— 14 — — — 114 73 — 201 
Doubtful— 187 — — 14 — — 202 
Total global banking— 201 — — 14 159 136 — 510 
Other commercial:
Special mention— — — — — — — 
Substandard38 — — — — — — — 38 
Doubtful— — — — — — — 
Total other commercial44 — — — — — — 47 
Total commercial$115 $366 $48 $136 $126 $1,479 $1,273 $12 $3,555 
Total commercial:
Special mention$44 $143 $12 $108 $112 $213 $361 $11 $1,004 
Substandard71 36 — 28 — 1,091 819 2,046 
Doubtful— 187 36 — 14 175 93 — 505 
Total commercial$115 $366 $48 $136 $126 $1,479 $1,273 $12 $3,555 
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 March 31, 2024 and December 31, 2023:
20242023202220212020PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2024
 (in millions)
Real estate, including construction:
Performing loans$164 $982 $1,286 $1,040 $319 $3,030 $19 $3 $6,843 
Nonaccrual loans     207 21  228 
Total real estate, including construction164 982 1,286 1,040 319 3,237 40 3 7,071 
Business and corporate banking:
Performing loans237 1,284 1,028 1,273 224 4,438 7,120 273 15,877 
Nonaccrual loans   34  54 82  170 
Total business and corporate banking237 1,284 1,028 1,307 224 4,492 7,202 273 16,047 
Global banking:
Performing loans82 2,162 1,128 761 204 3,563 2,326 50 10,276 
Nonaccrual loans     233 13  246 
Total global banking82 2,162 1,128 761 204 3,796 2,339 50 10,522 
Other commercial:
Performing loans15 164 278 209 633 1,163 4,203  6,665 
Total other commercial15 164 278 209 633 1,163 4,203  6,665 
Total commercial$498 $4,592 $3,720 $3,317 $1,380 $12,688 $13,784 $326 $40,305 
Total commercial:
Performing loans$498 $4,592 $3,720 $3,283 $1,380 $12,194 $13,668 $326 $39,661 
Nonaccrual loans   34  494 116  644 
Total commercial$498 $4,592 $3,720 $3,317 $1,380 $12,688 $13,784 $326 $40,305 
20232022202120202019PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2023
 (in millions)
Real estate, including construction:
Performing loans$920 $1,286 $1,019 $355 $1,014 $2,242 $19 $$6,858 
Nonaccrual loans— — — — 40 167 22 — 229 
Total real estate, including construction920 1,286 1,019 355 1,054 2,409 41 7,087 
Business and corporate banking:
Performing loans1,270 1,113 1,074 231 561 4,215 6,851 265 15,580 
Nonaccrual loans— 35 — — — 38 70 — 143 
Accruing loans contractually past due 90 days or more— — — — — — — 
Total business and corporate banking1,270 1,148 1,074 231 561 4,253 6,922 265 15,724 
Global banking:
Performing loans2,255 1,153 844 151 321 3,561 2,341 50 10,676 
Nonaccrual loans— — — — — 39 10 — 49 
Total global banking2,255 1,153 844 151 321 3,600 2,351 50 10,725 
Other commercial:
Performing loans211 281 313 651 418 804 3,740 — 6,418 
Nonaccrual loans— — — — — — — 
Total other commercial211 281 313 651 418 807 3,740 — 6,421 
Total commercial$4,656 $3,868 $3,250 $1,388 $2,354 $11,069 $13,054 $318 $39,957 
Total commercial:
Performing loans$4,656 $3,833 $3,250 $1,388 $2,314 $10,822 $12,951 $318 $39,532 
Nonaccrual loans— 35 — — 40 247 102 — 424 
Accruing loans contractually past due 90 days or more— — — — — — — 
Total commercial$4,656 $3,868 $3,250 $1,388 $2,354 $11,069 $13,054 $318 $39,957 
Summary of Credit Quality Indicators The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2024 and December 31, 2023:
20242023202220212020PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2024
 (in millions)
Real estate, including construction:
Investment grade$ $324 $99 $23 $172 $1,094 $1 $ $1,713 
Non-investment grade164 658 1,187 1,017 147 2,143 39 3 5,358 
Total real estate, including construction164 982 1,286 1,040 319 3,237 40 3 7,071 
Business and corporate banking:
Investment grade73 533 333 562 93 2,086 3,287 63 7,030 
Non-investment grade164 751 695 745 131 2,406 3,915 210 9,017 
Total business and corporate banking237 1,284 1,028 1,307 224 4,492 7,202 273 16,047 
Global banking:
Investment grade82 1,868 973 651 173 2,970 1,963  8,680 
Non-investment grade 294 155 110 31 826 376 50 1,842 
Total global banking82 2,162 1,128 761 204 3,796 2,339 50 10,522 
Other commercial:
Investment grade15 162 150 43 403 832 3,955  5,560 
Non-investment grade 2 128 166 230 331 248  1,105 
Total other commercial15 164 278 209 633 1,163 4,203  6,665 
Total commercial$498 $4,592 $3,720 $3,317 $1,380 $12,688 $13,784 $326 $40,305 
Total commercial:
Investment grade$170 $2,887 $1,555 $1,279 $841 $6,982 $9,206 $63 $22,983 
Non-investment grade328 1,705 2,165 2,038 539 5,706 4,578 263 17,322 
Total commercial$498 $4,592 $3,720 $3,317 $1,380 $12,688 $13,784 $326 $40,305 
20232022202120202019PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2023
 (in millions)
Real estate, including construction:
Investment grade$327 $100 $24 $187 $162 $939 $$— $1,740 
Non-investment grade593 1,186 995 168 892 1,470 40 5,347 
Total real estate, including construction920 1,286 1,019 355 1,054 2,409 41 7,087 
Business and corporate banking:
Investment grade732 304 543 95 261 1,977 3,311 54 7,277 
Non-investment grade538 844 531 136 300 2,276 3,611 211 8,447 
Total business and corporate banking1,270 1,148 1,074 231 561 4,253 6,922 265 15,724 
Global banking:
Investment grade1,947 1,109 651 149 307 2,842 2,140 — 9,145 
Non-investment grade308 44 193 14 758 211 50 1,580 
Total global banking2,255 1,153 844 151 321 3,600 2,351 50 10,725 
Other commercial:
Investment grade211 192 43 376 298 564 3,143 — 4,827 
Non-investment grade— 89 270 275 120 243 597 — 1,594 
Total other commercial211 281 313 651 418 807 3,740 — 6,421 
Total commercial$4,656 $3,868 $3,250 $1,388 $2,354 $11,069 $13,054 $318 $39,957 
Total commercial:
Investment grade$3,217 $1,705 $1,261 $807 $1,028 $6,322 $8,595 $54 $22,989 
Non-investment grade1,439 2,163 1,989 581 1,326 4,747 4,459 264 16,968 
Total commercial$4,656 $3,868 $3,250 $1,388 $2,354 $11,069 $13,054 $318 $39,957 
The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination, during the three months ended March 31, 2024 and 2023:
20242023202220212020PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal
 (in millions)
Three Months Ended March 31, 2024
Business and corporate banking$ $ $ $ $ $ $1 $ $1 
Total commercial$ $ $ $ $ $ $1 $ $1 
20232022202120202019PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal
(in millions)
Three Months Ended March 31, 2023
Business and corporate banking$— $— $— $— $— $$$— $
Total commercial$— $— $— $— $— $$$— $
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 March 31, 2024 and December 31, 2023:
20242023202220212020PriorRevolving
Loans
Total at Mar. 31, 2024
 (in millions)
Residential mortgages:
Performing loans$799 $2,569 $2,732 $4,061 $2,727 $5,770 $ $18,658 
Nonaccrual loans
  10 10 10 137  167 
Total residential mortgages799 2,569 2,742 4,071 2,737 5,907  18,825 
Home equity mortgages:
Performing loans10 80 69 10 20 187  376 
Nonaccrual loans
     6  6 
Total home equity mortgages10 80 69 10 20 193  382 
Credit cards:
Performing loans      186 186 
Accruing loans contractually past due 90 days or more
      3 3 
Total credit cards      189 189 
Other consumer:
Performing loans  7 9 6 65 8 95 
Accruing loans contractually past due 90 days or more
     1  1 
Total other consumer  7 9 6 66 8 96 
Total consumer$809 $2,649 $2,818 $4,090 $2,763 $6,166 $197 $19,492 
Total consumer:
Performing loans$809 $2,649 $2,808 $4,080 $2,753 $6,022 $194 $19,315 
Nonaccrual loans  10 10 10 143  173 
Accruing loans contractually past due 90 days or more
     1 3 4 
Total consumer$809 $2,649 $2,818 $4,090 $2,763 $6,166 $197 $19,492 
20232022202120202019PriorRevolving
Loans
Total at Dec. 31, 2023
 (in millions)
Residential mortgages:
Performing loans$2,646 $2,753 $4,096 $2,761 $1,236 $4,677 $— $18,169 
Nonaccrual loans
— 11 11 133 — 172 
Total residential mortgages2,646 2,764 4,107 2,770 1,244 4,810 — 18,341 
Home equity mortgages:
Performing loans80 69 11 22 25 176 — 383 
Nonaccrual loans
— — — — — — 
Total home equity mortgages80 69 11 22 25 182 — 389 
Credit cards:
Performing loans— — — — — — 196 196 
Accruing loans contractually past due 90 days or more
— — — — — — 
Total credit cards— — — — — — 199 199 
Other consumer:
Performing loans— 67 99 
Accruing loans contractually past due 90 days or more
— — — — — — 
Total other consumer— 69 101 
Total consumer$2,726 $2,841 $4,125 $2,799 $1,272 $5,061 $206 $19,030 
Total consumer:
Performing loans$2,726 $2,830 $4,114 $2,790 $1,264 $4,920 $203 $18,847 
Nonaccrual loans— 11 11 139 — 178 
Accruing loans contractually past due 90 days or more
— — — — — 
Total consumer$2,726 $2,841 $4,125 $2,799 $1,272 $5,061 $206 $19,030 
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 March 31, 2024 and December 31, 2023:
20242023202220212020PriorRevolving
Loans
Total at Mar. 31, 2024
 (in millions)
Residential mortgages(1)(2)
$ $ $7 $6 $7 $96 $ $116 
Home equity mortgages(1)(2)
     4  4 
Credit cards      4 4 
Other consumer    1 1  2 
Total consumer$ $ $7 $6 $8 $101 $4 $126 
20232022202120202019PriorRevolving
Loans
Total at Dec. 31, 2023
 (in millions)
Residential mortgages(1)(2)
$— $$$$$100 $— $115 
Home equity mortgages(1)(2)
— — — — — — 
Credit cards— — — — — — 
Other consumer— — — — — — 
Total consumer$— $$$$$106 $$125 
(1)At March 31, 2024 and December 31, 2023, consumer mortgage loan delinquency includes $58 million and $61 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 March 31, 2024 and December 31, 2023, consumer mortgage loans include $28 million and $21 million, respectively, of loans that were in the process of foreclosure.
The following table summarizes gross charge-off dollars in our consumer loan portfolio, disaggregated by year of origination, during the three months ended March 31, 2024 and 2023:
20242023202220212020PriorRevolving
Loans
Total
 (in millions)
Three Months Ended March 31, 2024
Credit cards$ $ $ $ $ $ $2 $2 
Total consumer$ $ $ $ $ $ $2 $2 
20232022202120202019PriorRevolving
Loans
Total
(in millions)
Three Months Ended March 31, 2023
Residential mortgages$— $— $— $— $— $$— $
Home equity mortgages— — — — — — 
Credit cards— — — — — — 
Total consumer$— $— $— $— $— $$$