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Provisions
 12 Months Ended
Dec. 31, 2020
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Provisions
27Provisions
Restructuring
costs
Legal proceedings
and regulatory
matters
Customer
remediation
Other
provisions
Total
$m$m$m$m$m
Provisions (excluding contractual commitments)
At 1 Jan 2020356 605 1,646 280 2,887 
Additions698 347 189 222 1,456 
Amounts utilised(322)(177)(739)(125)(1,363)
Unused amounts reversed(74)(75)(240)(80)(469)
Exchange and other movements13 56 2 8 79 
At 31 Dec 2020671 756 858 305 2,590 
Contractual commitments1
At 1 Jan 2020511 
Net change in expected credit loss provision and other movements577 
At 31 Dec 20201,088 
Total provisions
At 31 Dec 20193,398 
At 31 Dec 20203,678 
Provisions (excluding contractual commitments)
At 1 Jan 2019130 1,128 788 357 2,403 
Additions402 282 1,674 223 2,581 
Amounts utilised(203)(660)(837)(81)(1,781)
Unused amounts reversed(34)(158)(49)(108)(349)
Exchange and other movements61 13 70 (111)33 
At 31 Dec 2019356 605 1,646 280 2,887 
Contractual commitments1
At 1 Jan 2019517 
Net change in expected credit loss provision and other movements(6)
At 31 Dec 2019511 
Total provisions
At 31 Dec 20182,920 
At 31 Dec 20193,398 
1    Contractual commitments include the provision for contingent liabilities measured under IFRS 9 ‘Financial Instruments’ in respect of financial guarantees and the expected credit loss provision on off-balance sheet guarantees and commitments.
Further details of ‘Legal proceedings and regulatory matters’ are set out in Note 34. Legal proceedings include civil court, arbitration or tribunal proceedings brought against HSBC companies (whether by way of claim or counterclaim) or civil disputes that may, if not settled, result in court, arbitration or tribunal proceedings. Regulatory matters refer to investigations, reviews and other actions carried out by, or in response to the actions of, regulators or law enforcement agencies in connection with alleged wrongdoing by HSBC.
Customer remediation refers to HSBC’s activities to compensate customers for losses or damages associated with a failure to comply with regulations or to treat customers fairly. Customer remediation is often initiated by HSBC in response to customer complaints and/or industry developments in sales practices and is not necessarily initiated by regulatory action. Further details of customer remediation are set out in this note.
At 31 December 2020, $0.3bn (2019: $1.1bn) of the customer remediation provision related to the estimated liability for redress in respect of the possible mis-selling of payment protection insurance (‘PPI’) policies in previous years. Of the $1.1bn balance at 31 December 2019, $0.6bn has been utilised during 2020 and an unused release of $0.1bn was recognised.
At 31 December 2020, a provision of $0.3bn (2019: $0.3bn) was held relating to the estimated liability for redress payable to customers following a review of historical collections and recoveries practices in the UK.
For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in ‘Contractual commitments’, see Note 32. This provision results from the adoption of IFRS 9 and has no comparatives. Further analysis of the movement in the expected credit loss provision is disclosed within the 'Reconciliation of allowances for loans and advances to banks and customers including loan commitments and financial guarantees' table on page 178.