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CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Interest income $ 407 $ 492 $ 839 $ 998
Interest expense on debt held by:        
Interest expense 239 267 487 541
Net interest income 168 225 352 457
Provision for credit losses 192 [1] (197) 219 [1] (195)
Net interest income after provision for credit losses (24) 422 133 652
Other revenues:        
Derivative related income (expense) 90 (90) (7) (180)
Gain on debt designated at fair value and related derivatives 74 42 133 73
Servicing and other fees from HSBC affiliates 6 6 12 14
Lower of amortized cost or fair value adjustment on receivables held for sale (54) 97 (71) 208
Other income 22 (8) 29 14
Total other revenues 138 47 96 129
Operating expenses:        
Salaries and employee benefits 61 51 103 107
Occupancy and equipment expenses, net 8 9 16 18
Real estate owned expenses 1 0 5 12
Other administrative expenses 394 (12) 434 68
Support services from HSBC affiliates 58 73 112 133
Total operating expenses 522 121 670 338
Income (loss) from continuing operations before income tax (408) 348 (441) 443
Income tax expense (benefit) (200) 112 (228) 95
Income (loss) from continuing operations (208) 236 (213) 348
Discontinued operations:        
Loss from discontinued operations before income tax (9) (9) (9) (20)
Income tax benefit 1 2 1 7
Loss from discontinued operations (8) (7) (8) (13)
Net income (loss) (216) 229 (221) 335
Debt issued to non-affiliates [Member]        
Interest expense on debt held by:        
Interest expense 186 211 381 427
Debt issued to HSBC affiliates [Member]        
Interest expense on debt held by:        
Interest expense $ 53 $ 56 $ 106 $ 114
[1] The provision for credit losses and charge-offs for real estate secured receivables during the three and six months ended June 30, 2015 includes $220 million related to the lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale in June 2015. See Note 5, "Receivables Held for Sale," for additional information. The provision for credit losses for real estate secured receivables during the six months ended June 30, 2015 was impacted by a release of approximately $19 million associated with a correction to our credit loss reserve calculation for a segment of our portfolio.