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CONSOLIDATED STATEMENT OF INCOME (LOSS) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Interest income:      
Loans $ 1,867 $ 1,812 $ 2,049
Securities 1,090 1,242 1,162
Trading assets 110 197 147
Short-term investments 96 133 111
Other 43 44 48
Total interest income 3,206 3,428 3,517
Interest expense:      
Deposits 316 251 329
Short-term borrowings 28 44 78
Long-term debt 671 600 492
Other 33 99 5
Total interest expense 1,048 994 904
Net interest income 2,158 2,434 2,613
Provision for credit losses 293 258 34
Net interest income after provision for credit losses 1,865 2,176 2,579
Other revenues:      
Credit card fees 87 129 125
Other fees and commissions 715 773 897
Trust income 110 108 102
Trading revenue 498 349 538
Net other-than-temporary impairment losses 0 [1] 0 [1] (79) [1]
Other securities gains, net 145 129 74
Servicing and other fees from HSBC affiliates 202 202 156
Residential mortgage banking revenue (loss) 16 37 (122)
Gain (loss) on instruments designated at fair value and related derivatives (342) 471 294
Gain on sale of branches 433 0 0
Other income 58 68 195
Total other revenues 1,922 2,266 2,180
Operating expenses:      
Salaries and employee benefits 944 1,114 1,061
Support services from HSBC affiliates 1,429 1,454 1,286
Occupancy expense, net 241 280 267
Expense related to certain regulatory matters (Note 30) 1,381 0 0
Other expenses 702 912 700
Total operating expenses 4,697 3,760 3,314
Income (loss) from continuing operations before income tax expense (benefit) (910) 682 1,445
Provision (benefit) for income taxes 338 227 439
Income (loss) from continuing operations (1,248) 455 1,006
Discontinued Operations (Note 3):      
Income from discontinued operations before income tax expense 315 871 878
Income tax expense 112 308 320
Income from discontinued operations 203 563 558
Net income (loss) $ (1,045) $ 1,018 $ 1,564
[1] During 2012 and 2011, there were no other-than-temporary (“OTTI”) losses on securities recognized in other revenues and no OTTI losses on securities were recognized in the non-credit component in accumulated other comprehensive income (loss) (“AOCI”), net of tax. During 2010, other-than-temporary impairment OTTI losses on securities available-for-sale and held-to-maturity totaling $79 million were recognized in other revenues. There were no significant losses in the non-credit component of such impaired securities reflected in AOCI, net of tax.