XML 44 R33.htm IDEA: XBRL DOCUMENT v3.19.1
Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product
The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2019 and 2018:
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Provision charged (credited) to income
3

 
22

 
14

 
—

 
(1
)
 
1

 
16

 
3

 
58

Charge-offs
—

 
(2
)
 
—

 
—

 
(4
)
 
(1
)
 
(13
)
 
(1
)
 
(21
)
Recoveries
—

 
—

 
—

 
—

 
2

 
1

 
2

 
—

 
5

Net (charge-offs) recoveries
—

 
(2
)
 
—

 
—

 
(2
)
 
—

 
(11
)
 
(1
)
 
(16
)
Allowance for credit losses – end of period
$
119

 
$
239

 
$
122

 
$
15

 
$
10

 
$
8

 
$
63

 
$
7

 
$
583

Ending balance: collectively evaluated for impairment
$
118

 
$
220

 
$
122

 
$
15

 
$
8

 
$
8

 
$
62

 
$
7

 
$
560

Ending balance: individually evaluated for impairment
1

 
19

 
—

 
—

 
2

 
—

 
1

 
—

 
23

Total allowance for credit losses
$
119

 
$
239

 
$
122

 
$
15

 
$
10

 
$
8

 
$
63

 
$
7

 
$
583

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
 
 
Real Estate, including Construction
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm'l
 
Residential
Mortgages
 
Home
Equity
Mortgages
 
Credit
Cards
 
Other
Consumer
 
Total
 
(in millions)
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,286

 
$
13,542

 
$
21,319

 
$
5,050

 
$
16,495

 
$
882

 
$
1,036

 
$
278

 
$
69,888

Individually evaluated for impairment(2)
4

 
108

 
98

 
—

 
50

 
4

 
4

 
—

 
268

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
823

 
55

 
—

 
—

 
878

Total loans
$
11,290

 
$
13,650

 
$
21,417

 
$
5,050

 
$
17,368

 
$
941

 
$
1,040

 
$
278

 
$
71,034

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
10

 
(34
)
 
(49
)
 
1

 
(10
)
 
(1
)
 
12

 
—

 
(71
)
Charge-offs
—

 
(25
)
 
(5
)
 
—

 
—

 
(2
)
 
(8
)
 
(1
)
 
(41
)
Recoveries
—

 
22

 
1

 
—

 
3

 
2

 
2

 
—

 
30

Net (charge-offs) recoveries
—

 
(3
)
 
(4
)
 
—

 
3

 
—

 
(6
)
 
(1
)
 
(11
)
Allowance for credit losses – end of period
$
92

 
$
207

 
$
211

 
$
19

 
$
18

 
$
10

 
$
38

 
$
4

 
$
599

Ending balance: collectively evaluated for impairment
$
91

 
$
168

 
$
149

 
$
19

 
$
13

 
$
9

 
$
37

 
$
4

 
$
490

Ending balance: individually evaluated for impairment
1

 
39

 
62

 
—

 
5

 
1

 
1

 
—

 
109

Total allowance for credit losses
$
92

 
$
207

 
$
211

 
$
19

 
$
18

 
$
10

 
$
38

 
$
4

 
$
599

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,042

 
$
12,532

 
$
18,967

 
$
4,578

 
$
16,375

 
$
1,071

 
$
766

 
$
365

 
$
65,696

Individually evaluated for impairment(2)
12

 
286

 
322

 
—

 
55

 
3

 
4

 
—

 
682

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
895

 
65

 
—

 
—

 
960

Total loans
$
11,054

 
$
12,818

 
$
19,289

 
$
4,578

 
$
17,325

 
$
1,139

 
$
770

 
$
365

 
$
67,338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Other commercial includes loans to HSBC affiliates totaling $2,688 million and $1,920 million at March 31, 2019 and 2018, respectively, for which we do not carry an associated allowance for credit losses.
(2) 
For consumer loans and certain small business loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR Loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $602 million and $644 million at March 31, 2019 and 2018, respectively.