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CONSOLIDATED STATEMENT OF INCOME - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Interest income:        
Loans $ 733 $ 659 $ 2,192 $ 1,894
Securities 296 292 898 823
Trading securities 85 54 215 156
Short-term investments 136 164 485 479
Other 23 19 61 57
Total interest income 1,273 1,188 3,851 3,409
Interest expense:        
Deposits 408 283 1,121 763
Short-term borrowings 79 45 209 121
Long-term debt 277 291 895 831
Other 6 10 21 28
Total interest expense 770 629 2,246 1,743
Net interest income 503 559 1,605 1,666
Provision for credit losses 94 20 198 (96)
Net interest income after provision for credit losses 409 539 1,407 1,762
Other revenues:        
Other revenues 298 320 873 954
Trading revenue 178 154 434 509
Other securities gains (losses), net 46 (5) 76 10
Gain (loss) on instruments designated at fair value and related derivatives (19) 29 (45) 63
Other income (loss) (14) (9) (17) 9
Total other revenues [1] 486 486 1,312 [2] 1,536 [2]
Operating expenses:        
Salaries and employee benefits 195 208 626 627
Support services from HSBC affiliates 394 399 1,185 1,215
Occupancy expense, net 41 49 134 137
Goodwill impairment 365 0 365 0
Other expenses 111 134 320 879
Total operating expenses [2] 1,106 790 2,630 2,858 [3]
Income (loss) before income tax (211) 235 89 440
Income tax expense 39 58 109 232
Net income (loss) (250) 177 (20) 208
Credit card fees, net [Member]        
Other revenues:        
Other revenues 18 12 48 38
Trust and investment management fees [Member]        
Other revenues:        
Other revenues 34 31 95 103
Other fees and commissions [Member]        
Other revenues:        
Other revenues 155 171 464 515
Servicing and other fees from HSBC affiliates [Member]        
Other revenues:        
Other revenues $ 88 $ 103 $ 257 $ 289
[1] See Note 15, "Business Segments," for a reconciliation of total other revenues on a U.S. GAAP basis to other operating income for each business segment under the Group Reporting Basis.
[2] Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.
[3] Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.