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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 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 or line of business during the three and nine months ended September 30, 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 September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
149

 
$
251

 
$
110

 
$
9

 
$
11

 
$
7

 
$
71

 
$
5

 
$
613

Provision charged (credited) to income
27

 
32

 
1

 
—

 
(1
)
 
(1
)
 
34

 
2

 
94

Charge-offs
—

 
(18
)
 
—

 
—

 
(1
)
 
(1
)
 
(17
)
 
—

 
(37
)
Recoveries
—

 
2

 
—

 
—

 
2

 
1

 
1

 
—

 
6

Net (charge-offs) recoveries
—

 
(16
)
 
—

 
—

 
1

 
—

 
(16
)
 
—

 
(31
)
Allowance for credit losses – end of period
$
176

 
$
267

 
$
111

 
$
9

 
$
11

 
$
6

 
$
89

 
$
7

 
$
676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
88

 
$
196

 
$
154

 
$
19

 
$
15

 
$
9

 
$
45

 
$
5

 
$
531

Provision charged (credited) to income
24

 
9

 
(16
)
 
(4
)
 
(5
)
 
(1
)
 
14

 
(1
)
 
20

Charge-offs
—

 
(3
)
 
(11
)
 
—

 
(2
)
 
(2
)
 
(10
)
 
—

 
(28
)
Recoveries
—

 
2

 
—

 
—

 
5

 
2

 
2

 
1

 
12

Net (charge-offs) recoveries
—

 
(1
)
 
(11
)
 
—

 
3

 
—

 
(8
)
 
1

 
(16
)
Allowance for credit losses – end of period
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Provision charged (credited) to income
60

 
67

 
6

 
(6
)
 
(1
)
 
(1
)
 
69

 
4

 
198

Charge-offs
—

 
(22
)
 
(3
)
 
—

 
(8
)
 
(3
)
 
(42
)
 
(3
)
 
(81
)
Recoveries
—

 
3

 
—

 
—

 
7

 
3

 
4

 
1

 
18

Net (charge-offs) recoveries
—

 
(19
)
 
(3
)
 
—

 
(1
)
 
—

 
(38
)
 
(2
)
 
(63
)
Allowance for credit losses – end of period
$
176

 
$
267

 
$
111

 
$
9

 
$
11

 
$
6

 
$
89

 
$
7

 
$
676

Ending balance: collectively evaluated for impairment
$
175

 
$
238

 
$
111

 
$
9

 
$
7

 
$
6

 
$
88

 
$
7

 
$
641

Ending balance: individually evaluated for impairment
1

 
29

 
—

 
—

 
4

 
—

 
1

 
—

 
35

Total allowance for credit losses
$
176

 
$
267

 
$
111

 
$
9

 
$
11

 
$
6

 
$
89

 
$
7

 
$
676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,892

 
$
14,673

 
$
18,745

 
$
5,712

 
$
16,720

 
$
825

 
$
1,304

 
$
257

 
$
70,128

Individually evaluated for impairment(2)
4

 
159

 
132

 
—

 
53

 
3

 
4

 
—

 
355

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

 
—

 
—

 
—

 
801

 
52

 
—

 
—

 
853

Total loans
$
11,896

 
$
14,832

 
$
18,877

 
$
5,712

 
$
17,574

 
$
880

 
$
1,308

 
$
257

 
$
71,336

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
82

 
$
244

 
$
264

 
$
18

 
$
25

 
$
11

 
$
32

 
$
5

 
$
681

Provision charged (credited) to income
30

 
(52
)
 
(90
)
 
(3
)
 
(19
)
 
(2
)
 
39

 
1

 
(96
)
Charge-offs
—

 
(34
)
 
(48
)
 
—

 
(3
)
 
(6
)
 
(25
)
 
(3
)
 
(119
)
Recoveries
—

 
46

 
1

 
—

 
10

 
5

 
5

 
2

 
69

Net (charge-offs) recoveries
—

 
12

 
(47
)
 
—

 
7

 
(1
)
 
(20
)
 
(1
)
 
(50
)
Allowance for credit losses – end of period
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

Ending balance: collectively evaluated for impairment
$
111

 
$
180

 
$
127

 
$
15

 
$
10

 
$
7

 
$
50

 
$
5

 
$
505

Ending balance: individually evaluated for impairment
1

 
24

 
—

 
—

 
3

 
1

 
1

 
—

 
30

Total allowance for credit losses
$
112

 
$
204

 
$
127

 
$
15

 
$
13

 
$
8

 
$
51

 
$
5

 
$
535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment(1)
$
11,877

 
$
12,618

 
$
18,541

 
$
3,897

 
$
16,460

 
$
962

 
$
903

 
$
263

 
$
65,521

Individually evaluated for impairment(2)
5

 
113

 
131

 
1

 
57

 
4

 
4

 
—

 
315

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

 
—

 
—

 
—

 
859

 
61

 
—

 
—

 
920

Total loans
$
11,882

 
$
12,731

 
$
18,672

 
$
3,898

 
$
17,376

 
$
1,027

 
$
907

 
$
263

 
$
66,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Other commercial includes loans to HSBC affiliates totaling $2,828 million and $1,557 million at September 30, 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 $571 million and $623 million at September 30, 2019 and 2018, respectively.