XML 43 R34.htm IDEA: XBRL DOCUMENT v3.22.2
Loans (Tables)
 6 Months Ended
Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
June 30, 2022December 31, 2021
 (in millions)
Commercial loans:
Real estate, including construction$8,791 $8,234 
Business and corporate banking16,108 13,958 
Global banking(1)
12,963 11,109 
Other commercial:
Affiliates(2)
3,457 2,793 
Other3,376 3,702 
Total other commercial6,833 6,495 
Total commercial44,695 39,796 
Consumer loans:
Residential mortgages(3)
16,475 15,469 
Home equity mortgages(3)
351 325 
Credit cards204 204 
Other consumer73 70 
Total consumer17,103 16,068 
Total loans$61,798 $55,864 
(1)Represents large multinational firms including globally focused U.S. corporate and financial institutions, U.S. dollar lending to multinational banking clients managed by HSBC on a global basis and complex large business clients supported by Global Banking and Markets relationship managers.
(2)See Note 14, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
(3)Consumer mortgage loans at June 30, 2022 include certain loans that were transferred from held for sale to held for investment during the second quarter of 2022. See Note 8, "Loans Held for Sale," for additional information.
Summary of Past Due Status of Loans The following table summarizes the past due status of our loans at June 30, 2022 and December 31, 2021. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At June 30, 2022
Commercial loans:
Real estate, including construction$33 $76 $109 $8,682 $8,791 
Business and corporate banking
60 16 76 16,032 16,108 
Global banking— 3 3 12,960 12,963 
Other commercial351 — 351 6,482 6,833 
Total commercial444 95 539 44,156 44,695 
Consumer loans:
Residential mortgages(2)
151 86 237 16,238 16,475 
Home equity mortgages(2)
2 3 5 346 351 
Credit cards1 1 2 202 204 
Other consumer— — — 73 73 
Total consumer154 90 244 16,859 17,103 
Total loans$598 $185 $783 $61,015 $61,798 
At December 31, 2021
Commercial loans:
Real estate, including construction$38 $— $38 $8,196 $8,234 
Business and corporate banking
112 17 129 13,829 13,958 
Global banking— 27 27 11,082 11,109 
Other commercial47 — 47 6,448 6,495 
Total commercial197 44 241 39,555 39,796 
Consumer loans:
Residential mortgages
138 63 201 15,268 15,469 
Home equity mortgages2 1 3 322 325 
Credit cards5 2 7 197 204 
Other consumer1 — 1 69 70 
Total consumer146 66 212 15,856 16,068 
Total loans$343 $110 $453 $55,411 $55,864 
(1)Loans less than 30 days past due are presented as current.
(2)Consumer mortgage past due loans at June 30, 2022 include certain loans that were transferred from held for sale to held for investment during the second quarter of 2022, which collectively included $50 million of consumer mortgage loans which were past due 30 days or more at the time of transfer. See Note 8, "Loans Held for Sale," for additional information.
Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:
Nonaccrual LoansAccruing Loans Contractually Past Due 90 Days or MoreNonaccrual Loans With No Allowance For Credit Losses
 (in millions)
At June 30, 2022
Commercial:
Real estate, including construction$94 $— $18 
Business and corporate banking122 1 64 
Global banking92 — 70 
Total commercial308 1 152 
Consumer:
Residential mortgages(1)(2)(3)(4)
198 — 64 
Home equity mortgages(1)(2)(4)
9 — 5 
Credit cards— 1 — 
Total consumer207 1 69 
Total nonperforming loans$515 $2 $221 
At December 31, 2021
Commercial:
Real estate, including construction$140 $— $20 
Business and corporate banking134 1 69 
Global banking105 — 63 
Total commercial379 1 152 
Consumer:
Residential mortgages(1)(2)(3)
229 — 55 
Home equity mortgages(1)(2)
9 — 4 
Credit cards— 2 — 
Total consumer238 2 59 
Total nonperforming loans$617 $3 $211 
(1)At June 30, 2022 and December 31, 2021, nonaccrual consumer mortgage loans include $95 million and $86 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.
(3)Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.
(4)Consumer mortgage nonperforming loans at June 30, 2022 include certain loans that were transferred from held for sale to held for investment during the second quarter of 2022, which collectively included $63 million of consumer mortgage nonperforming loans at the time of transfer. See Note 8, "Loans Held for Sale," for additional information.
Summary of TDR Loans
The following table summarizes our TDR Loans at June 30, 2022 and December 31, 2021:
June 30, 2022December 31, 2021
 (in millions)
Commercial loans:
Business and corporate banking$112 $38 
Global banking3 25 
Total commercial(1)
115 63 
Consumer loans:
Residential mortgages(2)(3)
137 125 
Home equity mortgages(2)(3)
13 9 
Credit cards2 3 
Total consumer152 137 
Total TDR Loans(4)
$267 $200 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million at both June 30, 2022 and December 31, 2021.
(2)At June 30, 2022 and December 31, 2021, the carrying value of consumer mortgage TDR Loans includes $102 million and $104 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
(3)Consumer mortgage TDR Loans at June 30, 2022 include certain loans that were transferred from held for sale to held for investment during the second quarter of 2022, which collectively included $24 million of consumer mortgage TDR Loans at the time of transfer. See Note 8, "Loans Held for Sale," for additional information.
(4)At June 30, 2022 and December 31, 2021, the carrying value of TDR Loans includes $67 million and $115 million, respectively, of loans which are classified as nonaccrual.
Summary of Receivables which were Modified and as a Result became Classified as TDR Loans
The following table presents information about loans which were modified during the three and six months ended June 30, 2022 and 2021 and as a result of this action became classified as TDR Loans:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in millions)
Commercial loans:
Business and corporate banking$99 $— $101 $26 
Global banking— — — 15 
Total commercial99 — 101 41 
Consumer loans:
Residential mortgages5 16 12 32 
Home equity mortgages2 1 2 1 
Credit cards1 — 3 1 
Total consumer8 17 17 34 
Total$107 $17 $118 $75 
Loans Classified as TDR Loans in Previous 12 Months that became 60 Days or Greater Delinquent
The following table presents consumer loans which were classified as TDR Loans during the previous 12 months which subsequently became 60 days or greater contractually delinquent during the three and six months ended June 30, 2022 and 2021:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in millions)
Consumer loans:
Residential mortgages$— $— $— $3 
Total consumer$— $— $— $3 
Commercial loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2022
 (in millions)
Real estate, including construction:
Special mention$107 $812 $59 $233 $— $229 $— $3 $1,443 
Substandard— — 36 314 768 1,025 20 11 2,174 
Doubtful— — — 76 — 11 — — 87 
Total real estate, including construction107 812 95 623 768 1,265 20 14 3,704 
Business and corporate banking:
Special mention34 43 64 — 29 142 230 12 554 
Substandard— — 9 13 13 157 538 17 747 
Doubtful— — 17 — 15 1 26 — 59 
Total business and corporate banking34 43 90 13 57 300 794 29 1,360 
Global banking:
Special mention— — — — — 123 146 — 269 
Substandard— — 224 17 — 3 254 — 498 
Doubtful— — — — — — 23 — 23 
Total global banking— — 224 17 — 126 423 — 790 
Other commercial:
Substandard— — — — — 3 9 — 12 
Total other commercial— — — — — 3 9 — 12 
Total commercial:
Special mention141 855 123 233 29 494 376 15 2,266 
Substandard— — 269 344 781 1,188 821 28 3,431 
Doubtful— — 17 76 15 12 49 — 169 
Total commercial$141 $855 $409 $653 $825 $1,694 $1,246 $43 $5,866 
    
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2021
 (in millions)
Real estate, including construction:
Special mention$— $— $350 $487 $90 $259 $— $— $1,186 
Substandard— 1 272 263 308 461 20 11 1,336 
Doubtful— — 80 2 — 53 — — 135 
Total real estate, including construction— 1 702 752 398 773 20 11 2,657 
Business and corporate banking:
Special mention— 1 91 60 26 274 173 — 625 
Substandard— 18 36 9 3 226 424 8 724 
Doubtful— — — 20 — 28 16 — 64 
Total business and corporate banking— 19 127 89 29 528 613 8 1,413 
Global banking:
Special mention8 — — — — 8 47 — 63 
Substandard— — — — — 54 232 — 286 
Doubtful— — — — — — 31 — 31 
Total global banking8 — — — — 62 310 — 380 
Other commercial:
Special mention— — — — — 7 — — 7 
Substandard— — — — — — 40 — 40 
Total other commercial— — — — — 7 40 — 47 
Total commercial:
Special mention8 1 441 547 116 548 220 — 1,881 
Substandard— 19 308 272 311 741 716 19 2,386 
Doubtful— — 80 22 — 81 47 — 230 
Total commercial$8 $20 $829 $841 $427 $1,370 $983 $19 $4,497 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2022
 (in millions)
Real estate, including construction:
Performing loans$1,126 $1,085 $623 $2,103 $1,912 $1,789 $44 $15 $8,697 
Nonaccrual loans— — — 76 2 16 — — 94 
Total real estate, including construction1,126 1,085 623 2,179 1,914 1,805 44 15 8,791 
Business and corporate banking:
Performing loans484 1,270 557 657 214 4,742 7,810 251 15,985 
Nonaccrual loans— — 17 — 19 47 39 — 122 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking484 1,270 574 657 233 4,789 7,850 251 16,108 
Global banking:
Performing loans2,390 553 566 178 114 4,526 4,544 — 12,871 
Nonaccrual loans— — — — — 35 57 — 92 
Total global banking2,390 553 566 178 114 4,561 4,601 — 12,963 
Other commercial:
Performing loans68 158 597 415 178 1,047 4,370 — 6,833 
Total other commercial68 158 597 415 178 1,047 4,370 — 6,833 
Total commercial:
Performing loans4,068 3,066 2,343 3,353 2,418 12,104 16,768 266 44,386 
Nonaccrual loans— — 17 76 21 98 96 — 308 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$4,068 $3,066 $2,360 $3,429 $2,439 $12,202 $16,865 $266 $44,695 
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2021
 (in millions)
Real estate, including construction:
Performing loans$969 $651 $2,436 $2,076 $593 $1,307 $46 $16 $8,094 
Nonaccrual loans— 2 80 40 — 18 — — 140 
Total real estate, including construction969 653 2,516 2,116 593 1,325 46 16 8,234 
Business and corporate banking:
Performing loans1,630 709 594 190 187 4,756 5,540 217 13,823 
Nonaccrual loans— 4 14 30 51 1 34 — 134 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking1,630 713 608 220 238 4,757 5,575 217 13,958 
Global banking:
Performing loans547 540 203 80 243 4,580 4,811 — 11,004 
Nonaccrual loans— — — — — 40 65 — 105 
Total global banking547 540 203 80 243 4,620 4,876 — 11,109 
Other commercial:
Performing loans589 552 451 174 110 1,045 3,574 — 6,495 
Total other commercial589 552 451 174 110 1,045 3,574 — 6,495 
Total commercial:
Performing loans3,735 2,452 3,684 2,520 1,133 11,688 13,971 233 39,416 
Nonaccrual loans— 6 94 70 51 59 99 — 379 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$3,735 $2,458 $3,778 $2,590 $1,184 $11,747 $14,071 $233 $39,796 
Summary of Credit Quality Indicators The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2022
 (in millions)
Real estate, including construction:
Investment grade$73 $45 $310 $496 $719 $343 $12 $— $1,998 
Non-investment grade1,053 1,040 313 1,683 1,195 1,462 32 15 6,793 
Total real estate, including construction1,126 1,085 623 2,179 1,914 1,805 44 15 8,791 
Business and corporate banking:
Investment grade263 724 302 352 37 2,391 3,849 54 7,972 
Non-investment grade221 546 272 305 196 2,398 4,001 197 8,136 
Total business and corporate banking484 1,270 574 657 233 4,789 7,850 251 16,108 
Global banking:
Investment grade2,165 547 340 150 85 3,455 3,968 — 10,710 
Non-investment grade225 6 226 28 29 1,106 633 — 2,253 
Total global banking2,390 553 566 178 114 4,561 4,601 — 12,963 
Other commercial:
Investment grade60 105 498 115 172 861 4,210 — 6,021 
Non-investment grade8 53 99 300 6 186 160 — 812 
Total other commercial68 158 597 415 178 1,047 4,370 — 6,833 
Total commercial:
Investment grade2,561 1,421 1,450 1,113 1,013 7,050 12,039 54 26,701 
Non-investment grade1,507 1,645 910 2,316 1,426 5,152 4,826 212 17,994 
Total commercial$4,068 $3,066 $2,360 $3,429 $2,439 $12,202 $16,865 $266 $44,695 
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2021
 (in millions)
Real estate, including construction:
Investment grade$1 $361 $491 $772 $57 $248 $12 $— $1,942 
Non-investment grade968 292 2,025 1,344 536 1,077 34 16 6,292 
Total real estate, including construction969 653 2,516 2,116 593 1,325 46 16 8,234 
Business and corporate banking:
Investment grade881 254 240 52 43 2,122 2,498 55 6,145 
Non-investment grade749 459 368 168 195 2,635 3,077 162 7,813 
Total business and corporate banking1,630 713 608 220 238 4,757 5,575 217 13,958 
Global banking:
Investment grade530 539 189 64 235 3,910 4,240 — 9,707 
Non-investment grade17 1 14 16 8 710 636 — 1,402 
Total global banking547 540 203 80 243 4,620 4,876 — 11,109 
Other commercial:
Investment grade120 442 153 174 69 943 3,527 — 5,428 
Non-investment grade469 110 298 — 41 102 47 — 1,067 
Total other commercial589 552 451 174 110 1,045 3,574 — 6,495 
Total commercial:
Investment grade1,532 1,596 1,073 1,062 404 7,223 10,277 55 23,222 
Non-investment grade2,203 862 2,705 1,528 780 4,524 3,794 178 16,574 
Total commercial$3,735 $2,458 $3,778 $2,590 $1,184 $11,747 $14,071 $233 $39,796 
Consumer loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of TDR Loans The following table summarizes TDR Loans in our consumer loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Jun. 30, 2022
 (in millions)
Residential mortgages$— $— $1 $8 $3 $125 $— $137 
Home equity mortgages— — — — — 13 — 13 
Credit cards— — — — — — 2 2 
Total consumer$— $— $1 $8 $3 $138 $2 $152 
20212020201920182017PriorRevolving
Loans		Total at Dec. 31, 2021
 (in millions)
Residential mortgages$— $1 $3 $3 $— $118 $— $125 
Home equity mortgages— — — — — 9 — 9 
Credit cards— — — — — — 3 3 
Total consumer$— $1 $3 $3 $— $127 $3 $137 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Jun. 30, 2022
 (in millions)
Residential mortgages:
Performing loans$1,883 $4,372 $3,050 $1,348 $772 $4,852 $— $16,277 
Nonaccrual loans
— 4 9 17 15 153 — 198 
Total residential mortgages1,883 4,376 3,059 1,365 787 5,005 — 16,475 
Home equity mortgages:
Performing loans19 16 34 32 18 223 — 342 
Nonaccrual loans
— — — — — 9 — 9 
Total home equity mortgages19 16 34 32 18 232 — 351 
Credit cards:
Performing loans— — — — — — 203 203 
Accruing loans contractually past due 90 days or more
— — — — — — 1 1 
Total credit cards— — — — — — 204 204 
Other consumer:
Performing loans5 6 7 5 2 44 4 73 
Total other consumer5 6 7 5 2 44 4 73 
Total consumer:
Performing loans1,907 4,394 3,091 1,385 792 5,119 207 16,895 
Nonaccrual loans— 4 9 17 15 162 — 207 
Accruing loans contractually past due 90 days or more
— — — — — — 1 1 
Total consumer$1,907 $4,398 $3,100 $1,402 $807 $5,281 $208 $17,103 
20212020201920182017PriorRevolving
Loans		Total at Dec. 31, 2021
 (in millions)
Residential mortgages:
Performing loans$4,496 $3,296 $1,481 $851 $955 $4,161 $— $15,240 
Nonaccrual loans
2 9 15 21 14 168 — 229 
Total residential mortgages4,498 3,305 1,496 872 969 4,329 — 15,469 
Home equity mortgages:
Performing loans15 30 30 18 17 206 — 316 
Nonaccrual loans
— — — — — 9 — 9 
Total home equity mortgages15 30 30 18 17 215 — 325 
Credit cards:
Performing loans— — — — — — 202 202 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 
Total credit cards— — — — — — 204 204 
Other consumer:
Performing loans8 8 5 1 1 45 2 70 
Total other consumer8 8 5 1 1 45 2 70 
Total consumer:
Performing loans4,519 3,334 1,516 870 973 4,412 204 15,828 
Nonaccrual loans2 9 15 21 14 177 — 238 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 
Total consumer$4,521 $3,343 $1,531 $891 $987 $4,589 $206 $16,068 
Summary of Credit Quality Indicators The following table summarizes dollars of two-months-and-over contractual delinquency for our consumer loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Jun. 30, 2022
 (in millions)
Residential mortgages(1)(2)
$— $1 $3 $9 $3 $94 $— $110 
Home equity mortgages(1)(2)
— — — — — 3 — 3 
Credit cards— — — — — — 2 2 
Total consumer$— $1 $3 $9 $3 $97 $2 $115 
20212020201920182017PriorRevolving
Loans		Total at Dec. 31, 2021
 (in millions)
Residential mortgages(1)(2)
$5 $2 $11 $13 $8 $64 $— $103 
Home equity mortgages(1)(2)
— — — — — 1 — 1 
Credit cards— — — — — — 3 3 
Total consumer$5 $2 $11 $13 $8 $65 $3 $107 
(1)At June 30, 2022 and December 31, 2021, consumer mortgage loan delinquency includes $46 million and $24 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)At June 30, 2022 and December 31, 2021, consumer mortgage loans include $10 million and $87 million, respectively, of loans that were in the process of foreclosure.