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Business Segments
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Business Segments Business Segments We have distinct businesses, which are aligned with HSBC's global business strategy: Wealth and Personal Banking ("WPB"), Commercial Banking ("CMB"), and Global Banking and Markets ("GBM"). These businesses and a Corporate Center ("CC") serve as our reportable segments with the exception of GBM. Our GBM business is comprised of three distinct operating segments: Global Banking ("GB"), Markets and Securities Services ("MSS"), and Global Banking and Markets Other ("GBM Other"), which are separately reported as discussed further below, effective as of the fourth quarter of 2021 for all periods presented.
The following table summarizes the impact of this change on reported segment profit (loss) before tax, total assets and total deposits as of and for the three and nine months ended September 30, 2021:
As Previously ReportedAfter Reporting Changes
(in millions)
Segment profit (loss) before tax during the three months ended September 30, 2021:
GBM$103 NSR
GBNSR$108 
MSSNSR14 
GBM OtherNSR(19)
Segment profit (loss) before tax during the nine months ended September 30, 2021:
GBM$449 NSR
GBNSR$420 
MSSNSR50 
GBM OtherNSR(21)
Segment total assets at September 30, 2021:
GBM$102,543 NSR
GBNSR$10,301 
MSSNSR41,193 
GBM Other(1)
NSR51,049 
Segment total deposits at September 30, 2021:
GBM$52,130 NSR
GBNSR$49,465 
MSSNSR1,719 
GBM OtherNSR946 
NSR Not Separately Reported
(1)Includes assets allocated from Markets Treasury.
There have been no changes in the basis of our segmentation as compared with the presentation in our 2021 Form 10-K.
Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for a funding charge or credit that includes both interest rate and liquidity components. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates that incorporate both repricing (interest rate risk) and tenor (liquidity) characteristics. The objective of these charges/credits is to transfer interest rate risk to one centralized unit in Markets Treasury. Markets Treasury income statement and balance sheet results are allocated to each of the global businesses based upon tangible equity levels and levels of any surplus liabilities.
Certain other revenue and operating expense amounts are also apportioned among the business segments based upon the benefits derived from this activity or the relationship of this activity to other segment activity. These inter-segment transactions have not been eliminated, and we generally account for them as if they were with third parties.
Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply IFRSs as issued by the IASB. As a result, our segment results are prepared and presented using financial information prepared on the Group Reporting Basis as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. We continue, however, to monitor capital adequacy and report to regulatory agencies on a U.S. GAAP basis.
There have been no changes in the measurement of segment profit as compared with the presentation in our 2021 Form 10-K.
A summary of significant differences between U.S. GAAP and the Group Reporting Basis as they impact our results are summarized in Note 25, "Business Segments," in our 2021 Form 10-K. There have been no significant changes since December 31, 2021 in the differences between U.S. GAAP and the Group Reporting Basis impacting our results.
The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:
 Group Reporting Basis Consolidated Amounts   
GBM
WPBCMBGBMSSGBM OtherCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
 (in millions)
Three Months Ended September 30, 2022
Net interest income (expense)$211 $253 $137 $(35)$(3)$(4)$559 $2 $(18)$543 
Other operating income62 65 52 146 17 2 344 (23)33 354 
Total operating income (expense)273 318 189 111 14 (2)903 (21)15 897 
Expected credit losses / provision for credit losses(19)(17)37 — (1)— — 25 — 25 
292 335 152 111 15 (2)903 (46)15 872 
Operating expenses187 142 116 67 20 94 626 7 15 648 
Profit (loss) before income tax$105 $193 $36 $44 $(5)$(96)$277 $(53)$— $224 
Three Months Ended September 30, 2021
Net interest income (expense)$202 $200 $75 $11 $(12)$(1)$475 $4 $41 $520 
Other operating income (expense)57 70 96 69 19 (38)273 4 (35)242 
Total operating income (expense)259 270 171 80 7 (39)748 8 6 762 
Expected credit losses / provision for credit losses(35)24 (31)— — — (42)(39)— (81)
294 246 202 80 7 (39)790 47 6 843 
Operating expenses279 134 94 66 26 55 654 6 6 666 
Profit (loss) before income tax$15 $112 $108 $14 $(19)$(94)$136 $41 $— $177 
Nine Months Ended September 30, 2022
Net interest income (expense)$565 $658 $321 $(19)$(4)$(17)$1,504 $3 $45 $1,552 
Other operating income257 221 306 388 67 10 1,249 (54)(12)1,183 
Total operating income (expense)822 879 627 369 63 (7)2,753 (51)33 2,735 
Expected credit losses / provision for credit losses(21)10 32 — — — 21 84 — 105 
843 869 595 369 63 (7)2,732 (135)33 2,630 
Operating expenses626 432 348 216 65 275 1,962 32 33 2,027 
Profit (loss) before income tax$217 $437 $247 $153 $(2)$(282)$770 $(167)$— $603 
Balances at end of period:
Total assets$42,954 $51,555 $11,845 $52,044 $39,494 $2,296 $200,188 $(30,848)$— $169,340 
Total loans, net22,435 25,816 11,147 125 701 — 60,224 (1,148)2,148 61,224 
Goodwill— 358 — — — — 358 100 — 458 
Total deposits34,549 39,460 43,475 1,153 1,990 — 120,627 (4,927)9,266 124,966 
 Group Reporting Basis Consolidated Amounts   
GBM
WPBCMBGBMSSGBM OtherCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
 (in millions)
Nine Months Ended September 30, 2021
Net interest income (expense)$616 $580 $237 $36 $(18)$(3)$1,448 $17 $109 $1,574 
Other operating income (expense)215 208 314 226 73 (9)1,027 (2)(95)930 
Total operating income (expense)831 788 551 262 55 (12)2,475 15 14 2,504 
Expected credit losses / provision for credit losses(36)(26)(153)— (1)— (216)(321)— (537)
867 814 704 262 56 (12)2,691 336 14 3,041 
Operating expenses921 437 284 212 77 157 2,088 48 14 2,150 
Profit (loss) before income tax$(54)$377 $420 $50 $(21)$(169)$603 $288 $— $891 
Balances at end of period:
Total assets$69,021 $46,226 $10,301 $41,193 $51,049 $1,611 $219,401 $(18,251)$— $201,150 
Total loans, net22,046 20,998 10,063 151 1,076 — 54,334 (1,549)2,266 55,051 
Goodwill— 358 — — — — 358 100 — 458 
Total deposits39,762 45,239 49,465 1,719 946 — 137,131 (3,668)18,905 152,368 
(1)Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.
(2)Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.