XML 43 R34.htm IDEA: XBRL DOCUMENT v3.22.2.2
Loans (Tables)
 9 Months Ended
Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
September 30, 2022December 31, 2021
 (in millions)
Commercial loans:
Real estate, including construction$8,395 $8,234 
Business and corporate banking16,730 13,958 
Global banking(1)
12,142 11,109 
Other commercial:
Affiliates(2)
3,717 2,793 
Other3,483 3,702 
Total other commercial7,200 6,495 
Total commercial44,467 39,796 
Consumer loans:
Residential mortgages(3)
16,691 15,469 
Home equity mortgages(3)
345 325 
Credit cards198 204 
Other consumer74 70 
Total consumer17,308 16,068 
Total loans$61,775 $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 September 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 September 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 September 30, 2022
Commercial loans:
Real estate, including construction$1 $92 $93 $8,302 $8,395 
Business and corporate banking
74 22 96 16,634 16,730 
Global banking25 3 28 12,114 12,142 
Other commercial6 3 9 7,191 7,200 
Total commercial106 120 226 44,241 44,467 
Consumer loans:
Residential mortgages(2)
176 95 271 16,420 16,691 
Home equity mortgages(2)
4 3 7 338 345 
Credit cards2 1 3 195 198 
Other consumer1 — 1 73 74 
Total consumer183 99 282 17,026 17,308 
Total loans$289 $219 $508 $61,267 $61,775 
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 September 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 September 30, 2022
Commercial:
Real estate, including construction$136 $— $61 
Business and corporate banking119 1 49 
Global banking87 — 73 
Total commercial342 1 183 
Consumer:
Residential mortgages(1)(2)(3)(4)
199 — 71 
Home equity mortgages(1)(2)(4)
7 — 5 
Credit cards— 1 — 
Total consumer206 1 76 
Total nonperforming loans$548 $2 $259 
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 September 30, 2022 and December 31, 2021, nonaccrual consumer mortgage loans include $102 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 September 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 September 30, 2022 and December 31, 2021:
September 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)
12 9 
Credit cards2 3 
Total consumer151 137 
Total TDR Loans(4)
$266 $200 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $14 million and $13 million at September 30, 2022 and December 31, 2021, respectively.
(2)At September 30, 2022 and December 31, 2021, the carrying value of consumer mortgage TDR Loans includes $101 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 September 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 September 30, 2022 and December 31, 2021, the carrying value of TDR Loans includes $111 million and $115 million, respectively, of loans which are classified as nonaccrual.
Summary of Receivables which were Modified and as a Result became Classified as TDR Loans
The following table presents information about loans which were modified during the three and nine months ended September 30, 2022 and 2021 and as a result of this action became classified as TDR Loans:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Commercial loans:
Business and corporate banking$— $— $101 $26 
Global banking— — — 15 
Total commercial— — 101 41 
Consumer loans:
Residential mortgages5 1 17 33 
Home equity mortgages— — 2 1 
Credit cards— — 3 1 
Total consumer5 1 22 35 
Total$5 $1 $123 $76 
Loans Classified as TDR Loans in Previous 12 Months that became 60 Days or Greater Delinquent
The following table presents consumer loans which were classified as TDR Loans during the previous 12 months which subsequently became 60 days or greater contractually delinquent during the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Consumer loans:
Residential mortgages$— $1 $— $4 
Total consumer$— $1 $— $4 
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 September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2022
 (in millions)
Real estate, including construction:
Special mention$205 $616 $22 $212 $— $20 $— $3 $1,078 
Substandard1 — 79 239 677 1,029 19 — 2,044 
Doubtful— — — 75 — 10 — — 85 
Total real estate, including construction206 616 101 526 677 1,059 19 3 3,207 
Business and corporate banking:
Special mention22 — 4 1 4 117 181 12 341 
Substandard32 70 26 12 8 163 479 1 791 
Doubtful— — 27 — 15 1 22 4 69 
Total business and corporate banking54 70 57 13 27 281 682 17 1,201 
Global banking:
Special mention53 — — — — 8 221 — 282 
Substandard243 — — 17 — 2 227 — 489 
Doubtful— — — — — — 15 — 15 
Total global banking296 — — 17 — 10 463 — 786 
Other commercial:
Substandard— — — — — 3 8 — 11 
Doubtful11 — — — — — — — 11 
Total other commercial11 — — — — 3 8 — 22 
Total commercial:
Special mention280 616 26 213 4 145 402 15 1,701 
Substandard276 70 105 268 685 1,197 733 1 3,335 
Doubtful11 — 27 75 15 11 37 4 180 
Total commercial$567 $686 $158 $556 $704 $1,353 $1,172 $20 $5,216 
    
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 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 September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2022
 (in millions)
Real estate, including construction:
Investment grade$79 $45 $305 $496 $805 $296 $12 $— $2,038 
Non-investment grade1,192 864 324 1,480 1,020 1,441 32 4 6,357 
Total real estate, including construction1,271 909 629 1,976 1,825 1,737 44 4 8,395 
Business and corporate banking:
Investment grade517 704 149 416 57 2,634 3,883 45 8,405 
Non-investment grade500 556 253 348 173 2,402 3,900 193 8,325 
Total business and corporate banking1,017 1,260 402 764 230 5,036 7,783 238 16,730 
Global banking:
Investment grade1,974 443 421 119 99 3,286 3,775 — 10,117 
Non-investment grade210 11 6 31 30 1,195 542 — 2,025 
Total global banking2,184 454 427 150 129 4,481 4,317 — 12,142 
Other commercial:
Investment grade111 99 512 110 168 847 4,421 — 6,268 
Non-investment grade8 207 90 300 8 185 134 — 932 
Total other commercial119 306 602 410 176 1,032 4,555 — 7,200 
Total commercial:
Investment grade2,681 1,291 1,387 1,141 1,129 7,063 12,091 45 26,828 
Non-investment grade1,910 1,638 673 2,159 1,231 5,223 4,608 197 17,639 
Total commercial$4,591 $2,929 $2,060 $3,300 $2,360 $12,286 $16,699 $242 $44,467 
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 
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 September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2022
 (in millions)
Real estate, including construction:
Performing loans$1,271 $909 $629 $1,857 $1,825 $1,720 $44 $4 $8,259 
Nonaccrual loans— — — 119 — 17 — — 136 
Total real estate, including construction1,271 909 629 1,976 1,825 1,737 44 4 8,395 
Business and corporate banking:
Performing loans1,017 1,260 364 764 214 5,009 7,748 234 16,610 
Nonaccrual loans— — 38 — 16 27 34 4 119 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking1,017 1,260 402 764 230 5,036 7,783 238 16,730 
Global banking:
Performing loans2,175 454 427 150 129 4,448 4,272 — 12,055 
Nonaccrual loans9 — — — — 33 45 — 87 
Total global banking2,184 454 427 150 129 4,481 4,317 — 12,142 
Other commercial:
Performing loans119 306 602 410 176 1,032 4,555 — 7,200 
Total other commercial119 306 602 410 176 1,032 4,555 — 7,200 
Total commercial:
Performing loans4,582 2,929 2,022 3,181 2,344 12,209 16,619 238 44,124 
Nonaccrual loans9 — 38 119 16 77 79 4 342 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$4,591 $2,929 $2,060 $3,300 $2,360 $12,286 $16,699 $242 $44,467 
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 $39,796 
Consumer loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of TDR Loans The following table summarizes TDR Loans in our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Sep. 30, 2022
 (in millions)
Residential mortgages$— $— $2 $9 $4 $122 $— $137 
Home equity mortgages— — — — — 12 — 12 
Credit cards— — — — — — 2 2 
Total consumer$— $— $2 $9 $4 $134 $2 $151 
20212020201920182017PriorRevolving
Loans		Total at Dec. 31, 2021
 (in millions)
Residential mortgages$— $1 $3 $3 $— $118 $— $125 
Home equity mortgages— — — — — 9 — 9 
Credit cards— — — — — — 3 3 
Total consumer$— $1 $3 $3 $— $127 $3 $137 
Summary of 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 September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Sep. 30, 2022
 (in millions)
Residential mortgages(1)(2)
$1 $4 $6 $14 $10 $89 $— $124 
Home equity mortgages(1)(2)
— — — — — 3 — 3 
Credit cards— — — — — — 2 2 
Other consumer— — — — — 1 — 1 
Total consumer$1 $4 $6 $14 $10 $93 $2 $130 
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 September 30, 2022 and December 31, 2021, consumer mortgage loan delinquency includes $52 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 September 30, 2022 and December 31, 2021, consumer mortgage loans include $18 million and $87 million, respectively, of loans that were in the process of foreclosure.
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 September 30, 2022 and December 31, 2021:
20222021202020192018PriorRevolving
Loans		Total at Sep. 30, 2022
 (in millions)
Residential mortgages:
Performing loans$2,478 $4,319 $2,973 $1,325 $751 $4,646 $— $16,492 
Nonaccrual loans
— 9 9 17 17 147 — 199 
Total residential mortgages2,478 4,328 2,982 1,342 768 4,793 — 16,691 
Home equity mortgages:
Performing loans33 13 30 32 17 213 — 338 
Nonaccrual loans
— — — — — 7 — 7 
Total home equity mortgages33 13 30 32 17 220 — 345 
Credit cards:
Performing loans— — — — — — 197 197 
Accruing loans contractually past due 90 days or more
— — — — — — 1 1 
Total credit cards— — — — — — 198 198 
Other consumer:
Performing loans10 6 7 5 — 44 2 74 
Total other consumer10 6 7 5 — 44 2 74 
Total consumer:
Performing loans2,521 4,338 3,010 1,362 768 4,903 199 17,101 
Nonaccrual loans— 9 9 17 17 154 — 206 
Accruing loans contractually past due 90 days or more
— — — — — — 1 1 
Total consumer$2,521 $4,347 $3,019 $1,379 $785 $5,057 $200 $17,308 
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