Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-07436 | |
Entity Registrant Name | HSBC USA Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-2764867 | |
Entity Address, Address Line One | 452 Fifth Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10018 | |
City Area Code | 212 | |
Local Phone Number | 525-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 714 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000083246 | |
Current Fiscal Year End Date | --12-31 | |
Zero Coupon Callable Accreting Notes due January 15, 2043 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | $100,000,000 Zero Coupon Callable Accreting Notes due January 15, 2043 | |
Trading Symbol | HBA/43 | |
Security Exchange Name | NYSE | |
Zero Coupon Callable Accreting Notes due January 29, 2043 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | $50,000,000 Zero Coupon Callable Accreting Notes due January 29, 2043 | |
Trading Symbol | HBA/43A | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Interest income: | |||||
Loans | $ 416 | $ 511 | $ 1,308 | $ 1,729 | |
Securities | 154 | 202 | 491 | 707 | |
Trading securities | 60 | 64 | 162 | 192 | |
Short-term investments | 24 | 16 | 57 | 126 | |
Other | 4 | 11 | 17 | 35 | |
Total interest income | 658 | 804 | 2,035 | 2,789 | |
Interest expense: | |||||
Deposits | 60 | 135 | 210 | 656 | |
Short-term borrowings | 4 | 7 | 13 | 62 | |
Long-term debt | 70 | 111 | 230 | 471 | |
Other | 4 | 3 | 8 | 10 | |
Total interest expense | 138 | 256 | 461 | 1,199 | |
Net interest income | 520 | 548 | 1,574 | 1,590 | |
Provision for credit losses | (81) | (105) | (537) | 840 | |
Net interest income after provision for credit losses | 601 | 653 | 2,111 | 750 | |
Other revenues: | |||||
Other revenues | 267 | 269 | 837 | 814 | |
Trading revenue (expense) | (42) | 49 | 1 | 255 | |
Other securities gains, net | 4 | 52 | 51 | 111 | |
Gain on instruments designated at fair value and related derivatives | 8 | 15 | 33 | 15 | |
Other income (loss) | 7 | (27) | 13 | 18 | |
Total other revenues | [1] | 242 | 356 | 930 | 1,207 |
Operating expenses: | |||||
Salaries and employee benefits | 151 | 193 | 509 | 590 | |
Support services from HSBC affiliates | 389 | 391 | 1,148 | 1,162 | |
Occupancy expense, net | 27 | 44 | 175 | 222 | |
Goodwill impairment | 0 | 0 | 0 | 784 | |
Other expenses | 99 | 157 | 318 | 359 | |
Total operating expenses | 666 | 785 | 2,150 | 3,117 | |
Income (loss) before income tax | 177 | 224 | 891 | (1,160) | |
Income tax expense (benefit) | 40 | 36 | 222 | (72) | |
Net income (loss) | 137 | 188 | 669 | (1,088) | |
Credit card fees, net [Member] | |||||
Other revenues: | |||||
Other revenues | 0 | 10 | 23 | 30 | |
Trust and investment management fees [Member] | |||||
Other revenues: | |||||
Other revenues | 26 | 34 | 81 | 98 | |
Other fees and commissions [Member] | |||||
Other revenues: | |||||
Other revenues | 160 | 144 | 496 | 425 | |
Servicing and other fees from HSBC affiliates [Member] | |||||
Other revenues: | |||||
Other revenues | $ 79 | $ 79 | $ 232 | $ 255 | |
[1] | See Note 16, "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. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 137 | $ 188 | $ 669 | $ (1,088) |
Net change in unrealized gains (losses), net of tax: | ||||
Investment securities | (86) | 56 | (664) | 924 |
Fair value option liabilities attributable to our own credit spread | 9 | (40) | 9 | 106 |
Derivatives designated as cash flow hedges | (7) | (10) | (28) | 83 |
Pension and post-retirement benefit plans | 0 | (2) | 1 | (2) |
Total other comprehensive income (loss) | (84) | 4 | (682) | 1,111 |
Comprehensive income (loss) | $ 53 | $ 192 | $ (13) | $ 23 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Assets: | |||
Cash and due from banks | $ 1,018 | $ 1,302 | |
Interest bearing deposits with banks | 62,140 | 14,353 | |
Federal funds sold and securities purchased under agreements to resell | 7,480 | 35,746 | |
Trading assets (includes $2.1 billion and $1.3 billion pledged to creditors at September 30, 2021 and December 31, 2020, respectively) | 21,985 | 27,284 | |
Securities available-for-sale (includes amortized cost of $36.4 billion and $39.6 billion at September 30, 2021 and December 31, 2020, respectively, an allowance for credit losses of $1 million at both September 30, 2021 and December 31, 2020, and $2.2 billion and $2.1 billion pledged to creditors at September 30, 2021 and December 31, 2020, respectively) | 36,507 | 40,672 | |
Securities held-to-maturity, net of allowance for credit losses of $1 million and $2 million at September 30, 2021 and December 31, 2020, respectively (fair value of $6.1 billion and $9.4 billion at September 30, 2021 and December 31, 2020, respectively) | 5,866 | 8,981 | |
Loans (includes $27 million and $32 million designated under fair value option at September 30, 2021 and December 31, 2020, respectively) | 55,526 | 62,088 | |
Less – allowance for credit losses | 475 | 1,015 | |
Loans, net | 55,051 | 61,073 | |
Loans held for sale (includes $63 million and $36 million designated under fair value option at September 30, 2021 and December 31, 2020, respectively, and $2,610 million related to branch disposal group held for sale at September 30, 2021) | 4,927 | 337 | |
Properties and equipment, net | 65 | 144 | |
Goodwill | 458 | 458 | |
Other branch related assets held for sale | 244 | 0 | |
Other assets, net of allowance for credit losses of $2 million at both September 30, 2021 and December 31, 2020 | 5,409 | 6,084 | |
Total assets | [1] | 201,150 | 196,434 |
Domestic deposits: | |||
Noninterest bearing | 43,228 | 32,428 | |
Interest bearing (includes $3.0 billion and $4.2 billion designated under fair value option at September 30, 2021 and December 31, 2020, respectively) | 92,588 | 107,427 | |
Foreign deposits - interest bearing | 7,231 | 5,295 | |
Deposits held for sale | 9,321 | 0 | |
Total deposits | 152,368 | 145,150 | |
Short-term borrowings | 6,377 | 4,952 | |
Long-term debt (includes $9.7 billion and $10.7 billion designated under fair value option at September 30, 2021 and December 31, 2020, respectively) | 18,105 | 19,979 | |
Total debt | 176,850 | 170,081 | |
Trading liabilities | 2,670 | 5,397 | |
Other branch related liabilities held for sale | 160 | 0 | |
Interest, taxes and other liabilities | 3,233 | 2,665 | |
Total liabilities | [1] | 182,913 | 178,143 |
Equity | |||
Preferred stock (no par value; 40,999,000 shares authorized; 1,265 shares issued and outstanding at both September 30, 2021 and December 31, 2020) | 1,265 | 1,265 | |
Common equity: | |||
Common stock ($5 par; 150,000,000 shares authorized; 714 shares issued and outstanding at both September 30, 2021 and December 31, 2020) | 0 | 0 | |
Additional paid-in capital | 15,743 | 15,746 | |
Retained earnings | 1,232 | 601 | |
Accumulated other comprehensive income (loss) | (3) | 679 | |
Total common equity | 16,972 | 17,026 | |
Total equity | 18,237 | 18,291 | |
Total liabilities and equity | 201,150 | 196,434 | |
Other assets, allowance for credit losses | [2] | $ 2 | $ 2 |
[1] | Assets | ||
[2] | Primarily includes accrued interest receivables and customer acceptances. |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Assets pledged to creditors, trading assets | [1] | $ 2,053 | $ 1,265 | |
Securities available-for-sale, amortized cost | 36,352 | 39,636 | ||
Securities available-for-sale, allowance for credit losses | 1 | 1 | [2] | |
Securities held-to-maturity, allowance for credit losses | [2] | 1 | 2 | |
Securities held-to-maturity, fair value | 6,097 | 9,369 | ||
Loans held for sale | 4,927 | 337 | ||
Other assets, allowance for credit losses | [3] | $ 2 | $ 2 | |
Preferred stock, par value (usd per share) | $ 0 | $ 0 | ||
Preferred stock, shares authorized (shares) | 40,999,000 | 40,999,000 | ||
Preferred stock, shares issued (shares) | 1,265 | 1,265 | ||
Preferred stock, shares outstanding (shares) | 1,265 | 1,265 | ||
Common stock, par value (usd per share) | $ 5 | $ 5 | ||
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 | ||
Common stock, shares issued (shares) | 714 | 714 | ||
Common stock, shares outstanding (shares) | 714 | 714 | ||
Assets: | ||||
Other Assets | $ 5,409 | $ 6,084 | ||
Total assets | [4] | 201,150 | 196,434 | |
Liabilities: | ||||
Interest, taxes and other liabilities | 3,233 | 2,665 | ||
Total liabilities | [4] | 182,913 | 178,143 | |
Variable interest entities [Member] | ||||
Assets: | ||||
Loans | 7 | 10 | ||
Other Assets | 64 | 79 | ||
Total assets | 71 | 89 | ||
Liabilities: | ||||
Interest, taxes and other liabilities | 18 | 10 | ||
Total liabilities | 18 | 10 | ||
Retail Branches Sold [Member] | ||||
Loans held for sale | [5] | 2,610 | ||
Student Loan [Member] | ||||
Loans, designated under fair value option | 27 | 32 | ||
Loans Held For Sale [Member] | ||||
Loans held-for-sale, designated under fair value option | 63 | 36 | ||
Deposits [Member] | ||||
Deposits designated under fair value option | 3,000 | 4,200 | ||
Long-term debt [Member] | ||||
Long-term debt designated under fair value option | 9,700 | 10,700 | ||
Trading assets [Member] | ||||
Assets pledged to creditors, trading assets | 2,053 | 1,265 | ||
Securities available-for-sale [Member] | ||||
Assets pledged to creditors, securities-available-for-sale | $ 2,241 | $ 2,077 | ||
[1] | Trading assets are primarily pledged against liabilities associated with repurchase agreements. | |||
[2] | See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. | |||
[3] | Primarily includes accrued interest receivables and customer acceptances. | |||
[4] | Assets | |||
[5] | Includes $99 million of commercial loans, $1,952 million of residential mortgage loans, $235 million of home equity mortgage loans, $182 million of credit card loans and $142 million of other consumer loans |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | As Previously Reported [Member]Retained Earnings [Member] | As Previously Reported [Member]Accumulated Other Comprehensive Loss [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Student Loan [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Reclassification [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Reclassification [Member]Accumulated Other Comprehensive Loss [Member] |
Balance at beginning of period at Dec. 31, 2019 | $ 1,265 | |||||||||||
Balance at beginning of period, common equity at Dec. 31, 2019 | $ 0 | $ 15,736 | $ 1,618 | $ (277) | $ 1,534 | $ (279) | ||||||
Balance at beginning of period, common equity (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | $ 84 | $ 2 | $ (2) | $ 2 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Employee benefit plans | 14 | |||||||||||
Net income (loss) | $ (1,088) | (1,088) | ||||||||||
Cash dividends declared on preferred stock | (39) | |||||||||||
Other comprehensive income (loss), net of tax | 1,111 | 1,111 | ||||||||||
Balance at end of period, common equity at Sep. 30, 2020 | 17,075 | 0 | 15,750 | 491 | 834 | 491 | 834 | |||||
Balance at end of period at Sep. 30, 2020 | 18,340 | 1,265 | ||||||||||
Balance at beginning of period at Jun. 30, 2020 | 1,265 | |||||||||||
Balance at beginning of period, common equity at Jun. 30, 2020 | 0 | 15,746 | 303 | 830 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Employee benefit plans | 4 | |||||||||||
Net income (loss) | 188 | 188 | ||||||||||
Other comprehensive income (loss), net of tax | 4 | 4 | ||||||||||
Balance at end of period, common equity at Sep. 30, 2020 | 17,075 | 0 | 15,750 | 491 | 834 | 491 | 834 | |||||
Balance at end of period at Sep. 30, 2020 | 18,340 | 1,265 | ||||||||||
Balance at beginning of period at Dec. 31, 2020 | 18,291 | 1,265 | ||||||||||
Balance at beginning of period, common equity at Dec. 31, 2020 | 17,026 | 0 | 15,746 | 601 | 679 | $ 601 | $ 679 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Employee benefit plans | (3) | |||||||||||
Net income (loss) | 669 | 669 | ||||||||||
Cash dividends declared on preferred stock | (38) | |||||||||||
Other comprehensive income (loss), net of tax | (682) | (682) | ||||||||||
Balance at end of period, common equity at Sep. 30, 2021 | 16,972 | 0 | 15,743 | 1,232 | (3) | |||||||
Balance at end of period at Sep. 30, 2021 | 18,237 | 1,265 | ||||||||||
Balance at beginning of period at Jun. 30, 2021 | 1,265 | |||||||||||
Balance at beginning of period, common equity at Jun. 30, 2021 | 0 | 15,743 | 1,095 | 81 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Employee benefit plans | 0 | |||||||||||
Net income (loss) | 137 | 137 | ||||||||||
Other comprehensive income (loss), net of tax | (84) | (84) | ||||||||||
Balance at end of period, common equity at Sep. 30, 2021 | 16,972 | $ 0 | $ 15,743 | $ 1,232 | $ (3) | |||||||
Balance at end of period at Sep. 30, 2021 | $ 18,237 | $ 1,265 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities | |||
Net income (loss) | $ 669 | $ (1,088) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 206 | 204 | |
Goodwill impairment | 0 | 784 | |
Provision for credit losses | (537) | 840 | |
Net realized gains on securities available-for-sale | (51) | (111) | |
Net change in other assets and liabilities | 1,475 | (1,719) | |
Net change in loans held for sale: | |||
Originations and purchases of loans held for sale | (2,049) | (2,401) | |
Sales and collections of loans held for sale | 2,204 | 2,467 | |
Net change in trading assets and liabilities | 2,572 | (5,020) | |
Lower of amortized cost or fair value adjustments on loans held for sale | 5 | 25 | |
Gain on instruments designated at fair value and related derivatives | (33) | (15) | |
Net cash provided by (used in) operating activities | 4,461 | (6,034) | |
Cash flows from investing activities | |||
Net change in federal funds sold and securities purchased under agreements to resell | 28,266 | (7,741) | |
Securities available-for-sale: | |||
Purchases of securities available-for-sale | (14,444) | (20,749) | |
Proceeds from sales of securities available-for-sale | 7,422 | 10,258 | |
Proceeds from paydowns and maturities of securities available-for-sale | 9,864 | 7,006 | |
Securities held-to-maturity: | |||
Purchases of securities held-to-maturity | 0 | (515) | |
Proceeds from sales of securities held-to-maturity | 0 | 340 | |
Proceeds from paydowns and maturities of securities held-to-maturity | 3,094 | 3,193 | |
Change in loans: | |||
Collections, net of originations | 414 | 1,216 | |
Loans sold to third parties | 1,282 | 656 | |
Net cash used for acquisitions of properties and equipment | (2) | (5) | |
Other, net | 108 | (198) | |
Net cash provided by (used in) investing activities | 36,004 | (6,539) | |
Cash flows from financing activities | |||
Net change in deposits | 7,250 | 25,575 | |
Debt: | |||
Net change in short-term borrowings | 1,425 | 1,856 | |
Issuance of long-term debt | 6,861 | 7,250 | |
Repayment of long-term debt | (8,402) | (8,387) | |
Other increases (decreases) in capital surplus | (3) | 14 | |
Dividends paid | (38) | (39) | |
Net cash provided by financing activities | 7,093 | 26,269 | |
Net change in cash and due from banks and interest bearing deposits with banks | 47,558 | 13,696 | |
Cash and due from banks and interest bearing deposits with banks at beginning of period | 15,655 | 3,782 | |
Cash and due from banks and interest bearing deposits with banks at end of period | [1] | $ 63,213 | $ 17,478 |
[1] | Includes $55 million of cash which is reported in other branch related assets held for sale on the consolidated balance sheet at September 30, 2021. |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (Parenthetical) $ in Millions | Sep. 30, 2021USD ($) |
Retail Branches Sold [Member] | |
Cash and other assets | $ 55 |
Organization and Presentation
Organization and Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Presentation | Organization and Presentation HSBC USA Inc. ("HSBC USA"), incorporated under the laws of Maryland, is a New York State based bank holding company and a wholly-owned subsidiary of HSBC North America Holdings Inc. ("HSBC North America"), which is an indirect wholly-owned subsidiary of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group"). The accompanying unaudited interim consolidated financial statements of HSBC USA and its subsidiaries (collectively "HUSI") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of financial position, results of operations and cash flows for the interim periods have been made. HUSI may also be referred to in these notes to the consolidated financial statements as "we," "us" or "our." These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Form 10-K"). Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Interim results should not be considered indicative of results in future periods. |
Strategic Initiatives
Strategic Initiatives | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Strategic Initiatives | Strategic Initiatives As discussed in our 2020 Form 10-K, in February 2020, our Board of Directors approved a strategic plan to restructure our operations ("Restructuring Plan") in alignment with HSBC’s global strategy to refocus our wholesale operations to better serve our international corporate clients and restructure our retail operations to better meet the needs of globally mobile and affluent clients. Our Restructuring Plan also includes streamlining our functional and operations support model by removing duplication and reducing the size of our balance sheet to better align with the scope and scale of the U.S. opportunity. We previously disclosed that we expect to incur pre-tax charges in connection with this Restructuring Plan largely over the two year period of 2020-2021 of approximately $520-$590 million ($390-$450 million after-tax). As a result of the May 2021 decision to further reposition our Wealth and Personal Banking business, along with the identification of additional restructuring activities primarily relating to further simplifying our wholesale operations and support service functions as well as additional investments in systems infrastructure and new technologies, we determined we would incur additional pre-tax charges of approximately $380-$410 million ($290-$310 million after-tax). We currently expect we will incur our remaining estimated pre-tax charges through 2022. The following table presents a summary of the total pre-tax charges we expect to incur by reportable segment: Expected Charges in Connection Minimum Maximum (in millions) Wealth and Personal Banking $ 160 $ 180 Commercial Banking 25 35 Global Banking and Markets 115 130 Corporate Center (1) 600 655 Total $ 900 $ 1,000 (1) Includes restructuring charges primarily related to lease impairment and other related costs, support service project costs and severance costs associated with certain centralized activities and functions. Throughout 2020 and into the third quarter of 2021, we continued to progress our Restructuring Plan, including simplification of our support service functions, the exit or transfer of certain derivative contracts and consolidation of our wholesale and retail middle and back office functions, each under a single operations structure. The consolidation of our wholesale middle and back office functions was completed in the second quarter of 2021. As noted above, during the second quarter of 2021, we made the decision to exit our mass market retail banking business, including the sale or closure of certain branches, and transferred certain assets and liabilities to held for sale. See Note 3, "Branch Assets and Liabilities Held for Sale," for additional information. During the three and nine months ended September 30, 2021, we recorded pre-tax charges in connection with our Restructuring Plan totaling $47 million and $183 million, respectively. In 2020, we also completed the initial consolidation of our retail branch network and the creation of our Wealth and Personal Banking business. During the three and nine months ended September 30, 2020, we recorded pre-tax charges in connection with our Restructuring Plan totaling $84 million and $244 million, respectively. In total, we have recorded $463 million of pre-tax charges in connection with our Restructuring Plan. We remain committed to our multi-year strategic plan to re-profile our business. The following table summarizes the changes in the liability associated with our Restructuring Plan during the three and nine months ended September 30, 2021 and 2020: Severance and Other Employee Costs (1) Lease Termination and Associated Costs (2) Other (3) Total (in millions) Three Months Ended September 30, 2021 Restructuring liability at beginning of period $ 6 $ 46 $ — $ 52 Restructuring costs accrued during the period 3 2 3 8 Restructuring costs paid during the period (2) (2) (3) (7) Restructuring liability at end of period $ 7 $ 46 $ — $ 53 Three Months Ended September 30, 2020 Restructuring liability at beginning of period $ 22 $ 23 $ — $ 45 Restructuring costs accrued during the period 13 4 — 17 Restructuring costs paid during the period (12) (3) — (15) Restructuring liability at end of period $ 23 $ 24 $ — $ 47 Nine Months Ended September 30, 2021 Restructuring liability at beginning of period $ 10 $ 23 $ — $ 33 Restructuring costs accrued during the period 8 32 9 49 Restructuring costs paid during the period (11) (9) (9) (29) Restructuring liability at end of period $ 7 $ 46 $ — $ 53 Nine Months Ended September 30, 2020 Restructuring liability at beginning of period $ — $ — $ — $ — Restructuring costs accrued during the period 35 28 — 63 Restructuring costs paid during the period (12) (4) — (16) Restructuring liability at end of period $ 23 $ 24 $ — $ 47 (1) Severance and other employee costs are included in salaries and employee benefits in the consolidated statement of income (loss). The majority of these costs were reported in the Wealth and Personal Banking and the Global Banking and Markets business segments. Not included in these costs are allocated severance costs from HSBC Technology & Services ("HTSU") discussed further below. (2) Primarily includes real estate taxes, service charges and decommissioning costs. Lease termination and associated costs are included in occupancy expense, net in the consolidated statement of income (loss) and were reported in the Wealth and Personal Banking and the Corporate Center business segments. (3) Primarily includes professional fees and other staff costs, which are included in other expenses in the consolidated statement of income (loss). In addition to the restructuring costs reflected in the table above, during the second quarter of 2021, as part of our decision to exit our mass market retail banking business we determined that we would exit approximately 30 branches. As a result, we recorded impairment charges during the second quarter of 2021 to write-off the assets associated with these branches, including $29 million of lease right-of-use ("ROU") assets, $18 million of leasehold improvement assets and $3 million of equipment assets. During the three and nine months ended September 30, 2021, we also recorded impairment charges of $4 million and $9 million, respectively, to write-down the lease ROU assets and leasehold improvement assets primarily associated with certain office space that we determined we would exit. During the first quarter of 2020, we determined that we would exit approximately 60 branches (in addition to the approximately 20 branches for which we disclosed plans to exit in 2019). As a result, we recorded impairment charges during the first half of 2020 to write-down the lease ROU assets, net of estimated sublease income, by $46 million and to write-down the leasehold improvement assets associated with these branches by $16 million based on their estimated remaining useful lives. The branches were closed by the end of the second quarter of 2020. During the third quarter of 2020, we recorded additional impairment charges of $7 million to write-down the lease ROU assets associated with certain office space that we determined we would exit. Lease impairment charges are reflected in occupancy expense, net in the consolidated statement of income (loss) and were reported in the Wealth and Personal Banking and the Corporate Center business segments. In addition, during the three and nine months ended September 30, 2021, we recorded $22 million and $32 million, respectively, of trading losses associated with the continued exit of certain derivative contracts as part of our Restructuring Plan compared with trading losses of $47 million and $57 million during the three and nine months ended September 30, 2020, respectively. These losses are included in trading revenue (expense) in the consolidated statement of income (loss) and were reported in the Global Banking and Markets and the Corporate Center business segments. During the first nine months of 2021, as part of our Restructuring Plan, we also continued to transfer interest rate derivative contracts associated with Fixed Income activities to HSBC Bank plc. These activities are being consolidated in and operated from HSBC Bank plc to better utilize HSBC Group's global scale, which allows us to record revenue as a business introducer and hold fewer assets on our balance sheet. Transfers of interest rate derivative contracts with a notional value of $20.4 billion were completed during the first nine months of 2021. The remainder of these contracts, with a current notional value of approximately $33.9 billion, not transferred by December 31, 2021 are expected to be retained as a run-off portfolio. The transferred derivatives were substantially fully collateralized which resulted in an immaterial impact on our consolidated balance sheet. Our Restructuring Plan also resulted in costs being allocated to us from HTSU, primarily support service project costs and severance costs, which are reflected in support services from HSBC affiliates in the consolidated statement of income (loss). During the three and nine months ended September 30, 2021, we recorded $13 million and $43 million, respectively, of allocated costs from HTSU related to restructuring activities compared with $13 million and $55 million of allocated costs during the three and nine months ended September 30, 2020, respectively. These costs were reported in the Corporate Center business segment. HSBC Group Restructuring Separate from the charges related to our Restructuring Plan as detailed above, during the three and nine months ended September 30, 2021, we also recorded $14 million and $32 million, respectively, of allocated costs from other HSBC affiliates related to the HSBC Group's restructuring activities, primarily support service project costs and severance costs. These costs are reflected in support services from HSBC affiliates in the consolidated statement of income (loss) and were reported in the Corporate Center business segment. |
Branch Assets and Liabilities H
Branch Assets and Liabilities Held for Sale | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Branch Assets and Liabilities Held for Sale | Branch Assets and Liabilities Held for Sale In May 2021, as part of our Restructuring Plan we announced that we would take further actions to strategically reposition our Wealth and Personal Banking business to focus on the banking and wealth management needs of globally-connected affluent and high net worth clients through our Premier, Jade and Private Banking propositions. We will exit our mass market retail banking business, including our Personal and Advance propositions as well as retail business banking, and will rebrand approximately 20-25 of our retail branches into international wealth centers to serve our Premier and Jade customers. In conjunction with the execution of this strategy, we have entered into definitive sale agreements with third parties to sell approximately 90 of our retail branches along with substantially all residential mortgage, unsecured and retail business banking loans and all deposits in our branch network not associated with our Premier, Jade and Private Banking customers. Certain assets under management associated with our mass market retail banking operations which are managed by an affiliate will also be transferred. The remaining branches not sold or rebranded will be closed. As a result of entering into these sale agreements, assets and liabilities with an aggregate carrying value of approximately $2.9 billion and $10.1 billion, respectively, were transferred to held for sale during the second quarter of 2021. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material. Although the disposal group will be sold in multiple transactions that are expected to be completed by the first quarter of 2022, the actual time to complete these sales depends on many factors, including regulatory approval. The sales are expected to result in a gain upon completion. Revenues (net interest income and other revenues) associated with the disposal group represented approximately 7 percent of total consolidated revenues for both the three and nine months ended September 30, 2021, respectively. Income before tax associated with the disposal group was not material. The following table summarizes the assets and liabilities in the disposal group classified as held for sale at September 30, 2021 in our consolidated balance sheet: September 30, 2021 (in millions) Loans held for sale (1) $ 2,610 Other branch related assets held for sale: Lease ROU assets (2) 149 Properties and equipment, net 40 Cash and other assets 55 Total other branch related assets held for sale 244 Total branch assets held for sale (3) $ 2,854 Deposits held for sale $ 9,321 Other branch related liabilities held for sale: Lease liabilities (2) 151 Other liabilities 9 Total other branch related liabilities held for sale 160 Total branch liabilities held for sale (3) $ 9,481 (1) Includes $99 million of commercial loans, $1,952 million of residential mortgage loans, $235 million of home equity mortgage loans, $182 million of credit card loans and $142 million of other consumer loans. (2) At September 30, 2021, our lease ROU assets and lease liabilities, excluding the amounts transferred to held for sale, totaled $225 million and $325 million, respectively. (3) The sale of this disposal group is expected to result in a net cash payment as the liabilities being assumed are greater than the assets being purchased. In addition, mass market retail banking loans that will not be purchased in the transaction described above, including our remaining retail credit card portfolio, which collectively totaled $1.1 billion, were also transferred to held for sale during the second quarter of 2021 as we did not intend to hold these loans for the foreseeable future. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material. See Note 8, "Loans Held for Sale," for additional details. Releases of the allowance for credit losses on the loans transferred to held for sale discussed above during the second quarter of 2021 resulted in a reduction to the provision for credit losses of approximately $101 million ($100 million of which related to consumer loans) during the second quarter of 2021. See Note 7, "Allowance for Credit Losses," for additional details. |
Trading Assets and Liabilities
Trading Assets and Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Trading Assets And Liabilities [Abstract] | |
Trading Assets and Liabilities | Trading Assets and Liabilities Trading assets and liabilities consisted of the following: September 30, 2021 December 31, 2020 (in millions) Trading assets: U.S. Treasury $ 2,352 $ 5,145 U.S. Government agency issued or guaranteed 45 — U.S. Government sponsored enterprises 246 192 Asset-backed securities — 143 Foreign bonds 768 7,971 Equity securities 13,287 6,043 Precious metals 3,316 4,989 Derivatives, net 1,971 2,801 Total trading assets $ 21,985 $ 27,284 Trading liabilities: Securities sold, not yet purchased $ 947 $ 727 Payables for precious metals 90 2,312 Derivatives, net 1,633 2,358 Total trading liabilities $ 2,670 $ 5,397 At September 30, 2021 and December 31, 2020, the fair value of derivatives included in trading assets is net of $2,310 million and $2,763 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties. At September 30, 2021 and December 31, 2020, the fair value of derivatives included in trading liabilities is net of $1,518 million and $3,377 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties. See Note 10, "Derivative Financial Instruments," for further information on our trading derivatives and related collateral. Dividend income on equity securities held for trading, which is recorded in interest income in the consolidated statement of income (loss), totaled $44 million and $108 million during the three and nine months ended September 30, 2021, respectively, compared with $21 million and $50 million during the three and nine months ended September 30, 2020, respectively. Trading security positions are held as economic hedges of derivative products issued to our clients. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following: September 30, 2021 Amortized Allowance for Credit Losses Unrealized Unrealized Fair (in millions) Securities available-for-sale: U.S. Treasury $ 12,510 $ — $ 216 $ (90) $ 12,636 U.S. Government sponsored enterprises: Mortgage-backed securities 7,735 — 154 (94) 7,795 Collateralized mortgage obligations 1,831 — 9 (37) 1,803 Direct agency obligations 1,449 — 19 — 1,468 U.S. Government agency issued or guaranteed: Mortgage-backed securities 7,172 — 30 (41) 7,161 Collateralized mortgage obligations 2,989 — 11 (24) 2,976 Direct agency obligations 280 — 7 — 287 Asset-backed securities collateralized by: Home equity 21 (1) — — 20 Other 108 — — (7) 101 Foreign debt securities (1) 2,257 — 3 — 2,260 Total available-for-sale securities $ 36,352 $ (1) $ 449 $ (293) $ 36,507 Securities held-to-maturity: U.S. Government sponsored enterprises: Mortgage-backed securities $ 735 $ — $ 30 $ — $ 765 Collateralized mortgage obligations 550 — 35 — 585 U.S. Government agency issued or guaranteed: Mortgage-backed securities 1,250 — 39 — 1,289 Collateralized mortgage obligations 3,322 — 126 — 3,448 Obligations of U.S. states and political subdivisions 9 — — — 9 Asset-backed securities collateralized by residential mortgages 1 (1) 1 — 1 Total held-to-maturity securities $ 5,867 $ (1) $ 231 $ — $ 6,097 December 31, 2020 Amortized Allowance for Credit Losses Unrealized Unrealized Fair (in millions) Securities available-for-sale: U.S. Treasury $ 16,087 $ — $ 608 $ (47) $ 16,648 U.S. Government sponsored enterprises: Mortgage-backed securities 5,986 — 280 (2) 6,264 Collateralized mortgage obligations 1,676 — 19 (2) 1,693 Direct agency obligations 1,236 — 17 — 1,253 U.S. Government agency issued or guaranteed: Mortgage-backed securities 6,993 — 152 — 7,145 Collateralized mortgage obligations 2,093 — 22 (11) 2,104 Direct agency obligations 296 — 5 — 301 Asset-backed securities collateralized by: Home equity 28 (1) — — 27 Other 114 — — (10) 104 Foreign debt securities (1) 5,127 — 6 — 5,133 Total available-for-sale securities $ 39,636 $ (1) $ 1,109 $ (72) $ 40,672 Securities held-to-maturity: U.S. Government sponsored enterprises: Mortgage-backed securities $ 1,137 $ — $ 44 $ — $ 1,181 Collateralized mortgage obligations 780 — 53 — 833 U.S. Government agency issued or guaranteed: Mortgage-backed securities 1,947 — 76 — 2,023 Collateralized mortgage obligations 5,107 — 212 — 5,319 Obligations of U.S. states and political subdivisions 10 — 1 — 11 Asset-backed securities collateralized by residential mortgages 2 (2) 2 — 2 Total held-to-maturity securities $ 8,983 $ (2) $ 388 $ — $ 9,369 (1) Foreign debt securities represent public sector entity, bank or corporate debt. Securities Available-for-Sale The following provides additional information about our portfolio of securities available-for-sale: Allowance for credit losses On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a debt security available-for-sale in an unrealized loss position has suffered impairment due to credit factors. A debt security available-for-sale is considered impaired if its fair value is less than its amortized cost basis at the reporting date. If impaired, we assess whether the impairment is due to credit factors. If we intend to sell the debt security or if it is more-likely-than-not that we will be required to sell the debt security before the recovery of its amortized cost basis, the impairment is recognized and the unrealized loss is recorded as a direct write-down of the security's amortized cost basis with an offsetting entry to earnings. If we do not intend to sell the debt security or believe we will not be required to sell the debt security before the recovery of its amortized cost basis, the impairment is assessed to determine if a credit loss component exists. We use a discounted cash flow method to determine the credit loss component. In the event a credit loss exists, an allowance for credit losses is recorded in earnings for the credit loss component of the impairment while the remaining portion of the impairment attributable to factors other than credit loss is recognized, net of tax, in other comprehensive income (loss). The amount of impairment recognized due to credit factors is limited to the excess of the amortized cost basis over the fair value of the security available-for-sale. In determining whether a credit loss component exists, we consider a series of factors which include: • The extent to which the fair value is less than the amortized cost basis; • The credit protection features embedded within the instrument, which includes but is not limited to credit subordination positions, payment structure, over collateralization, protective triggers and financial guarantees provided by third parties; • Changes in the near term prospects of the issuer or the underlying collateral of a security such as changes in default rates, loss severities given default and significant changes in prepayment assumptions; • The level of excess cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities; and • Any adverse change to the credit conditions of the issuer, the monoline insurer or the security such as credit downgrades by external rating agencies or changes to internal ratings. At both September 30, 2021 and December 31, 2020, the allowance for credit losses on securities available-for-sale was $1 million. Securities in an unrealized loss position for which no allowance for credit losses has been recognized The following table summarizes gross unrealized losses and related fair values for securities available-for-sale by major security type at September 30, 2021 and December 31, 2020 classified as to the length of time the losses have existed: One Year or Less Greater Than One Year Number Gross Aggregate Number Gross Aggregate (dollars are in millions) At September 30, 2021 U.S. Treasury 17 $ (48) $ 2,416 9 $ (42) $ 752 U.S. Government sponsored enterprises 60 (127) 5,879 11 (4) 185 U.S. Government agency issued or guaranteed 38 (56) 7,274 11 (9) 495 Asset-backed securities — — — 5 (7) 101 Foreign debt securities 5 — 508 1 — 25 Securities available-for-sale 120 $ (231) $ 16,077 37 $ (62) $ 1,558 At December 31, 2020 U.S. Treasury 5 $ (5) $ 751 13 $ (42) $ 1,271 U.S. Government sponsored enterprises 15 (3) 715 8 (1) 46 U.S. Government agency issued or guaranteed 13 (11) 1,482 3 — 8 Asset-backed securities 3 (10) 104 2 — — Foreign debt securities 6 — 766 5 — 241 Securities available-for-sale 42 $ (29) $ 3,818 31 $ (43) $ 1,566 Gross unrealized losses increased as compared with December 31, 2020 due primarily to increasing yields on U.S. Government sponsored mortgage-backed, U.S. Government agency mortgage-backed and U.S. Treasury securities. Although the fair value of a particular security may be below its amortized cost, it does not necessarily result in a credit loss and hence an allowance for credit losses. The decline in fair value may be caused by, among other things, the illiquidity of the market. We have reviewed the securities in an unrealized loss position for which no allowance for credit losses has been recognized in accordance with our accounting policies, discussed further above. At September 30, 2021, we do not consider any of these securities to be impaired due to credit factors as we expect to recover their amortized cost basis and we neither intend nor expect to be required to sell these securities prior to recovery, even if that equates to holding them until their individual maturities. However, impairments due to credit factors may occur in future periods if the credit quality of the securities deteriorates. Securities Held-to-Maturity The following provides additional information about our portfolio of securities held-to-maturity: Allowance for credit losses We exclude from our calculation of lifetime expected credit losses ("lifetime ECL") securities for which we expect that non-payment of the amortized cost basis will be zero ("Zero Expected Credit Loss Exception"). Due to the composition of our portfolio of securities held-to-maturity, substantially all of our portfolio qualifies for the Zero Expected Credit Loss Exception and has been excluded from our lifetime ECL calculation. At September 30, 2021 and December 31, 2020, the allowance for credit losses on securities held-to-maturity was $1 million and $2 million, respectively. At September 30, 2021 and December 31, 2020, none of our securities held-to-maturity were past due or in nonaccrual status. Credit risk profile Securities are assigned a credit rating based on the estimated probability of default. The credit ratings are used as a credit quality indicator to monitor our securities held-to-maturity portfolio. We utilize Standard and Poor's ("S&P") as the primary source of our credit ratings. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. Investment grade includes securities with credit ratings of at least BBB- or above. At September 30, 2021 and December 31, 2020, all of our securities held-to-maturity were investment grade. Other securities gains, net The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Gross realized gains $ 21 $ 53 $ 109 $ 140 Gross realized losses (17) (1) (58) (29) Net realized gains $ 4 $ 52 $ 51 $ 111 Contractual Maturities and Yields The following table summarizes the amortized cost and fair values of securities available-for-sale and securities held-to-maturity at September 30, 2021 by contractual maturity. Expected maturities differ from contractual maturities because borrowers have the right to prepay obligations without prepayment penalties in certain cases. The table below also reflects the distribution of maturities of debt securities held at September 30, 2021, together with the approximate yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at September 30, 2021. Within After One After Five After Ten Amount Yield Amount Yield Amount Yield Amount Yield (dollars are in millions) Available-for-sale: U.S. Treasury $ 772 4.07 % $ 3,910 .95 % $ 3,666 1.36 % $ 4,162 1.93 % U.S. Government sponsored enterprises 31 2.75 1,316 1.78 2,194 2.35 7,474 1.64 U.S. Government agency issued or guaranteed 71 .24 23 1.25 1 6.13 10,346 1.75 Asset-backed securities — — — — 58 5.13 71 3.52 Foreign debt securities 1,104 .43 1,153 .57 — — — — Total amortized cost $ 1,978 1.88 % $ 6,402 1.05 % $ 5,919 1.77 % $ 22,053 1.75 % Total fair value $ 1,981 $ 6,513 $ 6,052 $ 21,961 Held-to-maturity: U.S. Government sponsored enterprises $ — — % $ 184 2.65 % $ 327 2.26 % $ 774 3.30 % U.S. Government agency issued or guaranteed 3 3.83 — — 8 5.14 4,561 2.56 Obligations of U.S. states and political subdivisions 3 3.43 4 3.00 2 4.25 — — Asset-backed securities — — — — — — 1 7.53 Total amortized cost $ 6 3.78 % $ 188 2.66 % $ 337 2.34 % $ 5,336 2.67 % Total fair value $ 6 $ 192 $ 350 $ 5,549 Equity Securities Equity securities that are not classified as trading and are included in other assets consisted of the following: September 30, 2021 December 31, 2020 (in millions) Equity securities carried at fair value $ 289 $ 284 Equity securities without readily determinable fair values 16 14 On a quarterly basis, we perform an assessment to determine whether any equity securities without readily determinable fair values are impaired. In the event an equity security is deemed impaired, the security is written down to fair value with impairment recorded in earnings. During the second quarter of 2021, we recorded an impairment loss of $3 million associated with certain equity securities without readily determinable fair values that we determined were impaired as a component of other income (loss) in the consolidated statement of income (loss) compared with recording an impairment loss of $2 million during the second quarter of 2020. Also included in other assets were investments in Federal Home Loan Bank ("FHLB") stock and Federal Reserve Bank stock of $110 million and $558 million, respectively, at September 30, 2021 and $259 million and $559 million, respectively, at December 31, 2020. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans | Loans Loans consisted of the following: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Real estate, including construction $ 8,250 $ 10,464 Business and corporate banking (1) 12,788 13,479 Global banking (2) 11,440 13,519 Other commercial: Affiliates (3) 2,857 1,100 Other 3,579 3,037 Total other commercial 6,436 4,137 Total commercial 38,914 41,599 Consumer loans: Residential mortgages 16,093 18,377 Home equity mortgages 369 727 Credit cards — 1,066 Other consumer (4) 150 319 Total consumer (5) 16,612 20,489 Total loans $ 55,526 $ 62,088 (1) Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. (2) 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. (3) See Note 15, "Related Party Transactions," for additional information regarding loans to HSBC affiliates. (4) Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. (5) The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. Net deferred origination costs totaled $36 million and $57 million at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, we had a net unamortized premium on our loans of $6 million and $9 million, respectively. Coronavirus ("COVID-19") Loan Forbearance Initiatives We have implemented various loan modification programs to provide borrowers relief from the economic impacts of the COVID-19 pandemic. In 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law, which provided financial institutions with the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings ("TDR Loans") beginning March 1, 2020. This TDR Loan guidance can be applied until the earlier of January 1, 2022 or 60 days following the termination of the presidentially declared national emergency. We elected to adopt the TDR Loan guidance in the CARES Act and are not applying TDR Loan classification to COVID-19 related loan modifications in the form of a long-term payment deferral (for commercial loans all payment modifications, including all payment deferrals) granted to borrowers that were current (less than 30 days past due) as of December 31, 2019 which otherwise may have been reported as TDR Loans. In 2020, federal banking regulators issued a revised interagency statement on loan modifications and the reporting for financial institutions working with customers affected by the COVID-19 pandemic ("Interagency Statement"). The Interagency Statement confirmed that COVID-19 related short-term loan modifications (e.g., payment deferrals of six months or less) provided to borrowers that were current (less than 30 days past due) at the time the relief was granted are not TDR Loans. Borrowers that do not meet the criteria in the CARES Act or the Interagency Statement are assessed for TDR Loan classification in accordance with our accounting policies. In addition, under the Interagency Statement, for COVID-19 related loan modifications in the form of a payment deferral, the borrower’s past due status will not be affected during the deferral period and, if the loan was accruing at the time the relief was granted, the loan will generally not be placed on nonaccrual status as long as the borrower utilizes a payment deferral of six months or less. For consumer mortgage loans, when a borrower utilizes a payment deferral of more than six months, the loan will generally be placed on nonaccrual status and, if the loan does not meet the criteria in the CARES Act, assessed for TDR Loan classification. Any accrued interest recorded on these loans is generally not reversed against income and will remain recorded as accrued interest receivable. We have not modified our commercial loan nonaccrual policies as a result of this guidance. Aging Analysis of Past Due Loans The following table summarizes the past due status of our loans at September 30, 2021 and December 31, 2020. 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. For COVID-19 related loan modifications in the form of a payment deferral, the borrower’s past due status will not be affected during the deferral period. Past Due Total Past Due 30 Days or More 30 - 89 Days 90+ Days Current (1) Total Loans (in millions) At September 30, 2021 Commercial loans: Real estate, including construction $ 56 $ 5 $ 61 $ 8,189 $ 8,250 Business and corporate banking 124 1 125 12,663 12,788 Global banking — 23 23 11,417 11,440 Other commercial 16 — 16 6,420 6,436 Total commercial 196 29 225 38,689 38,914 Consumer loans: Residential mortgages 203 264 467 15,626 16,093 Home equity mortgages 5 19 24 345 369 Credit cards — — — — — Other consumer 3 3 6 144 150 Total consumer (2) 211 286 497 16,115 16,612 Total loans $ 407 $ 315 $ 722 $ 54,804 $ 55,526 At December 31, 2020 Commercial loans: Real estate, including construction $ 78 $ — $ 78 $ 10,386 $ 10,464 Business and corporate banking 126 19 145 13,334 13,479 Global banking — 60 60 13,459 13,519 Other commercial 24 — 24 4,113 4,137 Total commercial 228 79 307 41,292 41,599 Consumer loans: Residential mortgages 435 311 746 17,631 18,377 Home equity mortgages 11 22 33 694 727 Credit cards 23 19 42 1,024 1,066 Other consumer 7 6 13 306 319 Total consumer 476 358 834 19,655 20,489 Total loans $ 704 $ 437 $ 1,141 $ 60,947 $ 62,088 (1) Loans less than 30 days past due are presented as current. (2) The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. Nonperforming Loans Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following: Nonaccrual Loans Accruing Loans Contractually Past Due 90 Days or More Nonaccrual Loans With No Allowance For Credit Losses (in millions) At September 30, 2021 Commercial: Real estate, including construction $ 128 $ — $ 35 Business and corporate banking 139 1 73 Global banking 132 — 90 Total commercial 399 1 198 Consumer: Residential mortgages (1)(2)(3) 785 — 214 Home equity mortgages (1)(2) 47 — 26 Credit cards — — — Other consumer — — — Total consumer (4) 832 — 240 Total nonperforming loans $ 1,231 $ 1 $ 438 At December 31, 2020 Commercial: Real estate, including construction $ 44 $ — $ 31 Business and corporate banking 163 — 1 Global banking 337 — 93 Total commercial 544 — 125 Consumer: Residential mortgages (1)(2)(3) 1,079 — 241 Home equity mortgages (1)(2) 63 — 34 Credit cards — 19 — Other consumer — 2 — Total consumer 1,142 21 275 Total nonperforming loans $ 1,686 $ 21 $ 400 (1) At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans include $323 million and $375 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. At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans also included $367 million and $590 million, respectively, of loans under COVID-19 related payment deferral programs where the borrowers utilized a payment deferral of more than six months and, as a result, have been placed on nonaccrual status. (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) The decrease in nonperforming loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $206 million of nonperforming consumer loans, of which $21 million were accruing loans contractually 90 days or more past due. The following table provides additional information on our nonaccrual loans: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period $ 11 $ 10 $ 44 $ 29 Interest income that was recorded on nonaccrual loans and included in interest income during the period 6 2 31 8 Collateral-Dependent Loans Loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating our exposure to credit risk. Collateral-dependent residential mortgage loans are carried at the lower of amortized cost or fair value of the collateral less costs to sell, with any excess in the carrying amount of the loan generally charged off at the time foreclosure is initiated or when settlement is reached with the borrower, but not to exceed the end of the month in which the account becomes six months contractually delinquent. Collateral values are based on broker price opinions or appraisals which are updated at least every 180 days less estimated costs to sell. During the quarterly period between updates, real estate price trends are reviewed on a geographic basis and incorporated as necessary. At September 30, 2021 and December 31, 2020, we had collateral-dependent residential mortgage loans totaling $623 million and $817 million, respectively. For collateral-dependent commercial loans, the allowance for expected credit losses is individually assessed based on the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, collateral values are generally based on appraisals which are updated based on management judgment under the specific circumstances on a case-by-case basis. In situations where an appraisal is not used, borrower-specific factors such as operating results, cash flows and debt service ratios are reviewed along with relevant market data of comparable properties in order to create a 10-year cash flow model to be discounted at appropriate rates to present value. The collateral value for securities is based on their quoted market prices or broker quotes. The collateral value for other financial assets is generally based on appraisals or is estimated using a discounted cash flow analysis. Commercial loan balances are charged off at the time all or a portion of the balance is deemed uncollectible. At September 30, 2021 and December 31, 2020, we had collateral-dependent commercial loans totaling $358 million and $456 million, respectively. Troubled debt restructurings TDR Loans represent loans for which the original contractual terms have been modified to provide for terms that are less than what we would be willing to accept for new loans with comparable risk because of deterioration in the borrower's financial condition. Modifications for consumer or commercial loans may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, extension of the amortization period, reduction in payment amount and partial forgiveness or deferment of principal, accrued interest or other loan covenants. A substantial amount of our modifications involve interest rate reductions on consumer loans, which lower the amount of interest income we are contractually entitled to receive in future periods. Through lowering the interest rate and other loan term changes, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower's financial condition. Once a consumer loan is classified as a TDR Loan, it continues to be reported as such until it is paid off or charged-off. For commercial loans, if subsequent performance is in accordance with the new terms and the loan is upgraded, it is possible the loan will no longer be reported as a TDR Loan at the earliest one year after the restructuring. During the three and nine months ended September 30, 2021 and 2020, there were no commercial loans that met this criteria and were removed from TDR Loan classification. As previously discussed, we have implemented various loan modification payment deferral programs to provide borrowers relief from the economic impacts of COVID-19. Substantially all of the loans under these programs are not classified as TDR Loans due to our election to suspend TDR Loan classification under the CARES Act or their short-term nature as discussed under the Interagency Statement. If a borrower is experiencing financial difficulty when the payment relief period ends, they may enter into a modification program to reduce the interest rate and/or extend the term of the loan which would result in the loan being classified as a TDR Loan. The following table summarizes our TDR Loans at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Business and corporate banking $ 40 $ 94 Global banking 37 74 Total commercial (1)(2) 77 168 Consumer loans: Residential mortgages (3)(4) 384 582 Home equity mortgages (3)(4) 17 31 Credit cards — 5 Total consumer (5) 401 618 Total TDR Loans (6) $ 478 $ 786 (1) Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million and $107 million at September 30, 2021 and December 31, 2020, respectively. (2) Not included in the table at September 30, 2021 and December 31, 2020 are $352 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election. (3) At September 30, 2021 and December 31, 2020, the carrying value of consumer mortgage TDR Loans includes $339 million and $487 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell. (4) Not included in the table at September 30, 2021 and December 31, 2020 are $404 million and $736 million, respectively, of consumer mortgage loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months that were exempted from TDR assessment due to our CARES Act election. (5) The decrease in TDR Loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $159 million of consumer TDR Loans. (6) At September 30, 2021 and December 31, 2020, the carrying value of TDR Loans includes $317 million and $463 million, respectively, of loans which are classified as nonaccrual. The following table presents information about loans which were modified during the three and nine months ended September 30, 2021 and 2020 and as a result of this action became classified as TDR Loans: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Commercial loans: Business and corporate banking $ — $ 41 $ 26 $ 45 Global banking — — 15 44 Total commercial — 41 41 89 Consumer loans: Residential mortgages 1 20 33 27 Home equity mortgages — — 1 2 Credit cards — 1 1 3 Total consumer 1 21 35 32 Total $ 1 $ 62 $ 76 $ 121 The weighted-average contractual rate reduction for consumer loans which became classified as TDR Loans during the three and nine months ended September 30, 2021 was 3.13 percent and 2.08 percent, respectively, compared with 1.80 percent and 2.14 percent during the three and nine months ended September 30, 2020, respectively. The weighted-average contractual rate reduction for commercial loans was not significant in either the number of loans or rate. 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, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Consumer loans: Residential mortgages $ 1 $ 2 $ 4 $ 3 Total consumer $ 1 $ 2 $ 4 $ 3 During the three and nine months ended September 30, 2021 and 2020, there were no commercial TDR Loans which were classified as TDR Loans during the previous 12 months which subsequently became 90 days or greater contractually delinquent. Commercial Loan Credit Quality Indicators The following credit quality indicators are utilized to monitor our commercial loan portfolio: Criticized loans Criticized loan classifications presented in the table below are determined by the assignment of various criticized facility grades based on the risk rating standards of our regulator. The following facility grades are deemed to be criticized: Special Mention - generally includes loans that are protected by collateral and/or the credit worthiness of the customer, but are potentially weak based upon economic or market circumstances which, if not checked or corrected, could weaken our credit position at some future date. Substandard - includes loans that are inadequately protected by the underlying collateral and/or general credit worthiness of the customer. These loans present a distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful - includes loans that have all the weaknesses exhibited by substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full of the recorded loan highly improbable. However, although the possibility of loss is extremely high, certain factors exist which may strengthen the credit at some future date, and therefore the decision to charge-off the loan is deferred. Loans graded as doubtful are required to be placed in nonaccrual status. The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of September 30, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Special mention $ — $ — $ 352 $ 361 $ 110 $ 225 $ — $ — $ 1,048 Substandard — — 706 312 357 552 21 11 1,959 Doubtful — — 81 2 11 — — 94 Total real estate, including construction — — 1,139 675 467 788 21 11 3,101 Business and corporate banking: Special mention — 1 94 64 28 206 226 10 629 Substandard — 19 40 9 3 250 459 8 788 Doubtful — — — 20 — 30 16 — 66 Total business and corporate banking — 20 134 93 31 486 701 18 1,483 Global banking: Special mention 8 39 — — — 39 54 — 140 Substandard 19 — — — — 106 266 — 391 Doubtful — — — — — — 31 — 31 Total global banking 27 39 — — — 145 351 — 562 Other commercial: Special mention — — — — — 8 — — 8 Substandard — — — — — 70 40 — 110 Doubtful — — — — — — — — — Total other commercial — — — — — 78 40 — 118 Total commercial: Special mention 8 40 446 425 138 478 280 10 1,825 Substandard 19 19 746 321 360 978 786 19 3,248 Doubtful — — 81 22 — 41 47 — 191 Total commercial $ 27 $ 59 $ 1,273 $ 768 $ 498 $ 1,497 $ 1,113 $ 29 $ 5,264 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Special mention $ — $ 306 $ 115 $ 171 $ 85 $ 437 $ — $ — $ 1,114 Substandard — 186 — 169 — 86 — — 441 Doubtful — — — — — — — — — Total real estate, including construction — 492 115 340 85 523 — — 1,555 Business and corporate banking: Special mention 17 71 43 32 10 390 600 48 1,211 Substandard 1 44 25 23 31 181 435 1 741 Doubtful — — — — — 41 57 — 98 Total business and corporate banking 18 115 68 55 41 612 1,092 49 2,050 Global banking: Special mention — — — — — 142 98 — 240 Substandard — — 48 — — 131 477 — 656 Doubtful — — — — — 82 160 — 242 Total global banking — — 48 — — 355 735 — 1,138 Other commercial: Special mention — — — — — 44 40 — 84 Substandard — — — — — 70 — — 70 Doubtful — — — — — — — — — Total other commercial — — — — — 114 40 — 154 Total commercial: Special mention 17 377 158 203 95 1,013 738 48 2,649 Substandard 1 230 73 192 31 468 912 1 1,908 Doubtful — — — — — 123 217 — 340 Total commercial $ 18 $ 607 $ 231 $ 395 $ 126 $ 1,604 $ 1,867 $ 49 $ 4,897 Nonperforming 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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Performing loans $ 7 $ 635 $ 2,999 $ 2,217 $ 783 $ 1,416 $ 49 $ 16 $ 8,122 Nonaccrual loans — — 81 26 — 21 — — 128 Accruing loans contractually past due 90 days or more — — — — — — — — — Total real estate, including construction 7 635 3,080 2,243 783 1,437 49 16 8,250 Business and corporate banking: Performing loans 304 647 527 210 217 4,842 5,645 256 12,648 Nonaccrual loans — 4 14 30 54 1 36 — 139 Accruing loans contractually past due 90 days or more — — — — — — 1 — 1 Total business and corporate banking 304 651 541 240 271 4,843 5,682 256 12,788 Global banking: Performing loans 403 674 327 217 234 4,630 4,823 — 11,308 Nonaccrual loans — — — — — 42 90 — 132 Accruing loans contractually past due 90 days or more — — — — — — — — — Total global banking 403 674 327 217 234 4,672 4,913 — 11,440 Other commercial: Performing loans 214 450 420 205 100 1,141 3,906 — 6,436 Nonaccrual loans — — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — — Total other commercial 214 450 420 205 100 1,141 3,906 — 6,436 Total commercial: Performing loans 928 2,406 4,273 2,849 1,334 12,029 14,423 272 38,514 Nonaccrual loans — 4 95 56 54 64 126 — 399 Accruing loans contractually past due 90 days or more — — — — — — 1 — 1 Total commercial $ 928 $ 2,410 $ 4,368 $ 2,905 $ 1,388 $ 12,093 $ 14,550 $ 272 $ 38,914 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Performing loans $ 545 $ 3,775 $ 2,775 $ 1,368 $ 264 $ 1,594 $ 79 $ 20 $ 10,420 Nonaccrual loans — — 24 — — 20 — — 44 Accruing loans contractually past due 90 days or more — — — — — — — — — Total real estate, including construction 545 3,775 2,799 1,368 264 1,614 79 20 10,464 Business and corporate banking: Performing loans 1,079 606 253 275 151 3,485 7,145 322 13,316 Nonaccrual loans 1 15 12 60 1 3 71 — 163 Accruing loans contractually past due 90 days or more — — — — — — — — — Total business and corporate banking 1,080 621 265 335 152 3,488 7,216 322 13,479 Global banking: Performing loans 507 495 190 231 104 6,023 5,632 — 13,182 Nonaccrual loans — — — — — 127 210 — 337 Accruing loans contractually past due 90 days or more — — — — — — — — — Total global banking 507 495 190 231 104 6,150 5,842 — 13,519 Other commercial: Performing loans 378 431 215 105 119 630 2,259 — 4,137 Nonaccrual loans — — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — — Total other commercial 378 431 215 105 119 630 2,259 — 4,137 Total commercial: Performing loans 2,509 5,307 3,433 1,979 638 11,732 15,115 342 41,055 Nonaccrual loans 1 15 36 60 1 150 281 — 544 Accruing loans contractually past due 90 days or more — — — — — — — — — Total commercial $ 2,510 $ 5,322 $ 3,469 $ 2,039 $ 639 $ 11,882 $ 15,396 $ 342 $ 41,599 Credit risk profile Commercial loans are assigned a credit rating based on the estimated probability of default. Investment grade includes loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system. 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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Investment grade $ 6 $ 318 $ 563 $ 809 $ 129 $ 238 $ 15 $ — $ 2,078 Non-investment grade 1 317 2,517 1,434 654 1,199 34 16 6,172 Total real estate, including construction 7 635 3,080 2,243 783 1,437 49 16 8,250 Business and corporate banking: Investment grade 31 263 196 42 23 2,308 2,524 69 5,456 Non-investment grade 273 388 345 198 248 2,535 3,158 187 7,332 Total business and corporate banking 304 651 541 240 271 4,843 5,682 256 12,788 Global banking: Investment grade 331 666 298 202 234 3,683 4,112 — 9,526 Non-investment grade 72 8 29 15 — 989 801 — 1,914 Total global banking 403 674 327 217 234 4,672 4,913 — 11,440 Other commercial: Investment grade 43 368 178 204 76 805 3,739 — 5,413 Non-investment grade 171 82 242 1 24 336 167 — 1,023 Total other commercial 214 450 420 205 100 1,141 3,906 — 6,436 Total commercial: Investment grade 411 1,615 1,235 1,257 462 7,034 10,390 69 22,473 Non-investment grade 517 795 3,133 1,648 926 5,059 4,160 203 16,441 Total commercial $ 928 $ 2,410 $ 4,368 $ 2,905 $ 1,388 $ 12,093 $ 14,550 $ 272 $ 38,914 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Investment grade $ 339 $ 1,123 $ 817 $ 318 $ 179 $ 640 $ 6 $ — $ 3,422 Non-investment grade 206 2,652 1,982 1,050 85 974 73 20 7,042 Total real estate, including construction 545 3,775 2,799 1,368 264 1,614 79 20 10,464 Business and corporate banking: Investment grade 342 147 37 34 23 1,486 2,499 47 4,615 Non-investment grade 738 474 228 301 129 2,002 4,717 275 8,864 Total business and corporate banking 1,080 621 265 335 152 3,488 7,216 322 13,479 Global banking: Investment grade 464 477 46 231 30 4,618 4,281 — 10,147 Non-investment grade 43 18 144 — 74 1,532 1,561 — 3,372 Total global banking 507 495 190 231 104 6,150 5,842 — 13,519 Other commercial: Investment grade 372 163 117 105 116 525 1,932 — 3,330 Non-investment grade 6 268 98 — 3 105 327 — 807 Total other commercial 378 431 215 105 119 630 2,259 — 4,137 Total commercial: Investment grade 1,517 1,910 1,017 688 348 7,269 8,718 47 21,514 Non-investment grade 993 3,412 2,452 1,351 291 4,613 6,678 295 20,085 Total commercial $ 2,510 $ 5,322 $ 3,469 $ 2,039 $ 639 $ 11,882 $ 15,396 $ 342 $ 41,599 Consumer Loan Credit Quality Indicators The following credit quality indicators are utilized to monitor our consumer loan portfolio: Delinquency 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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages (1)(2) $ — $ 4 $ 12 $ 7 $ 19 $ 268 $ — $ 310 Home equity mortgages (1)(2) — — — — — 20 — 20 Credit cards — — — — — — — — Other consumer — — — — — 4 — 4 Total consumer $ — $ 4 $ 12 $ 7 $ 19 $ 292 $ — $ 334 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential mortgages (1)(2) $ 3 $ 15 $ 13 $ 25 $ 19 $ 329 $ — $ 404 Home equity mortgages (1)(2) — — — — — 25 — 25 Credit cards — — — — — — 28 28 Other consumer 1 1 — — — 4 2 8 Total consumer $ 4 $ 16 $ 13 $ 25 $ 19 $ 358 $ 30 $ 465 (1) At September 30, 2021 and December 31, 2020, consumer mortgage loan delinquency includes $252 million and $281 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, 2021 and December 31, 2020, consumer mortgage loans include $91 million and $109 million, respectively, of loans that were in the process of foreclosure. Nonperforming 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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages: Performing loans $ 3,574 $ 3,527 $ 1,677 $ 885 $ 1,016 $ 4,629 $ — $ 15,308 Nonaccrual loans 6 39 74 66 60 540 — 785 Total residential mortgages 3,580 3,566 1,751 951 1,076 5,169 — 16,093 Home equity mortgages: Performing loans 12 34 28 19 19 210 — 322 Nonaccrual loans — — 1 — — 46 — 47 Total home equity mortgages 12 34 29 19 19 256 — 369 Credit cards: Performing loans — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — Total credit cards — — — — — — — — Other consumer: Performing loans 6 13 5 1 1 122 2 150 Accruing loans contractually past due 90 days or more — — — — — — — — Total other consumer 6 13 5 1 1 122 2 150 Total consumer: Performing loans 3,592 3,574 1,710 905 1,036 4,961 2 15,780 Nonaccrual loans 6 39 75 66 60 586 — 832 Accruing loans contractually past due 90 days or more — — — — — — — — Total consumer $ 3,598 $ 3,613 $ 1,785 $ 971 $ 1,096 $ 5,547 $ 2 $ 16,612 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential mortgages: Performing loans $ 4,491 $ 2,369 $ 1,338 $ 1,572 $ 1,852 $ 5,676 $ — $ 17,298 Nonaccrual loans 38 107 93 86 78 677 — 1,079 Total residential mortgages 4,529 2,476 1,431 1,658 1,930 6,353 — 18,377 Home equity mortgages: Performing loans 50 51 33 34 45 451 — 664 Nonaccrual loans — — 1 1 2 59 — 63 Total home equity mortgages 50 51 34 35 47 510 — 727 Credit cards: Performing loans — — — — — — 1,047 1,047 Accruing loans contractually past due 90 days or more — — — — — — 19 19 Total credit cards — — — — — — 1,066 1,066 Other consumer: Performing loans 87 39 — 1 8 128 54 317 Accruing loans contractually past due 90 days or more — — — — — — 2 2 Total other consumer 87 39 — 1 8 128 56 319 Total consumer: Performing loans 4,628 2,459 1,371 1,607 1,905 6,255 1,101 19,326 Nonaccrual loans 38 107 94 87 80 736 — 1,142 Accruing loans contractually past due 90 days or more — — — — — — 21 21 Total consumer $ 4,666 $ 2,566 $ 1,465 $ 1,694 $ 1,985 $ 6,991 $ 1,122 $ 20,489 Troubled debt restructurings 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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages $ — $ 1 $ 3 $ 6 $ 1 $ 373 $ — $ 384 Home equity mortgages — — — — — 17 — 17 Credit cards — — — — — — — — Total consumer $ — $ 1 $ 3 $ 6 $ 1 $ 390 $ — $ 401 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential m |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses We utilize a minimum of three forward-looking economic scenarios to calculate lifetime ECL when estimating the allowance for credit losses for in scope financial assets and the liability for off-balance sheet credit exposures. The three scenarios are termed the "Consensus Economic Scenarios" and represent a 'most likely outcome' (the "Central scenario") and two less likely 'outer' scenarios, referred to as the "Upside scenario" and the "Downside scenario". Each scenario is assigned a weighting deemed appropriate for the estimation of lifetime ECL, with the majority of the weighting typically placed on the Central Scenario. At management's discretion, changes may be made to the weighting assigned to the three scenarios or additional scenarios may be included in order to consider current economic conditions. As a result of the deterioration of economic conditions and significant economic uncertainty caused by the COVID-19 pandemic, beginning in the second quarter of 2020, we developed and utilized a fourth scenario for estimating lifetime ECL, referred to as the "Alternative Downside scenario", to reflect the possibility that the adverse impact associated with the deterioration in economic conditions could manifest itself over a far longer period of time. Updates to Economic Scenarios and Other Changes During the Nine Months Ended September 30, 2021 Although economic conditions improved during the first half of 2021, the impact of the COVID-19 pandemic continued to create uncertainty about the future economic environment. As a result, we updated our three Consensus Economic Scenarios and our Alternative Downside scenario to reflect management's view of forecasted economic conditions and utilized the four updated scenarios for estimating lifetime ECL at March 31, 2021 and June 30, 2021. Each of the four scenarios were assigned weightings with the majority of the weighting placed on the Central scenario, the second most weighting placed on the Downside scenario and lower equal weights placed on the Upside and Alternative Downside scenarios. This weighting was deemed appropriate for the estimation of lifetime ECL at the time. During the third quarter of 2021, economic conditions continued to improve, although at a slower pace than during the first half of the year. However, the impact of the COVID-19 pandemic continues to create uncertainty about the future economic environment. As a result, we updated our three Consensus Economic Scenarios and our Alternative Downside scenario to reflect management's current view of forecasted economic conditions and utilized the four updated scenarios for estimating lifetime ECL at September 30, 2021. Each of the four scenarios were assigned weightings with the majority of the weighting placed on the Central scenario, the second most weighting placed on the Downside scenario and lower equal weights placed on the Upside and Alternative Downside scenarios. This weighting was deemed appropriate for the estimation of lifetime ECL under current conditions. The following discussion summarizes the Central, Upside, Downside and Alternative Downside scenarios at September 30, 2021. The economic assumptions described in this section have been formed specifically for the purpose of calculating ECL. In the Central scenario , Gross Domestic Product ("GDP") maintains its strong recovery path in 2021 and carries its expansion into 2022, under the assumption that economic activities continue to recover while impact from new COVID-19 infections subsides as more people are vaccinated, and high fiscal support boosts near-term economic growth. With a strong economic recovery, the unemployment rate continues on its downward trend, while demand for housing, combined with limited supply, continues to drive the residential housing market to carry its growth momentum into 2022. Commercial real estate prices also start to appreciate, after a period of sluggish growth driven by pandemic induced adjustments. In the financial markets, growth in financial asset prices remains moderate, the federal funds rate remains at the current near-zero level until the beginning of 2023, and the 10-year U.S. Treasury yield, which has experienced some increase since the start of 2021, continues to rise. In the Upside scenario , the economy is assumed to grow at a faster pace than in the Central scenario. As a result, the unemployment rate falls faster than in the Central scenario and, with increasing mobility, commercial real estate prices start to accelerate. In this scenario, the equity price index climbs with strong momentum, and overall optimism allows the Federal Reserve Board ("FRB") to start normalizing monetary policy earlier than currently anticipated, which consequently drives the 10-year U.S. Treasury yield to a level that is significantly higher than in the Central Scenario. In the Downside scenario , the economy drops into a mild recession, with the unemployment rate reversing its downward trend and remaining at a higher level. In this scenario, the residential housing market slowly loses its momentum in 2022 due to weakness in the labor market, and the commercial real estate market suffers a heavier blow than the residential housing market. The equity price index in this scenario loses about half of its value by the middle of 2023, driven by an overall erosion of consumer and business sentiments, which also results in a lower 10-year U.S. Treasury yield than in the Central Scenario, and the federal funds rate remains at the lowest level for the next two years. In the Alternative Downside scenario , the U.S. economy re-enters into a recession in early 2022 and stays in until early 2023, followed by a very anemic recovery thereafter. An extended period of economic contraction keeps the unemployment rate at a very high level, which pressures residential housing prices to fall, while at the same time, contracting corporate activities and rising unemployment pushes the commercial real estate market into a severe downturn. In this scenario, financial markets experience a major sell-off and volatility in the financial markets remains extremely high over the next year, widening corporate credit spreads substantially, and flight to safe haven assets pushes the 10-year U.S. Treasury yield lower. The following table presents the forecasted key macroeconomic variables in our Central scenarios used for estimating lifetime ECL at September 30, 2021, June 30, 2021 and December 31, 2020: For the Quarter Ended December 31, 2021 June 30, 2022 December 31, 2022 Unemployment rate (quarterly average): Forecast at September 30, 2021 4.7 % 4.3 % 4.2 % Forecast at June 30, 2021 4.8 4.4 4.1 Forecast at December 31, 2020 6.2 5.9 5.4 GDP growth rate (year-over-year): Forecast at September 30, 2021 6.8 4.9 2.3 Forecast at June 30, 2021 6.3 4.7 2.3 Forecast at December 31, 2020 5.3 3.1 1.8 In addition to the updates to the economic scenarios, during the three and nine months ended September 30, 2021, we decreased the management judgment allowance on our commercial loan portfolio for risk factors associated with higher risk client and industry exposures and, in the year-to-date period, economic uncertainty relating to the impact of COVID-19 that are not fully captured in the models. The decrease for risk factors associated with higher risk industry exposures reflects the transfer of certain commercial real estate loans to held for sale during the third quarter of 2021, which resulted in the reversal of the existing allowance for credit losses on these loans totaling $24 million. During the three and nine months ended September 30, 2021, we also decreased the management judgment allowance on our consumer loan portfolio for risk factors associated with economic uncertainty and, in the year-to-date period, forbearance accounts that are not fully captured in the models. The decrease in the management judgment allowance on our consumer loan portfolio in the year-to-date period reflects the transfer of certain loans to held for sale. As previously disclosed, during the second quarter of 2021, we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale and the reversal or charge-off of the existing allowances for credit losses on these loans which collectively totaled $157 million. While we believe that the assumptions used in our credit loss models are reasonable within the parameters for which the models have been built and calibrated to operate, the severe projections of macro-economic variables during the current COVID-19 pandemic represent events outside the parameters for which the models have been built. As a result, adjustments to model outputs to reflect consideration of management judgment are used with stringent governance in place to ensure an appropriate lifetime ECL estimate. The circumstances around the COVID-19 pandemic are evolving and will continue to impact our business and our allowance for credit losses in future periods. The details of how various U.S. Government actions will impact our customers and therefore the impact on our allowance for credit losses remains uncertain. We will continue to monitor the COVID-19 situation closely and will continue to adapt our Consensus Economic Scenarios approach as necessary to reflect management's current view of forecasted economic conditions. Allowance for Credit Losses / Liability for Off-Balance Sheet Credit Exposures The following table summarizes our allowance for credit losses and the liability for off-balance sheet credit exposures: September 30, 2021 December 31, 2020 (in millions) Allowance for credit losses: Loans $ 475 $ 1,015 Securities held-to-maturity (1) 1 2 Other financial assets measured at amortized cost (2) 2 2 Securities available-for-sale (1) 1 1 Total allowance for credit losses $ 479 $ 1,020 Liability for off-balance sheet credit exposures $ 110 $ 237 (1) See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. (2) Primarily includes accrued interest receivables and customer acceptances. The following table summarizes the changes in the allowance for credit losses on loans by product or line of business during the three and nine months ended September 30, 2021 and 2020: Commercial Loans Consumer Loans Real Estate, including Construction Business Global Other Residential Home Credit Other Total Loans (in millions) Three Months Ended September 30, 2021 Allowance for credit losses – beginning of period $ 117 $ 284 $ 131 $ 6 $ (6) $ 15 $ — $ — $ 547 Provision charged (credited) to income (1) (2) (38) (9) (2) (9) (2) (1) (1) (64) Charge-offs (1) — (13) — — — (3) — — (16) Recoveries — 1 — — 4 1 1 1 8 Net (charge-offs) recoveries — (12) — — 4 (2) 1 1 (8) Allowance for credit losses – end of period $ 115 $ 234 $ 122 $ 4 $ (11) $ 11 $ — $ — $ 475 Three Months Ended September 30, 2020 Allowance for credit losses – beginning of period $ 120 $ 434 $ 424 $ 5 $ (19) $ 16 $ 190 $ 22 $ 1,192 Provision charged (credited) to income 43 (36) (103) 3 12 (1) (2) 9 (75) Charge-offs (12) (2) (1) — (1) (1) (23) (4) (44) Recoveries — 5 — — 3 1 2 — 11 Net (charge-offs) recoveries (12) 3 (1) — 2 — (21) (4) (33) Allowance for credit losses – end of period $ 151 $ 401 $ 320 $ 8 $ (5) $ 15 $ 167 $ 27 $ 1,084 Nine Months Ended September 30, 2021 Allowance for credit losses – beginning of period $ 145 $ 375 $ 287 $ 7 $ (9) $ 22 $ 161 $ 27 $ 1,015 Provision charged (credited) to income (1) (30) (115) (153) (3) (3) (10) (78) (18) (410) Charge-offs (1) — (29) (12) — (10) (5) (88) (11) (155) Recoveries — 3 — — 11 4 5 2 25 Net (charge-offs) recoveries — (26) (12) — 1 (1) (83) (9) (130) Allowance for credit losses – end of period $ 115 $ 234 $ 122 $ 4 $ (11) $ 11 $ — $ — $ 475 Nine Months Ended September 30, 2020 Allowance for credit losses – beginning of period $ 153 $ 239 $ 106 $ 9 $ 12 $ 6 $ 105 $ 7 $ 637 Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses (2) (112) (60) 51 (5) (86) 7 32 3 (170) Allowance for credit losses – beginning of period, adjusted 41 179 157 4 (74) 13 137 10 467 Provision charged (credited) to income 122 283 183 3 62 1 96 24 774 Charge-offs (12) (69) (20) — (1) (3) (71) (8) (184) Recoveries — 8 — 1 8 4 5 1 27 Net (charge-offs) recoveries (12) (61) (20) 1 7 1 (66) (7) (157) Allowance for credit losses – end of period $ 151 $ 401 $ 320 $ 8 $ (5) $ 15 $ 167 $ 27 $ 1,084 (1) For loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer are recognized as a charge-off to the extent fair value is less than amortized cost and attributable to credit. Any remaining allowance for credit losses is released as a reduction to the provision for credit losses. During the third quarter of 2021, we transferred certain commercial real estate loans to held for sale and, as a result, we released $24 million of the existing allowance for credit losses as a reduction to the provision for credit losses. During the second quarter of 2021, we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale. As a result of transferring these loans to held for sale, during the nine months ended September 30, 2021, we recognized $56 million of the existing allowance for credit losses on consumer loans as charge-offs, primarily related to non-performing credit cards, and released $100 million of the existing allowance for credit losses on consumer loans as reductions to the provision for credit losses, primarily related to credit cards. The existing commercial allowance for credit losses on the retail business banking loan portfolio transferred to held for sale was not material. See Note 3, "Branch Assets and Liabilities Held for Sale." (2) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. The following table summarizes the changes in the liability for off-balance sheet credit exposures during the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance at beginning of period $ 128 $ 253 $ 237 $ 104 Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses (1) — — — 54 Balance at beginning of period, adjusted 128 253 237 158 Provision charged (credited) to income (18) (28) (127) 67 Balance at end of period $ 110 $ 225 $ 110 $ 225 (1) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. Accrued Interest Receivables The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 5, "Securities," and Note 6, "Loans." September 30, 2021 December 31, 2020 (in millions) Accrued interest receivables: Loans $ 125 $ 140 Securities held-to-maturity 15 23 Other financial assets measured at amortized cost 2 1 Securities available-for-sale 87 100 Total accrued interest receivables 229 264 Allowance for credit losses — 2 Accrued interest receivables, net $ 229 $ 262 During the three and nine months ended September 30, 2021, we charged-off accrued interest receivables by reversing interest income for loans of $1 million and $3 million, respectively, compared with $1 million and $5 million during the three and nine months ended September 30, 2020, respectively. |
Loans Held for Sale
Loans Held for Sale | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Held for Sale | Loans Held for Sale Loans held for sale consisted of the following: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Real estate, including construction $ 1,123 $ 10 Business and corporate banking 105 — Global banking 63 119 Total commercial 1,291 129 Consumer loans: Residential mortgages 2,449 208 Home equity mortgages 257 — Credit cards 785 — Other consumer 145 — Total consumer 3,636 208 Total loans held for sale $ 4,927 $ 337 Commercial Loans During the third quarter of 2021, we transferred $1,123 million of certain commercial real estate loans to held for sale as part of an effort to reduce exposure to this sector and improve returns on risk-weighted assets. There was no lower of amortized cost or fair value adjustment recorded upon transferring these loans to held for sale. During the second quarter of 2021, as part of our Restructuring Plan we made the decision to exit our mass market retail banking business. See Note 3, "Branch Assets and Liabilities Held for Sale," in the accompanying consolidated financial statements for additional information. As a result, during the second quarter of 2021, we transferred our retail business banking loan portfolio to held for sale with a carrying value of $149 million. The lower of amortized cost or fair value adjustment upon transferring these loans to held for sale was not material. At September 30, 2021, the carrying value of these loans was $105 million. Also included in commercial loans held for sale are certain loans that we have elected to designate under the fair value option which consists of loans that we originate in connection with our participation in a number of syndicated credit facilities with the intent of selling them to unaffiliated third parties as well as loans that we purchase from the secondary market and hold as hedges against our exposure to certain total return swaps. The fair value of these loans totaled $63 million and $36 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for additional information. In addition, at December 31, 2020, commercial loans held for sale included certain other loans that we no longer intended to hold for investment and transferred to held for sale which totaled $93 million. There were none of these loans remaining at September 30, 2021. During the three and nine months ended September 30, 2021, we reversed $1 million and recorded $4 million, respectively, of lower of amortized cost or fair value adjustments associated with the write-down of these commercial loans held for sale as a component of other income (loss) in the consolidated statement of income (loss) compared with recording $16 million and $25 million of lower of amortized cost or fair value adjustments during the three and nine months ended September 30, 2020, respectively. Consumer Loans As discussed above, during the second quarter of 2021, as part of our Restructuring Plan we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio. As a result, during the second quarter of 2021, we transferred certain consumer loans to held for sale, including loans related to the branch disposal group, with a carrying value which collectively totaled $3,616 million, including $2,364 million of residential mortgages, $265 million of home equity mortgages, $829 million of credit cards and $158 million of other consumer loans. There was no lower of amortized cost or fair value adjustment recorded upon transferring these loans to held for sale. At September 30, 2021, the carrying value of these loans collectively totaled $3,584 million, including $2,397 million of residential mortgages (reflecting additional residential mortgage originations to mass market retail banking customers), $257 million of home equity mortgages, $785 million of credit cards and $145 million of other consumer loans. Also included in residential mortgage loans held for sale are agency-eligible conforming residential mortgage loans which are originated and held for sale to third parties, currently on a servicing retained basis. Gains and losses from the sale of these residential mortgage loans are reflected as a component of other income (loss) in the consolidated statement of income (loss). Loans held for sale are subject to market risk, liquidity risk and interest rate risk, in that their value will fluctuate as a result of changes in market conditions, as well as the credit environment. Interest rate risk for residential mortgage loans which are originated and held for sale is partially mitigated through an economic hedging program to offset changes in the fair value of these mortgage loans held for sale, from the time of commitment to sale, attributable to changes in market interest rates. Revenue associated with this economic hedging program, which is reflected as a component of other income (loss) in the consolidated statement of income (loss), was losses of $1 million and $2 million during the three and nine months ended September 30, 2021, respectively, compared with nil and a loss of $1 million during the three and nine months ended September 30, 2020, respectively. Valuation Allowances Excluding the commercial loans designated under the fair value option discussed above, loans held for sale are recorded at the lower of amortized cost or fair value, with adjustments to fair value being recorded as a valuation allowance through other revenues. The valuation allowance on consumer loans held for sale was $1 million and nil at September 30, 2021 and December 31, 2020, respectively. The valuation allowance on commercial loans held for sale was nil and $1 million at September 30, 2021 and December 31, 2020, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill was $458 million at both September 30, 2021 and December 31, 2020. Goodwill for these periods reflects accumulated impairment losses of $1,819 million, which were recognized in prior periods. During the third quarter of 2021, there were no events or changes in circumstances to indicate that it is more likely than not the fair value of our Commercial Banking reporting unit has reduced below its carrying amount. During the first quarter of 2020, as a result of the deterioration in economic conditions caused by the spread of the COVID-19 pandemic and its impact on our businesses including changes to the interest rate environment as a result of FRB actions to combat the economic effects of the virus, we performed an interim impairment test of goodwill and determined that the fair value of our Commercial Banking reporting unit exceeded its carrying value, including goodwill. However, the cash flow projections for our Retail Banking and Wealth Management and our Private Banking reporting units were significantly lower than previous estimates which, in conjunction with valuation estimates under a market approach and in consideration of a challenging macroeconomic outlook, resulted in a fair value that was significantly lower than their book values, including goodwill. As a result, we recorded a non-cash impairment charge of $784 million in the first quarter of 2020, representing the entire amount of goodwill previously allocated to these reporting units. Beginning in the second quarter of 2020, our Retail Banking and Wealth Management and our Private Banking reporting units are being reported together within a newly created Wealth and Personal Banking segment for segment reporting purposes. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the derivative instruments we enter into are for trading, market making and risk management purposes. For financial reporting purposes, derivative instruments are designated in one of the following categories: (a) hedging instruments designated as qualifying hedges under derivative and hedge accounting principles, (b) financial instruments held for trading or (c) non-qualifying economic hedges. The derivative instruments held are predominantly swaps, futures, options and forward contracts. All derivatives are stated at fair value. Where we enter into enforceable master netting agreements with counterparties, the master netting agreements permit us to net those derivative asset and liability positions and to offset cash collateral held and posted with the same counterparty. The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable master netting agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, have not been netted in the following table. Where we have received or posted collateral under netting agreements where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, the related collateral also has not been netted in the following table. September 30, 2021 December 31, 2020 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in millions) Derivatives accounted for as fair value hedges (1) Interest rate contracts - bilateral OTC (2) $ — $ 16 $ — $ 2 Derivatives accounted for as cash flow hedges (1) Foreign exchange contracts - bilateral OTC (2) 6 — — 53 Total derivatives accounted for as hedges 6 16 — 55 Trading derivatives not accounted for as hedges (3) Exchange-traded (2) 2 1 14 9 OTC-cleared (2) 18 — — 58 Bilateral OTC (2) 3,068 2,978 6,584 6,555 Interest rate contracts (4) 3,088 2,979 6,598 6,622 Exchange-traded (2) — 2 — — OTC-cleared (2) 60 — 168 — Bilateral OTC (2) 11,738 11,542 18,299 18,549 Foreign exchange contracts 11,798 11,544 18,467 18,549 Exchange-traded (2) 1 4 — — Bilateral OTC (2) 885 692 4,009 4,200 Equity contracts 886 696 4,009 4,200 Exchange-traded (2) 4 1 — 28 Bilateral OTC (2) 1,404 951 1,323 1,550 Precious metals contracts 1,408 952 1,323 1,578 Credit contracts - bilateral OTC (2) 36 23 367 233 Other non-qualifying derivatives not accounted for as hedges (1) Interest rate contracts - bilateral OTC (2) 55 2 89 1 Foreign exchange contracts - bilateral OTC (2) — 1 — 1 Equity contracts - bilateral OTC (2) 1,469 128 1,607 91 OTC-cleared (2) — 13 — 14 Bilateral OTC (2) — 42 — 50 Credit contracts — 55 — 64 Other contracts - bilateral OTC (2)(5) 5 44 8 67 Total derivatives 18,751 16,440 32,468 31,461 Less: Gross amounts of receivable / payable subject to enforceable master netting agreements (6)(8) 13,172 13,172 25,537 25,537 Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements (7)(8) 3,577 1,518 4,079 3,377 Net amounts of derivative assets / liabilities presented in the balance sheet 2,002 1,750 2,852 2,547 Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet 222 74 817 691 Net amounts of derivative assets / liabilities $ 1,780 $ 1,676 $ 2,035 $ 1,856 (1) Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet. (2) Over-the-counter ("OTC") derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to each of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining requirements. In addition, OTC-cleared interest rate and credit derivatives with certain central clearing counterparties are settled daily. (3) Trading related derivative assets / liabilities are recorded in trading assets / trading liabilities on the consolidated balance sheet. (4) The decreases in interest rate derivative assets and liabilities at September 30, 2021 primarily reflects reduced positions driven by the exit or transfer of certain contracts as part of our Restructuring Plan. See Note 2, "Strategic Initiatives," for additional information. (5) Consists of swap agreements entered into in conjunction with the sales of Visa Inc. ("Visa") Class B common shares ("Class B Shares"). (6) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements. (7) Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements. (8) Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. See Note 19, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," for further information on offsetting related to resale and repurchase agreements. Derivatives Held for Risk Management Purposes Our risk management policy requires us to identify, analyze and manage risks arising from the activities conducted during the normal course of business. We use derivative instruments as an asset and liability management tool to manage our exposures in interest rate, foreign currency and credit risks in existing assets and liabilities, commitments and forecasted transactions. The accounting for changes in fair value of a derivative instrument will depend on whether the derivative has been designated and qualifies for hedge accounting. We designate derivative instruments to offset the fair value risk and cash flow risk arising from fixed-rate and floating-rate assets and liabilities as well as forecasted transactions. We assess the hedging relationships, both at the inception of the hedge and on an ongoing basis, using a regression approach to determine whether the designated hedging instrument is highly effective in offsetting changes in the fair value or the cash flows attributable to the hedged risk. Accounting principles for qualifying hedges require us to prepare detailed documentation describing the relationship between the hedging instrument and the hedged item, including, but not limited to, the risk management objective, the hedging strategy and the methods to assess and measure the ineffectiveness of the hedging relationship. We discontinue hedge accounting when we determine that the hedge is no longer highly effective, the hedging instrument is terminated, sold or expired, the designated forecasted transaction is not probable of occurring, or when the designation is removed by us. Fair Value Hedges In the normal course of business, we hold fixed-rate loans and securities, and issue fixed-rate deposits and senior and subordinated debt obligations. The fair value of fixed-rate assets and liabilities fluctuates in response to changes in interest rates. We utilize interest rate swaps, forward and futures contracts to minimize our exposure to changes in fair value caused by interest rate volatility. The changes in the fair value of the hedged item designated in a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). If the hedging relationship is discontinued and the hedged item continues to exist, the basis adjustment is amortized over the remaining life of the hedged item. The following table presents the carrying amount of hedged items in fair value hedges recognized in the consolidated balance sheet at September 30, 2021 and December 31, 2020, along with the cumulative amount of fair value hedging adjustments included in the carrying amount of those hedged items: Carrying Amount of Hedged Items (1) Cumulative Amount of Fair Value Hedging Adjustments Increasing (Decreasing) the Active Discontinued Total (in millions) At September 30, 2021 Securities available-for-sale ("AFS") $ 7,871 $ (92) $ 1,033 $ 941 Deposits 1,621 (11) 132 121 Long-term debt 5,646 (12) 158 146 At December 31, 2020 Securities AFS 7,966 681 738 1,419 Deposits 5,214 214 — 214 Long-term debt 2,227 242 (15) 227 (1) The carrying amount of securities AFS represents the amortized cost basis. The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments and the hedged items in fair value hedges and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) on Derivatives Gain (Loss) on Hedged Items (in millions) Three Months Ended September 30, 2021 Interest rate contracts / Securities AFS Net interest income $ 29 $ (4) Interest rate contracts / Deposits Net interest income (3) (13) Interest rate contracts / Long-term debt Net interest income 2 (17) Total $ 28 $ (34) Three Months Ended September 30, 2020 Interest rate contracts / Securities AFS Net interest income $ 182 $ (135) Interest rate contracts / Deposits Net interest income 33 (69) Interest rate contracts / Long-term debt Net interest income (56) 32 Total $ 159 $ (172) Nine Months Ended September 30, 2021 Interest rate contracts / Securities AFS Net interest income $ 221 $ (144) Interest rate contracts / Deposits Net interest income (35) (5) Interest rate contracts / Long-term debt Net interest income (12) (28) Total $ 174 $ (177) Nine Months Ended September 30, 2020 Interest rate contracts / Securities AFS Net interest income $ (962) $ 1,095 Interest rate contracts / Deposits Net interest income 153 (250) Interest rate contracts / Long-term debt Net interest income 171 (258) Total $ (638) $ 587 Cash Flow Hedges We own or issue floating rate financial instruments and enter into forecasted transactions that give rise to variability in future cash flows. As a part of our risk management strategy, we use interest rate swaps, currency swaps and futures contracts to mitigate risk associated with variability in the cash flows. Changes in fair value of a derivative instrument associated with a qualifying cash flow hedge are recognized in other comprehensive income (loss). When the cash flows being hedged materialize and are recorded in income or expense, the associated gain or loss from the hedging derivative previously recorded in accumulated other comprehensive income (loss) ("AOCI") is reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. If a cash flow hedge of a forecasted transaction is discontinued because it is no longer highly effective, or if the hedge relationship is terminated, the cumulative gain or loss on the hedging derivative to that date will continue to be reported in AOCI unless it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period as documented at the inception of the hedge, at which time the cumulative gain or loss is released into earnings. At September 30, 2021, active cash flow hedge relationships extend or mature through September 2024. During the three and nine months ended September 30, 2021, respectively, $6 million and $9 million of gains related to discontinued cash flow hedge relationships were amortized to earnings from AOCI compared with losses of $1 million and $11 million during the three and nine months ended September 30, 2020, respectively. During the next twelve months, we expect to amortize $1 million of remaining losses to earnings resulting from these discontinued cash flow hedges. The interest accrual related to the hedging instruments is recognized in net interest income. The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from discontinued cash flow hedges) and their locations on the consolidated statement of income (loss): Gain (Loss) Recognized in Location of Gain (Loss) Gain (Loss) Reclassified From 2021 2020 2021 2020 (in millions) Three Months Ended September 30, Foreign exchange contracts $ — $ — Net interest income $ — $ — Interest rate contracts (3) (14) Net interest income 6 (1) Total $ (3) $ (14) $ 6 $ (1) Nine Months Ended September 30, Foreign exchange contracts $ (1) $ — Net interest income $ — $ — Interest rate contracts (27) 99 Net interest income 9 (11) Total $ (28) $ 99 $ 9 $ (11) Trading Derivatives and Non-Qualifying Hedging Activities In addition to risk management, we also enter into derivative contracts, including buy- and sell-protection credit derivatives, for the purposes of trading and market making, or repackaging risks to form structured trades to meet clients' risk taking objectives. Additionally, we buy or sell securities and use derivatives to mitigate the market risks arising from our trading activities with our clients that exceed our risk appetite. We also use buy-protection credit derivatives to manage our counterparty credit risk exposure. Where we enter into derivatives for trading purposes, realized and unrealized gains and losses are recognized in trading revenue (expense). Counterparty credit risk associated with OTC derivatives, including risk-mitigating buy-protection credit derivatives, are recognized as an adjustment to the fair value of the derivatives and are recorded in trading revenue (expense). Our non-qualifying hedging and other activities include: • Derivative contracts related to the fixed-rate long-term debt issuances and hybrid instruments, including all structured notes and deposits, for which we have elected fair value option accounting. These derivative contracts are non-qualifying hedges but are considered economic hedges. • Credit default swaps which are designated as economic hedges against the credit risks within our loan portfolio. In the event of an impairment loss occurring in a loan that is economically hedged, the impairment loss is recognized as provision for credit losses while the gain on the credit default swap is recorded as other income (loss). • Swap agreements entered into in conjunction with the sales of Visa Class B Shares to a third party to retain the litigation risk associated with the Class B Shares sold until the related litigation is settled and the Class B Shares can be converted into Class A common shares ("Class A Shares"). See Note 19, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," for additional information. • Forward purchases or sales of to-be-announced ("TBA") securities used to economically hedge changes in the fair value of residential mortgage loans which are originated and held for sale attributable to changes in market interest rates. Changes in the fair value of TBA positions, which are considered derivatives, are recorded in other income (loss). See Note 8, "Loans Held for Sale," for additional information. Derivative instruments designated as economic hedges that do not qualify for hedge accounting are recorded at fair value through profit and loss. Realized and unrealized gains and losses on economic hedges are recognized in gain on instruments designated at fair value and related derivatives or other income (loss) while the derivative asset or liability positions are reflected as other assets or other liabilities. The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest rate contracts Trading revenue (expense) $ 45 $ 773 $ 197 $ 655 Foreign exchange contracts Trading revenue (expense) (56) (355) 112 (1,164) Equity contracts Trading revenue (expense) (20) (385) (1,000) 683 Precious metals contracts Trading revenue (expense) 74 67 115 450 Credit contracts Trading revenue (expense) (70) 16 101 (606) Total $ (27) $ 116 $ (475) $ 18 The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging and other activities and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest rate contracts Gain on instruments designated at fair value and related derivatives $ (8) $ (13) $ (62) $ 256 Interest rate contracts Other income (loss) (1) — (2) (1) Foreign exchange contracts Gain on instruments designated at fair value and related derivatives — — — (2) Equity contracts Gain on instruments designated at fair value and related derivatives (62) 306 810 (307) Credit contracts Gain on instruments designated at fair value and related derivatives — — — 37 Credit contracts Other income (loss) (5) (15) (17) (2) Other contracts (1) Other income (loss) 3 (2) — (3) Total $ (73) $ 276 $ 729 $ (22) (1) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Credit-Risk Related Contingent Features The majority of our derivative contracts contain provisions that require us to maintain a specific credit rating from each of the major credit rating agencies. Sometimes the derivative instrument transactions are a part of broader structured product transactions. If our credit ratings were to fall below the current ratings, the counterparties to our derivative instruments could demand us to post additional collateral. The amount of additional collateral required to be posted will depend on whether we are downgraded by one or more notches. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position at September 30, 2021 was $355 million, for which we had posted collateral of $117 million. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position at December 31, 2020 was $221 million, for which we had posted collateral of $67 million. Substantially all of the collateral posted is in the form of cash or securities available-for-sale. See Note 19, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," for further details. The following table presents the amount of additional collateral that we would be required to post (from the current collateral level) related to derivative instruments with credit-risk related contingent features if our long-term ratings were downgraded by one or two notches. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another rating agency will generally not result in additional collateral. One-notch downgrade Two-notch downgrade (in millions) Amount of additional collateral to be posted upon downgrade $ 20 $ 67 Notional Value of Derivative Contracts The following table summarizes the notional values of derivative contracts: September 30, 2021 December 31, 2020 (in millions) Interest rate: Futures and forwards $ 53,008 $ 37,098 Swaps 298,670 406,609 Options written 11,924 33,269 Options purchased 11,825 32,427 Total interest rate 375,427 509,403 Foreign exchange: Swaps, futures and forwards 1,011,881 1,195,449 Options written 34,689 53,200 Options purchased 34,772 53,595 Spot 62,981 57,040 Total foreign exchange 1,144,323 1,359,284 Commodities, equities and precious metals: Swaps, futures and forwards 64,012 54,458 Options written 2,708 17,078 Options purchased 11,613 27,083 Total commodities, equities and precious metals 78,333 98,619 Credit derivatives 7,465 52,611 Other contracts (1) 1,238 1,216 Total $ 1,606,786 $ 2,021,133 (1) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. |
Fair Value Option
Fair Value Option | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Option [Abstract] | |
Fair Value Option | Fair Value Option We report our results to HSBC in accordance with HSBC Group accounting and reporting policies ("Group Reporting Basis"), which apply International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB"). We typically have elected to apply fair value option ("FVO") accounting to selected financial instruments to align the measurement attributes of those instruments under U.S. GAAP and the Group Reporting Basis and to simplify the accounting model applied to those financial instruments. We elected to apply FVO accounting to certain commercial loans held for sale, certain student loans held for investment, certain fixed-rate long-term debt issuances and all of our hybrid instruments, including structured notes and deposits. Excluding the fair value movement on fair value option liabilities attributable to our own credit spread, which is recorded in other comprehensive income (loss), changes in the fair value of fair value option assets and liabilities as well as the mark-to-market adjustment on the related derivatives and the net realized gains or losses on these derivatives are reported in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). Loans and Loans Held For Sale We elected to apply FVO accounting to certain commercial syndicated loans which are originated with the intent to sell and certain commercial loans that we purchased from the secondary market and hold as hedges against our exposure to certain total return swaps and include these loans as loans held for sale in the consolidated balance sheet. We also elected to apply FVO accounting to certain student loans held for investment. These elections allow us to account for these loans at fair value which is consistent with the manner in which the instruments are managed. Where available, fair value is based on observable market pricing obtained from independent sources, relevant broker quotes or observed market prices of instruments with similar characteristics. Where observable market parameters are not available, fair value is determined based on contractual cash flows adjusted for estimates of prepayment rates, expected default rates and loss severity discounted at management's estimate of the expected rate of return required by market participants. We also consider loan-specific risk mitigating factors such as collateral arrangements in determining the fair value estimate. Interest from these loans is recorded as interest income in the consolidated statement of income (loss). Because a substantial majority of the loans elected for the fair value option are floating-rate commercial loans, changes in their fair value are primarily attributable to changes in loan-specific credit risk factors. The components of gain (loss) related to loans designated at fair value are summarized in the table below. At September 30, 2021 and December 31, 2020, no loans for which the fair value option has been elected were 90 days or more past due or in nonaccrual status. Long-Term Debt (Own Debt Issuances) We elected to apply FVO accounting for certain fixed-rate long-term debt for which we had applied or otherwise would elect to apply fair value hedge accounting. The election allows us to achieve a similar accounting effect without having to meet the hedge accounting requirements. The own debt issuances elected under FVO are traded in secondary markets and, as such, the fair value is determined based on observed prices for the specific instruments. The observed market price of these instruments reflects the effect of changes to our own credit spreads and interest rates. Interest on the fixed-rate debt accounted for under FVO is recorded as interest expense in the consolidated statement of income (loss). Excluding the fair value movement attributable to our own credit spread, the components of gain (loss) in the consolidated statement of income (loss) related to long-term debt designated at fair value are summarized in the table below. Hybrid Instruments We elected to apply FVO accounting to all of our hybrid instruments issued, including structured notes and deposits. The valuation of the hybrid instruments is predominantly driven by the derivative features embedded within the instruments and our own credit risk. Cash flows of the hybrid instruments in their entirety, including the embedded derivatives, are discounted at an appropriate rate for the applicable duration of the instrument adjusted for our own credit spreads. The credit spreads applied to structured notes are determined with reference to our own debt issuance rates observed in the primary and secondary markets, internal funding rates, and structured note rates in recent executions while the credit spreads applied to structured deposits are determined using market rates currently offered on comparable deposits with similar characteristics and maturities. Interest on this debt is recorded as interest expense in the consolidated statement of income (loss). Excluding the fair value movement attributable to our own credit spread, the components of gain (loss) in the consolidated statement of income (loss) related to hybrid instruments designated at fair value are summarized in the table below. The following table summarizes the fair value and unpaid principal balance for items we account for under FVO: Fair Value Unpaid Principal Balance Fair Value Over (Under) Unpaid Principal Balance (in millions) At September 30, 2021 Student loans held for investment $ 27 $ 29 $ (2) Commercial loans held for sale 63 63 — Fixed rate long-term debt 945 741 204 Hybrid instruments: Structured deposits 2,970 2,706 264 Structured notes 8,790 7,609 1,181 At December 31, 2020 Student loans held for investment $ 32 $ 34 $ (2) Commercial loans held for sale 36 36 — Fixed rate long-term debt 1,030 741 289 Hybrid instruments: Structured deposits 4,155 3,844 311 Structured notes 9,695 8,332 1,363 Components of Gain on Instruments Designated at Fair Value and Related Derivatives The following table summarizes the components of gain on instruments designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three and nine months ended September 30, 2021 and 2020: Loans and Loans Held for Sale Long-Term Hybrid Total (in millions) Three Months Ended September 30, 2021 Interest rate and other components (1) $ — $ 16 $ 62 $ 78 Credit risk component (2) — — — — Total mark-to-market on financial instruments designated at fair value — 16 62 78 Mark-to-market on related derivatives — (19) (61) (80) Net realized gain on related long-term debt derivatives — 10 — 10 Gain (loss) on instruments designated at fair value and related derivatives $ — $ 7 $ 1 $ 8 Three Months Ended September 30, 2020 Interest rate and other components (1) $ — $ 18 $ (292) $ (274) Credit risk component (2) (4) — — (4) Total mark-to-market on financial instruments designated at fair value (4) 18 (292) (278) Mark-to-market on related derivatives — (24) 307 283 Net realized gain on related long-term debt derivatives — 10 — 10 Gain (loss) on instruments designated at fair value and related derivatives $ (4) $ 4 $ 15 $ 15 Nine Months Ended September 30, 2021 Interest rate and other components (1) $ — $ 75 $ (791) $ (716) Credit risk component (2) 1 — — 1 Total mark-to-market on financial instruments designated at fair value 1 75 (791) (715) Mark-to-market on related derivatives — (85) 804 719 Net realized gain on related long-term debt derivatives — 29 — 29 Gain (loss) on instruments designated at fair value and related derivatives $ 1 $ 19 $ 13 $ 33 Nine Months Ended September 30, 2020 Interest rate and other components (1) $ — $ (114) $ 198 $ 84 Credit risk component (2)(3) (53) — — (53) Total mark-to-market on financial instruments designated at fair value (53) (114) 198 31 Mark-to-market on related derivatives 37 126 (203) (40) Net realized gain on related long-term debt derivatives — 24 — 24 Gain (loss) on instruments designated at fair value and related derivatives $ (16) $ 36 $ (5) $ 15 (1) As it relates to hybrid instruments, interest rate and other components primarily includes interest rate, foreign exchange and equity contract risks. (2) The fair value movement on fair value option liabilities attributable to our own credit spread is recorded in other comprehensive income (loss). (3) During the nine months ended September 30, 2020, the loss in the credit risk component for loans and loans held for sale was attributable to the widening of credit spreads associated with certain commercial loans held for sale which were impacted by the COVID-19 pandemic. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes certain items that are reported directly within a separate component of equity. The following table presents changes in accumulated other comprehensive income (loss) balances: Three Months Ended September 30, 2021 2020 (in millions) Unrealized gains (losses) on investment securities: Balance at beginning of period $ 172 $ 754 Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(27) million and $26 million, respectively (86) 84 Reclassification adjustment for gains realized in net income (loss), net of tax of $(1) million and $(13) million, respectively (1) (3) (39) Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively (2) — (1) Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax of $1 million and $4 million, respectively (3) 3 12 Total other comprehensive income (loss) for period (86) 56 Balance at end of period 86 810 Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread: Balance at beginning of period 15 137 Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $3 million and $(13) million, respectively 9 (40) Total other comprehensive income (loss) for period 9 (40) Balance at end of period 24 97 Unrealized gains (losses) on derivatives designated as cash flow hedges: Balance at beginning of period (100) (58) Other comprehensive income (loss) for period: Net unrealized losses arising during period, net of tax of $(1) million and $(4) million, respectively (2) (10) Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(1) million and $1 million, respectively (4) (5) — Total other comprehensive loss for period (7) (10) Balance at end of period (107) (68) Pension and postretirement benefit liability: Balance at beginning of period (6) (3) Other comprehensive income (loss) for period: Change in unfunded pension and postretirement liability, net of tax of nil and $(1) million, respectively — (2) Total other comprehensive income for period — (2) Balance at end of period (6) (5) Total accumulated other comprehensive income (loss) at end of period $ (3) $ 834 Nine Months Ended September 30, 2021 2020 (in millions) Unrealized gains (losses) on investment securities: Balance at beginning of period $ 750 $ (116) Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses on securities available-for-sale, net of tax of $1 million (5) — 2 Balance at beginning of period, adjusted 750 (114) Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(201) million and $312 million, respectively (636) 990 Reclassification adjustment for gains realized in net income (loss), net of tax of $(12) million and $(27) million, respectively (1) (39) (84) Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively (2) — (1) Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax of $3 million and $6 million, respectively (3) 11 19 Total other comprehensive income (loss) for period (664) 924 Balance at end of period 86 810 Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread: Balance at beginning of period 15 (9) Other comprehensive income (loss) for period: Net unrealized gains arising during period, net of tax of $3 million and $33 million, respectively 9 106 Total other comprehensive income for period 9 106 Balance at end of period 24 97 Unrealized gains (losses) on derivatives designated as cash flow hedges: Balance at beginning of period (79) (151) Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(7) million and $24 million, respectively (21) 75 Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(2) million and $3 million, respectively (4) (7) 8 Total other comprehensive income (loss) for period (28) 83 Balance at end of period (107) (68) Pension and postretirement benefit liability: Balance at beginning of period (7) (3) Other comprehensive income (loss) for period: Change in unfunded pension and postretirement liability, net of tax of less than $1 million and $(1) million, respectively 1 (2) Total other comprehensive income (loss) for period 1 (2) Balance at end of period (6) (5) Total accumulated other comprehensive income (loss) at end of period $ (3) $ 834 (1) Amount reclassified to net income (loss) is included in other securities gains, net in our consolidated statement of income (loss). (2) Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in our consolidated statement of income (loss). (3) Amount amortized to net income (loss) is included in interest income in our consolidated statement of income (loss). During 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses related to the transferred securities which are being amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. (4) Amount reclassified to net income (loss) is included in net interest income in our consolidated statement of income (loss). (5) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Defined Benefit Pension Plan The following table reflects the portion of pension expense and its related components of the combined HSBC North America Pension Plan (either the "HSBC North America Pension Plan" or the "Plan") which has been allocated to us and is recorded in our consolidated statement of income (loss). We have not been allocated any portion of the Plan's net pension asset. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest cost on projected benefit obligation $ 11 $ 11 $ 32 $ 35 Expected return on plan assets (15) (14) (44) (53) Amortization of net actuarial loss — — — 4 Administrative costs 1 1 3 3 Pension (income) expense $ (3) $ (2) $ (9) $ (11) Postretirement Plans Other Than Pensions Certain employees also participate in plans which provide medical and life insurance benefits to retirees and eligible dependents. These plans cover all eligible employees who meet certain age and vested service requirements. We have instituted dollar limits on payments under the plans to control the cost of future medical benefits. Net periodic postretirement benefit cost was less than $1 million during the three and nine months ended September 30, 2021 and 2020. |
Fee Income from Contracts with
Fee Income from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Fee Income from Contracts with Customers | Fee Income from Contracts with Customers The following table summarizes fee income from contracts with customers disaggregated by type of activity, as well as a reconciliation to total other revenues, during the three and nine months ended September 30, 2021 and 2020. See Note 22, "Fee Income from Contracts with Customers," in our 2020 Form 10-K for a description of the various types of fee-based activities and how revenue associated with these activities is recognized. There have been no significant changes in these activities since December 31, 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Credit card fees, net $ — $ 10 $ 23 $ 30 Trust and investment management fees 26 34 81 98 Other fees and commissions: Account services 73 66 216 185 Credit facilities 76 67 248 204 Other fees 11 11 32 36 Total other fees and commissions 160 144 496 425 Servicing and other fees from HSBC affiliates 79 79 232 255 Insurance (1) 2 2 5 6 Total fee income from contracts with customers 267 269 837 814 Other non-fee revenues (25) 87 93 393 Total other revenues (2) $ 242 $ 356 $ 930 $ 1,207 (1) Included within other income (loss) in the consolidated statement of income (loss). (2) See Note 16, "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. Credit card fees, net We recognized interchange fees of $24 million and $68 million during the three and nine months ended September 30, 2021, respectively, compared with $18 million and $53 million during the three and nine months ended September 30, 2020, respectively. Credit card rewards program costs totaled $26 million and $50 million during the three and nine months ended September 30, 2021, respectively, compared with $10 million and $28 million during the three and nine months ended September 30, 2020, respectively. Deferred Fee Income Information related to deferred fee income on loan commitments, revolving credit facilities and standby letters of credit is included in Note 19, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," and Note 20, "Fair Value Measurements." Excluding these items, we had deferred fee income related to certain account service fees that are paid upfront and recognized over the service period and annual fees on credit cards which collectively was $5 million and $3 million at September 30, 2021 and December 31, 2020, respectively. We expect to recognize this revenue over a remaining period of one year or less. Other than trust and investment management fees as discussed in our 2020 Form 10-K, we do not use significant judgments in the determination of the amount and timing of fee income from contracts with customers. Additionally, costs to obtain or fulfill contracts with customers were immaterial. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the normal course of business, we conduct transactions with HSBC and its subsidiaries. HSBC policy requires that these transactions occur at prevailing market rates and terms and, where applicable, these transactions are compliant with United States banking regulations. All extensions of credit by (and certain credit exposures of) HSBC Bank USA, National Association (together with its subsidiaries, "HSBC Bank USA") to other HSBC affiliates (other than Federal Deposit Insurance Corporation insured banks) are legally required to be secured by eligible collateral. The following tables present related party balances and the income (expense) generated by related party transactions: September 30, 2021 December 31, 2020 (in millions) Assets: Cash and due from banks $ 313 $ 516 Interest bearing deposits with banks 2 187 Securities purchased under agreements to resell (1) 873 3,941 Trading assets 190 314 Loans 2,857 1,100 Other (2) 289 319 Total assets $ 4,524 $ 6,377 Liabilities: Deposits $ 15,624 $ 15,163 Trading liabilities (3) 223 2,375 Short-term borrowings 390 270 Long-term debt 5,528 2,878 Other (2) 203 268 Total liabilities $ 21,968 $ 20,954 (1) Reflects purchases of securities under which other HSBC affiliates have agreed to repurchase. (2) Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables. (3) The decrease in trading liabilities at September 30, 2021 primarily reflects a decrease in borrowing of gold inventory from HSBC Bank plc to support client activity levels. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Income (Expense): Interest income $ 6 $ 9 $ 20 $ 47 Interest expense (52) (77) (185) (276) Net interest expense (46) (68) (165) (229) Trading revenue (expense) (1,116) (1,755) (2,106) (2,372) Servicing and other fees from HSBC affiliates: HSBC Bank plc 44 43 124 131 HSBC Markets (USA) Inc. ("HMUS") 22 27 70 84 Other HSBC affiliates 13 9 38 40 Total servicing and other fees from HSBC affiliates 79 79 232 255 Gain (loss) on instruments designated at fair value and related derivatives (62) 307 803 (203) Support services from HSBC affiliates: HTSU (242) (285) (754) (820) HMUS (26) (17) (72) (63) Other HSBC affiliates (121) (89) (322) (279) Total support services from HSBC affiliates (389) (391) (1,148) (1,162) Rental income from HSBC affiliates, net (1) 12 13 32 31 Stock based compensation expense (2) (1) (3) (12) (16) (1) We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss). (2) Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 13, "Pension and Other Postretirement Benefits." Funding Arrangements with HSBC Affiliates: We use HSBC affiliates to fund a portion of our borrowing and liquidity needs. At September 30, 2021 and December 31, 2020, long-term debt with affiliates reflected $5.5 billion and $2.9 billion, respectively, of borrowings from HSBC North America. During the first quarter of 2021, $850 million of these borrowings were repaid. The remaining outstanding balances include: • $2.0 billion of fixed-rate senior debt which matures in September 2025; • $1.5 billion of fixed-rate senior debt which was issued during the first quarter of 2021 and matures in June 2030; and • $2.0 billion of fixed-rate senior debt which was issued during the second quarter of 2021 and matures in June 2025. We have a $4.0 billion uncommitted line of credit with HSBC North America. The available borrowing capacity under this facility is fungible between HSBC USA, HSBC Securities (USA) Inc. ("HSI") and HSBC North America, but total borrowings cannot collectively exceed $4.0 billion at any time. We had no outstanding borrowing under this credit facility at either September 30, 2021 or December 31, 2020. We have also incurred short-term borrowings with certain affiliates. In addition, certain affiliates have also placed deposits with us. Lending and Derivative Related Arrangements Extended to HSBC Affiliates: At September 30, 2021 and December 31, 2020, we had the following loan balances outstanding with HSBC affiliates: September 30, 2021 December 31, 2020 (in millions) HMUS and subsidiaries $ 1,755 $ 1,088 HSBC North America 1,000 — Other short-term affiliate lending 102 12 Total loans $ 2,857 $ 1,100 HMUS and subsidiaries We have extended loans and lines of credit, some of them uncommitted, to HMUS and its subsidiaries in the amount of $11.6 billion and $12.0 billion at September 30, 2021 and December 31, 2020, respectively, of which $1.8 billion and $1.1 billion, respectively, was outstanding. The maturities of the outstanding balances range from overnight to three months. Each borrowing is re-evaluated prior to its maturity date and either extended or allowed to mature. HSBC North America Under the $4.0 billion uncommitted fungible line of credit with HSBC North America as discussed above, there was $1.0 billion and nil outstanding at September 30, 2021 and December 31, 2020, respectively. The outstanding balance matures in April 2022. We have extended lines of credit to various other HSBC affiliates totaling $3.9 billion and $4.7 billion which did not have any outstanding balances at either September 30, 2021 or December 31, 2020. Other short-term affiliate lending In addition to loans and lines extended to affiliates discussed above, from time to time we may extend loans to affiliates which are generally short term in nature. At September 30, 2021 and December 31, 2020, there were $102 million and $12 million, respectively, of these loans outstanding. Derivative contracts As part of a global HSBC strategy to offset interest rate or other market risks associated with certain securities, debt issues and derivative contracts with unaffiliated third parties, we routinely enter into derivative transactions with HSBC Bank plc and other HSBC affiliates. The notional value of derivative contracts related to these transactions was approximately $785.1 billion and $923.6 billion at September 30, 2021 and December 31, 2020, respectively. The net credit exposure (defined as the net fair value of derivative assets and liabilities, including any collateral received) related to the contracts was approximately $215 million and $66 million at September 30, 2021 and December 31, 2020, respectively. We account for these transactions on a mark to market basis, with the change in value of contracts with HSBC affiliates substantially offset by the change in value of related contracts entered into with unaffiliated third parties. As discussed further in Note 2, "Strategic Initiatives," during the three and nine months ended September 30, 2021, we continued to transfer certain interest rate derivative contracts to HSBC Bank plc as part of our Restructuring Plan. In addition, during the third quarter of 2021, we unwound our remaining legacy structured credit products which resulted in the sale of our remaining non-government asset-backed securities held for trading and the termination of the related derivatives. A majority of the securities were sold to HSBC Bank plc and a portion of the related terminated derivatives were total return swaps with HSBC Bank plc. The loss resulting from these unwind related transactions with HSBC Bank plc was not material. Services Provided Between HSBC Affiliates: Under multiple service level agreements, we provide services to and receive services from various HSBC affiliates. These activities are summarized in Note 23, "Related Party Transactions," in our 2020 Form 10-K. There have been no significant changes in these activities since December 31, 2020. Other Transactions with HSBC Affiliates: At both September 30, 2021 and December 31, 2020, we had $1,265 million of non-cumulative preferred stock issued and outstanding to HSBC North America. See Note 18, "Preferred Stock," in our 2020 Form 10-K for additional details. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We have four distinct business segments that we utilize for management reporting and analysis purposes, which are aligned with HSBC's global business strategy: Wealth and Personal Banking ("WPB"), Commercial Banking ("CMB"), Global Banking and Markets ("GBM") and a Corporate Center ("CC"). As of January 1, 2021, we implemented a change to our internal management reporting to prospectively report assets related to our active branches within our WPB segment, which were historically reported within our CC segment. As a result, lease impairment and other related costs associated with these branches is recorded within our WPB segment beginning in 2021. Prior periods were not impacted by this change. There have been no additional changes in the basis of our segmentation as compared with the presentation in our 2020 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 2020 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 24, "Business Segments," in our 2020 Form 10-K. There have been no significant changes since December 31, 2020 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 WPB CMB GBM CC Total Group Reporting Basis Adjustments (1) Group Reporting Basis Reclassi- fications (2) U.S. GAAP (in millions) Three Months Ended September 30, 2021 Net interest income (expense) $ 202 $ 200 $ 74 $ (1) $ 475 $ 4 $ 41 $ 520 Other operating income (expense) 57 70 184 (38) 273 4 (35) 242 Total operating income (expense) 259 270 258 (39) 748 8 6 762 Expected credit losses / provision for credit losses (35) 24 (31) — (42) (39) — (81) 294 246 289 (39) 790 47 6 843 Operating expenses 279 134 186 55 654 6 6 666 Profit (loss) before income tax $ 15 $ 112 $ 103 $ (94) $ 136 $ 41 $ — $ 177 Three Months Ended September 30, 2020 Net interest income (expense) $ 200 $ 202 $ 92 $ (9) $ 485 $ 1 $ 62 $ 548 Other operating income 110 66 217 40 433 (22) (55) 356 Total operating income 310 268 309 31 918 (21) 7 904 Expected credit losses / provision for credit losses 12 (21) (6) — (15) (90) — (105) 298 289 315 31 933 69 7 1,009 Operating expenses 527 150 251 126 1,054 (276) 7 785 Profit (loss) before income tax $ (229) $ 139 $ 64 $ (95) $ (121) $ 345 $ — $ 224 Group Reporting Basis Consolidated Amounts WPB CMB GBM CC Total Group Reporting Basis Adjustments (1) Group Reporting Basis Reclassi- fications (2) U.S. GAAP Nine Months Ended September 30, 2021 Net interest income (expense) $ 616 $ 580 $ 255 $ (3) $ 1,448 $ 17 $ 109 $ 1,574 Other operating income (expense) 215 208 613 (9) 1,027 (2) (95) 930 Total operating income (expense) 831 788 868 (12) 2,475 15 14 2,504 Expected credit losses / provision for credit losses (36) (26) (154) — (216) (321) — (537) 867 814 1,022 (12) 2,691 336 14 3,041 Operating expenses 921 437 573 157 2,088 48 14 2,150 Profit (loss) before income tax $ (54) $ 377 $ 449 $ (169) $ 603 $ 288 $ — $ 891 Balances at end of period: Total assets $ 69,021 $ 46,226 $ 102,543 $ 1,611 $ 219,401 $ (18,251) $ — $ 201,150 Total loans, net 22,046 20,998 11,290 — 54,334 (1,549) 2,266 55,051 Goodwill — 358 — — 358 100 — 458 Total deposits 39,762 45,239 52,130 — 137,131 (3,668) 18,905 152,368 Nine Months Ended September 30, 2020 Net interest income (expense) $ 629 $ 616 $ 304 $ (29) $ 1,520 $ 6 $ 64 $ 1,590 Other operating income 283 176 743 101 1,303 (45) (51) 1,207 Total operating income 912 792 1,047 72 2,823 (39) 13 2,797 Expected credit losses / provision for credit losses 188 283 129 — 600 240 — 840 724 509 918 72 2,223 (279) 13 1,957 Operating expenses 1,888 439 644 324 3,295 (191) 13 3,117 Profit (loss) before income tax $ (1,164) $ 70 $ 274 $ (252) $ (1,072) $ (88) $ — $ (1,160) Balances at end of period: Total assets $ 56,728 $ 38,096 $ 136,478 $ 1,565 $ 232,867 $ (31,921) $ — $ 200,946 Total loans, net 23,821 25,852 14,122 — 63,795 (1,682) 3,212 65,325 Goodwill — 358 — — 358 100 — 458 Total deposits 48,477 39,736 51,566 — 139,779 (5,198) 15,747 150,328 (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. |
Retained Earnings and Regulator
Retained Earnings and Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2021 | |
Retained Earnings Note Disclosure [Abstract] | |
Retained Earnings and Regulatory Capital Requirements | Retained Earnings and Regulatory Capital RequirementsBank dividends are one of the sources of funds used for payment of shareholder dividends and other HSBC USA cash needs. Approval from the Office of the Comptroller of the Currency ("OCC") is required if the total of all dividends HSBC Bank USA declares in any year exceeds the cumulative net income for that year, combined with the net income for the two preceding years reduced by dividends attributable to those years. OCC approval also is required for a reduction of permanent capital of HSBC Bank USA. Under a separate restriction, payment of dividends is prohibited in amounts greater than undivided profits then on hand, after deducting actual losses and bad debts. Bad debts are debts due and unpaid for a period of six months unless well secured, as defined, and in the process of collection. We are subject to regulatory capital rules issued by U.S. banking regulators including Basel III (the "Basel III rule"). A bank or bank holding company's failure to meet minimum capital requirements can result in certain mandatory actions and possibly additional discretionary actions by its regulators. The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with the Basel III rule at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Capital Well-Capitalized Ratio (1) Actual Capital Well-Capitalized Ratio (1) Actual (dollars are in millions) Common equity Tier 1 ratio: (4) HSBC USA $ 16,393 4.5 % (2) 15.9 % $ 15,891 4.5 % (2) 14.5 % HSBC Bank USA 18,664 6.5 18.3 18,180 6.5 16.4 Tier 1 capital ratio: (4) HSBC USA 17,658 6.0 17.1 17,156 6.0 15.6 HSBC Bank USA 21,164 8.0 20.8 20,680 8.0 18.7 Total capital ratio: (4) HSBC USA 19,910 10.0 19.3 20,680 10.0 18.8 HSBC Bank USA 23,193 10.0 22.7 23,303 10.0 21.1 Tier 1 leverage ratio: HSBC USA 17,658 4.0 (2) 9.1 17,156 4.0 (2) 8.6 HSBC Bank USA 21,164 5.0 11.0 20,680 5.0 10.3 Supplementary leverage ratio ("SLR"): HSBC USA 17,658 3.0 (3) 7.0 17,156 3.0 (3) 7.8 HSBC Bank USA 21,164 3.0 (3) 8.5 20,680 3.0 (3) 9.3 Risk-weighted assets: (4)(5) HSBC USA 103,018 109,809 HSBC Bank USA 101,993 110,682 Adjusted quarterly average assets: (6) HSBC USA 193,984 198,698 HSBC Bank USA 192,501 200,026 Total leverage exposure: (7) HSBC USA 252,239 221,216 HSBC Bank USA 250,003 221,334 (1) HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must maintain capital equal to or in excess of the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. (2) There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown are the regulatory minimums. (3) There is no SLR component in the definition of a well-capitalized banking institution. The ratios shown are the regulatory minimums. (4) During the first quarter of 2021, it was determined that certain collateral did not qualify for risk-weighted asset reduction purposes under U.S. capital rules. As a result, reported risk-weighted assets were understated and reported Common equity Tier 1 capital, Tier 1 capital and Total capital ratios were overstated at HSBC USA and HSBC Bank USA at December 31, 2020. We have revised December 31, 2020 amounts to conform to the current period presentation. The following table summarizes the impact of this change on reported risk-weighted assets and capital ratios as of December 31, 2020: December 31, 2020 As Previously Reported As Revised HSBC USA HSBC Bank USA HSBC USA HSBC Bank USA (in millions) Common equity Tier 1 ratio 14.7 % 17.2 % 14.5 % 16.4 % Tier 1 capital ratio 15.9 % 19.6 % 15.6 % 18.7 % Total capital ratio 19.2 % 22.0 % 18.8 % 21.1 % Risk-weighted assets $ 107,808 $ 105,681 $ 109,809 $ 110,682 (5) Calculated using the generally-applicable Standardized Approach. (6) Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital. (7) Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures. In response to the COVID-19 pandemic, the federal banking agencies issued a final rule that provides the option to transition in the regulatory capital impacts of the new current expected credit loss accounting standard over a five-year period. HSBC North America and HSBC Bank USA have elected the five-year transition option and, as a result, beginning in 2020, our capital ratios are reported in accordance with the transition rules in the final rule. Accordingly, during 2020 and 2021, we will exclude from regulatory capital the change in retained earnings resulting from adoption of the new accounting standard on January 1, 2020 as well as 25 percent of the change in the allowance for credit losses recognized between January 1, 2020 and December 31, 2021. Beginning January 1, 2022, the excluded impacts will be phased in to regulatory capital over a three-year transition period and will be fully reflected at January 1, 2025. Also in response to the COVID-19 pandemic, the federal banking agencies issued final rules that permitted intermediate holding companies, such as HSBC North America, and depository institutions, such as HSBC Bank USA, to temporarily exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the denominator of their SLR. The rules were designed to allow banking institutions to expand their balance sheets to accommodate increased customer deposits while continuing to provide credit to companies and households. These changes took effect in 2020 and expired on April 1, 2021. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities In the ordinary course of business, we have organized special purpose entities ("SPEs") primarily to structure financial products to meet our clients' investment needs, to facilitate clients to access and raise financing from capital markets and to securitize financial assets held to meet our own funding needs. For disclosure purposes, we aggregate SPEs based on the purpose, risk characteristics and business activities of the SPEs. An SPE is a VIE if it lacks sufficient equity investment at risk to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack either a) the power through voting or similar rights to direct the activities of the entity that most significantly impacts the entity's economic performance; or b) the obligation to absorb the entity's expected losses, the right to receive the expected residual returns, or both. Variable Interest Entities We consolidate VIEs in which we hold a controlling financial interest as evidenced by the power to direct the activities of a VIE that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE and therefore are deemed to be the primary beneficiary. We take into account our entire involvement in a VIE (explicit or implicit) in identifying variable interests that individually or in the aggregate could be significant enough to warrant our designation as the primary beneficiary and hence require us to consolidate the VIE or otherwise require us to make appropriate disclosures. We consider our involvement to be potentially significant where we, among other things, (i) enter into derivative contracts to absorb the risks and benefits from the VIE or from the assets held by the VIE; (ii) provide a financial guarantee that covers assets held or liabilities issued by a VIE; (iii) sponsor the VIE in that we design, organize and structure the transaction; and (iv) retain a financial or servicing interest in the VIE. We are required to evaluate whether to consolidate a VIE when we first become involved and on an ongoing basis. In almost all cases, a qualitative analysis of our involvement in the entity provides sufficient evidence to determine whether we are the primary beneficiary. In rare cases, a more detailed analysis to quantify the extent of variability to be absorbed by each variable interest holder is required to determine the primary beneficiary. Consolidated VIEs The following table summarizes assets and liabilities related to our consolidated VIEs at September 30, 2021 and December 31, 2020 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. September 30, 2021 December 31, 2020 Consolidated Consolidated Consolidated Consolidated (in millions) Low income housing limited liability partnership: Other assets $ 64 $ — $ 79 $ — Interest, taxes and other liabilities — 16 — 9 Subtotal 64 16 79 9 Venture debt financing entity: Loans 7 — 10 — Interest, taxes and other liabilities — 2 — 1 Subtotal 7 2 10 1 Total $ 71 $ 18 $ 89 $ 10 Low income housing limited liability partnership In 2009, all low income housing investments held by us at the time were transferred to a Limited Liability Partnership ("LLP") in exchange for debt and equity while a third party invested cash for an equity interest that was mandatorily redeemable. The LLP was created in order to ensure the utilization of future tax benefits from these low income housing tax projects. The LLP was deemed to be a VIE as it does not have sufficient equity investment at risk to finance its activities. Upon entering into this transaction, we concluded that we were the primary beneficiary of the LLP due to the nature of our continuing involvement and, as a result, we consolidated the LLP and reported the equity interest issued to the third party investor in long-term debt and the assets of the LLP in other assets on our consolidated balance sheet. The investments held by the LLP represent equity investments in the underlying low income housing partnerships. The LLP does not consolidate the underlying partnerships because it does not have the power to direct the activities of the partnerships that most significantly impact the economic performance of the partnerships. In 2019, the equity interest issued to the third party investor was redeemed. We amortize our low income housing investments in proportion to the allocated tax benefits under the proportional amortization method and present the associated tax benefits net of investment amortization in income tax expense (benefit). Venture debt financing entity HSBC USA has organized and provided equity financing to HSBC Ventures USA Inc. ("HSBC Ventures"), an entity designed to provide debt financing to venture capital-backed companies generally in the form of term or revolving loans, or loan commitments. Given the generally early stage and development of the companies, the loans are typically collateralized by all of the company's assets and intellectual property, or by specific items such as receivables or equipment. The loan terms may, at times, also include warrants for company stock granting HSBC Ventures a share of the financial returns in case of a positive realization event. HSBC USA also provides debt financing to HSBC Ventures in the form of loans on an as-needed basis. HSBC Ventures is a VIE because it does not have sufficient equity investment at risk to finance its activities. As the sole investor, HSBC USA is considered to be the primary beneficiary because it has the obligation to absorb losses and the right to receive benefits that could be potentially significant to HSBC Ventures. As a result, we consolidate HSBC Ventures and report the third party loans and warrants, if any, on our consolidated balance sheet. Unconsolidated VIEs We also have variable interests in other VIEs that are not consolidated because we are not the primary beneficiary. The following table provides additional information on these unconsolidated VIEs, including the variable interests held by us and our maximum exposure to loss arising from our involvement in these VIEs, at September 30, 2021 and December 31, 2020: Total Assets Held by Unconsolidated VIEs Carrying Value of Variable Interests Held Reported as Maximum Assets Liabilities (in millions) At September 30, 2021 Limited partnership investments $ 4,759 $ 737 $ 405 $ 737 At December 31, 2020 Limited partnership investments $ 4,266 $ 629 $ 285 $ 629 Information on the types of VIEs with which we are involved, the nature of our involvement and the variable interests held in those entities is presented below. Limited partnership investments We invest as a limited partner in partnerships that operate qualified affordable housing, renewable energy and community development projects. The returns of these investments are generated primarily from the tax benefits, including Federal tax credits and tax deductions from operating losses in the project companies. In addition, some of the investments also help us comply with the Community Reinvestment Act. Certain limited partnership structures are considered to be VIEs because either (a) they do not have sufficient equity investment at risk or (b) the limited partners with equity at risk do not have substantive kick-out rights through voting rights or substantive participating rights over the general partner. As a limited partner, we are not the primary beneficiary of the VIEs and do not consolidate them. Our investments in these partnerships are recorded in other assets on the consolidated balance sheet. The maximum exposure to loss shown in the table above represents our recorded investments as well as any outstanding funding commitments extended to the partnerships. Third-party sponsored securitization entities We invest in asset-backed securities issued by third party sponsored securitization entities which may be considered VIEs. The investments are transacted at arm's-length and decisions to invest are based on a credit analysis of the underlying collateral assets or the issuer. We are a passive investor in these issuers and do not have the power to direct the activities of these issuers. As such, we do not consolidate these securitization entities. Additionally, we do not have other involvements in servicing or managing the collateral assets or provide financial or liquidity support to these issuers which potentially give rise to risk of loss exposure. These investments are an integral part of the disclosure in Note 4, "Trading Assets and Liabilities," Note 5, "Securities," and Note 20, "Fair Value Measurements," and, therefore, are not disclosed in this note to avoid redundancy. |
Guarantee Arrangements, Pledged
Guarantee Arrangements, Pledged Assets and Repurchase Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee Arrangements, Pledged Assets and Repurchase Agreements | Guarantee Arrangements, Pledged Assets and Repurchase Agreements Guarantee Arrangements As part of our normal operations, we enter into credit derivatives and various off-balance sheet guarantee arrangements with affiliates and third parties. These arrangements arise principally in connection with our lending and client intermediation activities and include standby letters of credit and certain credit derivative transactions. The contractual amounts of these arrangements represent our maximum possible credit exposure in the event that we are required to fulfill the maximum obligation under the contractual terms of the guarantee. The following table presents total carrying value and contractual amounts of our sell protection credit derivatives and major off-balance sheet guarantee arrangements at September 30, 2021 and December 31, 2020. Following the table is a description of the various arrangements. September 30, 2021 December 31, 2020 Carrying Notional / Maximum Carrying Notional / Maximum (in millions) Credit derivatives (1)(2) $ 8 $ 2,063 $ 144 $ 19,500 Financial standby letters of credit, net of participations (3)(4) — 5,364 — 5,703 Performance standby letters of credit, net of participations (3)(4) — 2,700 — 2,842 Total $ 8 $ 10,127 $ 144 $ 28,045 (1) Includes $1,691 million and $13,550 million of notional issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. (2) For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements. (3) Includes $1,957 million and $1,836 million of both financial and performance standby letters of credit issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. (4) For standby letters of credit, maximum loss represents losses to be recognized assuming the letters of credit have been fully drawn and the obligors have defaulted with zero recovery. Credit-Risk Related Guarantees Credit derivatives Credit derivatives are financial instruments that transfer the credit risk of a reference obligation from the credit protection buyer to the credit protection seller who is exposed to the credit risk without buying the reference obligation. We sell credit protection on underlying reference obligations (such as loans or securities) by entering into credit derivatives, primarily in the form of credit default swaps, with various institutions. We account for all credit derivatives at fair value. Where we sell credit protection to a counterparty that holds the reference obligation, the arrangement is effectively a financial guarantee on the reference obligation. Under a credit derivative contract, the credit protection seller will reimburse the credit protection buyer upon occurrence of a credit event (such as bankruptcy, insolvency, restructuring or failure to meet payment obligations when due) as defined in the derivative contract, in return for a periodic premium. Upon occurrence of a credit event, we will pay the counterparty the stated notional amount of the derivative contract and receive the underlying reference obligation. The recovery value of the reference obligation received could be significantly lower than its notional principal amount when a credit event occurs. Certain derivative contracts are subject to master netting arrangements and related collateral agreements. A party to a derivative contract may demand that the counterparty post additional collateral in the event its net exposure exceeds certain predetermined limits and when the credit rating falls below a certain grade. We set the collateral requirements by counterparty such that the collateral covers various transactions and products, and is not allocated to specific individual contracts. We manage our exposure to credit derivatives using a variety of risk mitigation strategies where we enter into offsetting hedge positions or transfer the economic risks, in part or in entirety, to investors through the issuance of structured credit products. We actively manage the credit and market risk exposure in the credit derivative portfolios on a net basis and, as such, retain no or a limited net position at any time. The following table summarizes our net credit derivative positions at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Carrying / Fair Notional Carrying / Fair Notional (in millions) Sell-protection credit derivative positions $ 8 $ 2,063 $ 144 $ 19,500 Buy-protection credit derivative positions (52) 5,402 (74) 33,111 Net position (1) $ (44) $ 3,339 $ 70 $ 13,611 (1) Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset. Standby letters of credit A standby letter of credit is issued to a third party for the benefit of a client and is a guarantee that the client will perform or satisfy certain obligations under a contract. It irrevocably obligates us to pay a specified amount to the third party beneficiary if the client fails to perform the contractual obligation. We issue two types of standby letters of credit: performance and financial. A performance standby letter of credit is issued where the client is required to perform some non-financial contractual obligation, such as the performance of a specific act, whereas a financial standby letter of credit is issued where the client's contractual obligation is of a financial nature, such as the repayment of a loan or debt instrument. The issuance of a standby letter of credit is subject to our credit approval process and collateral requirements. We charge fees for issuing letters of credit commensurate with the client's credit evaluation and the nature of any collateral. Included in other liabilities are deferred fees on standby letters of credit amounting to $43 million and $44 million at September 30, 2021 and December 31, 2020, respectively. Also included in other liabilities is an allowance for credit losses on unfunded standby letters of credit of $16 million and $32 million at September 30, 2021 and December 31, 2020, respectively. The following table summarizes the credit ratings related to guarantees including the ratings of counterparties against which we sold credit protection and financial standby letters of credit at September 30, 2021 as an indicative proxy of payment risk: Average Credit Ratings of the Obligors Notional/Contractual Amounts Investment Non-Investment Total (dollars are in millions) Sell-protection Credit Derivatives (1) Single name credit default swaps ("CDS") 2.3 $ 1,232 $ 606 $ 1,838 Index credit derivatives 22.5 215 10 225 Subtotal 1,447 616 2,063 Standby Letters of Credit (2) 1.2 6,291 1,773 8,064 Total $ 7,738 $ 2,389 $ 10,127 (1) The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade. (2) External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade. Our internal credit ratings are determined based on HSBC's risk rating systems and processes which assign a credit grade based on a scale which ranks the risk of default of a client. The credit grades are assigned and used for managing risk and determining level of credit exposure appetite based on the client's operating performance, liquidity, capital structure and debt service ability. In addition, we also incorporate subjective judgments into the risk rating process concerning such things as industry trends, comparison of performance to industry peers and perceived quality of management. We compare our internal risk ratings to outside external rating agency benchmarks, where possible, at the time of formal review and regularly monitor whether our risk ratings are comparable to the external ratings benchmark data. A non-investment grade rating of a referenced obligor has a negative impact to the fair value of the credit derivative and increases the likelihood that we will be required to perform under the credit derivative contract. We employ market-based parameters and, where possible, use the observable credit spreads of the referenced obligors as measurement inputs in determining the fair value of the credit derivatives. We believe that such market parameters are more indicative of the current status of payment/performance risk than external ratings by the rating agencies which may not be forward-looking in nature and, as a result, lag behind those market-based indicators. Non Credit-Risk Related Guarantees and Other Arrangements Visa covered litigation In 2008, we received Class B Shares as part of Visa's initial public offering ("IPO"). Pursuant to the IPO, we, along with all the other Class B shareholders, agreed to indemnify Visa for the claims and obligations arising from certain specific covered litigation. The Class B Shares are not eligible to be converted into publicly traded Class A Shares until settlement of the covered litigation described in Note 29, "Litigation and Regulatory Matters" in our 2020 Form 10-K. Accordingly, the Class B Shares are considered restricted and are only transferable under limited circumstances, which include transfers to other Class B shareholders. In 2017, we sold substantially all of our remaining Visa Class B Shares to a third party. Under the terms of the sale agreements, we entered into swap agreements with the purchaser to retain the litigation risk associated with the Class B Shares sold until the related litigation is settled and the Class B Shares can be converted into Class A Shares. These swaps had a carrying value of $44 million and $67 million at September 30, 2021 and December 31, 2020, respectively. The swap agreements we entered into with the purchaser requires us to (a) make periodic payments, calculated by reference to the market price of Class A Shares and (b) make or receive payments based on subsequent changes in the conversion rate of Class B Shares into Class A Shares. We have entered into a total return swap position to economically hedge the periodic payments made under these swap agreements. The payments under the derivative will continue until the Class B Shares are able to be converted into Class A Shares. The fair value of the swap agreements is estimated using a discounted cash flow methodology and is dependent upon the final resolution of the related litigation. Changes in fair value between periods are recognized in other income (loss). See Note 10, "Derivative Financial Instruments," for further information. Clearing houses and exchanges We are a member of various exchanges and clearing houses that trade and clear securities and/or derivatives contracts. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, members of a clearing house may be required to contribute to a guaranty fund to backstop members' obligations to the clearing house. As a member, we may be required to pay a proportionate share of the financial obligations of another member who defaults on its obligations to the exchange or the clearing house. Our guarantee obligations would arise only if the exchange or clearing house had exhausted its resources. Any potential contingent liability under these membership agreements cannot be estimated. Lease Obligations We are obligated under a number of noncancellable operating leases for premises and equipment. See Note 11, "Leases," in our 2020 Form 10-K, for a full discussion of our leases, including a maturity analysis of our operating lease liabilities. Mortgage Loan Repurchase Obligations We originate and sell mortgage loans to third parties and provide various representations and warranties related to, among other things, the ownership of the loans, the validity of the liens, the loan selection and origination process, and the compliance to the origination criteria established by the government agencies. In the event of a breach of our representations and warranties, we may be obligated to repurchase the loans with identified defects or to indemnify the buyers. Our contractual obligation arises only when the breach of representations and warranties are discovered and repurchase is demanded. In estimating our repurchase liability arising from breaches of representations and warranties, we consider historical losses on residual risks not covered by settlement agreements adjusted for any risk factors not captured in the historical losses as well as the level of outstanding repurchase demands received. Outstanding repurchase demands received were immaterial at September 30, 2021 and December 31, 2020. Our estimated repurchase liability for obligations arising from the breach of representations and warranties associated with mortgage loans sold was $4 million and $3 million at September 30, 2021 and December 31, 2020, respectively. Our repurchase liability represents our best estimate of the loss that has been incurred, including interest, arising from breaches of representations and warranties associated with mortgage loans sold. Because the level of mortgage loan repurchase losses is dependent upon economic factors, investor demand strategies and other external risk factors such as housing market trends that may change, the level of the liability for mortgage loan repurchase losses requires significant judgment. We continue to evaluate our methods of determining the best estimate of loss based on recent trends. As these estimates are influenced by factors outside our control, there is uncertainty inherent in these estimates making it reasonably possible that they could change. The range of reasonably possible losses in excess of our recorded repurchase liability is between zero and $25 million at September 30, 2021. This estimated range of reasonably possible losses was determined based upon modifying the assumptions utilized in our best estimate of probable losses to reflect what we believe to be reasonably possible adverse assumptions. Securitization Activity In addition to the repurchase risk described above, we have also been involved as a sponsor/seller of loans used to facilitate whole loan securitizations underwritten by our affiliate, HSI. In this regard, we began acquiring residential mortgage loans in 2005 which were warehoused on our balance sheet with the intent of selling them to HSI to facilitate HSI's whole loan securitization program which was discontinued in 2007. During 2005-2007, we purchased and sold $24 billion of such loans to HSI which were subsequently securitized and sold by HSI to third parties. See "Mortgage Securitization Matters" in Note 29, "Litigation and Regulatory Matters," in our 2020 Form 10-K for additional discussion of related exposure. The outstanding principal balance on these loans was approximately $2.8 billion and $3.1 billion at September 30, 2021 and December 31, 2020, respectively. Pledged Assets Pledged assets included in the consolidated balance sheet consisted of the following: September 30, 2021 December 31, 2020 (in millions) Interest bearing deposits with banks (1) $ 773 $ 2,158 Trading assets (2) 2,053 1,265 Securities available-for-sale (3) 7,470 8,652 Securities held-to-maturity (3) 660 1,076 Loans (4) 18,854 18,146 Other assets (5) 1,340 2,352 Total $ 31,150 $ 33,649 (1) Represents gross amount of cash on deposit with banks related to derivative collateral-support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. (2) Trading assets are primarily pledged against liabilities associated with repurchase agreements. (3) Securities are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the FHLB and the Federal Reserve Bank of New York. (4) Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York. (5) Represents gross amount of cash on deposit with non-banks related to derivative collateral support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. Debt securities pledged as collateral under repurchase agreements that can be sold or repledged by the secured party continue to be reported on the consolidated balance sheet. The fair value of securities available-for-sale that could be sold or repledged was $2,241 million and $2,077 million at September 30, 2021 and December 31, 2020, respectively. The fair value of trading assets that could be sold or repledged was $2,053 million and $1,265 million at September 30, 2021 and December 31, 2020, respectively. The fair value of collateral we accepted under security resale agreements but was not reported on the consolidated balance sheet was $9,702 million and $41,447 million at September 30, 2021 and December 31, 2020, respectively. Of this collateral, $8,702 million and $41,047 million could be sold or repledged at September 30, 2021 and December 31, 2020, respectively, of which $128 million and $4,063 million, respectively, had been sold or repledged as collateral under repurchase agreements or to cover short sales. Repurchase Agreements We enter into purchases of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) identical or substantially the same securities. Resale and repurchase agreements are accounted for as secured lending and secured borrowing transactions, respectively. Repurchase agreements may require us to deposit cash or other collateral with the lender. In connection with resale agreements, it is our policy to obtain possession of collateral, which may include the securities purchased, with market value in excess of the principal amount loaned. The market value of the collateral subject to the resale and repurchase agreements is regularly monitored, and additional collateral is obtained or provided when appropriate, to ensure appropriate collateral coverage of these secured financing transactions. The following table provides information about resale and repurchase agreements that are subject to offset at September 30, 2021 and December 31, 2020: Gross Amounts Not Offset in the Balance Sheet Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet (1) Net Amounts Presented in the Balance Sheet Financial Instruments (2) Cash Collateral Received / Pledged Net Amount (3) (in millions) At September 30, 2021 Assets: Securities purchased under resale agreements $ 9,720 $ 2,240 $ 7,480 $ 7,480 $ — $ — Liabilities: Securities sold under repurchase agreements $ 4,510 $ 2,240 $ 2,270 $ 2,256 $ — $ 14 At December 31, 2020 Assets: Securities purchased under resale agreements $ 41,382 $ 5,636 $ 35,746 $ 35,746 $ — $ — Liabilities: Securities sold under repurchase agreements $ 7,401 $ 5,636 $ 1,765 $ 1,762 $ — $ 3 (1) Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles. (2) Represents securities received or pledged to cover financing transaction exposures. (3) Represents the amount of our exposure that is not collateralized / covered by pledged collateral. The following table provides the class of collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings at September 30, 2021 and December 31, 2020: Overnight and Continuous Up to 30 Days 31 to 90 Days 91 Days to One Year Greater Than One Year Total (in millions) At September 30, 2021 U.S. Treasury, U.S. Government sponsored and U.S. Government agency securities $ 102 $ 2,552 $ 1,856 $ — $ — $ 4,510 At December 31, 2020 U.S. Treasury, U.S. Government sponsored and U.S. Government agency securities $ 4,091 $ 2,810 $ 500 $ — $ — $ 7,401 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting principles related to fair value measurements provide a framework for measuring fair value that focuses on the exit price that would be received to sell an asset or paid to transfer a liability in the principal market (or in the absence of the principal market, the most advantageous market) accessible in an orderly transaction between willing market participants (the "Fair Value Framework"). Where required by the applicable accounting standards, assets and liabilities are measured at fair value using the "highest and best use" valuation premise. Fair value measurement guidance clarifies that financial instruments do not have alternative use and, as such, the fair value of financial instruments should be determined using an "in-exchange" valuation premise. However, the fair value measurement guidance provides a valuation exception and permits an entity to measure the fair value of a group of financial assets and financial liabilities with offsetting credit risks and/or market risks based on the exit price it would receive or pay to transfer the net risk exposure of a group of assets or liabilities if certain conditions are met. We elected to apply the measurement exception to a group of derivative instruments with offsetting credit risks and market risks, which primarily relate to interest rate, foreign currency, debt and equity price risk, and commodity price risk as of the reporting date. Fair Value Adjustments The best evidence of fair value is quoted market price in an actively traded market, where available. In the event listed price or market quotes are not available, valuation techniques that incorporate relevant transaction data and market parameters reflecting the attributes of the asset or liability under consideration are applied. Where applicable, fair value adjustments are made to ensure the financial instruments are appropriately recorded at fair value. The fair value adjustments reflect the risks associated with the products, contractual terms of the transactions, and the liquidity of the markets in which the transactions occur. The fair value adjustments are broadly categorized by the following major types: Credit valuation adjustment - The credit valuation adjustment is an adjustment to a group of financial assets and financial liabilities, predominantly derivative assets and derivative liabilities, to reflect the credit quality of the parties to the transaction in arriving at fair value. A credit valuation adjustment to a financial asset is required to reflect the default risk of the counterparty. A debit valuation adjustment to a financial liability is recorded to reflect the default risk of HUSI. See "Valuation Techniques - Derivatives" below for additional details. Liquidity risk adjustment - The liquidity risk adjustment (primarily in the form of bid-offer adjustment) reflects the cost that would be incurred to close out the market risks by hedging, disposing or unwinding the position. Valuation models generally produce mid-market values. The bid-offer adjustment is made in such a way that results in a measure that reflects the exit price that most represents the fair value of the financial asset or financial liability under consideration or, where applicable, the fair value of the net market risk exposure of a group of financial assets or financial liabilities. These adjustments relate primarily to Level 2 assets. Model valuation adjustment - Where fair value measurements are determined using an internal valuation model based on observable and unobservable inputs, certain valuation inputs may be less readily determinable. There may be a range of possible valuation inputs that market participants may assume in determining the fair value measurement. The resultant fair value measurement has inherent measurement risk if one or more parameters are unobservable and must be estimated. An input valuation adjustment is necessary to reflect the likelihood that market participants may use different input parameters, and to mitigate the possibility of measurement error. In addition, the values derived from valuation techniques are affected by the choice of valuation model and model limitation. When different valuation techniques are available, the choice of valuation model can be subjective. Furthermore, the valuation model applied may have measurement limitations. In those cases, an additional valuation adjustment is also applied to mitigate the measurement risk. Model valuation adjustments are not material and relate primarily to Level 2 instruments. We apply stress scenarios in determining appropriate liquidity risk and model risk adjustments for Level 3 fair values by reviewing the historical data for unobservable inputs (e.g., correlation, volatility). Some stress scenarios involve at least a 95 percent confidence interval (i.e., two standard deviations). We also utilize unobservable parameter adjustments when instruments are valued using internally developed models which reflects the uncertainty in the value estimates provided by the model. Funding Fair Value Adjustment ("FFVA") - The FFVA reflects the estimated present value of the future market funding cost or benefit associated with funding uncollateralized derivative exposure at rates other than the Overnight Indexed Swap ("OIS") rate. See "Valuation Techniques - Derivatives" below for additional details. Fair Value Hierarchy The Fair Value Framework establishes a three-tiered fair value hierarchy as follows: Level 1 quoted market price - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 valuation technique using observable inputs - Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are inactive, and measurements determined using valuation models where all significant inputs are observable, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 valuation technique with significant unobservable inputs - Level 3 inputs are unobservable inputs for the asset or liability and include situations where fair values are measured using valuation techniques based on one or more significant unobservable inputs. Classification within the fair value hierarchy is based on whether the lowest hierarchical level input that is significant to the fair value measurement is observable. As such, the classification within the fair value hierarchy is dynamic and can be transferred to other hierarchy levels in each reporting period. Where fair value measurements are determined based on information obtained from independent pricing services or brokers, Finance applies appropriate validation procedures to substantiate fair value. For price validation purposes, quotations from at least two independent pricing sources are obtained for each financial instrument, where possible. The following factors are considered in determining fair values: • similarities between the asset or the liability under consideration and the asset or liability for which quotation is received; • collaboration of pricing by referencing to other independent market data such as market transactions and relevant benchmark indices; • consistency among different pricing sources; • the valuation approach and the methodologies used by the independent pricing sources in determining fair value; • the elapsed time between the date to which the market data relates and the measurement date; • the source of the fair value information; and • whether the security is traded in an active or inactive market. Greater weight is given to quotations of instruments with recent market transactions, pricing quotes from dealers who stand ready to transact, quotations provided by market-makers who structured such instrument and market consensus pricing based on inputs from a large number of survey participants. Any significant discrepancies among the external quotations are reviewed and adjustments to fair values are recorded where appropriate. Where the transaction volume of a specific instrument has been reduced and the fair value measurement becomes less transparent, Finance will apply more detailed procedures to understand and challenge the appropriateness of the unobservable inputs and the valuation techniques used by the independent pricing service. Where applicable, Finance will develop a fair value estimate using its own pricing model inputs to test reasonableness. Where fair value measurements are determined using internal valuation models, Finance will validate the fair value measurement by either developing unobservable inputs based on the industry consensus pricing surveys in which we participate or back testing by observing the actual settlements occurring soon after the measurement date. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Unless otherwise noted below, assets and liabilities in the following table are recorded at fair value through net income (loss). Fair Value Measurements on a Recurring Basis September 30, 2021 Level 1 Level 2 Level 3 Gross Netting (6) Net (in millions) Assets: Trading assets, excluding derivatives: U.S. Treasury, U.S. Government agencies and sponsored enterprises $ 2,352 $ 291 $ — $ 2,643 $ — $ 2,643 Debt securities issued by foreign entities 606 162 — 768 — 768 Equity securities 13,287 — — 13,287 — 13,287 Precious metals trading — 3,316 — 3,316 — 3,316 Derivatives: (1) Interest rate contracts 2 3,140 1 3,143 — 3,143 Foreign exchange contracts — 11,789 15 11,804 — 11,804 Equity contracts 1 2,056 298 2,355 — 2,355 Precious metals contracts 4 1,404 — 1,408 — 1,408 Credit contracts — 36 — 36 — 36 Other contracts (2) — — 5 5 — 5 Derivatives netting — — — — (16,749) (16,749) Total derivatives 7 18,425 319 18,751 (16,749) 2,002 Securities available-for-sale: (3) U.S. Treasury, U.S. Government agencies and sponsored enterprises 13,734 20,392 — 34,126 — 34,126 Asset-backed securities: Home equity — — 20 20 — 20 Other — — 101 101 — 101 Debt securities issued by foreign entities 2,073 187 — 2,260 — 2,260 Loans (4) — 27 — 27 — 27 Loans held for sale (4) — 63 — 63 — 63 Other assets: Mortgage servicing rights — — 14 14 — 14 Equity securities — 145 — 145 — 145 Equity securities measured at net asset value (5) — — — 144 — 144 Total assets $ 32,059 $ 43,008 $ 454 $ 75,665 $ (16,749) $ 58,916 Liabilities: Domestic deposits (4) $ — $ 2,454 $ 516 $ 2,970 $ — $ 2,970 Trading liabilities, excluding derivatives 947 90 — 1,037 — 1,037 Derivatives: (1) Interest rate contracts 2 2,994 1 2,997 — 2,997 Foreign exchange contracts 2 11,527 16 11,545 — 11,545 Equity contracts 4 636 184 824 — 824 Precious metals contracts 1 951 — 952 — 952 Credit contracts — 76 2 78 — 78 Other contracts (2) — — 44 44 — 44 Derivatives netting — — — — (14,690) (14,690) Total derivatives 9 16,184 247 16,440 (14,690) 1,750 Long-term debt (4) — 8,252 1,483 9,735 — 9,735 Total liabilities $ 956 $ 26,980 $ 2,246 $ 30,182 $ (14,690) $ 15,492 Fair Value Measurements on a Recurring Basis December 31, 2020 Level 1 Level 2 Level 3 Gross Netting (6) Net (in millions) Assets: Trading assets, excluding derivatives: U.S. Treasury, U.S. Government agencies and sponsored enterprises $ 5,145 $ 192 $ — $ 5,337 $ — $ 5,337 Asset-backed securities: Collateralized debt obligations — 63 — 63 — 63 Residential mortgages — — 15 15 — 15 Student loans — 65 — 65 — 65 Debt securities issued by foreign entities 7,953 18 — 7,971 — 7,971 Equity securities 6,043 — — 6,043 — 6,043 Precious metals trading — 4,989 — 4,989 — 4,989 Derivatives: (1) Interest rate contracts 15 6,637 35 6,687 — 6,687 Foreign exchange contracts — 18,452 15 18,467 — 18,467 Equity contracts — 5,051 565 5,616 — 5,616 Precious metals contracts — 1,323 — 1,323 — 1,323 Credit contracts — 298 69 367 — 367 Other contracts (2) — — 8 8 — 8 Derivatives netting — — — — (29,616) (29,616) Total derivatives 15 31,761 692 32,468 (29,616) 2,852 Securities available-for-sale: (3) U.S. Treasury, U.S. Government agencies and sponsored enterprises 22,880 12,528 — 35,408 — 35,408 Asset-backed securities: Home equity — — 27 27 — 27 Other — — 104 104 — 104 Debt securities issued by foreign entities 1,942 3,191 — 5,133 — 5,133 Loans (4) — 32 — 32 — 32 Loans held for sale (4) — 36 — 36 — 36 Other assets: Mortgage servicing rights — — 7 7 — 7 Equity securities — 149 — 149 — 149 Equity securities measured at net asset value (5) — — — 135 — 135 Total assets $ 43,978 $ 53,024 $ 845 $ 97,982 $ (29,616) $ 68,366 Liabilities: Domestic deposits (4) $ — $ 3,509 $ 646 $ 4,155 $ — $ 4,155 Trading liabilities, excluding derivatives 727 2,312 — 3,039 — 3,039 Derivatives: (1) Interest rate contracts 9 6,615 1 6,625 — 6,625 Foreign exchange contracts — 18,597 6 18,603 — 18,603 Equity contracts — 3,845 446 4,291 — 4,291 Precious metals contracts 28 1,550 — 1,578 — 1,578 Credit contracts — 291 6 297 — 297 Other contracts (2) — — 67 67 — 67 Derivatives netting — — — — (28,914) (28,914) Total derivatives 37 30,898 526 31,461 (28,914) 2,547 Long-term debt (4) — 10,277 448 10,725 — 10,725 Total liabilities $ 764 $ 46,996 $ 1,620 $ 49,380 $ (28,914) $ 20,466 (1) Includes trading derivative assets of $1,971 million and $2,801 million and trading derivative liabilities of $1,633 million and $2,358 million at September 30, 2021 and December 31, 2020, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives. See Note 10, "Derivative Financial Instruments," for additional information. Excluding changes in fair value of a derivative instrument associated with a qualifying cash flow hedge, which are recognized initially in other comprehensive income (loss), derivative assets and liabilities are recorded at fair value through net income (loss). (2) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. (3) Securities available-for-sale are recorded at fair value through other comprehensive income (loss). Changes in the allowance for credit losses on securities available-for-sale are recorded through net income (loss). (4) See Note 11, "Fair Value Option," for additional information. Excluding the fair value movement on fair value option liabilities attributable to our own credit spread, which is recorded in other comprehensive income (loss), fair value option assets and liabilities are recorded at fair value through net income (loss). (5) Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. (6) Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met. Information on Level 3 assets and liabilities The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three and nine months ended September 30, 2021 and 2020. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities. Jul. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Unrealized Gains Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Derivatives, net: (1) Interest rate contracts $ 8 $ (8) $ — $ — $ — $ — $ — $ — $ — $ — $ — Foreign exchange contracts (1) — — — — — — — (1) — — Equity contracts (13) (91) — — — 256 (38) — 114 (2) — Credit contracts 46 (49) — — — 1 — — (2) — — Other contracts (2) (48) 3 — — — 6 — — (39) — — Asset-backed securities available-for-sale (3) 126 — (2) — — (3) — — 121 — (2) Mortgage servicing rights (4) 12 1 — — 1 — — — 14 1 — Total assets $ 130 $ (144) $ (2) $ — $ 1 $ 260 $ (38) $ — $ 207 $ (1) $ (2) Liabilities: Domestic deposits (5) $ (593) $ 9 $ 1 $ — $ — $ 58 $ — $ 9 $ (516) $ 6 $ 1 Long-term debt (5) (919) 33 — — (660) 54 (9) 18 (1,483) 34 — Total liabilities $ (1,512) $ 42 $ 1 $ — $ (660) $ 112 $ (9) $ 27 $ (1,999) $ 40 $ 1 Jan. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Unrealized Gains Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 15 $ 9 $ — $ — $ — $ — $ — $ (24) $ — $ — $ — Derivatives, net: (1) Interest rate contracts 34 (34) — — — — — — — (5) — Foreign exchange contracts 9 (10) — — — — — — (1) (11) — Equity contracts 119 (230) — — — 283 (30) (28) 114 22 — Credit contracts 63 (65) — — — — — — (2) (2) — Other contracts (2) (59) — — — — 20 — — (39) — — Asset-backed securities available-for-sale (3) 131 — (3) — — (7) — — 121 — (3) Mortgage servicing rights (4) 7 — — — 7 — — — 14 — — Total assets $ 319 $ (330) $ (3) $ — $ 7 $ 296 $ (30) $ (52) $ 207 $ 4 $ (3) Liabilities: Domestic deposits (5) $ (646) $ 1 $ 2 $ — $ — $ 146 $ (109) $ 90 $ (516) $ 3 $ 2 Long-term debt (5) (448) 10 (1) — (1,201) 177 (45) 25 (1,483) 14 (1) Total liabilities $ (1,094) $ 11 $ 1 $ — $ (1,201) $ 323 $ (154) $ 115 $ (1,999) $ 17 $ 1 Jul. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 $ — $ — Corporate and other domestic debt securities 501 (4) — — — (497) — — — — — Derivatives, net: (1) Interest rate contracts 33 1 — — — — — — 34 1 — Foreign exchange contracts (2) — — — — — — — (2) — — Equity contracts 92 50 — — — (75) — (1) 66 44 — Credit contracts 62 (16) — — — 19 — — 65 (16) — Other contracts (2) (64) (2) — — — 7 — — (59) — — Asset-backed securities available-for-sale (3) 117 — (8) — — (2) 20 — 127 — (8) Mortgage servicing rights (4) 4 — — — 2 — — — 6 — — Total assets $ 758 $ 29 $ (8) $ — $ 2 $ (548) $ 20 $ (1) $ 252 $ 29 $ (8) Liabilities: Domestic deposits (5) $ (672) $ (10) $ (3) $ — $ — $ 27 $ — $ 8 $ (650) $ (8) $ (3) Long-term debt (5) (347) (21) — — (24) 18 (1) 3 (372) (17) — Total liabilities $ (1,019) $ (31) $ (3) $ — $ (24) $ 45 $ (1) $ 11 $ (1,022) $ (25) $ (3) Jan. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 17 $ (2) $ — $ — $ — $ — $ — $ — $ 15 $ (2) $ — Corporate and other domestic debt securities 510 (13) — — — (497) — — — — — Derivatives, net: (1) Interest rate contracts 10 24 — — — — — — 34 24 — Foreign exchange contracts (1) (1) — — — — — — (2) (1) — Equity contracts 72 62 — — — (69) — 1 66 76 — Credit contracts 59 10 — — — (4) — — 65 (5) — Other contracts (2) (75) (3) — — — 19 — — (59) — — Asset-backed securities available-for-sale (3) 111 — (10) — — (2) 28 — 127 — (10) Mortgage servicing rights (4) 4 (2) — — 4 — — — 6 (2) — Total assets $ 707 $ 75 $ (10) $ — $ 4 $ (553) $ 28 $ 1 $ 252 $ 90 $ (10) Liabilities: Domestic deposits (5) $ (774) $ 3 $ (1) $ — $ (43) $ 109 $ — $ 56 $ (650) $ (1) $ (1) Long-term debt (5) (354) 17 2 — (162) 107 (1) 19 (372) 5 2 Total liabilities $ (1,128) $ 20 $ 1 $ — $ (205) $ 216 $ (1) $ 75 $ (1,022) $ 4 $ 1 (1) Level 3 net derivatives included derivative assets of $319 million and derivative liabilities of $247 million at September 30, 2021 and derivative assets of $343 million and derivative liabilities of $239 million at September 30, 2020. Gains (losses) on derivatives, net are predominantly included in trading revenue (expense) and gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). (2) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Gains (losses) on these swap agreements are included in other income (loss) in the consolidated statement of income (loss). (3) Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income (loss). Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income (loss). Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss). (4) Gain (losses) on mortgage servicing rights are included in other income (loss) in the consolidated statement of income (loss). (5) Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option liabilities are included in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). (6) Gains (losses) on trading assets, excluding derivatives are included in trading revenue (expense) in the consolidated statement of income (loss). Significant Unobservable Inputs for Recurring Fair Value Measurements The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements at September 30, 2021 and December 31, 2020: September 30, 2021 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Interest rate derivative contracts $ — Market comparable adjusted for probability to fund and, where applicable, discounted cash flows or option pricing model Probability to fund for rate lock commitments 25% - 100% 81% Interest rate yield curve 8% N/A Foreign exchange derivative contracts (2) $ (1) Option pricing model Implied volatility of currency pairs 16% N/A Cross-currency basis (40)bps N/A Equity derivative contracts (2) $ 114 Option pricing model Equity / Equity Index volatility 8% - 69% 41% Equity / Equity and Equity / Index correlation 41% - 98% 72% Equity dividend yields and forward price (4)% - 1% 0% Credit derivative contracts $ (2) Option pricing model and, where applicable, discounted cash flows Credit default swap spreads 77bps - 294bps 196bps Other derivative contracts $ (39) Discounted cash flows Conversion rate 1.6 times N/A Expected duration 1.2 years N/A Asset-backed securities available-for-sale $ 121 Discounted cash flows Market assumptions related to yields for comparable instruments 3% - 4% 3% Mortgage servicing rights $ 14 Discounted cash flows Constant prepayment rates 10% - 18% 12% Discount rate 8% - 13% 8% Estimated annualized costs to service $72 - $93 per account $75 per account Domestic deposits (structured deposits) (2)(3) $ (516) Option adjusted discounted cash flows Equity / Equity Index volatility 8% - 22% 16% Equity / Equity and Equity / Index correlation 56% - 85% 57% Long-term debt (structured notes) (2)(3) $ (1,483) Option adjusted discounted cash flows Implied volatility of currency pairs 16% N/A Equity / Equity Index volatility 8% - 61% 25% Equity / Equity and Equity / Index correlation 41% - 98% 73% December 31, 2020 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Residential mortgage asset-backed securities $ 15 Broker quotes or consensus pricing and, where applicable, discounted cash flows Prepayment rates 10% N/A Conditional default rates 5% N/A Loss severity rates 65% N/A Discount margin 500bps N/A Interest rate derivative contracts $ 34 Market comparable adjusted for probability to fund and, where applicable, discounted cash flows or option pricing model Probability to fund for rate lock commitments 41% - 100% 78% Likelihood of transaction being executed 90% N/A Interest rate yield curve 4% - 7% 6% Foreign exchange derivative contracts (2) $ 9 Option pricing model Implied volatility of currency pairs 9% - 11% 10% Cross-currency basis (9)bps - 40bps 24bps Equity derivative contracts (2) $ 119 Option pricing model Equity / Equity Index volatility 0% - 67% 27% Equity / Equity and Equity / Index correlation 17% - 62% 30% Equity dividend yields and forward price (1)% - 0% 0% Credit derivative contracts $ 63 Option pricing model and, where applicable, discounted cash flows Credit default swap spreads 150bps N/A Other derivative contracts $ (59) Discounted cash flows Conversion rate 1.6 times N/A Expected duration 2 years N/A Asset-backed securities available-for-sale $ 131 Discounted cash flows Market assumptions related to yields for comparable instruments 4% N/A Mortgage servicing rights $ 7 Discounted cash flows Constant prepayment rates 17% - 26% 19% Discount rate 9% - 10% 9% Estimated annualized costs to service $73 - $157 per account $76 per account Domestic deposits (structured deposits) (2)(3) $ (646) Option adjusted discounted cash flows Implied volatility of currency pairs 9% - 11% 10% Equity / Equity Index volatility 0% - 42% 15% Equity / Equity and Equity / Index correlation 43% - 47% 45% Long-term debt (structured notes) (2)(3) $ (448) Option adjusted discounted cash flows Implied volatility of currency pairs 9% - 11% 10% Equity / Equity Index volatility 0% - 67% 23% Equity / Equity and Equity / Index correlation 32% - 62% 52% (1) For foreign exchange derivatives, equity derivatives, credit derivatives, structured deposits and structured notes, weighted averages are calculated based on the fair value of the instruments. For all remaining instrument types, weighted averages are calculated based on the notional value of the instruments. (2) We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table. (3) Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity and foreign exchange derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes. N/A Not Applicable Uncertainty of Level 3 Inputs to Fair Value Measurements Interest rate derivatives - For mortgage rate lock commitments, the fair value measurement is affected by the probability of executing and funding the mortgage. An increase (decrease) in the likelihood of a mortgage being executed would have resulted in a lower (higher) fair value measurement of the interest rate derivative. For certain other interest rate derivatives, the interest rates for longer dated tenors were not observable. An increase (decrease) in the interest rate would have resulted in a higher (lower) fair value measurement of the derivative depending on if we receive or pay the floating rate. Equity and foreign exchange derivatives - The fair value measurement of a structured equity or foreign exchange derivative is primarily affected by the implied volatility of the underlying equity price or exchange rate of the paired foreign currencies. The level of volatility is a function of the nature of the underlying risk, the level of strike price and the years to maturity of the option. Depending on the underlying risk and tenure, we determine the implied volatility based on observable input where information is available. However, substantially all of the implied volatilities are derived based on historical information and are not observable. A significant increase (decrease) in the implied volatility would have resulted in a higher (lower) fair value of a long position in the derivative contract. For a derivative referenced to a basket of variables such as equities or foreign currencies, the fair value measurement is also affected by the correlation of the referenced variables. Correlation measures the relative change in values among two or more variables (i.e., equity or foreign currency pair), which can be positively or negatively correlated. A majority of the correlations are not observable, but are derived based on historical data. A significant increase (decrease) in the correlation of the referenced variables would have resulted in a higher (lower) fair value of a long position in the derivative contract. For certain other foreign exchange derivatives, the cross-currency basis for longer dated tenors were not observable. An increase (decrease) in the cross-currency basis would have resulted in a higher (lower) fair value measurement of the derivative depending on if we receive or pay the floating rate plus the basis spread. Credit derivatives - The fair value measurement of certain credit derivatives is primarily affected by the credit spreads of credit default swap contracts. A significant increase (decrease) in the credit spreads would have resulted in a lower (higher) fair value measurement of the credit derivative. Other derivatives - The fair value of the swap agreements we entered into in conjunction with the sales of Visa Class B Shares is dependent upon the final resolution of the related litigation. Significant unobservable inputs used in the fair value measurement include estimated changes in the conversion rate of Visa Class B Shares into Visa Class A Shares and the expected timing of the final resolution. An increase (decrease) in the loss estimate or in the timing of the resolution of the related litigation would have resulted in a higher (lower) fair value measurement of the derivative. Asset-backed securities available-for-sale - The fair value measurement of certain asset-backed securities is primarily affected by estimated yields which are determined based on current market yields of comparable instruments adjusted for market liquidity. An increase (decrease) in the yields would have resulted in a lower (higher) fair value measurement of the securities. Mortgage servicing rights - The fair value measurement of mortgage servicing rights is primarily affected by the estimated prepayment rates of the mortgage loans and the discount rates. An increase (decrease) in either of these inputs would have resulted in a lower (higher) fair value measurement of the mortgage servicing rights. Significant Transfers Into and Out of Level 3 Measurements During the three and nine months ended September 30, 2021, we transferred $9 million and $90 million, respectively, of domestic deposits and $18 million and $25 million, respectively, of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer to maturity and there is more observability in short term volatility. During the second quarter of 2021, we also transferred $24 million of residential mortgage asset-backed securities and $27 million of equity derivatives from Level 3 to Level 2 as the inputs used to value these securities and derivative contracts have become more observable. During the three and nine months ended September 30, 2021, we transferred nil and $109 million, respectively, of domestic deposits and $9 million and $45 million, respectively, of long-term debt, which we elected to carry at fair value, from Level 2 to Level 3 as a result of a change in the observability of underlying inputs that resulted in the embedded derivative being unobservable. Additionally, during the third quarter of 2021, we transferred $38 million of equity derivatives from Level 2 to Level 3 as the inputs used to value these contracts have become less observable. During the three and nine months ended September 30, 2020, we transferred $8 million and $56 million, respectively, of domestic deposits and $3 million and $19 million, respectively, of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as |
Litigation and Regulatory Matte
Litigation and Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Matters | Litigation and Regulatory Matters The following supplements, and should be read together with, the disclosure in Note 29, "Litigation and Regulatory Matters," in our 2020 Form 10-K, in Note 20, "Litigation and Regulatory Matters," in our Form 10-Q for the three month period ended March 31, 2021 (the "2021 First Quarter Form 10-Q") and in Note 21, "Litigation and Regulatory Matters," in our Form 10-Q for the six month period ended June 30, 2021 (the "2021 Second Quarter Form 10-Q"). Only those matters with significant updates and new matters since our disclosure in our 2020 Form 10-K, our 2021 First Quarter Form 10-Q and our 2021 Second Quarter Form 10-Q are reported herein. In addition to the matters described below and in our 2020 Form 10-K, our 2021 First Quarter Form 10-Q and our 2021 Second Quarter Form 10-Q, in the ordinary course of business, we are routinely named as defendants in, or as parties to, various legal actions and proceedings relating to activities of our current and/or former operations. These legal actions and proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, we also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. In connection with formal and informal inquiries by these regulators, we receive numerous requests, subpoenas and orders seeking documents, testimony and other information in connection with various aspects of our regulated activities. Due to the inherent unpredictability of legal matters, including litigation, governmental and regulatory matters, particularly where the damages sought are substantial or indeterminate or when the proceedings or investigations are in the early stages, we cannot determine with any degree of certainty the timing or ultimate resolution of such matters or the eventual loss, fines, penalties or business impact, if any, that may result. We establish reserves for litigation, governmental and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. Once established, reserves are adjusted from time to time, as appropriate, in light of additional information. The actual costs of resolving litigation and regulatory matters, however, may be substantially higher than the amounts reserved for those matters. For the legal matters disclosed below, including litigation and governmental and regulatory matters, as well as for the legal matters disclosed in Note 29, "Litigation and Regulatory Matters," in our 2020 Form 10-K, in Note 20, "Litigation and Regulatory Matters," in our 2021 First Quarter Form 10-Q and in Note 21, "Litigation and Regulatory Matters," in our 2021 Second Quarter Form 10-Q, as to which a loss in excess of accrued liability is reasonably possible in future periods and for which there is sufficient currently available information on the basis of which management believes it can make a reliable estimate, we believe a reasonable estimate could be as much as $150 million for HUSI. The legal matters underlying this estimate of possible loss will change from time to time and actual results may differ significantly from this current estimate. In addition, based on the facts currently known for each of the ongoing investigations disclosed in Note 29, "Litigation and Regulatory Matters," in our 2020 Form 10-K, in Note 20, "Litigation and Regulatory Matters," in our 2021 First Quarter Form 10-Q and in Note 21, "Litigation and Regulatory Matters," in our 2021 Second Quarter Form 10-Q, it is not practicable at this time for us to determine the terms on which these ongoing investigations will be resolved or the timing of such resolution. As matters progress, it is possible that any fines and/or penalties could be significant. Given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could have a material adverse effect on our consolidated financial statements in any particular quarterly or annual period. Foreign Exchange ("FX") Matters Investigations In August 2021, the charges deferred by the Department of Justice's three-year deferred prosecution agreement with HSBC Holdings plc (the "FX DPA") were dismissed. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsThere have been no accounting pronouncements issued that are expected to have or could have a material impact on our consolidated financial statements. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | Fair Value Hierarchy The Fair Value Framework establishes a three-tiered fair value hierarchy as follows: Level 1 quoted market price - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 valuation technique using observable inputs - Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are inactive, and measurements determined using valuation models where all significant inputs are observable, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 valuation technique with significant unobservable inputs - Level 3 inputs are unobservable inputs for the asset or liability and include situations where fair values are measured using valuation techniques based on one or more significant unobservable inputs. Classification within the fair value hierarchy is based on whether the lowest hierarchical level input that is significant to the fair value measurement is observable. As such, the classification within the fair value hierarchy is dynamic and can be transferred to other hierarchy levels in each reporting period. Where fair value measurements are determined based on information obtained from independent pricing services or brokers, Finance applies appropriate validation procedures to substantiate fair value. For price validation purposes, quotations from at least two independent pricing sources are obtained for each financial instrument, where possible. The following factors are considered in determining fair values: • similarities between the asset or the liability under consideration and the asset or liability for which quotation is received; • collaboration of pricing by referencing to other independent market data such as market transactions and relevant benchmark indices; • consistency among different pricing sources; • the valuation approach and the methodologies used by the independent pricing sources in determining fair value; • the elapsed time between the date to which the market data relates and the measurement date; • the source of the fair value information; and • whether the security is traded in an active or inactive market. Greater weight is given to quotations of instruments with recent market transactions, pricing quotes from dealers who stand ready to transact, quotations provided by market-makers who structured such instrument and market consensus pricing based on inputs from a large number of survey participants. Any significant discrepancies among the external quotations are reviewed and adjustments to fair values are recorded where appropriate. Where the transaction volume of a specific instrument has been reduced and the fair value measurement becomes less transparent, Finance will apply more detailed procedures to understand and challenge the appropriateness of the unobservable inputs and the valuation techniques used by the independent pricing service. Where applicable, Finance will develop a fair value estimate using its own pricing model inputs to test reasonableness. Where fair value measurements are determined using internal valuation models, Finance will validate the fair value measurement by either developing unobservable inputs based on the industry consensus pricing surveys in which we participate or back testing by observing the actual settlements occurring soon after the measurement date. |
Strategic Initiatives (Tables)
Strategic Initiatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Expected Changes in Connection with Restructuring Plan | The following table presents a summary of the total pre-tax charges we expect to incur by reportable segment: Expected Charges in Connection Minimum Maximum (in millions) Wealth and Personal Banking $ 160 $ 180 Commercial Banking 25 35 Global Banking and Markets 115 130 Corporate Center (1) 600 655 Total $ 900 $ 1,000 (1) Includes restructuring charges primarily related to lease impairment and other related costs, support service project costs and severance costs associated with certain centralized activities and functions. |
Schedule of Changes in Restructuring Liability | The following table summarizes the changes in the liability associated with our Restructuring Plan during the three and nine months ended September 30, 2021 and 2020: Severance and Other Employee Costs (1) Lease Termination and Associated Costs (2) Other (3) Total (in millions) Three Months Ended September 30, 2021 Restructuring liability at beginning of period $ 6 $ 46 $ — $ 52 Restructuring costs accrued during the period 3 2 3 8 Restructuring costs paid during the period (2) (2) (3) (7) Restructuring liability at end of period $ 7 $ 46 $ — $ 53 Three Months Ended September 30, 2020 Restructuring liability at beginning of period $ 22 $ 23 $ — $ 45 Restructuring costs accrued during the period 13 4 — 17 Restructuring costs paid during the period (12) (3) — (15) Restructuring liability at end of period $ 23 $ 24 $ — $ 47 Nine Months Ended September 30, 2021 Restructuring liability at beginning of period $ 10 $ 23 $ — $ 33 Restructuring costs accrued during the period 8 32 9 49 Restructuring costs paid during the period (11) (9) (9) (29) Restructuring liability at end of period $ 7 $ 46 $ — $ 53 Nine Months Ended September 30, 2020 Restructuring liability at beginning of period $ — $ — $ — $ — Restructuring costs accrued during the period 35 28 — 63 Restructuring costs paid during the period (12) (4) — (16) Restructuring liability at end of period $ 23 $ 24 $ — $ 47 (1) Severance and other employee costs are included in salaries and employee benefits in the consolidated statement of income (loss). The majority of these costs were reported in the Wealth and Personal Banking and the Global Banking and Markets business segments. Not included in these costs are allocated severance costs from HSBC Technology & Services ("HTSU") discussed further below. (2) Primarily includes real estate taxes, service charges and decommissioning costs. Lease termination and associated costs are included in occupancy expense, net in the consolidated statement of income (loss) and were reported in the Wealth and Personal Banking and the Corporate Center business segments. (3) Primarily includes professional fees and other staff costs, which are included in other expenses in the consolidated statement of income (loss). |
Branch Assets and Liabilities_2
Branch Assets and Liabilities Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Classified as Held for Sale | The following table summarizes the assets and liabilities in the disposal group classified as held for sale at September 30, 2021 in our consolidated balance sheet: September 30, 2021 (in millions) Loans held for sale (1) $ 2,610 Other branch related assets held for sale: Lease ROU assets (2) 149 Properties and equipment, net 40 Cash and other assets 55 Total other branch related assets held for sale 244 Total branch assets held for sale (3) $ 2,854 Deposits held for sale $ 9,321 Other branch related liabilities held for sale: Lease liabilities (2) 151 Other liabilities 9 Total other branch related liabilities held for sale 160 Total branch liabilities held for sale (3) $ 9,481 (1) Includes $99 million of commercial loans, $1,952 million of residential mortgage loans, $235 million of home equity mortgage loans, $182 million of credit card loans and $142 million of other consumer loans. (2) At September 30, 2021, our lease ROU assets and lease liabilities, excluding the amounts transferred to held for sale, totaled $225 million and $325 million, respectively. (3) The sale of this disposal group is expected to result in a net cash payment as the liabilities being assumed are greater than the assets being purchased. |
Trading Assets and Liabilities
Trading Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Trading Assets And Liabilities [Abstract] | |
Trading Assets and Liabilities | Trading assets and liabilities consisted of the following: September 30, 2021 December 31, 2020 (in millions) Trading assets: U.S. Treasury $ 2,352 $ 5,145 U.S. Government agency issued or guaranteed 45 — U.S. Government sponsored enterprises 246 192 Asset-backed securities — 143 Foreign bonds 768 7,971 Equity securities 13,287 6,043 Precious metals 3,316 4,989 Derivatives, net 1,971 2,801 Total trading assets $ 21,985 $ 27,284 Trading liabilities: Securities sold, not yet purchased $ 947 $ 727 Payables for precious metals 90 2,312 Derivatives, net 1,633 2,358 Total trading liabilities $ 2,670 $ 5,397 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of the Securities Available-for-Sale and Held-to-Maturity | Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following: September 30, 2021 Amortized Allowance for Credit Losses Unrealized Unrealized Fair (in millions) Securities available-for-sale: U.S. Treasury $ 12,510 $ — $ 216 $ (90) $ 12,636 U.S. Government sponsored enterprises: Mortgage-backed securities 7,735 — 154 (94) 7,795 Collateralized mortgage obligations 1,831 — 9 (37) 1,803 Direct agency obligations 1,449 — 19 — 1,468 U.S. Government agency issued or guaranteed: Mortgage-backed securities 7,172 — 30 (41) 7,161 Collateralized mortgage obligations 2,989 — 11 (24) 2,976 Direct agency obligations 280 — 7 — 287 Asset-backed securities collateralized by: Home equity 21 (1) — — 20 Other 108 — — (7) 101 Foreign debt securities (1) 2,257 — 3 — 2,260 Total available-for-sale securities $ 36,352 $ (1) $ 449 $ (293) $ 36,507 Securities held-to-maturity: U.S. Government sponsored enterprises: Mortgage-backed securities $ 735 $ — $ 30 $ — $ 765 Collateralized mortgage obligations 550 — 35 — 585 U.S. Government agency issued or guaranteed: Mortgage-backed securities 1,250 — 39 — 1,289 Collateralized mortgage obligations 3,322 — 126 — 3,448 Obligations of U.S. states and political subdivisions 9 — — — 9 Asset-backed securities collateralized by residential mortgages 1 (1) 1 — 1 Total held-to-maturity securities $ 5,867 $ (1) $ 231 $ — $ 6,097 December 31, 2020 Amortized Allowance for Credit Losses Unrealized Unrealized Fair (in millions) Securities available-for-sale: U.S. Treasury $ 16,087 $ — $ 608 $ (47) $ 16,648 U.S. Government sponsored enterprises: Mortgage-backed securities 5,986 — 280 (2) 6,264 Collateralized mortgage obligations 1,676 — 19 (2) 1,693 Direct agency obligations 1,236 — 17 — 1,253 U.S. Government agency issued or guaranteed: Mortgage-backed securities 6,993 — 152 — 7,145 Collateralized mortgage obligations 2,093 — 22 (11) 2,104 Direct agency obligations 296 — 5 — 301 Asset-backed securities collateralized by: Home equity 28 (1) — — 27 Other 114 — — (10) 104 Foreign debt securities (1) 5,127 — 6 — 5,133 Total available-for-sale securities $ 39,636 $ (1) $ 1,109 $ (72) $ 40,672 Securities held-to-maturity: U.S. Government sponsored enterprises: Mortgage-backed securities $ 1,137 $ — $ 44 $ — $ 1,181 Collateralized mortgage obligations 780 — 53 — 833 U.S. Government agency issued or guaranteed: Mortgage-backed securities 1,947 — 76 — 2,023 Collateralized mortgage obligations 5,107 — 212 — 5,319 Obligations of U.S. states and political subdivisions 10 — 1 — 11 Asset-backed securities collateralized by residential mortgages 2 (2) 2 — 2 Total held-to-maturity securities $ 8,983 $ (2) $ 388 $ — $ 9,369 (1) Foreign debt securities represent public sector entity, bank or corporate debt. |
Gross Unrealized Losses and Related Fair Value | The following table summarizes gross unrealized losses and related fair values for securities available-for-sale by major security type at September 30, 2021 and December 31, 2020 classified as to the length of time the losses have existed: One Year or Less Greater Than One Year Number Gross Aggregate Number Gross Aggregate (dollars are in millions) At September 30, 2021 U.S. Treasury 17 $ (48) $ 2,416 9 $ (42) $ 752 U.S. Government sponsored enterprises 60 (127) 5,879 11 (4) 185 U.S. Government agency issued or guaranteed 38 (56) 7,274 11 (9) 495 Asset-backed securities — — — 5 (7) 101 Foreign debt securities 5 — 508 1 — 25 Securities available-for-sale 120 $ (231) $ 16,077 37 $ (62) $ 1,558 At December 31, 2020 U.S. Treasury 5 $ (5) $ 751 13 $ (42) $ 1,271 U.S. Government sponsored enterprises 15 (3) 715 8 (1) 46 U.S. Government agency issued or guaranteed 13 (11) 1,482 3 — 8 Asset-backed securities 3 (10) 104 2 — — Foreign debt securities 6 — 766 5 — 241 Securities available-for-sale 42 $ (29) $ 3,818 31 $ (43) $ 1,566 |
Realized Gains and Losses on Investment Securities Transactions Attributable to Available-for-Sale Securities | The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Gross realized gains $ 21 $ 53 $ 109 $ 140 Gross realized losses (17) (1) (58) (29) Net realized gains $ 4 $ 52 $ 51 $ 111 |
Distribution of Maturities of Debt Securities with the Approximate Yield of the Portfolio | The table below also reflects the distribution of maturities of debt securities held at September 30, 2021, together with the approximate yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at September 30, 2021. Within After One After Five After Ten Amount Yield Amount Yield Amount Yield Amount Yield (dollars are in millions) Available-for-sale: U.S. Treasury $ 772 4.07 % $ 3,910 .95 % $ 3,666 1.36 % $ 4,162 1.93 % U.S. Government sponsored enterprises 31 2.75 1,316 1.78 2,194 2.35 7,474 1.64 U.S. Government agency issued or guaranteed 71 .24 23 1.25 1 6.13 10,346 1.75 Asset-backed securities — — — — 58 5.13 71 3.52 Foreign debt securities 1,104 .43 1,153 .57 — — — — Total amortized cost $ 1,978 1.88 % $ 6,402 1.05 % $ 5,919 1.77 % $ 22,053 1.75 % Total fair value $ 1,981 $ 6,513 $ 6,052 $ 21,961 Held-to-maturity: U.S. Government sponsored enterprises $ — — % $ 184 2.65 % $ 327 2.26 % $ 774 3.30 % U.S. Government agency issued or guaranteed 3 3.83 — — 8 5.14 4,561 2.56 Obligations of U.S. states and political subdivisions 3 3.43 4 3.00 2 4.25 — — Asset-backed securities — — — — — — 1 7.53 Total amortized cost $ 6 3.78 % $ 188 2.66 % $ 337 2.34 % $ 5,336 2.67 % Total fair value $ 6 $ 192 $ 350 $ 5,549 |
Equity Securities Not Classified as Trading | Equity securities that are not classified as trading and are included in other assets consisted of the following: September 30, 2021 December 31, 2020 (in millions) Equity securities carried at fair value $ 289 $ 284 Equity securities without readily determinable fair values 16 14 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Components of Loans | Loans consisted of the following: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Real estate, including construction $ 8,250 $ 10,464 Business and corporate banking (1) 12,788 13,479 Global banking (2) 11,440 13,519 Other commercial: Affiliates (3) 2,857 1,100 Other 3,579 3,037 Total other commercial 6,436 4,137 Total commercial 38,914 41,599 Consumer loans: Residential mortgages 16,093 18,377 Home equity mortgages 369 727 Credit cards — 1,066 Other consumer (4) 150 319 Total consumer (5) 16,612 20,489 Total loans $ 55,526 $ 62,088 (1) Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. (2) 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. (3) See Note 15, "Related Party Transactions," for additional information regarding loans to HSBC affiliates. (4) Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. (5) The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. 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, 2021 and December 31, 2020. 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. For COVID-19 related loan modifications in the form of a payment deferral, the borrower’s past due status will not be affected during the deferral period. Past Due Total Past Due 30 Days or More 30 - 89 Days 90+ Days Current (1) Total Loans (in millions) At September 30, 2021 Commercial loans: Real estate, including construction $ 56 $ 5 $ 61 $ 8,189 $ 8,250 Business and corporate banking 124 1 125 12,663 12,788 Global banking — 23 23 11,417 11,440 Other commercial 16 — 16 6,420 6,436 Total commercial 196 29 225 38,689 38,914 Consumer loans: Residential mortgages 203 264 467 15,626 16,093 Home equity mortgages 5 19 24 345 369 Credit cards — — — — — Other consumer 3 3 6 144 150 Total consumer (2) 211 286 497 16,115 16,612 Total loans $ 407 $ 315 $ 722 $ 54,804 $ 55,526 At December 31, 2020 Commercial loans: Real estate, including construction $ 78 $ — $ 78 $ 10,386 $ 10,464 Business and corporate banking 126 19 145 13,334 13,479 Global banking — 60 60 13,459 13,519 Other commercial 24 — 24 4,113 4,137 Total commercial 228 79 307 41,292 41,599 Consumer loans: Residential mortgages 435 311 746 17,631 18,377 Home equity mortgages 11 22 33 694 727 Credit cards 23 19 42 1,024 1,066 Other consumer 7 6 13 306 319 Total consumer 476 358 834 19,655 20,489 Total loans $ 704 $ 437 $ 1,141 $ 60,947 $ 62,088 (1) Loans less than 30 days past due are presented as current. (2) The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. |
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 Loans Accruing Loans Contractually Past Due 90 Days or More Nonaccrual Loans With No Allowance For Credit Losses (in millions) At September 30, 2021 Commercial: Real estate, including construction $ 128 $ — $ 35 Business and corporate banking 139 1 73 Global banking 132 — 90 Total commercial 399 1 198 Consumer: Residential mortgages (1)(2)(3) 785 — 214 Home equity mortgages (1)(2) 47 — 26 Credit cards — — — Other consumer — — — Total consumer (4) 832 — 240 Total nonperforming loans $ 1,231 $ 1 $ 438 At December 31, 2020 Commercial: Real estate, including construction $ 44 $ — $ 31 Business and corporate banking 163 — 1 Global banking 337 — 93 Total commercial 544 — 125 Consumer: Residential mortgages (1)(2)(3) 1,079 — 241 Home equity mortgages (1)(2) 63 — 34 Credit cards — 19 — Other consumer — 2 — Total consumer 1,142 21 275 Total nonperforming loans $ 1,686 $ 21 $ 400 (1) At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans include $323 million and $375 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. At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans also included $367 million and $590 million, respectively, of loans under COVID-19 related payment deferral programs where the borrowers utilized a payment deferral of more than six months and, as a result, have been placed on nonaccrual status. (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) The decrease in nonperforming loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $206 million of nonperforming consumer loans, of which $21 million were accruing loans contractually 90 days or more past due. |
Schedule of Additional Information on Nonaccrual Loans | The following table provides additional information on our nonaccrual loans: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period $ 11 $ 10 $ 44 $ 29 Interest income that was recorded on nonaccrual loans and included in interest income during the period 6 2 31 8 |
Summary of TDR Loans | The following table summarizes our TDR Loans at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Business and corporate banking $ 40 $ 94 Global banking 37 74 Total commercial (1)(2) 77 168 Consumer loans: Residential mortgages (3)(4) 384 582 Home equity mortgages (3)(4) 17 31 Credit cards — 5 Total consumer (5) 401 618 Total TDR Loans (6) $ 478 $ 786 (1) Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million and $107 million at September 30, 2021 and December 31, 2020, respectively. (2) Not included in the table at September 30, 2021 and December 31, 2020 are $352 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election. (3) At September 30, 2021 and December 31, 2020, the carrying value of consumer mortgage TDR Loans includes $339 million and $487 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell. (4) Not included in the table at September 30, 2021 and December 31, 2020 are $404 million and $736 million, respectively, of consumer mortgage loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months that were exempted from TDR assessment due to our CARES Act election. (5) The decrease in TDR Loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $159 million of consumer TDR Loans. (6) At September 30, 2021 and December 31, 2020, the carrying value of TDR Loans includes $317 million and $463 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, 2021 and 2020 and as a result of this action became classified as TDR Loans: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Commercial loans: Business and corporate banking $ — $ 41 $ 26 $ 45 Global banking — — 15 44 Total commercial — 41 41 89 Consumer loans: Residential mortgages 1 20 33 27 Home equity mortgages — — 1 2 Credit cards — 1 1 3 Total consumer 1 21 35 32 Total $ 1 $ 62 $ 76 $ 121 |
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, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Consumer loans: Residential mortgages $ 1 $ 2 $ 4 $ 3 Total consumer $ 1 $ 2 $ 4 $ 3 |
Commercial Loans [Member] | |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Special mention $ — $ — $ 352 $ 361 $ 110 $ 225 $ — $ — $ 1,048 Substandard — — 706 312 357 552 21 11 1,959 Doubtful — — 81 2 11 — — 94 Total real estate, including construction — — 1,139 675 467 788 21 11 3,101 Business and corporate banking: Special mention — 1 94 64 28 206 226 10 629 Substandard — 19 40 9 3 250 459 8 788 Doubtful — — — 20 — 30 16 — 66 Total business and corporate banking — 20 134 93 31 486 701 18 1,483 Global banking: Special mention 8 39 — — — 39 54 — 140 Substandard 19 — — — — 106 266 — 391 Doubtful — — — — — — 31 — 31 Total global banking 27 39 — — — 145 351 — 562 Other commercial: Special mention — — — — — 8 — — 8 Substandard — — — — — 70 40 — 110 Doubtful — — — — — — — — — Total other commercial — — — — — 78 40 — 118 Total commercial: Special mention 8 40 446 425 138 478 280 10 1,825 Substandard 19 19 746 321 360 978 786 19 3,248 Doubtful — — 81 22 — 41 47 — 191 Total commercial $ 27 $ 59 $ 1,273 $ 768 $ 498 $ 1,497 $ 1,113 $ 29 $ 5,264 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Special mention $ — $ 306 $ 115 $ 171 $ 85 $ 437 $ — $ — $ 1,114 Substandard — 186 — 169 — 86 — — 441 Doubtful — — — — — — — — — Total real estate, including construction — 492 115 340 85 523 — — 1,555 Business and corporate banking: Special mention 17 71 43 32 10 390 600 48 1,211 Substandard 1 44 25 23 31 181 435 1 741 Doubtful — — — — — 41 57 — 98 Total business and corporate banking 18 115 68 55 41 612 1,092 49 2,050 Global banking: Special mention — — — — — 142 98 — 240 Substandard — — 48 — — 131 477 — 656 Doubtful — — — — — 82 160 — 242 Total global banking — — 48 — — 355 735 — 1,138 Other commercial: Special mention — — — — — 44 40 — 84 Substandard — — — — — 70 — — 70 Doubtful — — — — — — — — — Total other commercial — — — — — 114 40 — 154 Total commercial: Special mention 17 377 158 203 95 1,013 738 48 2,649 Substandard 1 230 73 192 31 468 912 1 1,908 Doubtful — — — — — 123 217 — 340 Total commercial $ 18 $ 607 $ 231 $ 395 $ 126 $ 1,604 $ 1,867 $ 49 $ 4,897 |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Performing loans $ 7 $ 635 $ 2,999 $ 2,217 $ 783 $ 1,416 $ 49 $ 16 $ 8,122 Nonaccrual loans — — 81 26 — 21 — — 128 Accruing loans contractually past due 90 days or more — — — — — — — — — Total real estate, including construction 7 635 3,080 2,243 783 1,437 49 16 8,250 Business and corporate banking: Performing loans 304 647 527 210 217 4,842 5,645 256 12,648 Nonaccrual loans — 4 14 30 54 1 36 — 139 Accruing loans contractually past due 90 days or more — — — — — — 1 — 1 Total business and corporate banking 304 651 541 240 271 4,843 5,682 256 12,788 Global banking: Performing loans 403 674 327 217 234 4,630 4,823 — 11,308 Nonaccrual loans — — — — — 42 90 — 132 Accruing loans contractually past due 90 days or more — — — — — — — — — Total global banking 403 674 327 217 234 4,672 4,913 — 11,440 Other commercial: Performing loans 214 450 420 205 100 1,141 3,906 — 6,436 Nonaccrual loans — — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — — Total other commercial 214 450 420 205 100 1,141 3,906 — 6,436 Total commercial: Performing loans 928 2,406 4,273 2,849 1,334 12,029 14,423 272 38,514 Nonaccrual loans — 4 95 56 54 64 126 — 399 Accruing loans contractually past due 90 days or more — — — — — — 1 — 1 Total commercial $ 928 $ 2,410 $ 4,368 $ 2,905 $ 1,388 $ 12,093 $ 14,550 $ 272 $ 38,914 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Performing loans $ 545 $ 3,775 $ 2,775 $ 1,368 $ 264 $ 1,594 $ 79 $ 20 $ 10,420 Nonaccrual loans — — 24 — — 20 — — 44 Accruing loans contractually past due 90 days or more — — — — — — — — — Total real estate, including construction 545 3,775 2,799 1,368 264 1,614 79 20 10,464 Business and corporate banking: Performing loans 1,079 606 253 275 151 3,485 7,145 322 13,316 Nonaccrual loans 1 15 12 60 1 3 71 — 163 Accruing loans contractually past due 90 days or more — — — — — — — — — Total business and corporate banking 1,080 621 265 335 152 3,488 7,216 322 13,479 Global banking: Performing loans 507 495 190 231 104 6,023 5,632 — 13,182 Nonaccrual loans — — — — — 127 210 — 337 Accruing loans contractually past due 90 days or more — — — — — — — — — Total global banking 507 495 190 231 104 6,150 5,842 — 13,519 Other commercial: Performing loans 378 431 215 105 119 630 2,259 — 4,137 Nonaccrual loans — — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — — Total other commercial 378 431 215 105 119 630 2,259 — 4,137 Total commercial: Performing loans 2,509 5,307 3,433 1,979 638 11,732 15,115 342 41,055 Nonaccrual loans 1 15 36 60 1 150 281 — 544 Accruing loans contractually past due 90 days or more — — — — — — — — — Total commercial $ 2,510 $ 5,322 $ 3,469 $ 2,039 $ 639 $ 11,882 $ 15,396 $ 342 $ 41,599 |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Revolving Loans Converted to Term Loans Total at Sep. 30, 2021 (in millions) Real estate, including construction: Investment grade $ 6 $ 318 $ 563 $ 809 $ 129 $ 238 $ 15 $ — $ 2,078 Non-investment grade 1 317 2,517 1,434 654 1,199 34 16 6,172 Total real estate, including construction 7 635 3,080 2,243 783 1,437 49 16 8,250 Business and corporate banking: Investment grade 31 263 196 42 23 2,308 2,524 69 5,456 Non-investment grade 273 388 345 198 248 2,535 3,158 187 7,332 Total business and corporate banking 304 651 541 240 271 4,843 5,682 256 12,788 Global banking: Investment grade 331 666 298 202 234 3,683 4,112 — 9,526 Non-investment grade 72 8 29 15 — 989 801 — 1,914 Total global banking 403 674 327 217 234 4,672 4,913 — 11,440 Other commercial: Investment grade 43 368 178 204 76 805 3,739 — 5,413 Non-investment grade 171 82 242 1 24 336 167 — 1,023 Total other commercial 214 450 420 205 100 1,141 3,906 — 6,436 Total commercial: Investment grade 411 1,615 1,235 1,257 462 7,034 10,390 69 22,473 Non-investment grade 517 795 3,133 1,648 926 5,059 4,160 203 16,441 Total commercial $ 928 $ 2,410 $ 4,368 $ 2,905 $ 1,388 $ 12,093 $ 14,550 $ 272 $ 38,914 2020 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total at Dec. 31, 2020 (in millions) Real estate, including construction: Investment grade $ 339 $ 1,123 $ 817 $ 318 $ 179 $ 640 $ 6 $ — $ 3,422 Non-investment grade 206 2,652 1,982 1,050 85 974 73 20 7,042 Total real estate, including construction 545 3,775 2,799 1,368 264 1,614 79 20 10,464 Business and corporate banking: Investment grade 342 147 37 34 23 1,486 2,499 47 4,615 Non-investment grade 738 474 228 301 129 2,002 4,717 275 8,864 Total business and corporate banking 1,080 621 265 335 152 3,488 7,216 322 13,479 Global banking: Investment grade 464 477 46 231 30 4,618 4,281 — 10,147 Non-investment grade 43 18 144 — 74 1,532 1,561 — 3,372 Total global banking 507 495 190 231 104 6,150 5,842 — 13,519 Other commercial: Investment grade 372 163 117 105 116 525 1,932 — 3,330 Non-investment grade 6 268 98 — 3 105 327 — 807 Total other commercial 378 431 215 105 119 630 2,259 — 4,137 Total commercial: Investment grade 1,517 1,910 1,017 688 348 7,269 8,718 47 21,514 Non-investment grade 993 3,412 2,452 1,351 291 4,613 6,678 295 20,085 Total commercial $ 2,510 $ 5,322 $ 3,469 $ 2,039 $ 639 $ 11,882 $ 15,396 $ 342 $ 41,599 |
Consumer Loans [Member] | |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages $ — $ 1 $ 3 $ 6 $ 1 $ 373 $ — $ 384 Home equity mortgages — — — — — 17 — 17 Credit cards — — — — — — — — Total consumer $ — $ 1 $ 3 $ 6 $ 1 $ 390 $ — $ 401 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential mortgages $ 3 $ 5 $ 6 $ 3 $ 2 $ 563 $ — $ 582 Home equity mortgages — — — — — 31 — 31 Credit cards — — — — — — 5 5 Total consumer $ 3 $ 5 $ 6 $ 3 $ 2 $ 594 $ 5 $ 618 |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages: Performing loans $ 3,574 $ 3,527 $ 1,677 $ 885 $ 1,016 $ 4,629 $ — $ 15,308 Nonaccrual loans 6 39 74 66 60 540 — 785 Total residential mortgages 3,580 3,566 1,751 951 1,076 5,169 — 16,093 Home equity mortgages: Performing loans 12 34 28 19 19 210 — 322 Nonaccrual loans — — 1 — — 46 — 47 Total home equity mortgages 12 34 29 19 19 256 — 369 Credit cards: Performing loans — — — — — — — — Accruing loans contractually past due 90 days or more — — — — — — — — Total credit cards — — — — — — — — Other consumer: Performing loans 6 13 5 1 1 122 2 150 Accruing loans contractually past due 90 days or more — — — — — — — — Total other consumer 6 13 5 1 1 122 2 150 Total consumer: Performing loans 3,592 3,574 1,710 905 1,036 4,961 2 15,780 Nonaccrual loans 6 39 75 66 60 586 — 832 Accruing loans contractually past due 90 days or more — — — — — — — — Total consumer $ 3,598 $ 3,613 $ 1,785 $ 971 $ 1,096 $ 5,547 $ 2 $ 16,612 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential mortgages: Performing loans $ 4,491 $ 2,369 $ 1,338 $ 1,572 $ 1,852 $ 5,676 $ — $ 17,298 Nonaccrual loans 38 107 93 86 78 677 — 1,079 Total residential mortgages 4,529 2,476 1,431 1,658 1,930 6,353 — 18,377 Home equity mortgages: Performing loans 50 51 33 34 45 451 — 664 Nonaccrual loans — — 1 1 2 59 — 63 Total home equity mortgages 50 51 34 35 47 510 — 727 Credit cards: Performing loans — — — — — — 1,047 1,047 Accruing loans contractually past due 90 days or more — — — — — — 19 19 Total credit cards — — — — — — 1,066 1,066 Other consumer: Performing loans 87 39 — 1 8 128 54 317 Accruing loans contractually past due 90 days or more — — — — — — 2 2 Total other consumer 87 39 — 1 8 128 56 319 Total consumer: Performing loans 4,628 2,459 1,371 1,607 1,905 6,255 1,101 19,326 Nonaccrual loans 38 107 94 87 80 736 — 1,142 Accruing loans contractually past due 90 days or more — — — — — — 21 21 Total consumer $ 4,666 $ 2,566 $ 1,465 $ 1,694 $ 1,985 $ 6,991 $ 1,122 $ 20,489 |
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, 2021 and December 31, 2020: 2021 2020 2019 2018 2017 Prior Revolving Total at Sep. 30, 2021 (in millions) Residential mortgages (1)(2) $ — $ 4 $ 12 $ 7 $ 19 $ 268 $ — $ 310 Home equity mortgages (1)(2) — — — — — 20 — 20 Credit cards — — — — — — — — Other consumer — — — — — 4 — 4 Total consumer $ — $ 4 $ 12 $ 7 $ 19 $ 292 $ — $ 334 2020 2019 2018 2017 2016 Prior Revolving Total at Dec. 31, 2020 (in millions) Residential mortgages (1)(2) $ 3 $ 15 $ 13 $ 25 $ 19 $ 329 $ — $ 404 Home equity mortgages (1)(2) — — — — — 25 — 25 Credit cards — — — — — — 28 28 Other consumer 1 1 — — — 4 2 8 Total consumer $ 4 $ 16 $ 13 $ 25 $ 19 $ 358 $ 30 $ 465 (1) At September 30, 2021 and December 31, 2020, consumer mortgage loan delinquency includes $252 million and $281 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, 2021 and December 31, 2020, consumer mortgage loans include $91 million and $109 million, respectively, of loans that were in the process of foreclosure. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Weighted Average of Forecasted Key Macroeconomic Variables Used in Estimating Lifetime ECL | The following table presents the forecasted key macroeconomic variables in our Central scenarios used for estimating lifetime ECL at September 30, 2021, June 30, 2021 and December 31, 2020: For the Quarter Ended December 31, 2021 June 30, 2022 December 31, 2022 Unemployment rate (quarterly average): Forecast at September 30, 2021 4.7 % 4.3 % 4.2 % Forecast at June 30, 2021 4.8 4.4 4.1 Forecast at December 31, 2020 6.2 5.9 5.4 GDP growth rate (year-over-year): Forecast at September 30, 2021 6.8 4.9 2.3 Forecast at June 30, 2021 6.3 4.7 2.3 Forecast at December 31, 2020 5.3 3.1 1.8 |
Summary of Allowance for Credit Losses and Liability for Off-balance Sheet Credit Exposures | The following table summarizes our allowance for credit losses and the liability for off-balance sheet credit exposures: September 30, 2021 December 31, 2020 (in millions) Allowance for credit losses: Loans $ 475 $ 1,015 Securities held-to-maturity (1) 1 2 Other financial assets measured at amortized cost (2) 2 2 Securities available-for-sale (1) 1 1 Total allowance for credit losses $ 479 $ 1,020 Liability for off-balance sheet credit exposures $ 110 $ 237 (1) See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. (2) Primarily includes accrued interest receivables and customer acceptances. |
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 on loans by product or line of business during the three and nine months ended September 30, 2021 and 2020: Commercial Loans Consumer Loans Real Estate, including Construction Business Global Other Residential Home Credit Other Total Loans (in millions) Three Months Ended September 30, 2021 Allowance for credit losses – beginning of period $ 117 $ 284 $ 131 $ 6 $ (6) $ 15 $ — $ — $ 547 Provision charged (credited) to income (1) (2) (38) (9) (2) (9) (2) (1) (1) (64) Charge-offs (1) — (13) — — — (3) — — (16) Recoveries — 1 — — 4 1 1 1 8 Net (charge-offs) recoveries — (12) — — 4 (2) 1 1 (8) Allowance for credit losses – end of period $ 115 $ 234 $ 122 $ 4 $ (11) $ 11 $ — $ — $ 475 Three Months Ended September 30, 2020 Allowance for credit losses – beginning of period $ 120 $ 434 $ 424 $ 5 $ (19) $ 16 $ 190 $ 22 $ 1,192 Provision charged (credited) to income 43 (36) (103) 3 12 (1) (2) 9 (75) Charge-offs (12) (2) (1) — (1) (1) (23) (4) (44) Recoveries — 5 — — 3 1 2 — 11 Net (charge-offs) recoveries (12) 3 (1) — 2 — (21) (4) (33) Allowance for credit losses – end of period $ 151 $ 401 $ 320 $ 8 $ (5) $ 15 $ 167 $ 27 $ 1,084 Nine Months Ended September 30, 2021 Allowance for credit losses – beginning of period $ 145 $ 375 $ 287 $ 7 $ (9) $ 22 $ 161 $ 27 $ 1,015 Provision charged (credited) to income (1) (30) (115) (153) (3) (3) (10) (78) (18) (410) Charge-offs (1) — (29) (12) — (10) (5) (88) (11) (155) Recoveries — 3 — — 11 4 5 2 25 Net (charge-offs) recoveries — (26) (12) — 1 (1) (83) (9) (130) Allowance for credit losses – end of period $ 115 $ 234 $ 122 $ 4 $ (11) $ 11 $ — $ — $ 475 Nine Months Ended September 30, 2020 Allowance for credit losses – beginning of period $ 153 $ 239 $ 106 $ 9 $ 12 $ 6 $ 105 $ 7 $ 637 Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses (2) (112) (60) 51 (5) (86) 7 32 3 (170) Allowance for credit losses – beginning of period, adjusted 41 179 157 4 (74) 13 137 10 467 Provision charged (credited) to income 122 283 183 3 62 1 96 24 774 Charge-offs (12) (69) (20) — (1) (3) (71) (8) (184) Recoveries — 8 — 1 8 4 5 1 27 Net (charge-offs) recoveries (12) (61) (20) 1 7 1 (66) (7) (157) Allowance for credit losses – end of period $ 151 $ 401 $ 320 $ 8 $ (5) $ 15 $ 167 $ 27 $ 1,084 (1) For loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer are recognized as a charge-off to the extent fair value is less than amortized cost and attributable to credit. Any remaining allowance for credit losses is released as a reduction to the provision for credit losses. During the third quarter of 2021, we transferred certain commercial real estate loans to held for sale and, as a result, we released $24 million of the existing allowance for credit losses as a reduction to the provision for credit losses. During the second quarter of 2021, we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale. As a result of transferring these loans to held for sale, during the nine months ended September 30, 2021, we recognized $56 million of the existing allowance for credit losses on consumer loans as charge-offs, primarily related to non-performing credit cards, and released $100 million of the existing allowance for credit losses on consumer loans as reductions to the provision for credit losses, primarily related to credit cards. The existing commercial allowance for credit losses on the retail business banking loan portfolio transferred to held for sale was not material. See Note 3, "Branch Assets and Liabilities Held for Sale." (2) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Summary of Changes in the Liability for Off-balance Sheet Credit Exposures | The following table summarizes the changes in the liability for off-balance sheet credit exposures during the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance at beginning of period $ 128 $ 253 $ 237 $ 104 Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses (1) — — — 54 Balance at beginning of period, adjusted 128 253 237 158 Provision charged (credited) to income (18) (28) (127) 67 Balance at end of period $ 110 $ 225 $ 110 $ 225 (1) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Summary of Accrued Interest Receivables | The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 5, "Securities," and Note 6, "Loans." September 30, 2021 December 31, 2020 (in millions) Accrued interest receivables: Loans $ 125 $ 140 Securities held-to-maturity 15 23 Other financial assets measured at amortized cost 2 1 Securities available-for-sale 87 100 Total accrued interest receivables 229 264 Allowance for credit losses — 2 Accrued interest receivables, net $ 229 $ 262 |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Held for Sale | Loans held for sale consisted of the following: September 30, 2021 December 31, 2020 (in millions) Commercial loans: Real estate, including construction $ 1,123 $ 10 Business and corporate banking 105 — Global banking 63 119 Total commercial 1,291 129 Consumer loans: Residential mortgages 2,449 208 Home equity mortgages 257 — Credit cards 785 — Other consumer 145 — Total consumer 3,636 208 Total loans held for sale $ 4,927 $ 337 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended | |
Sep. 30, 2021 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of Derivative Instruments | The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable master netting agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, have not been netted in the following table. Where we have received or posted collateral under netting agreements where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, the related collateral also has not been netted in the following table. September 30, 2021 December 31, 2020 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in millions) Derivatives accounted for as fair value hedges (1) Interest rate contracts - bilateral OTC (2) $ — $ 16 $ — $ 2 Derivatives accounted for as cash flow hedges (1) Foreign exchange contracts - bilateral OTC (2) 6 — — 53 Total derivatives accounted for as hedges 6 16 — 55 Trading derivatives not accounted for as hedges (3) Exchange-traded (2) 2 1 14 9 OTC-cleared (2) 18 — — 58 Bilateral OTC (2) 3,068 2,978 6,584 6,555 Interest rate contracts (4) 3,088 2,979 6,598 6,622 Exchange-traded (2) — 2 — — OTC-cleared (2) 60 — 168 — Bilateral OTC (2) 11,738 11,542 18,299 18,549 Foreign exchange contracts 11,798 11,544 18,467 18,549 Exchange-traded (2) 1 4 — — Bilateral OTC (2) 885 692 4,009 4,200 Equity contracts 886 696 4,009 4,200 Exchange-traded (2) 4 1 — 28 Bilateral OTC (2) 1,404 951 1,323 1,550 Precious metals contracts 1,408 952 1,323 1,578 Credit contracts - bilateral OTC (2) 36 23 367 233 Other non-qualifying derivatives not accounted for as hedges (1) Interest rate contracts - bilateral OTC (2) 55 2 89 1 Foreign exchange contracts - bilateral OTC (2) — 1 — 1 Equity contracts - bilateral OTC (2) 1,469 128 1,607 91 OTC-cleared (2) — 13 — 14 Bilateral OTC (2) — 42 — 50 Credit contracts — 55 — 64 Other contracts - bilateral OTC (2)(5) 5 44 8 67 Total derivatives 18,751 16,440 32,468 31,461 Less: Gross amounts of receivable / payable subject to enforceable master netting agreements (6)(8) 13,172 13,172 25,537 25,537 Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements (7)(8) 3,577 1,518 4,079 3,377 Net amounts of derivative assets / liabilities presented in the balance sheet 2,002 1,750 2,852 2,547 Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet 222 74 817 691 Net amounts of derivative assets / liabilities $ 1,780 $ 1,676 $ 2,035 $ 1,856 (1) Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet. (2) Over-the-counter ("OTC") derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to each of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining requirements. In addition, OTC-cleared interest rate and credit derivatives with certain central clearing counterparties are settled daily. (3) Trading related derivative assets / liabilities are recorded in trading assets / trading liabilities on the consolidated balance sheet. (4) The decreases in interest rate derivative assets and liabilities at September 30, 2021 primarily reflects reduced positions driven by the exit or transfer of certain contracts as part of our Restructuring Plan. See Note 2, "Strategic Initiatives," for additional information. (5) Consists of swap agreements entered into in conjunction with the sales of Visa Inc. ("Visa") Class B common shares ("Class B Shares"). (6) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements. (7) Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements. (8) Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. | [1] |
Schedule of Gains and Losses on Fair Value Hedging Instruments | The following table presents the carrying amount of hedged items in fair value hedges recognized in the consolidated balance sheet at September 30, 2021 and December 31, 2020, along with the cumulative amount of fair value hedging adjustments included in the carrying amount of those hedged items: Carrying Amount of Hedged Items (1) Cumulative Amount of Fair Value Hedging Adjustments Increasing (Decreasing) the Active Discontinued Total (in millions) At September 30, 2021 Securities available-for-sale ("AFS") $ 7,871 $ (92) $ 1,033 $ 941 Deposits 1,621 (11) 132 121 Long-term debt 5,646 (12) 158 146 At December 31, 2020 Securities AFS 7,966 681 738 1,419 Deposits 5,214 214 — 214 Long-term debt 2,227 242 (15) 227 (1) The carrying amount of securities AFS represents the amortized cost basis. The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments and the hedged items in fair value hedges and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) on Derivatives Gain (Loss) on Hedged Items (in millions) Three Months Ended September 30, 2021 Interest rate contracts / Securities AFS Net interest income $ 29 $ (4) Interest rate contracts / Deposits Net interest income (3) (13) Interest rate contracts / Long-term debt Net interest income 2 (17) Total $ 28 $ (34) Three Months Ended September 30, 2020 Interest rate contracts / Securities AFS Net interest income $ 182 $ (135) Interest rate contracts / Deposits Net interest income 33 (69) Interest rate contracts / Long-term debt Net interest income (56) 32 Total $ 159 $ (172) Nine Months Ended September 30, 2021 Interest rate contracts / Securities AFS Net interest income $ 221 $ (144) Interest rate contracts / Deposits Net interest income (35) (5) Interest rate contracts / Long-term debt Net interest income (12) (28) Total $ 174 $ (177) Nine Months Ended September 30, 2020 Interest rate contracts / Securities AFS Net interest income $ (962) $ 1,095 Interest rate contracts / Deposits Net interest income 153 (250) Interest rate contracts / Long-term debt Net interest income 171 (258) Total $ (638) $ 587 | |
Schedule of Gains and Losses on Cash Flow Hedging Instruments | The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from discontinued cash flow hedges) and their locations on the consolidated statement of income (loss): Gain (Loss) Recognized in Location of Gain (Loss) Gain (Loss) Reclassified From 2021 2020 2021 2020 (in millions) Three Months Ended September 30, Foreign exchange contracts $ — $ — Net interest income $ — $ — Interest rate contracts (3) (14) Net interest income 6 (1) Total $ (3) $ (14) $ 6 $ (1) Nine Months Ended September 30, Foreign exchange contracts $ (1) $ — Net interest income $ — $ — Interest rate contracts (27) 99 Net interest income 9 (11) Total $ (28) $ 99 $ 9 $ (11) | |
Schedule of Gains and Losses on Derivative Instruments Included in Trading Activities | The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest rate contracts Trading revenue (expense) $ 45 $ 773 $ 197 $ 655 Foreign exchange contracts Trading revenue (expense) (56) (355) 112 (1,164) Equity contracts Trading revenue (expense) (20) (385) (1,000) 683 Precious metals contracts Trading revenue (expense) 74 67 115 450 Credit contracts Trading revenue (expense) (70) 16 101 (606) Total $ (27) $ 116 $ (475) $ 18 | |
Schedule of Gains and Losses on Derivative Instruments Held for Non-qualifying Hedging Activities | The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging and other activities and their locations on the consolidated statement of income (loss): Location of Gain (Loss) Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest rate contracts Gain on instruments designated at fair value and related derivatives $ (8) $ (13) $ (62) $ 256 Interest rate contracts Other income (loss) (1) — (2) (1) Foreign exchange contracts Gain on instruments designated at fair value and related derivatives — — — (2) Equity contracts Gain on instruments designated at fair value and related derivatives (62) 306 810 (307) Credit contracts Gain on instruments designated at fair value and related derivatives — — — 37 Credit contracts Other income (loss) (5) (15) (17) (2) Other contracts (1) Other income (loss) 3 (2) — (3) Total $ (73) $ 276 $ 729 $ (22) (1) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. | |
Credit-Risk Related Contingent Features | The following table presents the amount of additional collateral that we would be required to post (from the current collateral level) related to derivative instruments with credit-risk related contingent features if our long-term ratings were downgraded by one or two notches. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another rating agency will generally not result in additional collateral. One-notch downgrade Two-notch downgrade (in millions) Amount of additional collateral to be posted upon downgrade $ 20 $ 67 | |
Notional Value of Derivative Contracts | The following table summarizes the notional values of derivative contracts: September 30, 2021 December 31, 2020 (in millions) Interest rate: Futures and forwards $ 53,008 $ 37,098 Swaps 298,670 406,609 Options written 11,924 33,269 Options purchased 11,825 32,427 Total interest rate 375,427 509,403 Foreign exchange: Swaps, futures and forwards 1,011,881 1,195,449 Options written 34,689 53,200 Options purchased 34,772 53,595 Spot 62,981 57,040 Total foreign exchange 1,144,323 1,359,284 Commodities, equities and precious metals: Swaps, futures and forwards 64,012 54,458 Options written 2,708 17,078 Options purchased 11,613 27,083 Total commodities, equities and precious metals 78,333 98,619 Credit derivatives 7,465 52,611 Other contracts (1) 1,238 1,216 Total $ 1,606,786 $ 2,021,133 (1) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. | |
[1] | Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. |
Fair Value Option (Tables)
Fair Value Option (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Option [Abstract] | |
Fair Value, Option, Quantitative Disclosures | The following table summarizes the fair value and unpaid principal balance for items we account for under FVO: Fair Value Unpaid Principal Balance Fair Value Over (Under) Unpaid Principal Balance (in millions) At September 30, 2021 Student loans held for investment $ 27 $ 29 $ (2) Commercial loans held for sale 63 63 — Fixed rate long-term debt 945 741 204 Hybrid instruments: Structured deposits 2,970 2,706 264 Structured notes 8,790 7,609 1,181 At December 31, 2020 Student loans held for investment $ 32 $ 34 $ (2) Commercial loans held for sale 36 36 — Fixed rate long-term debt 1,030 741 289 Hybrid instruments: Structured deposits 4,155 3,844 311 Structured notes 9,695 8,332 1,363 |
Components of Gain on Instruments at Fair Value and Related Derivatives | The following table summarizes the components of gain on instruments designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three and nine months ended September 30, 2021 and 2020: Loans and Loans Held for Sale Long-Term Hybrid Total (in millions) Three Months Ended September 30, 2021 Interest rate and other components (1) $ — $ 16 $ 62 $ 78 Credit risk component (2) — — — — Total mark-to-market on financial instruments designated at fair value — 16 62 78 Mark-to-market on related derivatives — (19) (61) (80) Net realized gain on related long-term debt derivatives — 10 — 10 Gain (loss) on instruments designated at fair value and related derivatives $ — $ 7 $ 1 $ 8 Three Months Ended September 30, 2020 Interest rate and other components (1) $ — $ 18 $ (292) $ (274) Credit risk component (2) (4) — — (4) Total mark-to-market on financial instruments designated at fair value (4) 18 (292) (278) Mark-to-market on related derivatives — (24) 307 283 Net realized gain on related long-term debt derivatives — 10 — 10 Gain (loss) on instruments designated at fair value and related derivatives $ (4) $ 4 $ 15 $ 15 Nine Months Ended September 30, 2021 Interest rate and other components (1) $ — $ 75 $ (791) $ (716) Credit risk component (2) 1 — — 1 Total mark-to-market on financial instruments designated at fair value 1 75 (791) (715) Mark-to-market on related derivatives — (85) 804 719 Net realized gain on related long-term debt derivatives — 29 — 29 Gain (loss) on instruments designated at fair value and related derivatives $ 1 $ 19 $ 13 $ 33 Nine Months Ended September 30, 2020 Interest rate and other components (1) $ — $ (114) $ 198 $ 84 Credit risk component (2)(3) (53) — — (53) Total mark-to-market on financial instruments designated at fair value (53) (114) 198 31 Mark-to-market on related derivatives 37 126 (203) (40) Net realized gain on related long-term debt derivatives — 24 — 24 Gain (loss) on instruments designated at fair value and related derivatives $ (16) $ 36 $ (5) $ 15 (1) As it relates to hybrid instruments, interest rate and other components primarily includes interest rate, foreign exchange and equity contract risks. (2) The fair value movement on fair value option liabilities attributable to our own credit spread is recorded in other comprehensive income (loss). (3) During the nine months ended September 30, 2020, the loss in the credit risk component for loans and loans held for sale was attributable to the widening of credit spreads associated with certain commercial loans held for sale which were impacted by the COVID-19 pandemic. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The following table presents changes in accumulated other comprehensive income (loss) balances: Three Months Ended September 30, 2021 2020 (in millions) Unrealized gains (losses) on investment securities: Balance at beginning of period $ 172 $ 754 Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(27) million and $26 million, respectively (86) 84 Reclassification adjustment for gains realized in net income (loss), net of tax of $(1) million and $(13) million, respectively (1) (3) (39) Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively (2) — (1) Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax of $1 million and $4 million, respectively (3) 3 12 Total other comprehensive income (loss) for period (86) 56 Balance at end of period 86 810 Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread: Balance at beginning of period 15 137 Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $3 million and $(13) million, respectively 9 (40) Total other comprehensive income (loss) for period 9 (40) Balance at end of period 24 97 Unrealized gains (losses) on derivatives designated as cash flow hedges: Balance at beginning of period (100) (58) Other comprehensive income (loss) for period: Net unrealized losses arising during period, net of tax of $(1) million and $(4) million, respectively (2) (10) Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(1) million and $1 million, respectively (4) (5) — Total other comprehensive loss for period (7) (10) Balance at end of period (107) (68) Pension and postretirement benefit liability: Balance at beginning of period (6) (3) Other comprehensive income (loss) for period: Change in unfunded pension and postretirement liability, net of tax of nil and $(1) million, respectively — (2) Total other comprehensive income for period — (2) Balance at end of period (6) (5) Total accumulated other comprehensive income (loss) at end of period $ (3) $ 834 Nine Months Ended September 30, 2021 2020 (in millions) Unrealized gains (losses) on investment securities: Balance at beginning of period $ 750 $ (116) Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses on securities available-for-sale, net of tax of $1 million (5) — 2 Balance at beginning of period, adjusted 750 (114) Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(201) million and $312 million, respectively (636) 990 Reclassification adjustment for gains realized in net income (loss), net of tax of $(12) million and $(27) million, respectively (1) (39) (84) Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively (2) — (1) Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax of $3 million and $6 million, respectively (3) 11 19 Total other comprehensive income (loss) for period (664) 924 Balance at end of period 86 810 Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread: Balance at beginning of period 15 (9) Other comprehensive income (loss) for period: Net unrealized gains arising during period, net of tax of $3 million and $33 million, respectively 9 106 Total other comprehensive income for period 9 106 Balance at end of period 24 97 Unrealized gains (losses) on derivatives designated as cash flow hedges: Balance at beginning of period (79) (151) Other comprehensive income (loss) for period: Net unrealized gains (losses) arising during period, net of tax of $(7) million and $24 million, respectively (21) 75 Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(2) million and $3 million, respectively (4) (7) 8 Total other comprehensive income (loss) for period (28) 83 Balance at end of period (107) (68) Pension and postretirement benefit liability: Balance at beginning of period (7) (3) Other comprehensive income (loss) for period: Change in unfunded pension and postretirement liability, net of tax of less than $1 million and $(1) million, respectively 1 (2) Total other comprehensive income (loss) for period 1 (2) Balance at end of period (6) (5) Total accumulated other comprehensive income (loss) at end of period $ (3) $ 834 (1) Amount reclassified to net income (loss) is included in other securities gains, net in our consolidated statement of income (loss). (2) Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in our consolidated statement of income (loss). (3) Amount amortized to net income (loss) is included in interest income in our consolidated statement of income (loss). During 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses related to the transferred securities which are being amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. (4) Amount reclassified to net income (loss) is included in net interest income in our consolidated statement of income (loss). (5) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
HSBC North America Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Components of Net Periodic Benefit Cost | The following table reflects the portion of pension expense and its related components of the combined HSBC North America Pension Plan (either the "HSBC North America Pension Plan" or the "Plan") which has been allocated to us and is recorded in our consolidated statement of income (loss). We have not been allocated any portion of the Plan's net pension asset. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Interest cost on projected benefit obligation $ 11 $ 11 $ 32 $ 35 Expected return on plan assets (15) (14) (44) (53) Amortization of net actuarial loss — — — 4 Administrative costs 1 1 3 3 Pension (income) expense $ (3) $ (2) $ (9) $ (11) |
Fee Income from Contracts wit_2
Fee Income from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Fee Income | The following table summarizes fee income from contracts with customers disaggregated by type of activity, as well as a reconciliation to total other revenues, during the three and nine months ended September 30, 2021 and 2020. See Note 22, "Fee Income from Contracts with Customers," in our 2020 Form 10-K for a description of the various types of fee-based activities and how revenue associated with these activities is recognized. There have been no significant changes in these activities since December 31, 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Credit card fees, net $ — $ 10 $ 23 $ 30 Trust and investment management fees 26 34 81 98 Other fees and commissions: Account services 73 66 216 185 Credit facilities 76 67 248 204 Other fees 11 11 32 36 Total other fees and commissions 160 144 496 425 Servicing and other fees from HSBC affiliates 79 79 232 255 Insurance (1) 2 2 5 6 Total fee income from contracts with customers 267 269 837 814 Other non-fee revenues (25) 87 93 393 Total other revenues (2) $ 242 $ 356 $ 930 $ 1,207 (1) Included within other income (loss) in the consolidated statement of income (loss). (2) See Note 16, "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. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The following tables present related party balances and the income (expense) generated by related party transactions: September 30, 2021 December 31, 2020 (in millions) Assets: Cash and due from banks $ 313 $ 516 Interest bearing deposits with banks 2 187 Securities purchased under agreements to resell (1) 873 3,941 Trading assets 190 314 Loans 2,857 1,100 Other (2) 289 319 Total assets $ 4,524 $ 6,377 Liabilities: Deposits $ 15,624 $ 15,163 Trading liabilities (3) 223 2,375 Short-term borrowings 390 270 Long-term debt 5,528 2,878 Other (2) 203 268 Total liabilities $ 21,968 $ 20,954 (1) Reflects purchases of securities under which other HSBC affiliates have agreed to repurchase. (2) Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables. (3) The decrease in trading liabilities at September 30, 2021 primarily reflects a decrease in borrowing of gold inventory from HSBC Bank plc to support client activity levels. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Income (Expense): Interest income $ 6 $ 9 $ 20 $ 47 Interest expense (52) (77) (185) (276) Net interest expense (46) (68) (165) (229) Trading revenue (expense) (1,116) (1,755) (2,106) (2,372) Servicing and other fees from HSBC affiliates: HSBC Bank plc 44 43 124 131 HSBC Markets (USA) Inc. ("HMUS") 22 27 70 84 Other HSBC affiliates 13 9 38 40 Total servicing and other fees from HSBC affiliates 79 79 232 255 Gain (loss) on instruments designated at fair value and related derivatives (62) 307 803 (203) Support services from HSBC affiliates: HTSU (242) (285) (754) (820) HMUS (26) (17) (72) (63) Other HSBC affiliates (121) (89) (322) (279) Total support services from HSBC affiliates (389) (391) (1,148) (1,162) Rental income from HSBC affiliates, net (1) 12 13 32 31 Stock based compensation expense (2) (1) (3) (12) (16) (1) We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss). (2) Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 13, "Pension and Other Postretirement Benefits." |
Schedule of Loan Balances Outstanding with Affiliates | At September 30, 2021 and December 31, 2020, we had the following loan balances outstanding with HSBC affiliates: September 30, 2021 December 31, 2020 (in millions) HMUS and subsidiaries $ 1,755 $ 1,088 HSBC North America 1,000 — Other short-term affiliate lending 102 12 Total loans $ 2,857 $ 1,100 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary on Reconciliation of Results under Group Reporting Basis to US GAAP | 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 WPB CMB GBM CC Total Group Reporting Basis Adjustments (1) Group Reporting Basis Reclassi- fications (2) U.S. GAAP (in millions) Three Months Ended September 30, 2021 Net interest income (expense) $ 202 $ 200 $ 74 $ (1) $ 475 $ 4 $ 41 $ 520 Other operating income (expense) 57 70 184 (38) 273 4 (35) 242 Total operating income (expense) 259 270 258 (39) 748 8 6 762 Expected credit losses / provision for credit losses (35) 24 (31) — (42) (39) — (81) 294 246 289 (39) 790 47 6 843 Operating expenses 279 134 186 55 654 6 6 666 Profit (loss) before income tax $ 15 $ 112 $ 103 $ (94) $ 136 $ 41 $ — $ 177 Three Months Ended September 30, 2020 Net interest income (expense) $ 200 $ 202 $ 92 $ (9) $ 485 $ 1 $ 62 $ 548 Other operating income 110 66 217 40 433 (22) (55) 356 Total operating income 310 268 309 31 918 (21) 7 904 Expected credit losses / provision for credit losses 12 (21) (6) — (15) (90) — (105) 298 289 315 31 933 69 7 1,009 Operating expenses 527 150 251 126 1,054 (276) 7 785 Profit (loss) before income tax $ (229) $ 139 $ 64 $ (95) $ (121) $ 345 $ — $ 224 Group Reporting Basis Consolidated Amounts WPB CMB GBM CC Total Group Reporting Basis Adjustments (1) Group Reporting Basis Reclassi- fications (2) U.S. GAAP Nine Months Ended September 30, 2021 Net interest income (expense) $ 616 $ 580 $ 255 $ (3) $ 1,448 $ 17 $ 109 $ 1,574 Other operating income (expense) 215 208 613 (9) 1,027 (2) (95) 930 Total operating income (expense) 831 788 868 (12) 2,475 15 14 2,504 Expected credit losses / provision for credit losses (36) (26) (154) — (216) (321) — (537) 867 814 1,022 (12) 2,691 336 14 3,041 Operating expenses 921 437 573 157 2,088 48 14 2,150 Profit (loss) before income tax $ (54) $ 377 $ 449 $ (169) $ 603 $ 288 $ — $ 891 Balances at end of period: Total assets $ 69,021 $ 46,226 $ 102,543 $ 1,611 $ 219,401 $ (18,251) $ — $ 201,150 Total loans, net 22,046 20,998 11,290 — 54,334 (1,549) 2,266 55,051 Goodwill — 358 — — 358 100 — 458 Total deposits 39,762 45,239 52,130 — 137,131 (3,668) 18,905 152,368 Nine Months Ended September 30, 2020 Net interest income (expense) $ 629 $ 616 $ 304 $ (29) $ 1,520 $ 6 $ 64 $ 1,590 Other operating income 283 176 743 101 1,303 (45) (51) 1,207 Total operating income 912 792 1,047 72 2,823 (39) 13 2,797 Expected credit losses / provision for credit losses 188 283 129 — 600 240 — 840 724 509 918 72 2,223 (279) 13 1,957 Operating expenses 1,888 439 644 324 3,295 (191) 13 3,117 Profit (loss) before income tax $ (1,164) $ 70 $ 274 $ (252) $ (1,072) $ (88) $ — $ (1,160) Balances at end of period: Total assets $ 56,728 $ 38,096 $ 136,478 $ 1,565 $ 232,867 $ (31,921) $ — $ 200,946 Total loans, net 23,821 25,852 14,122 — 63,795 (1,682) 3,212 65,325 Goodwill — 358 — — 358 100 — 458 Total deposits 48,477 39,736 51,566 — 139,779 (5,198) 15,747 150,328 (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. |
Retained Earnings and Regulat_2
Retained Earnings and Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retained Earnings Note Disclosure [Abstract] | |
Capital Amounts and Ratios in Accordance With Current Banking Regulations | The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with the Basel III rule at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Capital Well-Capitalized Ratio (1) Actual Capital Well-Capitalized Ratio (1) Actual (dollars are in millions) Common equity Tier 1 ratio: (4) HSBC USA $ 16,393 4.5 % (2) 15.9 % $ 15,891 4.5 % (2) 14.5 % HSBC Bank USA 18,664 6.5 18.3 18,180 6.5 16.4 Tier 1 capital ratio: (4) HSBC USA 17,658 6.0 17.1 17,156 6.0 15.6 HSBC Bank USA 21,164 8.0 20.8 20,680 8.0 18.7 Total capital ratio: (4) HSBC USA 19,910 10.0 19.3 20,680 10.0 18.8 HSBC Bank USA 23,193 10.0 22.7 23,303 10.0 21.1 Tier 1 leverage ratio: HSBC USA 17,658 4.0 (2) 9.1 17,156 4.0 (2) 8.6 HSBC Bank USA 21,164 5.0 11.0 20,680 5.0 10.3 Supplementary leverage ratio ("SLR"): HSBC USA 17,658 3.0 (3) 7.0 17,156 3.0 (3) 7.8 HSBC Bank USA 21,164 3.0 (3) 8.5 20,680 3.0 (3) 9.3 Risk-weighted assets: (4)(5) HSBC USA 103,018 109,809 HSBC Bank USA 101,993 110,682 Adjusted quarterly average assets: (6) HSBC USA 193,984 198,698 HSBC Bank USA 192,501 200,026 Total leverage exposure: (7) HSBC USA 252,239 221,216 HSBC Bank USA 250,003 221,334 (1) HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must maintain capital equal to or in excess of the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. (2) There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown are the regulatory minimums. (3) There is no SLR component in the definition of a well-capitalized banking institution. The ratios shown are the regulatory minimums. (4) During the first quarter of 2021, it was determined that certain collateral did not qualify for risk-weighted asset reduction purposes under U.S. capital rules. As a result, reported risk-weighted assets were understated and reported Common equity Tier 1 capital, Tier 1 capital and Total capital ratios were overstated at HSBC USA and HSBC Bank USA at December 31, 2020. We have revised December 31, 2020 amounts to conform to the current period presentation. The following table summarizes the impact of this change on reported risk-weighted assets and capital ratios as of December 31, 2020: December 31, 2020 As Previously Reported As Revised HSBC USA HSBC Bank USA HSBC USA HSBC Bank USA (in millions) Common equity Tier 1 ratio 14.7 % 17.2 % 14.5 % 16.4 % Tier 1 capital ratio 15.9 % 19.6 % 15.6 % 18.7 % Total capital ratio 19.2 % 22.0 % 18.8 % 21.1 % Risk-weighted assets $ 107,808 $ 105,681 $ 109,809 $ 110,682 (5) Calculated using the generally-applicable Standardized Approach. (6) Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital. (7) Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Summary of Assets and Liabilities Related to Consolidated Variable Interest Entities | The following table summarizes assets and liabilities related to our consolidated VIEs at September 30, 2021 and December 31, 2020 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. September 30, 2021 December 31, 2020 Consolidated Consolidated Consolidated Consolidated (in millions) Low income housing limited liability partnership: Other assets $ 64 $ — $ 79 $ — Interest, taxes and other liabilities — 16 — 9 Subtotal 64 16 79 9 Venture debt financing entity: Loans 7 — 10 — Interest, taxes and other liabilities — 2 — 1 Subtotal 7 2 10 1 Total $ 71 $ 18 $ 89 $ 10 |
Variable Interests Held by Us and Our Maximum Exposure to Loss Rising From Our Involvements in Those VIEs | The following table provides additional information on these unconsolidated VIEs, including the variable interests held by us and our maximum exposure to loss arising from our involvement in these VIEs, at September 30, 2021 and December 31, 2020: Total Assets Held by Unconsolidated VIEs Carrying Value of Variable Interests Held Reported as Maximum Assets Liabilities (in millions) At September 30, 2021 Limited partnership investments $ 4,759 $ 737 $ 405 $ 737 At December 31, 2020 Limited partnership investments $ 4,266 $ 629 $ 285 $ 629 |
Guarantee Arrangements, Pledg_2
Guarantee Arrangements, Pledged Assets and Repurchase Agreements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Carrying Value and Contractual Amounts of our Sell Protection Credit Derivatives and Major Off-Balance Sheet Guarantee Arrangements | The following table presents total carrying value and contractual amounts of our sell protection credit derivatives and major off-balance sheet guarantee arrangements at September 30, 2021 and December 31, 2020. Following the table is a description of the various arrangements. September 30, 2021 December 31, 2020 Carrying Notional / Maximum Carrying Notional / Maximum (in millions) Credit derivatives (1)(2) $ 8 $ 2,063 $ 144 $ 19,500 Financial standby letters of credit, net of participations (3)(4) — 5,364 — 5,703 Performance standby letters of credit, net of participations (3)(4) — 2,700 — 2,842 Total $ 8 $ 10,127 $ 144 $ 28,045 (1) Includes $1,691 million and $13,550 million of notional issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. (2) For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements. (3) Includes $1,957 million and $1,836 million of both financial and performance standby letters of credit issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. (4) For standby letters of credit, maximum loss represents losses to be recognized assuming the letters of credit have been fully drawn and the obligors have defaulted with zero recovery. |
Net Credit Derivative Positions | The following table summarizes our net credit derivative positions at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Carrying / Fair Notional Carrying / Fair Notional (in millions) Sell-protection credit derivative positions $ 8 $ 2,063 $ 144 $ 19,500 Buy-protection credit derivative positions (52) 5,402 (74) 33,111 Net position (1) $ (44) $ 3,339 $ 70 $ 13,611 |
Summary of Credit Ratings of Credit Risk Related Guarantees | The following table summarizes the credit ratings related to guarantees including the ratings of counterparties against which we sold credit protection and financial standby letters of credit at September 30, 2021 as an indicative proxy of payment risk: Average Credit Ratings of the Obligors Notional/Contractual Amounts Investment Non-Investment Total (dollars are in millions) Sell-protection Credit Derivatives (1) Single name credit default swaps ("CDS") 2.3 $ 1,232 $ 606 $ 1,838 Index credit derivatives 22.5 215 10 225 Subtotal 1,447 616 2,063 Standby Letters of Credit (2) 1.2 6,291 1,773 8,064 Total $ 7,738 $ 2,389 $ 10,127 (1) The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade. (2) External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade. |
Summary of Pledged Assets Included in Consolidated Balance Sheet | Pledged assets included in the consolidated balance sheet consisted of the following: September 30, 2021 December 31, 2020 (in millions) Interest bearing deposits with banks (1) $ 773 $ 2,158 Trading assets (2) 2,053 1,265 Securities available-for-sale (3) 7,470 8,652 Securities held-to-maturity (3) 660 1,076 Loans (4) 18,854 18,146 Other assets (5) 1,340 2,352 Total $ 31,150 $ 33,649 (1) Represents gross amount of cash on deposit with banks related to derivative collateral-support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. (2) Trading assets are primarily pledged against liabilities associated with repurchase agreements. (3) Securities are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the FHLB and the Federal Reserve Bank of New York. (4) Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York. (5) Represents gross amount of cash on deposit with non-banks related to derivative collateral support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. |
Offsetting Assets and Liabilities | The following table provides information about resale and repurchase agreements that are subject to offset at September 30, 2021 and December 31, 2020: Gross Amounts Not Offset in the Balance Sheet Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet (1) Net Amounts Presented in the Balance Sheet Financial Instruments (2) Cash Collateral Received / Pledged Net Amount (3) (in millions) At September 30, 2021 Assets: Securities purchased under resale agreements $ 9,720 $ 2,240 $ 7,480 $ 7,480 $ — $ — Liabilities: Securities sold under repurchase agreements $ 4,510 $ 2,240 $ 2,270 $ 2,256 $ — $ 14 At December 31, 2020 Assets: Securities purchased under resale agreements $ 41,382 $ 5,636 $ 35,746 $ 35,746 $ — $ — Liabilities: Securities sold under repurchase agreements $ 7,401 $ 5,636 $ 1,765 $ 1,762 $ — $ 3 (1) Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles. (2) Represents securities received or pledged to cover financing transaction exposures. (3) Represents the amount of our exposure that is not collateralized / covered by pledged collateral. |
Class of Collateral Pledged and Remaining Contractual Maturity of Repurchase Agreements Accounted for as Secured Borrowings | The following table provides the class of collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings at September 30, 2021 and December 31, 2020: Overnight and Continuous Up to 30 Days 31 to 90 Days 91 Days to One Year Greater Than One Year Total (in millions) At September 30, 2021 U.S. Treasury, U.S. Government sponsored and U.S. Government agency securities $ 102 $ 2,552 $ 1,856 $ — $ — $ 4,510 At December 31, 2020 U.S. Treasury, U.S. Government sponsored and U.S. Government agency securities $ 4,091 $ 2,810 $ 500 $ — $ — $ 7,401 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | The following table presents information about our assets and liabilities measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Unless otherwise noted below, assets and liabilities in the following table are recorded at fair value through net income (loss). Fair Value Measurements on a Recurring Basis September 30, 2021 Level 1 Level 2 Level 3 Gross Netting (6) Net (in millions) Assets: Trading assets, excluding derivatives: U.S. Treasury, U.S. Government agencies and sponsored enterprises $ 2,352 $ 291 $ — $ 2,643 $ — $ 2,643 Debt securities issued by foreign entities 606 162 — 768 — 768 Equity securities 13,287 — — 13,287 — 13,287 Precious metals trading — 3,316 — 3,316 — 3,316 Derivatives: (1) Interest rate contracts 2 3,140 1 3,143 — 3,143 Foreign exchange contracts — 11,789 15 11,804 — 11,804 Equity contracts 1 2,056 298 2,355 — 2,355 Precious metals contracts 4 1,404 — 1,408 — 1,408 Credit contracts — 36 — 36 — 36 Other contracts (2) — — 5 5 — 5 Derivatives netting — — — — (16,749) (16,749) Total derivatives 7 18,425 319 18,751 (16,749) 2,002 Securities available-for-sale: (3) U.S. Treasury, U.S. Government agencies and sponsored enterprises 13,734 20,392 — 34,126 — 34,126 Asset-backed securities: Home equity — — 20 20 — 20 Other — — 101 101 — 101 Debt securities issued by foreign entities 2,073 187 — 2,260 — 2,260 Loans (4) — 27 — 27 — 27 Loans held for sale (4) — 63 — 63 — 63 Other assets: Mortgage servicing rights — — 14 14 — 14 Equity securities — 145 — 145 — 145 Equity securities measured at net asset value (5) — — — 144 — 144 Total assets $ 32,059 $ 43,008 $ 454 $ 75,665 $ (16,749) $ 58,916 Liabilities: Domestic deposits (4) $ — $ 2,454 $ 516 $ 2,970 $ — $ 2,970 Trading liabilities, excluding derivatives 947 90 — 1,037 — 1,037 Derivatives: (1) Interest rate contracts 2 2,994 1 2,997 — 2,997 Foreign exchange contracts 2 11,527 16 11,545 — 11,545 Equity contracts 4 636 184 824 — 824 Precious metals contracts 1 951 — 952 — 952 Credit contracts — 76 2 78 — 78 Other contracts (2) — — 44 44 — 44 Derivatives netting — — — — (14,690) (14,690) Total derivatives 9 16,184 247 16,440 (14,690) 1,750 Long-term debt (4) — 8,252 1,483 9,735 — 9,735 Total liabilities $ 956 $ 26,980 $ 2,246 $ 30,182 $ (14,690) $ 15,492 Fair Value Measurements on a Recurring Basis December 31, 2020 Level 1 Level 2 Level 3 Gross Netting (6) Net (in millions) Assets: Trading assets, excluding derivatives: U.S. Treasury, U.S. Government agencies and sponsored enterprises $ 5,145 $ 192 $ — $ 5,337 $ — $ 5,337 Asset-backed securities: Collateralized debt obligations — 63 — 63 — 63 Residential mortgages — — 15 15 — 15 Student loans — 65 — 65 — 65 Debt securities issued by foreign entities 7,953 18 — 7,971 — 7,971 Equity securities 6,043 — — 6,043 — 6,043 Precious metals trading — 4,989 — 4,989 — 4,989 Derivatives: (1) Interest rate contracts 15 6,637 35 6,687 — 6,687 Foreign exchange contracts — 18,452 15 18,467 — 18,467 Equity contracts — 5,051 565 5,616 — 5,616 Precious metals contracts — 1,323 — 1,323 — 1,323 Credit contracts — 298 69 367 — 367 Other contracts (2) — — 8 8 — 8 Derivatives netting — — — — (29,616) (29,616) Total derivatives 15 31,761 692 32,468 (29,616) 2,852 Securities available-for-sale: (3) U.S. Treasury, U.S. Government agencies and sponsored enterprises 22,880 12,528 — 35,408 — 35,408 Asset-backed securities: Home equity — — 27 27 — 27 Other — — 104 104 — 104 Debt securities issued by foreign entities 1,942 3,191 — 5,133 — 5,133 Loans (4) — 32 — 32 — 32 Loans held for sale (4) — 36 — 36 — 36 Other assets: Mortgage servicing rights — — 7 7 — 7 Equity securities — 149 — 149 — 149 Equity securities measured at net asset value (5) — — — 135 — 135 Total assets $ 43,978 $ 53,024 $ 845 $ 97,982 $ (29,616) $ 68,366 Liabilities: Domestic deposits (4) $ — $ 3,509 $ 646 $ 4,155 $ — $ 4,155 Trading liabilities, excluding derivatives 727 2,312 — 3,039 — 3,039 Derivatives: (1) Interest rate contracts 9 6,615 1 6,625 — 6,625 Foreign exchange contracts — 18,597 6 18,603 — 18,603 Equity contracts — 3,845 446 4,291 — 4,291 Precious metals contracts 28 1,550 — 1,578 — 1,578 Credit contracts — 291 6 297 — 297 Other contracts (2) — — 67 67 — 67 Derivatives netting — — — — (28,914) (28,914) Total derivatives 37 30,898 526 31,461 (28,914) 2,547 Long-term debt (4) — 10,277 448 10,725 — 10,725 Total liabilities $ 764 $ 46,996 $ 1,620 $ 49,380 $ (28,914) $ 20,466 (1) Includes trading derivative assets of $1,971 million and $2,801 million and trading derivative liabilities of $1,633 million and $2,358 million at September 30, 2021 and December 31, 2020, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives. See Note 10, "Derivative Financial Instruments," for additional information. Excluding changes in fair value of a derivative instrument associated with a qualifying cash flow hedge, which are recognized initially in other comprehensive income (loss), derivative assets and liabilities are recorded at fair value through net income (loss). (2) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. (3) Securities available-for-sale are recorded at fair value through other comprehensive income (loss). Changes in the allowance for credit losses on securities available-for-sale are recorded through net income (loss). (4) See Note 11, "Fair Value Option," for additional information. Excluding the fair value movement on fair value option liabilities attributable to our own credit spread, which is recorded in other comprehensive income (loss), fair value option assets and liabilities are recorded at fair value through net income (loss). (5) Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. (6) Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met. |
Changes in Fair Value of Level 3 Assets and Liabilities | The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three and nine months ended September 30, 2021 and 2020. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities. Jul. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Unrealized Gains Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Derivatives, net: (1) Interest rate contracts $ 8 $ (8) $ — $ — $ — $ — $ — $ — $ — $ — $ — Foreign exchange contracts (1) — — — — — — — (1) — — Equity contracts (13) (91) — — — 256 (38) — 114 (2) — Credit contracts 46 (49) — — — 1 — — (2) — — Other contracts (2) (48) 3 — — — 6 — — (39) — — Asset-backed securities available-for-sale (3) 126 — (2) — — (3) — — 121 — (2) Mortgage servicing rights (4) 12 1 — — 1 — — — 14 1 — Total assets $ 130 $ (144) $ (2) $ — $ 1 $ 260 $ (38) $ — $ 207 $ (1) $ (2) Liabilities: Domestic deposits (5) $ (593) $ 9 $ 1 $ — $ — $ 58 $ — $ 9 $ (516) $ 6 $ 1 Long-term debt (5) (919) 33 — — (660) 54 (9) 18 (1,483) 34 — Total liabilities $ (1,512) $ 42 $ 1 $ — $ (660) $ 112 $ (9) $ 27 $ (1,999) $ 40 $ 1 Jan. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Unrealized Gains Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 15 $ 9 $ — $ — $ — $ — $ — $ (24) $ — $ — $ — Derivatives, net: (1) Interest rate contracts 34 (34) — — — — — — — (5) — Foreign exchange contracts 9 (10) — — — — — — (1) (11) — Equity contracts 119 (230) — — — 283 (30) (28) 114 22 — Credit contracts 63 (65) — — — — — — (2) (2) — Other contracts (2) (59) — — — — 20 — — (39) — — Asset-backed securities available-for-sale (3) 131 — (3) — — (7) — — 121 — (3) Mortgage servicing rights (4) 7 — — — 7 — — — 14 — — Total assets $ 319 $ (330) $ (3) $ — $ 7 $ 296 $ (30) $ (52) $ 207 $ 4 $ (3) Liabilities: Domestic deposits (5) $ (646) $ 1 $ 2 $ — $ — $ 146 $ (109) $ 90 $ (516) $ 3 $ 2 Long-term debt (5) (448) 10 (1) — (1,201) 177 (45) 25 (1,483) 14 (1) Total liabilities $ (1,094) $ 11 $ 1 $ — $ (1,201) $ 323 $ (154) $ 115 $ (1,999) $ 17 $ 1 Jul. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 $ — $ — Corporate and other domestic debt securities 501 (4) — — — (497) — — — — — Derivatives, net: (1) Interest rate contracts 33 1 — — — — — — 34 1 — Foreign exchange contracts (2) — — — — — — — (2) — — Equity contracts 92 50 — — — (75) — (1) 66 44 — Credit contracts 62 (16) — — — 19 — — 65 (16) — Other contracts (2) (64) (2) — — — 7 — — (59) — — Asset-backed securities available-for-sale (3) 117 — (8) — — (2) 20 — 127 — (8) Mortgage servicing rights (4) 4 — — — 2 — — — 6 — — Total assets $ 758 $ 29 $ (8) $ — $ 2 $ (548) $ 20 $ (1) $ 252 $ 29 $ (8) Liabilities: Domestic deposits (5) $ (672) $ (10) $ (3) $ — $ — $ 27 $ — $ 8 $ (650) $ (8) $ (3) Long-term debt (5) (347) (21) — — (24) 18 (1) 3 (372) (17) — Total liabilities $ (1,019) $ (31) $ (3) $ — $ (24) $ 45 $ (1) $ 11 $ (1,022) $ (25) $ (3) Jan. 1, Total Realized / Unrealized Gains Purch- Issu- Settle- Transfers Transfers Sep. 30, Current Period Earnings Other Compre- Earnings Other Compre- (in millions) Assets: Trading assets, excluding derivatives: (6) Residential mortgage asset-backed securities $ 17 $ (2) $ — $ — $ — $ — $ — $ — $ 15 $ (2) $ — Corporate and other domestic debt securities 510 (13) — — — (497) — — — — — Derivatives, net: (1) Interest rate contracts 10 24 — — — — — — 34 24 — Foreign exchange contracts (1) (1) — — — — — — (2) (1) — Equity contracts 72 62 — — — (69) — 1 66 76 — Credit contracts 59 10 — — — (4) — — 65 (5) — Other contracts (2) (75) (3) — — — 19 — — (59) — — Asset-backed securities available-for-sale (3) 111 — (10) — — (2) 28 — 127 — (10) Mortgage servicing rights (4) 4 (2) — — 4 — — — 6 (2) — Total assets $ 707 $ 75 $ (10) $ — $ 4 $ (553) $ 28 $ 1 $ 252 $ 90 $ (10) Liabilities: Domestic deposits (5) $ (774) $ 3 $ (1) $ — $ (43) $ 109 $ — $ 56 $ (650) $ (1) $ (1) Long-term debt (5) (354) 17 2 — (162) 107 (1) 19 (372) 5 2 Total liabilities $ (1,128) $ 20 $ 1 $ — $ (205) $ 216 $ (1) $ 75 $ (1,022) $ 4 $ 1 (1) Level 3 net derivatives included derivative assets of $319 million and derivative liabilities of $247 million at September 30, 2021 and derivative assets of $343 million and derivative liabilities of $239 million at September 30, 2020. Gains (losses) on derivatives, net are predominantly included in trading revenue (expense) and gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). (2) Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Gains (losses) on these swap agreements are included in other income (loss) in the consolidated statement of income (loss). (3) Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income (loss). Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income (loss). Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss). (4) Gain (losses) on mortgage servicing rights are included in other income (loss) in the consolidated statement of income (loss). (5) Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option liabilities are included in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). (6) Gains (losses) on trading assets, excluding derivatives are included in trading revenue (expense) in the consolidated statement of income (loss). |
Quantitative Information about Recurring Fair Value Measurement of Assets and Liabilities Classified as Level 3 | The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements at September 30, 2021 and December 31, 2020: September 30, 2021 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Interest rate derivative contracts $ — Market comparable adjusted for probability to fund and, where applicable, discounted cash flows or option pricing model Probability to fund for rate lock commitments 25% - 100% 81% Interest rate yield curve 8% N/A Foreign exchange derivative contracts (2) $ (1) Option pricing model Implied volatility of currency pairs 16% N/A Cross-currency basis (40)bps N/A Equity derivative contracts (2) $ 114 Option pricing model Equity / Equity Index volatility 8% - 69% 41% Equity / Equity and Equity / Index correlation 41% - 98% 72% Equity dividend yields and forward price (4)% - 1% 0% Credit derivative contracts $ (2) Option pricing model and, where applicable, discounted cash flows Credit default swap spreads 77bps - 294bps 196bps Other derivative contracts $ (39) Discounted cash flows Conversion rate 1.6 times N/A Expected duration 1.2 years N/A Asset-backed securities available-for-sale $ 121 Discounted cash flows Market assumptions related to yields for comparable instruments 3% - 4% 3% Mortgage servicing rights $ 14 Discounted cash flows Constant prepayment rates 10% - 18% 12% Discount rate 8% - 13% 8% Estimated annualized costs to service $72 - $93 per account $75 per account Domestic deposits (structured deposits) (2)(3) $ (516) Option adjusted discounted cash flows Equity / Equity Index volatility 8% - 22% 16% Equity / Equity and Equity / Index correlation 56% - 85% 57% Long-term debt (structured notes) (2)(3) $ (1,483) Option adjusted discounted cash flows Implied volatility of currency pairs 16% N/A Equity / Equity Index volatility 8% - 61% 25% Equity / Equity and Equity / Index correlation 41% - 98% 73% December 31, 2020 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Residential mortgage asset-backed securities $ 15 Broker quotes or consensus pricing and, where applicable, discounted cash flows Prepayment rates 10% N/A Conditional default rates 5% N/A Loss severity rates 65% N/A Discount margin 500bps N/A Interest rate derivative contracts $ 34 Market comparable adjusted for probability to fund and, where applicable, discounted cash flows or option pricing model Probability to fund for rate lock commitments 41% - 100% 78% Likelihood of transaction being executed 90% N/A Interest rate yield curve 4% - 7% 6% Foreign exchange derivative contracts (2) $ 9 Option pricing model Implied volatility of currency pairs 9% - 11% 10% Cross-currency basis (9)bps - 40bps 24bps Equity derivative contracts (2) $ 119 Option pricing model Equity / Equity Index volatility 0% - 67% 27% Equity / Equity and Equity / Index correlation 17% - 62% 30% Equity dividend yields and forward price (1)% - 0% 0% Credit derivative contracts $ 63 Option pricing model and, where applicable, discounted cash flows Credit default swap spreads 150bps N/A Other derivative contracts $ (59) Discounted cash flows Conversion rate 1.6 times N/A Expected duration 2 years N/A Asset-backed securities available-for-sale $ 131 Discounted cash flows Market assumptions related to yields for comparable instruments 4% N/A Mortgage servicing rights $ 7 Discounted cash flows Constant prepayment rates 17% - 26% 19% Discount rate 9% - 10% 9% Estimated annualized costs to service $73 - $157 per account $76 per account Domestic deposits (structured deposits) (2)(3) $ (646) Option adjusted discounted cash flows Implied volatility of currency pairs 9% - 11% 10% Equity / Equity Index volatility 0% - 42% 15% Equity / Equity and Equity / Index correlation 43% - 47% 45% Long-term debt (structured notes) (2)(3) $ (448) Option adjusted discounted cash flows Implied volatility of currency pairs 9% - 11% 10% Equity / Equity Index volatility 0% - 67% 23% Equity / Equity and Equity / Index correlation 32% - 62% 52% (1) For foreign exchange derivatives, equity derivatives, credit derivatives, structured deposits and structured notes, weighted averages are calculated based on the fair value of the instruments. For all remaining instrument types, weighted averages are calculated based on the notional value of the instruments. (2) We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table. (3) Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity and foreign exchange derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes. N/A Not Applicable |
Assets and Liabilities Recorded at Fair Value on a Non Recurring Basis | The following table presents the fair value hierarchy level within which the fair value of the financial and non-financial assets has been recorded at September 30, 2021 and December 31, 2020. The gains (losses) during the three and nine months ended September 30, 2021 and 2020 are also included. Non-Recurring Fair Value Measurements Total Gains (Losses) For the Three Months Ended September 30, 2021 Total Gains (Losses) For the Nine Months Ended September 30, 2021 Level 1 Level 2 Level 3 Total (in millions) Consumer loans held for sale (1) $ — $ 9 $ 795 $ 804 $ (1) $ (1) Consumer loans (2) — 198 — 198 2 8 Commercial loans held for sale (3) — — 92 92 — (12) Commercial loans (4) — — 142 142 (12) 57 Leases (5) — — — — (4) (59) Total assets at fair value on a non-recurring basis $ — $ 207 $ 1,029 $ 1,236 $ (15) $ (7) Non-Recurring Fair Value Measurements Total Gains (Losses) For the Three Months Ended September 30, 2020 Total Gains (Losses) For the Nine Months Ended September 30, 2020 Level 1 Level 2 Level 3 Total (in millions) Consumer loans held for sale (1) $ — $ 4 $ — $ 4 $ — $ — Consumer loans (2) — 312 — 312 4 11 Commercial loans held for sale (3) — 68 — 68 (16) (25) Commercial loans (4) — — 270 270 6 (164) Real estate owned (6) — 1 — 1 — 1 Goodwill (7) — — — — — (784) Leases (5) — — 3 3 (7) (69) Total assets at fair value on a non-recurring basis $ — $ 385 $ 273 $ 658 $ (13) $ (1,030) (1) At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain consumer loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. (2) Represents residential mortgage loans held for investment whose carrying amount was adjusted during the period based on the fair value of the underlying collateral. (3) At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain commercial loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. (4) Certain commercial loans are individually assessed for impairment. We measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy. (5) During the second quarter of 2021, we determined that we would exit certain branches and, as a result, the lease ROU assets, leasehold improvement assets and equipment assets associated with these branches were written off. During the three and nine months ended September 30, 2021, we also wrote down the lease ROU assets and leasehold improvement assets primarily associated with certain office space that we determined we would exit. During the first quarter of 2020, we determined that we would exit certain branches and, as a result, the lease ROU assets and leasehold improvement assets associated with these branches were written down based on their estimated remaining useful lives. During the third quarter of 2020, we also wrote down the lease ROU assets associated with certain office space that we determined we would exit. See Note 2, "Strategic Initiatives," in this Form 10-Q for further discussion. (6) Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs. (7) During the first quarter of 2020, the goodwill allocated to our previously separate RBWM and PB businesses were both written down to $0 million. See Note 9, "Goodwill," in this From 10-Q for further discussion of the results of our goodwill impairment testing, including the events and circumstances leading to the impairments. |
Quantitative Information about Non Recurring Fair Value Measurement of Assets and Liabilities | The following tables present quantitative information about non-recurring fair value measurements of assets and liabilities classified with Level 3 of the fair value hierarchy at September 30, 2021 and December 31, 2020: At September 30, 2021 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Consumer loans held for sale $ 795 Market comparables and internal assumptions Adjusted market price 95% - 100% 99% Commercial loans held for sale 92 Market comparables and internal assumptions Adjusted market price 94% N/A Commercial loans 142 Valuation of third party appraisal Loss severity rates 8% - 78% 30% At December 31, 2020 Financial Instrument Type Fair Value (in millions) Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average (1) Commercial loans $ 270 Valuation of third party appraisal Loss severity rates 0% - 76% 35% (1) Weighted average is calculated based on the carrying value of the loans. N/A Not Applicable |
Additional Information Relating to Asset-Backed Securities and Collateralized Debt Obligations | The following tables provide additional information relating to our available-for-sale asset-backed securities at September 30, 2021: Rating of Securities: (1) Collateral Type: Level 3 (in millions) AAA - A Home equity - Alt A $ 20 BBB - B Other 101 $ 121 (1) We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. |
Carrying Value and Estimated Fair Value of Financial Instruments | The following table summarizes the carrying value and estimated fair value of our financial instruments, excluding financial instruments that are carried at fair value on a recurring basis, at September 30, 2021 and December 31, 2020, and their classification within the fair value hierarchy: September 30, 2021 Carrying Fair Level 1 Level 2 Level 3 (in millions) Financial assets: Short-term financial assets, net of allowance for credit losses $ 63,204 $ 63,204 $ 1,018 $ 62,140 $ 46 Federal funds sold and securities purchased under agreements to resell 7,480 7,480 — 7,480 — Securities held-to-maturity, net of allowance for credit losses 5,866 6,097 — 6,097 — Commercial loans, net of allowance for credit losses 38,439 39,026 — — 39,026 Commercial loans held for sale 1,228 1,231 — — 1,231 Consumer loans, net of allowance for credit losses 16,585 16,140 — — 16,140 Consumer loans held for sale 3,636 3,738 — 53 3,685 Financial liabilities: Short-term financial liabilities $ 6,425 $ 6,425 $ — $ 6,377 $ 48 Deposits 140,077 140,072 — 140,072 — Deposits held for sale 9,321 9,321 — 9,321 — Long-term debt 8,370 8,878 — 8,878 — December 31, 2020 Carrying Fair Level 1 Level 2 Level 3 (in millions) Financial assets: Short-term financial assets, net of allowance for credit losses $ 15,667 $ 15,667 $ 1,302 $ 14,353 $ 12 Federal funds sold and securities purchased under agreements to resell 35,746 35,746 — 35,746 — Securities held-to-maturity, net of allowance for credit losses 8,981 9,369 — 9,369 — Commercial loans, net of allowance for credit losses 40,785 41,417 — — 41,417 Commercial loans held for sale 93 93 — 93 — Consumer loans, net of allowance for credit losses 20,256 19,865 — — 19,865 Consumer loans held for sale 208 217 — 217 — Financial liabilities: Short-term financial liabilities $ 4,965 $ 4,965 $ — $ 4,952 $ 13 Deposits 140,995 141,001 — 141,001 — Long-term debt 9,254 9,720 — 9,720 — |
Strategic Initiatives (Details)
Strategic Initiatives (Details) - Restructuring Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 24 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 47 | $ 84 | $ 183 | $ 244 | ||
Restructuring charges recorded to date | 463 | 463 | ||||
Forecast [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected period for completion of restructuring plan | 2 years | |||||
Minimum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges, pre-tax | 900 | 900 | $ 520 | |||
Expected restructuring charges, after-tax | 390 | |||||
Additional expected restructuring charges pre-tax | 380 | 380 | ||||
Additional expected restructuring charges, after-tax | 290 | 290 | ||||
Maximum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges, pre-tax | 1,000 | 1,000 | 590 | |||
Expected restructuring charges, after-tax | $ 450 | |||||
Additional expected restructuring charges pre-tax | 410 | 410 | ||||
Additional expected restructuring charges, after-tax | $ 310 | $ 310 |
Strategic Initiatives - Expecte
Strategic Initiatives - Expected Charges (Details) - Restructuring Plan [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | $ 900 | $ 520 | |
Minimum [Member] | Wealth and Personal Banking [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 160 | ||
Minimum [Member] | Commercial Banking [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 25 | ||
Minimum [Member] | Global Banking and Markets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 115 | ||
Minimum [Member] | Corporate Center [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | [1] | 600 | |
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 1,000 | $ 590 | |
Maximum [Member] | Wealth and Personal Banking [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 180 | ||
Maximum [Member] | Commercial Banking [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 35 | ||
Maximum [Member] | Global Banking and Markets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | 130 | ||
Maximum [Member] | Corporate Center [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges, pre-tax | [1] | $ 655 | |
[1] | Includes restructuring charges primarily related to lease impairment and other related costs, support service project costs and severance costs associated with certain centralized activities and functions. |
Strategic Initiatives - Restruc
Strategic Initiatives - Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring liability at beginning of period | $ 52 | $ 45 | $ 33 | $ 0 | ||||
Restructuring costs accrued during the period | 8 | 17 | 49 | 63 | ||||
Restructuring costs paid during the period | (7) | (15) | (29) | (16) | ||||
Restructuring liability at end of period | 53 | 47 | 53 | 47 | ||||
Severance and Other Employee Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring liability at beginning of period | 6 | [1] | 22 | 10 | [1] | 0 | ||
Restructuring costs accrued during the period | 3 | [1] | 13 | 8 | [1] | 35 | ||
Restructuring costs paid during the period | (2) | [1] | (12) | (11) | [1] | (12) | ||
Restructuring liability at end of period | 7 | [1] | 23 | 7 | [1] | 23 | ||
Lease Termination and Associated Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring liability at beginning of period | 46 | [2] | 23 | 23 | [2] | 0 | ||
Restructuring costs accrued during the period | 2 | [2] | 4 | 32 | [2] | 28 | ||
Restructuring costs paid during the period | (2) | [2] | (3) | (9) | [2] | (4) | ||
Restructuring liability at end of period | 46 | [2] | 24 | 46 | [2] | 24 | ||
Other [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring liability at beginning of period | 0 | 0 | 0 | [3] | 0 | [3] | ||
Restructuring costs accrued during the period | 3 | 0 | 9 | [3] | 0 | [3] | ||
Restructuring costs paid during the period | (3) | 0 | (9) | [3] | 0 | [3] | ||
Restructuring liability at end of period | [3] | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Severance and other employee costs are included in salaries and employee benefits in the consolidated statement of income (loss). The majority of these costs were reported in the Wealth and Personal Banking and the Global Banking and Markets business segments. Not included in these costs are allocated severance costs from HSBC Technology & Services ("HTSU") discussed further below. | |||||||
[2] | Primarily includes real estate taxes, service charges and decommissioning costs. Lease termination and associated costs are included in occupancy expense, net in the consolidated statement of income (loss) and were reported in the Wealth and Personal Banking and the Corporate Center business segments. (3) Primarily includes professional fees and other staff costs, which are included in other expenses in the consolidated statement of income (loss). | |||||||
[3] | Primarily includes professional fees and other staff costs, which are included in other expenses in the consolidated statement of income (loss). |
Strategic Initiatives - Branch
Strategic Initiatives - Branch Closings (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($)branch | Sep. 30, 2020USD ($) | Mar. 31, 2020branch | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019branch | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Number of branches closing | branch | 30 | 60 | 20 | |||||||
Notional value of derivative contracts | $ 1,606,786 | $ 1,606,786 | $ 2,021,133 | |||||||
Interest rate contracts [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Notional value of derivative contracts | 375,427 | 375,427 | $ 509,403 | |||||||
Write Down of Lease Right-of-use Assets, Net of Estimated Sublease Income [Member] | Occupancy Expense, Net [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease impairment charges | $ 29 | $ 46 | ||||||||
Write Down of Leasehold Improvement Assets [Member] | Occupancy Expense, Net [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Fixed asset impairment charges | 18 | $ 16 | ||||||||
Write Down of Equipment Assets [Member] | Occupancy Expense, Net [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Fixed asset impairment charges | $ 3 | |||||||||
Write-down of Lease Right-of-use Assets and Leasehold Improvement Assets Associated with Exit of Office Space [Member] | Occupancy Expense, Net [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease impairment charges | 4 | 9 | ||||||||
Lease Termination and Associated Costs [Member] | Occupancy Expense, Net [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease impairment charges | $ 7 | |||||||||
Restructuring Plan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Trading losses associated with exit of certain derivative contracts | 22 | 47 | 32 | $ 57 | ||||||
Allocated restructuring costs from affiliates | 13 | $ 13 | 43 | $ 55 | ||||||
Restructuring Plan [Member] | Interest rate contracts [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Notional value of derivative contracts | 20,400 | 20,400 | ||||||||
Restructuring Plan [Member] | Forecast [Member] | Interest rate contracts [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Notional value of derivative contracts | $ 33,900 | |||||||||
HSBC Group Restructuring Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Allocated restructuring costs from affiliates | $ 14 | $ 32 |
Branch Assets and Liabilities_3
Branch Assets and Liabilities Held for Sale (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2021branch | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||
Revenues associated with the disposal group as percent of consolidated revenues (percent) | 7.00% | 7.00% | |||
Retail Branches Sold [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Assets held for sale | [1] | $ 2,854,000,000 | $ 2,854,000,000 | ||
Liabilities held for sale | [1] | $ 9,481,000,000 | $ 9,481,000,000 | ||
Rebranding of Retail Branches [Member] | Minimum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of bank branches | branch | 20 | ||||
Rebranding of Retail Branches [Member] | Maximum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of bank branches | branch | 25 | ||||
Exit of Mass Market Retail Banking Business [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of branches sold | branch | 90 | ||||
Assets held for sale | $ 2,900,000,000 | ||||
Liabilities held for sale | 10,100,000,000 | ||||
Lower of amortized cost or fair value adjustment | 0 | ||||
Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Lower of amortized cost or fair value adjustment | $ 0 | ||||
[1] | The sale of this disposal group is expected to result in a net cash payment as the liabilities being assumed are greater than the assets being purchased. |
Branch Assets and Liabilities_4
Branch Assets and Liabilities Held for Sale Groups - Disposal Group (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | $ 4,927,000,000 | $ 337,000,000 | ||
Other branch related assets held for sale: | ||||
Total other branch related assets held for sale | 244,000,000 | 0 | ||
Deposits held for sale | 9,321,000,000 | 0 | ||
Other branch related liabilities held for sale: | ||||
Total other branch related liabilities held for sale | 160,000,000 | 0 | ||
Lease, ROU assets, excluding amounts transferred to held-for-sale | 225,000,000 | |||
Lease liabilities, excluding amounts transferred to held-for-sale | 325,000,000 | |||
Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Other branch related liabilities held for sale: | ||||
Lower of amortized cost or fair value adjustment | $ 0 | |||
Reduction to the provision for credit losses | 101,000,000 | |||
Credit Cards [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 1,100,000,000 | |||
Commercial Loans [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 1,291,000,000 | 129,000,000 | ||
Commercial Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 149,000,000 | 105,000,000 | ||
Other branch related liabilities held for sale: | ||||
Lower of amortized cost or fair value adjustment | 0 | |||
Consumer Loans [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 3,636,000,000 | 208,000,000 | ||
Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 3,616,000,000 | 3,584,000,000 | ||
Other branch related liabilities held for sale: | ||||
Lower of amortized cost or fair value adjustment | 0 | |||
Reduction to the provision for credit losses | 100,000,000 | 100,000,000 | ||
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 2,449,000,000 | 208,000,000 | ||
Consumer Loans [Member] | Residential Mortgage [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 2,364,000,000 | 2,397,000,000 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 257,000,000 | 0 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 265,000,000 | 257,000,000 | ||
Consumer Loans [Member] | Credit Cards [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 785,000,000 | 0 | ||
Consumer Loans [Member] | Credit Cards [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 829,000,000 | 785,000,000 | ||
Consumer Loans [Member] | Other Consumer [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 145,000,000 | $ 0 | ||
Consumer Loans [Member] | Other Consumer [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | $ 158,000,000 | 145,000,000 | ||
Retail Branches Sold [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | [1] | 2,610,000,000 | ||
Other branch related assets held for sale: | ||||
Lease ROU assets | [2] | 149,000,000 | ||
Properties and equipment, net | 40,000,000 | |||
Cash and other assets | 55,000,000 | |||
Total other branch related assets held for sale | 244,000,000 | |||
Total branch assets held for sale | [3] | 2,854,000,000 | ||
Deposits held for sale | 9,321,000,000 | |||
Other branch related liabilities held for sale: | ||||
Lease liabilities | [2] | 151,000,000 | ||
Other liabilities | 9,000,000 | |||
Total other branch related liabilities held for sale | 160,000,000 | |||
Total branch liabilities held for sale | [3] | 9,481,000,000 | ||
Retail Branches Sold [Member] | Residential Mortgage [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 1,952,000,000 | |||
Retail Branches Sold [Member] | Home Equity Mortgages [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 235,000,000 | |||
Retail Branches Sold [Member] | Credit Cards [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 182,000,000 | |||
Retail Branches Sold [Member] | Other Consumer [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | 142,000,000 | |||
Retail Branches Sold [Member] | Commercial Loans [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans held for sale | $ 99,000,000 | |||
[1] | Includes $99 million of commercial loans, $1,952 million of residential mortgage loans, $235 million of home equity mortgage loans, $182 million of credit card loans and $142 million of other consumer loans | |||
[2] | At September 30, 2021, our lease ROU assets and lease liabilities, excluding the amounts transferred to held for sale, totaled $225 million and $325 million, respectively. | |||
[3] | The sale of this disposal group is expected to result in a net cash payment as the liabilities being assumed are greater than the assets being purchased. |
Trading Assets and Liabilitie_2
Trading Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | $ 21,985 | $ 27,284 |
Trading liabilities | 2,670 | 5,397 |
U.S. Treasury [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 2,352 | 5,145 |
US Government agency issued or guaranteed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 45 | 0 |
US Government-sponsored enterprises [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 246 | 192 |
Asset-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 0 | 143 |
Foreign bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 768 | 7,971 |
Equity securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 13,287 | 6,043 |
Precious metals [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 3,316 | 4,989 |
Trading liabilities | 90 | 2,312 |
Securities sold, not yet purchased [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading liabilities | 947 | 727 |
Derivatives, net [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading assets | 1,971 | 2,801 |
Derivatives, net [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading liabilities | $ 1,633 | $ 2,358 |
Trading Assets and Liabilitie_3
Trading Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Derivatives included in trading assets, amount offset | [1],[2] | $ 3,577 | $ 3,577 | $ 4,079 | ||
Derivatives included in trading liabilities, amount offset | [1],[2] | 1,518 | 1,518 | 3,377 | ||
Dividend income on equity securities held for trading | 44 | $ 21 | 108 | $ 50 | ||
Trading Assets [Member] | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Derivatives included in trading assets, amount offset | 2,310 | 2,310 | 2,763 | |||
Trading Liabilities [Member] | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Derivatives included in trading liabilities, amount offset | $ 1,518 | $ 1,518 | $ 3,377 | |||
[1] | Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. | |||||
[2] | Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements. |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Asset Backed Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | $ 36,352 | $ 39,636 | ||
Securities available-for-sale, allowance for credit losses | (1) | (1) | [1] | |
Securities available-for-sale, unrealized gains | 449 | 1,109 | ||
Securities available-for-sale, unrealized losses | (293) | (72) | ||
Securities available-for-sale, fair value | 36,507 | 40,672 | ||
Securities, held-to-maturity, amortized cost | 5,867 | 8,983 | ||
Securities held-to-maturity, allowance for credit losses | [1] | (1) | (2) | |
Securities held-to-maturity, unrealized gain | 231 | 388 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 6,097 | 9,369 | ||
US Treasury Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 12,510 | 16,087 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 216 | 608 | ||
Securities available-for-sale, unrealized losses | (90) | (47) | ||
Securities available-for-sale, fair value | 12,636 | 16,648 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 7,735 | 5,986 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 154 | 280 | ||
Securities available-for-sale, unrealized losses | (94) | (2) | ||
Securities available-for-sale, fair value | 7,795 | 6,264 | ||
Securities, held-to-maturity, amortized cost | 735 | 1,137 | ||
Securities held-to-maturity, allowance for credit losses | 0 | 0 | ||
Securities held-to-maturity, unrealized gain | 30 | 44 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 765 | 1,181 | ||
Collateralized Mortgage Obligations, Issued by U.S. Government Sponsored Enterprises [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 1,831 | 1,676 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 9 | 19 | ||
Securities available-for-sale, unrealized losses | (37) | (2) | ||
Securities available-for-sale, fair value | 1,803 | 1,693 | ||
Securities, held-to-maturity, amortized cost | 550 | 780 | ||
Securities held-to-maturity, allowance for credit losses | 0 | 0 | ||
Securities held-to-maturity, unrealized gain | 35 | 53 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 585 | 833 | ||
Direct Agency Obligations U S Government Sponsored Enterprises [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 1,449 | 1,236 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 19 | 17 | ||
Securities available-for-sale, unrealized losses | 0 | 0 | ||
Securities available-for-sale, fair value | 1,468 | 1,253 | ||
Mortgage-backed Securities, Issued or Guaranteed by US Government Agency [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 7,172 | 6,993 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 30 | 152 | ||
Securities available-for-sale, unrealized losses | (41) | 0 | ||
Securities available-for-sale, fair value | 7,161 | 7,145 | ||
Securities, held-to-maturity, amortized cost | 1,250 | 1,947 | ||
Securities held-to-maturity, allowance for credit losses | 0 | 0 | ||
Securities held-to-maturity, unrealized gain | 39 | 76 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 1,289 | 2,023 | ||
Collateralized Mortgage Obligations, Issued or Guaranteed by US Government Agency [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 2,989 | 2,093 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 11 | 22 | ||
Securities available-for-sale, unrealized losses | (24) | (11) | ||
Securities available-for-sale, fair value | 2,976 | 2,104 | ||
Securities, held-to-maturity, amortized cost | 3,322 | 5,107 | ||
Securities held-to-maturity, allowance for credit losses | 0 | 0 | ||
Securities held-to-maturity, unrealized gain | 126 | 212 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 3,448 | 5,319 | ||
Direct Agency Obligations, Issued or Guaranteed by US Government Agency [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 280 | 296 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 7 | 5 | ||
Securities available-for-sale, unrealized losses | 0 | 0 | ||
Securities available-for-sale, fair value | 287 | 301 | ||
Home Equity Backed Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 21 | 28 | ||
Securities available-for-sale, allowance for credit losses | (1) | (1) | ||
Securities available-for-sale, unrealized gains | 0 | 0 | ||
Securities available-for-sale, unrealized losses | 0 | 0 | ||
Securities available-for-sale, fair value | 20 | 27 | ||
Asset-backed Securities Available-for-sale [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | 108 | 114 | ||
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | 0 | 0 | ||
Securities available-for-sale, unrealized losses | (7) | (10) | ||
Securities available-for-sale, fair value | 101 | 104 | ||
Foreign debt securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities available-for-sale, amortized cost | [2] | 2,257 | 5,127 | |
Securities available-for-sale, allowance for credit losses | 0 | 0 | ||
Securities available-for-sale, unrealized gains | [2] | 3 | 6 | |
Securities available-for-sale, unrealized losses | [2] | 0 | 0 | |
Securities available-for-sale, fair value | [2] | 2,260 | 5,133 | |
Obligations of U.S. states and political subdivisions [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities, held-to-maturity, amortized cost | 9 | 10 | ||
Securities held-to-maturity, allowance for credit losses | 0 | 0 | ||
Securities held-to-maturity, unrealized gain | 0 | 1 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | 9 | 11 | ||
Residential mortgage asset-backed securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities, held-to-maturity, amortized cost | 1 | 2 | ||
Securities held-to-maturity, allowance for credit losses | (1) | (2) | ||
Securities held-to-maturity, unrealized gain | 1 | 2 | ||
Securities held-to-maturity, unrealized losses | 0 | 0 | ||
Securities held-to-maturity, fair value | $ 1 | $ 2 | ||
[1] | See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. | |||
[2] | Foreign debt securities represent public sector entity, bank or corporate debt. |
Securities - Gross unrealized l
Securities - Gross unrealized losses and related fair values (Detail) $ in Millions | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 120 | 42 |
Securities available-for-sale gross unrealized losses one year or less | $ (231) | $ (29) |
Securities available-for-sale aggregate fair value of investment one year or less | $ 16,077 | $ 3,818 |
Number of Securities available for sale greater than one year | security | 37 | 31 |
Securities available-for-sale gross unrealized losses greater than one year | $ (62) | $ (43) |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 1,558 | $ 1,566 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 17 | 5 |
Securities available-for-sale gross unrealized losses one year or less | $ (48) | $ (5) |
Securities available-for-sale aggregate fair value of investment one year or less | $ 2,416 | $ 751 |
Number of Securities available for sale greater than one year | security | 9 | 13 |
Securities available-for-sale gross unrealized losses greater than one year | $ (42) | $ (42) |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 752 | $ 1,271 |
US Government-sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 60 | 15 |
Securities available-for-sale gross unrealized losses one year or less | $ (127) | $ (3) |
Securities available-for-sale aggregate fair value of investment one year or less | $ 5,879 | $ 715 |
Number of Securities available for sale greater than one year | security | 11 | 8 |
Securities available-for-sale gross unrealized losses greater than one year | $ (4) | $ (1) |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 185 | $ 46 |
US Government agency issued or guaranteed [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 38 | 13 |
Securities available-for-sale gross unrealized losses one year or less | $ (56) | $ (11) |
Securities available-for-sale aggregate fair value of investment one year or less | $ 7,274 | $ 1,482 |
Number of Securities available for sale greater than one year | security | 11 | 3 |
Securities available-for-sale gross unrealized losses greater than one year | $ (9) | $ 0 |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 495 | $ 8 |
Asset-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 0 | 3 |
Securities available-for-sale gross unrealized losses one year or less | $ 0 | $ (10) |
Securities available-for-sale aggregate fair value of investment one year or less | $ 0 | $ 104 |
Number of Securities available for sale greater than one year | security | 5 | 2 |
Securities available-for-sale gross unrealized losses greater than one year | $ (7) | $ 0 |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 101 | $ 0 |
Foreign debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities available for sale in one year or less | security | 5 | 6 |
Securities available-for-sale gross unrealized losses one year or less | $ 0 | $ 0 |
Securities available-for-sale aggregate fair value of investment one year or less | $ 508 | $ 766 |
Number of Securities available for sale greater than one year | security | 1 | 5 |
Securities available-for-sale gross unrealized losses greater than one year | $ 0 | $ 0 |
Securities available-for-sale aggregate fair value of investment greater than one year | $ 25 | $ 241 |
Securities - Realized gains and
Securities - Realized gains and losses on investment securities Transactions Attributable to available-for-sale securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 21 | $ 53 | $ 109 | $ 140 |
Gross realized losses | (17) | (1) | (58) | (29) |
Net realized gains | $ 4 | $ 52 | $ 51 | $ 111 |
Securities - Distribution of ma
Securities - Distribution of maturities of debt securities with approximate yield of portfolio (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 1,978 |
Available-for-sale yield within one year (percent) | 1.88% |
Available-for-sale amount after one but within five years | $ 6,402 |
Available-for-sale yield after one but within five years (percent) | 1.05% |
Available-for-sale amount after five but within ten years | $ 5,919 |
Available-for-sale yield after five but within ten years (percent) | 1.77% |
Available-for-sale amount after ten years | $ 22,053 |
Available-for-sale yield after ten years (percent) | 1.75% |
Total fair value within one year | $ 1,981 |
Total fair value after one but within five years | 6,513 |
Total fair value after five but within ten years | 6,052 |
Total fair value after ten years | 21,961 |
Held-to-maturity amount within one year | $ 6 |
Held-to-maturity yield within one year (percent) | 3.78% |
Held-to-maturity amount after one but within five years | $ 188 |
Held-to-maturity yield after one but within five years (percent) | 2.66% |
Held-to-maturity after five but within ten years | $ 337 |
Held-to-maturity yield after five but within ten years (percent) | 2.34% |
Held-to-maturity after ten years | $ 5,336 |
Held-to-maturity yield after ten years (percent) | 2.67% |
Total fair value within one year | $ 6 |
Total fair value after one but within five years | 192 |
Total fair value after five but within ten years | 350 |
Total fair value after ten years | 5,549 |
U.S. Treasury [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 772 |
Available-for-sale yield within one year (percent) | 4.07% |
Available-for-sale amount after one but within five years | $ 3,910 |
Available-for-sale yield after one but within five years (percent) | 0.95% |
Available-for-sale amount after five but within ten years | $ 3,666 |
Available-for-sale yield after five but within ten years (percent) | 1.36% |
Available-for-sale amount after ten years | $ 4,162 |
Available-for-sale yield after ten years (percent) | 1.93% |
US Government-sponsored enterprises [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 31 |
Available-for-sale yield within one year (percent) | 2.75% |
Available-for-sale amount after one but within five years | $ 1,316 |
Available-for-sale yield after one but within five years (percent) | 1.78% |
Available-for-sale amount after five but within ten years | $ 2,194 |
Available-for-sale yield after five but within ten years (percent) | 2.35% |
Available-for-sale amount after ten years | $ 7,474 |
Available-for-sale yield after ten years (percent) | 1.64% |
Held-to-maturity amount within one year | $ 0 |
Held-to-maturity yield within one year (percent) | 0.00% |
Held-to-maturity amount after one but within five years | $ 184 |
Held-to-maturity yield after one but within five years (percent) | 2.65% |
Held-to-maturity after five but within ten years | $ 327 |
Held-to-maturity yield after five but within ten years (percent) | 2.26% |
Held-to-maturity after ten years | $ 774 |
Held-to-maturity yield after ten years (percent) | 3.30% |
US Government agency issued or guaranteed [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 71 |
Available-for-sale yield within one year (percent) | 0.24% |
Available-for-sale amount after one but within five years | $ 23 |
Available-for-sale yield after one but within five years (percent) | 1.25% |
Available-for-sale amount after five but within ten years | $ 1 |
Available-for-sale yield after five but within ten years (percent) | 6.13% |
Available-for-sale amount after ten years | $ 10,346 |
Available-for-sale yield after ten years (percent) | 1.75% |
Held-to-maturity amount within one year | $ 3 |
Held-to-maturity yield within one year (percent) | 3.83% |
Held-to-maturity amount after one but within five years | $ 0 |
Held-to-maturity yield after one but within five years (percent) | 0.00% |
Held-to-maturity after five but within ten years | $ 8 |
Held-to-maturity yield after five but within ten years (percent) | 5.14% |
Held-to-maturity after ten years | $ 4,561 |
Held-to-maturity yield after ten years (percent) | 2.56% |
Obligations of U.S. states and political subdivisions [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Held-to-maturity amount within one year | $ 3 |
Held-to-maturity yield within one year (percent) | 3.43% |
Held-to-maturity amount after one but within five years | $ 4 |
Held-to-maturity yield after one but within five years (percent) | 3.00% |
Held-to-maturity after five but within ten years | $ 2 |
Held-to-maturity yield after five but within ten years (percent) | 4.25% |
Held-to-maturity after ten years | $ 0 |
Held-to-maturity yield after ten years (percent) | 0.00% |
Asset-backed securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 0 |
Available-for-sale yield within one year (percent) | 0.00% |
Available-for-sale amount after one but within five years | $ 0 |
Available-for-sale yield after one but within five years (percent) | 0.00% |
Available-for-sale amount after five but within ten years | $ 58 |
Available-for-sale yield after five but within ten years (percent) | 5.13% |
Available-for-sale amount after ten years | $ 71 |
Available-for-sale yield after ten years (percent) | 3.52% |
Held-to-maturity amount within one year | $ 0 |
Held-to-maturity yield within one year (percent) | 0.00% |
Held-to-maturity amount after one but within five years | $ 0 |
Held-to-maturity yield after one but within five years (percent) | 0.00% |
Held-to-maturity after five but within ten years | $ 0 |
Held-to-maturity yield after five but within ten years (percent) | 0.00% |
Held-to-maturity after ten years | $ 1 |
Held-to-maturity yield after ten years (percent) | 7.53% |
Foreign debt securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale amount within one year | $ 1,104 |
Available-for-sale yield within one year (percent) | 0.43% |
Available-for-sale amount after one but within five years | $ 1,153 |
Available-for-sale yield after one but within five years (percent) | 0.57% |
Available-for-sale amount after five but within ten years | $ 0 |
Available-for-sale yield after five but within ten years (percent) | 0.00% |
Available-for-sale amount after ten years | $ 0 |
Available-for-sale yield after ten years (percent) | 0.00% |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities available-for-sale, allowance for credit losses | $ 1,000,000 | $ 1,000,000 | [1] | |||
Securities held-to-maturity, allowance for credit losses | [1] | 1,000,000 | 2,000,000 | |||
Securities held-to-maturity, nonaccrual | 0 | 0 | ||||
Equity securities without readily determinable fair values, impairment loss adjustment | $ 3,000,000 | $ 2,000,000 | ||||
Financial Asset, Past Due [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities held-to-maturity, past due | 0 | 0 | ||||
Other assets [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Equity securities carried at fair value | 289,000,000 | 284,000,000 | ||||
Equity securities without readily determinable fair values | 16,000,000 | 14,000,000 | ||||
Federal Home Loan Bank Stock | 110,000,000 | 259,000,000 | ||||
Federal Reserve Bank Stock | $ 558,000,000 | $ 559,000,000 | ||||
[1] | See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. |
Loans - Components of Loans (De
Loans - Components of Loans (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 55,526 | $ 62,088 | ||
Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 38,914 | 41,599 | ||
Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 8,250 | 10,464 | ||
Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | [1] | 12,788 | 13,479 | |
Loans funded under the Payroll Protection Program | 437 | 1,043 | ||
Commercial Loans [Member] | Global Banking [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | [2] | 11,440 | 13,519 | |
Commercial Loans [Member] | Other Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,436 | 4,137 | ||
Consumer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | [3] | 16,612 | [4] | 20,489 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 16,093 | 18,377 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 369 | 727 | ||
Consumer Loans [Member] | Credit Cards [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 1,066 | ||
Consumer Loans [Member] | Other consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | [5] | 150 | 319 | |
Consumer Loans [Member] | Student Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, designated under fair value option | 27 | 32 | ||
Affiliates [Member] | Commercial Loans [Member] | Other Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | [6] | 2,857 | 1,100 | |
Other [Member] | Commercial Loans [Member] | Other Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 3,579 | $ 3,037 | ||
[1] | Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. | |||
[2] | 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. | |||
[3] | The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. | |||
[4] | The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. | |||
[5] | Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. | |||
[6] | See Note 15, "Related Party Transactions," for additional information regarding loans to HSBC affiliates. |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Net deferred origination costs (fees) | $ 36 | $ 57 |
Net unamortized premium (discount) | $ 6 | $ 9 |
Loans - Summary of Past Due Sta
Loans - Summary of Past Due Status of Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | $ 55,526 | $ 62,088 | |||
Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 38,914 | 41,599 | |||
Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 8,250 | 10,464 | |||
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [1] | 12,788 | 13,479 | ||
Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [2] | 11,440 | 13,519 | ||
Commercial Loans [Member] | Other Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 6,436 | 4,137 | |||
Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [3] | 16,612 | [4] | 20,489 | |
Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 16,093 | 18,377 | |||
Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 369 | 727 | |||
Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 1,066 | |||
Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [5] | 150 | 319 | ||
Financial Asset, Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 722 | 1,141 | |||
Financial Asset, Past Due [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 225 | 307 | |||
Financial Asset, Past Due [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 61 | 78 | |||
Financial Asset, Past Due [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 125 | 145 | |||
Financial Asset, Past Due [Member] | Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 23 | 60 | |||
Financial Asset, Past Due [Member] | Commercial Loans [Member] | Other Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 16 | 24 | |||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 497 | [4] | 834 | ||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | Loans Held for Sale [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | $ 115 | ||||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 467 | 746 | |||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 24 | 33 | |||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 42 | |||
Financial Asset, Past Due [Member] | Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 6 | 13 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 407 | 704 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 196 | 228 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 56 | 78 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 124 | 126 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 0 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Commercial Loans [Member] | Other Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 16 | 24 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 211 | [4] | 476 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 203 | 435 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 5 | 11 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 23 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 3 | 7 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 315 | 437 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 29 | 79 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 5 | 0 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 1 | 19 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 23 | 60 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | Other Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 0 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 286 | [4] | 358 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 264 | 311 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 19 | 22 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 0 | 19 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | 3 | 6 | |||
Financial Asset, Not Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 54,804 | 60,947 | ||
Financial Asset, Not Past Due [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 38,689 | 41,292 | ||
Financial Asset, Not Past Due [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 8,189 | 10,386 | ||
Financial Asset, Not Past Due [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 12,663 | 13,334 | ||
Financial Asset, Not Past Due [Member] | Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 11,417 | 13,459 | ||
Financial Asset, Not Past Due [Member] | Commercial Loans [Member] | Other Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 6,420 | 4,113 | ||
Financial Asset, Not Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 16,115 | [4] | 19,655 | |
Financial Asset, Not Past Due [Member] | Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 15,626 | 17,631 | ||
Financial Asset, Not Past Due [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 345 | 694 | ||
Financial Asset, Not Past Due [Member] | Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | 0 | 1,024 | ||
Financial Asset, Not Past Due [Member] | Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans | [6] | $ 144 | $ 306 | ||
[1] | Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. | ||||
[2] | 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. | ||||
[3] | The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. | ||||
[4] | The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. | ||||
[5] | Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. | ||||
[6] | Loans less than 30 days past due are presented as current. (2) The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. |
Loans - Summary of Nonaccrual L
Loans - Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | $ 1,231 | $ 1,686 | |||
Accruing Loans Contractually Past Due 90 days or More | 1 | 21 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 438 | 400 | |||
Residential mortgage loans carried at lower of cost or fair value of the collateral less cost to sell | 323 | 375 | |||
Commercial Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 399 | 544 | |||
Accruing Loans Contractually Past Due 90 days or More | 1 | 0 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 198 | 125 | |||
Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 128 | 44 | |||
Accruing Loans Contractually Past Due 90 days or More | 0 | 0 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 35 | 31 | |||
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 139 | 163 | |||
Accruing Loans Contractually Past Due 90 days or More | 1 | 0 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 73 | 1 | |||
Commercial Loans [Member] | Global Banking [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 132 | 337 | |||
Accruing Loans Contractually Past Due 90 days or More | 0 | 0 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 90 | 93 | |||
Consumer Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 832 | [1] | 1,142 | ||
Accruing Loans Contractually Past Due 90 days or More | 0 | [1] | 21 | ||
Nonaccrual Loans With No Allowance For Credit Losses | 240 | [1] | 275 | ||
Consumer Loans [Member] | Loans Held for Sale [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Accruing Loans Contractually Past Due 90 days or More | $ 21 | ||||
Consumer Loans [Member] | Loans Held for Sale [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | $ 206 | ||||
Consumer Loans [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | [2],[3],[4] | 785 | 1,079 | ||
Accruing Loans Contractually Past Due 90 days or More | [2],[3],[4] | 0 | 0 | ||
Nonaccrual Loans With No Allowance For Credit Losses | [2],[3],[4] | 214 | 241 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | [2],[4] | 47 | 63 | ||
Accruing Loans Contractually Past Due 90 days or More | [2],[4] | 0 | 0 | ||
Nonaccrual Loans With No Allowance For Credit Losses | [2],[4] | 26 | 34 | ||
Consumer Loans [Member] | Credit Cards [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 0 | 0 | |||
Accruing Loans Contractually Past Due 90 days or More | 0 | 19 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | 0 | |||
Consumer Loans [Member] | Other consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | 0 | 0 | |||
Accruing Loans Contractually Past Due 90 days or More | 0 | 2 | |||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | 0 | |||
Consumer Loans [Member] | Mortgages [Member] | Cares Act Election [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual Loans | $ 367 | $ 590 | |||
[1] | The decrease in nonperforming loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $206 million of nonperforming consumer loans, of which $21 million were accruing loans contractually 90 days or more past due. | ||||
[2] | At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans include $323 million and $375 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell. | ||||
[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] | 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. At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans also included $367 million and $590 million, respectively, of loans under COVID-19 related payment deferral programs where the borrowers utilized a payment deferral of more than six months and, as a result, have been placed on nonaccrual status. |
Loans - Schedule of Additional
Loans - Schedule of Additional Information on Nonaccrual Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Receivables [Abstract] | ||||
Interest income that would have been recorded if the nonaccrual receivable had been current in accordance with contractual terms during the period | $ 11 | $ 10 | $ 44 | $ 29 |
Interest income that was recorded on nonaccrual loans and included in interest income during the period | $ 6 | $ 2 | $ 31 | $ 8 |
Loans - Collateral-Dependent Lo
Loans - Collateral-Dependent Loans (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral-dependent loans | $ 623 | $ 817 |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral-dependent loans | $ 358 | $ 456 |
Loans - Summary of TDRs (Detail
Loans - Summary of TDRs (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Commercial loans removed from TDR classification | $ 0 | $ 0 | $ 0 | $ 0 | |||
TDR Loans | [1] | 478,000,000 | 478,000,000 | $ 786,000,000 | |||
Residential mortgage loan TDR carried at lower of amortized cost or fair value less cost to sell | 339,000,000 | 339,000,000 | 487,000,000 | ||||
Non Accrual loans included in TDR loan | 317,000,000 | 317,000,000 | 463,000,000 | ||||
Commercial Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | [2],[3] | 77,000,000 | 77,000,000 | 168,000,000 | |||
Additional commitments to lend to commercial borrowers with modified TDRs | 13,000,000 | 13,000,000 | 107,000,000 | ||||
Commercial Loans [Member] | Cares Act Election [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans excluded from TDR classification | 352,000,000 | 352,000,000 | 924,000,000 | ||||
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | 40,000,000 | 40,000,000 | 94,000,000 | ||||
Commercial Loans [Member] | Global Banking [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | 37,000,000 | 37,000,000 | 74,000,000 | ||||
Consumer Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | [4] | 401,000,000 | 401,000,000 | 618,000,000 | |||
Consumer Loans [Member] | Loans Held for Sale [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | $ 159,000,000 | ||||||
Consumer Loans [Member] | Residential Mortgage [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | [5],[6] | 384,000,000 | 384,000,000 | 582,000,000 | |||
Consumer Loans [Member] | Home Equity Mortgages [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | [5],[6] | 17,000,000 | 17,000,000 | 31,000,000 | |||
Consumer Loans [Member] | Credit Cards [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
TDR Loans | 0 | 0 | 5,000,000 | ||||
Consumer Loans [Member] | Mortgages [Member] | Cares Act Election [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans excluded from TDR classification | $ 404,000,000 | $ 404,000,000 | $ 736,000,000 | ||||
[1] | At September 30, 2021 and December 31, 2020, the carrying value of TDR Loans includes $317 million and $463 million, respectively, of loans which are classified as nonaccrua | ||||||
[2] | Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million and $107 million at September 30, 2021 and December 31, 2020, respectively. (2) Not included in the table at September 30, 2021 and December 31, 2020 are $352 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election. | ||||||
[3] | Not included in the table at September 30, 2021 and December 31, 2020 are $352 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election. | ||||||
[4] | The decrease in TDR Loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $159 million of consumer TDR Loans. | ||||||
[5] | At September 30, 2021 and December 31, 2020, the carrying value of consumer mortgage TDR Loans includes $339 million and $487 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell. | ||||||
[6] | Not included in the table at September 30, 2021 and December 31, 2020 are $404 million and $736 million, respectively, of consumer mortgage loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months that were exempted from TDR assessment due to our CARES Act election |
Loans - Summary of Receivables
Loans - Summary of Receivables which were Modified and as Result Became Classified as TDR Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | $ 1 | $ 62 | $ 76 | $ 121 |
Commercial Loan [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | 0 | 41 | 41 | 89 |
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | 0 | 0 | 0 | 0 |
Commercial Loan [Member] | Business and Corporate Banking [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | 0 | 41 | 26 | 45 |
Commercial Loan [Member] | Global Banking [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | 0 | 0 | 15 | 44 |
Consumer Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | $ 1 | $ 21 | $ 35 | $ 32 |
Weighted average rate of reduction | 3.13% | 1.80% | 2.08% | 2.14% |
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | $ 1 | $ 2 | $ 4 | $ 3 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | 1 | 20 | 33 | 27 |
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | 1 | 2 | 4 | 3 |
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | 0 | 0 | 1 | 2 |
Consumer Loans [Member] | Credit Cards [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans which were modified and as a result became classified as TDR Loans | $ 0 | $ 1 | $ 1 | $ 3 |
Loans - Loans Classified as TDR
Loans - Loans Classified as TDR Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commercial Loans [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Threshold period for troubled debt restructuring status | 90 days | 90 days | 90 days | 90 days |
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Threshold period for troubled debt restructuring status | 60 days | 60 days | 60 days | 60 days |
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | $ 1 | $ 2 | $ 4 | $ 3 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loans which were classified as TDR loans during previous 12 months which became contractually delinquent | $ 1 | $ 2 | $ 4 | $ 3 |
Loans - Summary of Criticized A
Loans - Summary of Criticized Assets for Commercial Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 55,526 | $ 62,088 | |
Commercial Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 928 | 2,510 | |
Fiscal year before current fiscal year | 2,410 | 5,322 | |
Two years before current fiscal year | 4,368 | 3,469 | |
Three years before current fiscal year | 2,905 | 2,039 | |
Four years before current fiscal year | 1,388 | 639 | |
Prior | 12,093 | 11,882 | |
Revolving Loans | 14,550 | 15,396 | |
Revolving Loans, Converted to Term Loans | 272 | 342 | |
Total loans | 38,914 | 41,599 | |
Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 7 | 545 | |
Fiscal year before current fiscal year | 635 | 3,775 | |
Two years before current fiscal year | 3,080 | 2,799 | |
Three years before current fiscal year | 2,243 | 1,368 | |
Four years before current fiscal year | 783 | 264 | |
Prior | 1,437 | 1,614 | |
Revolving Loans | 49 | 79 | |
Revolving Loans, Converted to Term Loans | 16 | 20 | |
Total loans | 8,250 | 10,464 | |
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 304 | 1,080 | |
Fiscal year before current fiscal year | 651 | 621 | |
Two years before current fiscal year | 541 | 265 | |
Three years before current fiscal year | 240 | 335 | |
Four years before current fiscal year | 271 | 152 | |
Prior | 4,843 | 3,488 | |
Revolving Loans | 5,682 | 7,216 | |
Revolving Loans, Converted to Term Loans | 256 | 322 | |
Total loans | [1] | 12,788 | 13,479 |
Commercial Loans [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 403 | 507 | |
Fiscal year before current fiscal year | 674 | 495 | |
Two years before current fiscal year | 327 | 190 | |
Three years before current fiscal year | 217 | 231 | |
Four years before current fiscal year | 234 | 104 | |
Prior | 4,672 | 6,150 | |
Revolving Loans | 4,913 | 5,842 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | [2] | 11,440 | 13,519 |
Commercial Loans [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 214 | 378 | |
Fiscal year before current fiscal year | 450 | 431 | |
Two years before current fiscal year | 420 | 215 | |
Three years before current fiscal year | 205 | 105 | |
Four years before current fiscal year | 100 | 119 | |
Prior | 1,141 | 630 | |
Revolving Loans | 3,906 | 2,259 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 6,436 | 4,137 | |
Commercial Loans [Member] | Criticized [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 27 | 18 | |
Fiscal year before current fiscal year | 59 | 607 | |
Two years before current fiscal year | 1,273 | 231 | |
Three years before current fiscal year | 768 | 395 | |
Four years before current fiscal year | 498 | 126 | |
Prior | 1,497 | 1,604 | |
Revolving Loans | 1,113 | 1,867 | |
Revolving Loans, Converted to Term Loans | 29 | 49 | |
Total loans | 5,264 | 4,897 | |
Commercial Loans [Member] | Criticized [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 492 | |
Two years before current fiscal year | 1,139 | 115 | |
Three years before current fiscal year | 675 | 340 | |
Four years before current fiscal year | 467 | 85 | |
Prior | 788 | 523 | |
Revolving Loans | 21 | 0 | |
Revolving Loans, Converted to Term Loans | 11 | 0 | |
Total loans | 3,101 | 1,555 | |
Commercial Loans [Member] | Criticized [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 18 | |
Fiscal year before current fiscal year | 20 | 115 | |
Two years before current fiscal year | 134 | 68 | |
Three years before current fiscal year | 93 | 55 | |
Four years before current fiscal year | 31 | 41 | |
Prior | 486 | 612 | |
Revolving Loans | 701 | 1,092 | |
Revolving Loans, Converted to Term Loans | 18 | 49 | |
Total loans | 1,483 | 2,050 | |
Commercial Loans [Member] | Criticized [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 27 | 0 | |
Fiscal year before current fiscal year | 39 | 0 | |
Two years before current fiscal year | 0 | 48 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 145 | 355 | |
Revolving Loans | 351 | 735 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 562 | 1,138 | |
Commercial Loans [Member] | Criticized [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 78 | 114 | |
Revolving Loans | 40 | 40 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 118 | 154 | |
Commercial Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 8 | 17 | |
Fiscal year before current fiscal year | 40 | 377 | |
Two years before current fiscal year | 446 | 158 | |
Three years before current fiscal year | 425 | 203 | |
Four years before current fiscal year | 138 | 95 | |
Prior | 478 | 1,013 | |
Revolving Loans | 280 | 738 | |
Revolving Loans, Converted to Term Loans | 10 | 48 | |
Total loans | 1,825 | 2,649 | |
Commercial Loans [Member] | Special Mention [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 306 | |
Two years before current fiscal year | 352 | 115 | |
Three years before current fiscal year | 361 | 171 | |
Four years before current fiscal year | 110 | 85 | |
Prior | 225 | 437 | |
Revolving Loans | 0 | 0 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 1,048 | 1,114 | |
Commercial Loans [Member] | Special Mention [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 17 | |
Fiscal year before current fiscal year | 1 | 71 | |
Two years before current fiscal year | 94 | 43 | |
Three years before current fiscal year | 64 | 32 | |
Four years before current fiscal year | 28 | 10 | |
Prior | 206 | 390 | |
Revolving Loans | 226 | 600 | |
Revolving Loans, Converted to Term Loans | 10 | 48 | |
Total loans | 629 | 1,211 | |
Commercial Loans [Member] | Special Mention [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 8 | 0 | |
Fiscal year before current fiscal year | 39 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 39 | 142 | |
Revolving Loans | 54 | 98 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 140 | 240 | |
Commercial Loans [Member] | Special Mention [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 8 | 44 | |
Revolving Loans | 0 | 40 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 8 | 84 | |
Commercial Loans [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 19 | 1 | |
Fiscal year before current fiscal year | 19 | 230 | |
Two years before current fiscal year | 746 | 73 | |
Three years before current fiscal year | 321 | 192 | |
Four years before current fiscal year | 360 | 31 | |
Prior | 978 | 468 | |
Revolving Loans | 786 | 912 | |
Revolving Loans, Converted to Term Loans | 19 | 1 | |
Total loans | 3,248 | 1,908 | |
Commercial Loans [Member] | Substandard [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 186 | |
Two years before current fiscal year | 706 | 0 | |
Three years before current fiscal year | 312 | 169 | |
Four years before current fiscal year | 357 | 0 | |
Prior | 552 | 86 | |
Revolving Loans | 21 | 0 | |
Revolving Loans, Converted to Term Loans | 11 | 0 | |
Total loans | 1,959 | 441 | |
Commercial Loans [Member] | Substandard [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 1 | |
Fiscal year before current fiscal year | 19 | 44 | |
Two years before current fiscal year | 40 | 25 | |
Three years before current fiscal year | 9 | 23 | |
Four years before current fiscal year | 3 | 31 | |
Prior | 250 | 181 | |
Revolving Loans | 459 | 435 | |
Revolving Loans, Converted to Term Loans | 8 | 1 | |
Total loans | 788 | 741 | |
Commercial Loans [Member] | Substandard [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 19 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 48 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 106 | 131 | |
Revolving Loans | 266 | 477 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 391 | 656 | |
Commercial Loans [Member] | Substandard [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 70 | 70 | |
Revolving Loans | 40 | 0 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 110 | 70 | |
Commercial Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 81 | 0 | |
Three years before current fiscal year | 22 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 41 | 123 | |
Revolving Loans | 47 | 217 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 191 | 340 | |
Commercial Loans [Member] | Doubtful [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 81 | 0 | |
Three years before current fiscal year | 2 | 0 | |
Four years before current fiscal year | 0 | ||
Prior | 11 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 94 | 0 | |
Commercial Loans [Member] | Doubtful [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 20 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 30 | 41 | |
Revolving Loans | 16 | 57 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 66 | 98 | |
Commercial Loans [Member] | Doubtful [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 82 | |
Revolving Loans | 31 | 160 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 31 | 242 | |
Commercial Loans [Member] | Doubtful [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | $ 0 | $ 0 | |
[1] | Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. | ||
[2] | Represents large multinational firms including globally focused U.S. corporate and financial institutions, U.S. dollar lending to multinational banking clients managed by HSBC on a global basis and complex large business clients supported by Global Banking and Markets relationship managers. |
Loans - Status of Loan Portfoli
Loans - Status of Loan Portfolios (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | $ 55,526 | $ 62,088 | ||
Commercial Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 928 | 2,510 | ||
Fiscal year before current fiscal year | 2,410 | 5,322 | ||
Two years before current fiscal year | 4,368 | 3,469 | ||
Three years before current fiscal year | 2,905 | 2,039 | ||
Four years before current fiscal year | 1,388 | 639 | ||
Prior | 12,093 | 11,882 | ||
Revolving Loans | 14,550 | 15,396 | ||
Revolving Loans, Converted to Term Loans | 272 | 342 | ||
Total loans | 38,914 | 41,599 | ||
Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 7 | 545 | ||
Fiscal year before current fiscal year | 635 | 3,775 | ||
Two years before current fiscal year | 3,080 | 2,799 | ||
Three years before current fiscal year | 2,243 | 1,368 | ||
Four years before current fiscal year | 783 | 264 | ||
Prior | 1,437 | 1,614 | ||
Revolving Loans | 49 | 79 | ||
Revolving Loans, Converted to Term Loans | 16 | 20 | ||
Total loans | 8,250 | 10,464 | ||
Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 304 | 1,080 | ||
Fiscal year before current fiscal year | 651 | 621 | ||
Two years before current fiscal year | 541 | 265 | ||
Three years before current fiscal year | 240 | 335 | ||
Four years before current fiscal year | 271 | 152 | ||
Prior | 4,843 | 3,488 | ||
Revolving Loans | 5,682 | 7,216 | ||
Revolving Loans, Converted to Term Loans | 256 | 322 | ||
Total loans | [1] | 12,788 | 13,479 | |
Commercial Loans [Member] | Global Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 403 | 507 | ||
Fiscal year before current fiscal year | 674 | 495 | ||
Two years before current fiscal year | 327 | 190 | ||
Three years before current fiscal year | 217 | 231 | ||
Four years before current fiscal year | 234 | 104 | ||
Prior | 4,672 | 6,150 | ||
Revolving Loans | 4,913 | 5,842 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | [2] | 11,440 | 13,519 | |
Commercial Loans [Member] | Other Commercial [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 214 | 378 | ||
Fiscal year before current fiscal year | 450 | 431 | ||
Two years before current fiscal year | 420 | 215 | ||
Three years before current fiscal year | 205 | 105 | ||
Four years before current fiscal year | 100 | 119 | ||
Prior | 1,141 | 630 | ||
Revolving Loans | 3,906 | 2,259 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 6,436 | 4,137 | ||
Commercial Loans [Member] | Performing Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 928 | 2,509 | ||
Fiscal year before current fiscal year | 2,406 | 5,307 | ||
Two years before current fiscal year | 4,273 | 3,433 | ||
Three years before current fiscal year | 2,849 | 1,979 | ||
Four years before current fiscal year | 1,334 | 638 | ||
Prior | 12,029 | 11,732 | ||
Revolving Loans | 14,423 | 15,115 | ||
Revolving Loans, Converted to Term Loans | 272 | 342 | ||
Total loans | 38,514 | 41,055 | ||
Commercial Loans [Member] | Performing Loans [Member] | Real Estate, Including Construction [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 7 | 545 | ||
Fiscal year before current fiscal year | 635 | 3,775 | ||
Two years before current fiscal year | 2,999 | 2,775 | ||
Three years before current fiscal year | 2,217 | 1,368 | ||
Four years before current fiscal year | 783 | 264 | ||
Prior | 1,416 | 1,594 | ||
Revolving Loans | 49 | 79 | ||
Revolving Loans, Converted to Term Loans | 16 | 20 | ||
Total loans | 8,122 | 10,420 | ||
Commercial Loans [Member] | Performing Loans [Member] | Business and Corporate Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 304 | 1,079 | ||
Fiscal year before current fiscal year | 647 | 606 | ||
Two years before current fiscal year | 527 | 253 | ||
Three years before current fiscal year | 210 | 275 | ||
Four years before current fiscal year | 217 | 151 | ||
Prior | 4,842 | 3,485 | ||
Revolving Loans | 5,645 | 7,145 | ||
Revolving Loans, Converted to Term Loans | 256 | 322 | ||
Total loans | 12,648 | 13,316 | ||
Commercial Loans [Member] | Performing Loans [Member] | Global Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 403 | 507 | ||
Fiscal year before current fiscal year | 674 | 495 | ||
Two years before current fiscal year | 327 | 190 | ||
Three years before current fiscal year | 217 | 231 | ||
Four years before current fiscal year | 234 | 104 | ||
Prior | 4,630 | 6,023 | ||
Revolving Loans | 4,823 | 5,632 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 11,308 | 13,182 | ||
Commercial Loans [Member] | Performing Loans [Member] | Other Commercial [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 214 | 378 | ||
Fiscal year before current fiscal year | 450 | 431 | ||
Two years before current fiscal year | 420 | 215 | ||
Three years before current fiscal year | 205 | 105 | ||
Four years before current fiscal year | 100 | 119 | ||
Prior | 1,141 | 630 | ||
Revolving Loans | 3,906 | 2,259 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 6,436 | 4,137 | ||
Commercial Loans [Member] | Nonaccrual Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 1 | ||
Fiscal year before current fiscal year | 4 | 15 | ||
Two years before current fiscal year | 95 | 36 | ||
Three years before current fiscal year | 56 | 60 | ||
Four years before current fiscal year | 54 | 1 | ||
Prior | 64 | 150 | ||
Revolving Loans | 126 | 281 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 399 | 544 | ||
Commercial Loans [Member] | Nonaccrual Loans [Member] | Real Estate, Including Construction [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 81 | 24 | ||
Three years before current fiscal year | 26 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 21 | 20 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 128 | 44 | ||
Commercial Loans [Member] | Nonaccrual Loans [Member] | Business and Corporate Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 1 | ||
Fiscal year before current fiscal year | 4 | 15 | ||
Two years before current fiscal year | 14 | 12 | ||
Three years before current fiscal year | 30 | 60 | ||
Four years before current fiscal year | 54 | 1 | ||
Prior | 1 | 3 | ||
Revolving Loans | 36 | 71 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 139 | 163 | ||
Commercial Loans [Member] | Nonaccrual Loans [Member] | Global Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 42 | 127 | ||
Revolving Loans | 90 | 210 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 132 | 337 | ||
Commercial Loans [Member] | Nonaccrual Loans [Member] | Other Commercial [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 0 | 0 | ||
Commercial Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 1 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 1 | 0 | ||
Commercial Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Real Estate, Including Construction [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 0 | 0 | ||
Commercial Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Business and Corporate Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 1 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 1 | 0 | ||
Commercial Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Global Banking [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 0 | 0 | ||
Commercial Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Other Commercial [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans, Converted to Term Loans | 0 | 0 | ||
Total loans | 0 | 0 | ||
Consumer Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,598 | 4,666 | ||
Fiscal year before current fiscal year | 3,613 | 2,566 | ||
Two years before current fiscal year | 1,785 | 1,465 | ||
Three years before current fiscal year | 971 | 1,694 | ||
Four years before current fiscal year | 1,096 | 1,985 | ||
Prior | 5,547 | 6,991 | ||
Revolving Loans | 2 | 1,122 | ||
Total loans | [3] | 16,612 | [4] | 20,489 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,580 | 4,529 | ||
Fiscal year before current fiscal year | 3,566 | 2,476 | ||
Two years before current fiscal year | 1,751 | 1,431 | ||
Three years before current fiscal year | 951 | 1,658 | ||
Four years before current fiscal year | 1,076 | 1,930 | ||
Prior | 5,169 | 6,353 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 16,093 | 18,377 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 12 | 50 | ||
Fiscal year before current fiscal year | 34 | 51 | ||
Two years before current fiscal year | 29 | 34 | ||
Three years before current fiscal year | 19 | 35 | ||
Four years before current fiscal year | 19 | 47 | ||
Prior | 256 | 510 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 369 | 727 | ||
Consumer Loans [Member] | Credit Cards [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 1,066 | ||
Total loans | 0 | 1,066 | ||
Consumer Loans [Member] | Other consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 6 | 87 | ||
Fiscal year before current fiscal year | 13 | 39 | ||
Two years before current fiscal year | 5 | 0 | ||
Three years before current fiscal year | 1 | 1 | ||
Four years before current fiscal year | 1 | 8 | ||
Prior | 122 | 128 | ||
Revolving Loans | 2 | 56 | ||
Total loans | [5] | 150 | 319 | |
Consumer Loans [Member] | Performing Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,592 | 4,628 | ||
Fiscal year before current fiscal year | 3,574 | 2,459 | ||
Two years before current fiscal year | 1,710 | 1,371 | ||
Three years before current fiscal year | 905 | 1,607 | ||
Four years before current fiscal year | 1,036 | 1,905 | ||
Prior | 4,961 | 6,255 | ||
Revolving Loans | 2 | 1,101 | ||
Total loans | 15,780 | 19,326 | ||
Consumer Loans [Member] | Performing Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,574 | 4,491 | ||
Fiscal year before current fiscal year | 3,527 | 2,369 | ||
Two years before current fiscal year | 1,677 | 1,338 | ||
Three years before current fiscal year | 885 | 1,572 | ||
Four years before current fiscal year | 1,016 | 1,852 | ||
Prior | 4,629 | 5,676 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 15,308 | 17,298 | ||
Consumer Loans [Member] | Performing Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 12 | 50 | ||
Fiscal year before current fiscal year | 34 | 51 | ||
Two years before current fiscal year | 28 | 33 | ||
Three years before current fiscal year | 19 | 34 | ||
Four years before current fiscal year | 19 | 45 | ||
Prior | 210 | 451 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 322 | 664 | ||
Consumer Loans [Member] | Performing Loans [Member] | Credit Cards [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 1,047 | ||
Total loans | 0 | 1,047 | ||
Consumer Loans [Member] | Performing Loans [Member] | Other consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 6 | 87 | ||
Fiscal year before current fiscal year | 13 | 39 | ||
Two years before current fiscal year | 5 | 0 | ||
Three years before current fiscal year | 1 | 1 | ||
Four years before current fiscal year | 1 | 8 | ||
Prior | 122 | 128 | ||
Revolving Loans | 2 | 54 | ||
Total loans | 150 | 317 | ||
Consumer Loans [Member] | Nonaccrual Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 6 | 38 | ||
Fiscal year before current fiscal year | 39 | 107 | ||
Two years before current fiscal year | 75 | 94 | ||
Three years before current fiscal year | 66 | 87 | ||
Four years before current fiscal year | 60 | 80 | ||
Prior | 586 | 736 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 832 | 1,142 | ||
Consumer Loans [Member] | Nonaccrual Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 6 | 38 | ||
Fiscal year before current fiscal year | 39 | 107 | ||
Two years before current fiscal year | 74 | 93 | ||
Three years before current fiscal year | 66 | 86 | ||
Four years before current fiscal year | 60 | 78 | ||
Prior | 540 | 677 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 785 | 1,079 | ||
Consumer Loans [Member] | Nonaccrual Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 1 | 1 | ||
Three years before current fiscal year | 0 | 1 | ||
Four years before current fiscal year | 0 | 2 | ||
Prior | 46 | 59 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 47 | 63 | ||
Consumer Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 21 | ||
Total loans | 0 | 21 | ||
Consumer Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Credit Cards [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 19 | ||
Total loans | 0 | 19 | ||
Consumer Loans [Member] | Nonperforming Loans, Accruing Loans 90 Days or More Past Due [Member] | Other consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 2 | ||
Total loans | $ 0 | $ 2 | ||
[1] | Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. | |||
[2] | 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. | |||
[3] | The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. | |||
[4] | The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. | |||
[5] | Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. |
Loans - Credit Risk Profile of
Loans - Credit Risk Profile of Commercial Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 55,526 | $ 62,088 | |
Commercial Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 928 | 2,510 | |
Fiscal year before current fiscal year | 2,410 | 5,322 | |
Two years before current fiscal year | 4,368 | 3,469 | |
Three years before current fiscal year | 2,905 | 2,039 | |
Four years before current fiscal year | 1,388 | 639 | |
Prior | 12,093 | 11,882 | |
Revolving Loans | 14,550 | 15,396 | |
Revolving Loans, Converted to Term Loans | 272 | 342 | |
Total loans | 38,914 | 41,599 | |
Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 7 | 545 | |
Fiscal year before current fiscal year | 635 | 3,775 | |
Two years before current fiscal year | 3,080 | 2,799 | |
Three years before current fiscal year | 2,243 | 1,368 | |
Four years before current fiscal year | 783 | 264 | |
Prior | 1,437 | 1,614 | |
Revolving Loans | 49 | 79 | |
Revolving Loans, Converted to Term Loans | 16 | 20 | |
Total loans | 8,250 | 10,464 | |
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 304 | 1,080 | |
Fiscal year before current fiscal year | 651 | 621 | |
Two years before current fiscal year | 541 | 265 | |
Three years before current fiscal year | 240 | 335 | |
Four years before current fiscal year | 271 | 152 | |
Prior | 4,843 | 3,488 | |
Revolving Loans | 5,682 | 7,216 | |
Revolving Loans, Converted to Term Loans | 256 | 322 | |
Total loans | [1] | 12,788 | 13,479 |
Commercial Loans [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 403 | 507 | |
Fiscal year before current fiscal year | 674 | 495 | |
Two years before current fiscal year | 327 | 190 | |
Three years before current fiscal year | 217 | 231 | |
Four years before current fiscal year | 234 | 104 | |
Prior | 4,672 | 6,150 | |
Revolving Loans | 4,913 | 5,842 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | [2] | 11,440 | 13,519 |
Commercial Loans [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 214 | 378 | |
Fiscal year before current fiscal year | 450 | 431 | |
Two years before current fiscal year | 420 | 215 | |
Three years before current fiscal year | 205 | 105 | |
Four years before current fiscal year | 100 | 119 | |
Prior | 1,141 | 630 | |
Revolving Loans | 3,906 | 2,259 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 6,436 | 4,137 | |
Commercial Loans [Member] | Investment Grade [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 411 | 1,517 | |
Fiscal year before current fiscal year | 1,615 | 1,910 | |
Two years before current fiscal year | 1,235 | 1,017 | |
Three years before current fiscal year | 1,257 | 688 | |
Four years before current fiscal year | 462 | 348 | |
Prior | 7,034 | 7,269 | |
Revolving Loans | 10,390 | 8,718 | |
Revolving Loans, Converted to Term Loans | 69 | 47 | |
Total loans | 22,473 | 21,514 | |
Commercial Loans [Member] | Investment Grade [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 6 | 339 | |
Fiscal year before current fiscal year | 318 | 1,123 | |
Two years before current fiscal year | 563 | 817 | |
Three years before current fiscal year | 809 | 318 | |
Four years before current fiscal year | 129 | 179 | |
Prior | 238 | 640 | |
Revolving Loans | 15 | 6 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 2,078 | 3,422 | |
Commercial Loans [Member] | Investment Grade [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 31 | 342 | |
Fiscal year before current fiscal year | 263 | 147 | |
Two years before current fiscal year | 196 | 37 | |
Three years before current fiscal year | 42 | 34 | |
Four years before current fiscal year | 23 | 23 | |
Prior | 2,308 | 1,486 | |
Revolving Loans | 2,524 | 2,499 | |
Revolving Loans, Converted to Term Loans | 69 | 47 | |
Total loans | 5,456 | 4,615 | |
Commercial Loans [Member] | Investment Grade [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 331 | 464 | |
Fiscal year before current fiscal year | 666 | 477 | |
Two years before current fiscal year | 298 | 46 | |
Three years before current fiscal year | 202 | 231 | |
Four years before current fiscal year | 234 | 30 | |
Prior | 3,683 | 4,618 | |
Revolving Loans | 4,112 | 4,281 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 9,526 | 10,147 | |
Commercial Loans [Member] | Investment Grade [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 43 | 372 | |
Fiscal year before current fiscal year | 368 | 163 | |
Two years before current fiscal year | 178 | 117 | |
Three years before current fiscal year | 204 | 105 | |
Four years before current fiscal year | 76 | 116 | |
Prior | 805 | 525 | |
Revolving Loans | 3,739 | 1,932 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 5,413 | 3,330 | |
Commercial Loans [Member] | Noninvestment Grade [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 517 | 993 | |
Fiscal year before current fiscal year | 795 | 3,412 | |
Two years before current fiscal year | 3,133 | 2,452 | |
Three years before current fiscal year | 1,648 | 1,351 | |
Four years before current fiscal year | 926 | 291 | |
Prior | 5,059 | 4,613 | |
Revolving Loans | 4,160 | 6,678 | |
Revolving Loans, Converted to Term Loans | 203 | 295 | |
Total loans | 16,441 | 20,085 | |
Commercial Loans [Member] | Noninvestment Grade [Member] | Real Estate, Including Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 1 | 206 | |
Fiscal year before current fiscal year | 317 | 2,652 | |
Two years before current fiscal year | 2,517 | 1,982 | |
Three years before current fiscal year | 1,434 | 1,050 | |
Four years before current fiscal year | 654 | 85 | |
Prior | 1,199 | 974 | |
Revolving Loans | 34 | 73 | |
Revolving Loans, Converted to Term Loans | 16 | 20 | |
Total loans | 6,172 | 7,042 | |
Commercial Loans [Member] | Noninvestment Grade [Member] | Business and Corporate Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 273 | 738 | |
Fiscal year before current fiscal year | 388 | 474 | |
Two years before current fiscal year | 345 | 228 | |
Three years before current fiscal year | 198 | 301 | |
Four years before current fiscal year | 248 | 129 | |
Prior | 2,535 | 2,002 | |
Revolving Loans | 3,158 | 4,717 | |
Revolving Loans, Converted to Term Loans | 187 | 275 | |
Total loans | 7,332 | 8,864 | |
Commercial Loans [Member] | Noninvestment Grade [Member] | Global Banking [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 72 | 43 | |
Fiscal year before current fiscal year | 8 | 18 | |
Two years before current fiscal year | 29 | 144 | |
Three years before current fiscal year | 15 | 0 | |
Four years before current fiscal year | 0 | 74 | |
Prior | 989 | 1,532 | |
Revolving Loans | 801 | 1,561 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | 1,914 | 3,372 | |
Commercial Loans [Member] | Noninvestment Grade [Member] | Other Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 171 | 6 | |
Fiscal year before current fiscal year | 82 | 268 | |
Two years before current fiscal year | 242 | 98 | |
Three years before current fiscal year | 1 | 0 | |
Four years before current fiscal year | 24 | 3 | |
Prior | 336 | 105 | |
Revolving Loans | 167 | 327 | |
Revolving Loans, Converted to Term Loans | 0 | 0 | |
Total loans | $ 1,023 | $ 807 | |
[1] | Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met. | ||
[2] | Represents large multinational firms including globally focused U.S. corporate and financial institutions, U.S. dollar lending to multinational banking clients managed by HSBC on a global basis and complex large business clients supported by Global Banking and Markets relationship managers. |
Loans - Delinquency Ratio for C
Loans - Delinquency Ratio for Consumer Loan (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | $ 55,526 | $ 62,088 | ||
Residential Mortgage Loan Delinquency Carried At Lower Of Amortized Cost Or Fair Value Less Cost To Sell | 252 | 281 | ||
Consumer Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,598 | 4,666 | ||
Fiscal year before current fiscal year | 3,613 | 2,566 | ||
Two years before current fiscal year | 1,785 | 1,465 | ||
Three years before current fiscal year | 971 | 1,694 | ||
Four years before current fiscal year | 1,096 | 1,985 | ||
Prior | 5,547 | 6,991 | ||
Revolving Loans | 2 | 1,122 | ||
Total loans | [1] | 16,612 | [2] | 20,489 |
Mortgage Loans in Process of Foreclosure, Amount | 91 | 109 | ||
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 3,580 | 4,529 | ||
Fiscal year before current fiscal year | 3,566 | 2,476 | ||
Two years before current fiscal year | 1,751 | 1,431 | ||
Three years before current fiscal year | 951 | 1,658 | ||
Four years before current fiscal year | 1,076 | 1,930 | ||
Prior | 5,169 | 6,353 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 16,093 | 18,377 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 12 | 50 | ||
Fiscal year before current fiscal year | 34 | 51 | ||
Two years before current fiscal year | 29 | 34 | ||
Three years before current fiscal year | 19 | 35 | ||
Four years before current fiscal year | 19 | 47 | ||
Prior | 256 | 510 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 369 | 727 | ||
Consumer Loans [Member] | Credit Cards [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 1,066 | ||
Total loans | 0 | 1,066 | ||
Consumer Loans [Member] | Other consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 6 | 87 | ||
Fiscal year before current fiscal year | 13 | 39 | ||
Two years before current fiscal year | 5 | 0 | ||
Three years before current fiscal year | 1 | 1 | ||
Four years before current fiscal year | 1 | 8 | ||
Prior | 122 | 128 | ||
Revolving Loans | 2 | 56 | ||
Total loans | [3] | 150 | 319 | |
Consumer Loans [Member] | Contractual Delinquency, 60 Days or More Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 4 | ||
Fiscal year before current fiscal year | 4 | 16 | ||
Two years before current fiscal year | 12 | 13 | ||
Three years before current fiscal year | 7 | 25 | ||
Four years before current fiscal year | 19 | 19 | ||
Prior | 292 | 358 | ||
Revolving Loans | 0 | 30 | ||
Total loans | 334 | 465 | ||
Consumer Loans [Member] | Contractual Delinquency, 60 Days or More Past Due [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | [4],[5] | 3 | |
Fiscal year before current fiscal year | 4 | [4],[5] | 15 | |
Two years before current fiscal year | 12 | [4],[5] | 13 | |
Three years before current fiscal year | 7 | [4],[5] | 25 | |
Four years before current fiscal year | 19 | [4],[5] | 19 | |
Prior | 268 | [4],[5] | 329 | |
Revolving Loans | 0 | [4],[5] | 0 | |
Total loans | [4],[5] | 310 | 404 | |
Consumer Loans [Member] | Contractual Delinquency, 60 Days or More Past Due [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | [4],[5] | 0 | |
Fiscal year before current fiscal year | 0 | [4],[5] | 0 | |
Two years before current fiscal year | 0 | [4],[5] | 0 | |
Three years before current fiscal year | 0 | [4],[5] | 0 | |
Four years before current fiscal year | 0 | [4],[5] | 0 | |
Prior | 20 | [4],[5] | 25 | |
Revolving Loans | 0 | [4],[5] | 0 | |
Total loans | [4],[5] | 20 | 25 | |
Consumer Loans [Member] | Contractual Delinquency, 60 Days or More Past Due [Member] | Credit Cards [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 28 | ||
Total loans | 0 | 28 | ||
Consumer Loans [Member] | Contractual Delinquency, 60 Days or More Past Due [Member] | Other consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Current fiscal year | 0 | 1 | ||
Fiscal year before current fiscal year | 0 | 1 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 4 | 4 | ||
Revolving Loans | 0 | 2 | ||
Total loans | $ 4 | $ 8 | ||
[1] | The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. | |||
[2] | The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. | |||
[3] | Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details. | |||
[4] | At September 30, 2021 and December 31, 2020, consumer mortgage loans include $91 million and $109 million, respectively, of loans that were in the process of foreclosure. | |||
[5] | At September 30, 2021 and December 31, 2020, consumer mortgage loan delinquency includes $252 million and $281 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell. |
Loans - Summary of TDRs in Cons
Loans - Summary of TDRs in Consumer Portfolio (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | $ 55,526 | $ 62,088 | ||
Consumer Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 3,598 | 4,666 | ||
Fiscal year before current fiscal year | 3,613 | 2,566 | ||
Two years before current fiscal year | 1,785 | 1,465 | ||
Three years before current fiscal year | 971 | 1,694 | ||
Four years before current fiscal year | 1,096 | 1,985 | ||
Prior | 5,547 | 6,991 | ||
Revolving Loans | 2 | 1,122 | ||
Total loans | [1] | 16,612 | [2] | 20,489 |
Consumer Loans [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 3,580 | 4,529 | ||
Fiscal year before current fiscal year | 3,566 | 2,476 | ||
Two years before current fiscal year | 1,751 | 1,431 | ||
Three years before current fiscal year | 951 | 1,658 | ||
Four years before current fiscal year | 1,076 | 1,930 | ||
Prior | 5,169 | 6,353 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 16,093 | 18,377 | ||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 12 | 50 | ||
Fiscal year before current fiscal year | 34 | 51 | ||
Two years before current fiscal year | 29 | 34 | ||
Three years before current fiscal year | 19 | 35 | ||
Four years before current fiscal year | 19 | 47 | ||
Prior | 256 | 510 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 369 | 727 | ||
Consumer Loans [Member] | Credit Cards [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 1,066 | ||
Total loans | 0 | 1,066 | ||
Consumer Loans [Member] | Troubled Debt Restructuring [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 0 | 3 | ||
Fiscal year before current fiscal year | 1 | 5 | ||
Two years before current fiscal year | 3 | 6 | ||
Three years before current fiscal year | 6 | 3 | ||
Four years before current fiscal year | 1 | 2 | ||
Prior | 390 | 594 | ||
Revolving Loans | 0 | 5 | ||
Total loans | 401 | 618 | ||
Consumer Loans [Member] | Troubled Debt Restructuring [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 0 | 3 | ||
Fiscal year before current fiscal year | 1 | 5 | ||
Two years before current fiscal year | 3 | 6 | ||
Three years before current fiscal year | 6 | 3 | ||
Four years before current fiscal year | 1 | 2 | ||
Prior | 373 | 563 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 384 | 582 | ||
Consumer Loans [Member] | Troubled Debt Restructuring [Member] | Home Equity Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 17 | 31 | ||
Revolving Loans | 0 | 0 | ||
Total loans | 17 | 31 | ||
Consumer Loans [Member] | Troubled Debt Restructuring [Member] | Credit Cards [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Current fiscal year | 0 | 0 | ||
Fiscal year before current fiscal year | 0 | 0 | ||
Two years before current fiscal year | 0 | 0 | ||
Three years before current fiscal year | 0 | 0 | ||
Four years before current fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 5 | ||
Total loans | $ 0 | $ 5 | ||
[1] | The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information. | |||
[2] | The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more. |
Loans - Concentration of Credit
Loans - Concentration of Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Interest only residential mortgage loans | $ 3,736 | $ 3,597 |
Allowance for Credit Losses - E
Allowance for Credit Losses - ECL Estimates (Details) - scenario | Sep. 30, 2021 | Jun. 30, 2021 |
Credit Loss [Abstract] | ||
Number of forward-looking economic scenarios | 3 | |
Number of updated forward-looking economic scenarios | 4 | 4 |
Allowance for Credit Losses - F
Allowance for Credit Losses - Forecasted Economic Scenarios (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Commercial Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Measurement of ECL Measurements [Line Items] | |||
Reduction to the provision for credit losses | $ 24 | ||
Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | |||
Measurement of ECL Measurements [Line Items] | |||
Reduction to the provision for credit losses | $ 101 | ||
Reversal or charge-off of allowances for credit losses | $ 157 | ||
Forecast, Quarter ended December 31, 2021 [Member] | |||
Measurement of ECL Measurements [Line Items] | |||
Unemployment rate (percent) | 4.70% | 4.80% | 6.20% |
GDP growth rate (percent) | 6.80% | 6.30% | 5.30% |
Forecast, Quarter ended June 30, 2022 [Member] | |||
Measurement of ECL Measurements [Line Items] | |||
Unemployment rate (percent) | 4.30% | 4.40% | 5.90% |
GDP growth rate (percent) | 4.90% | 4.70% | 3.10% |
Forecast, Quarter ended December 31, 2022 [Member] | |||
Measurement of ECL Measurements [Line Items] | |||
Unemployment rate (percent) | 4.20% | 4.10% | 5.40% |
GDP growth rate (percent) | 2.30% | 2.30% | 1.80% |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses and Liability for Off-balance Sheet Credit Exposures (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | ||
Credit Loss [Abstract] | ||||||||
Loans | $ 475 | $ 547 | $ 1,015 | $ 1,084 | $ 1,192 | |||
Securities held-to-maturity | [1] | 1 | 2 | |||||
Other financial assets measured at amortized cost | [2] | 2 | 2 | |||||
Securities available-for-sale | 1 | 1 | [1] | |||||
Total allowance for credit losses | 479 | 1,020 | ||||||
Liability for off-balance sheet credit exposures | $ 110 | $ 128 | $ 237 | $ 253 | $ 158 | |||
[1] | See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios. | |||||||
[2] | Primarily includes accrued interest receivables and customer acceptances. |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses and Related Loan Balance by Product (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | $ 547 | $ 1,192 | $ 1,015 | |||||
Provision charged (credited) to income | (64) | [1] | (75) | (410) | [1] | $ 774 | ||
Charge offs | (16) | (44) | (155) | [1] | (184) | |||
Recoveries | 8 | 11 | 25 | 27 | ||||
Net (charge offs) recoveries | (8) | (33) | (130) | (157) | ||||
Allowance for credit losses - end of period | 475 | $ 547 | 1,084 | 475 | 1,084 | |||
Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Reduction to the provision for credit losses | 101 | |||||||
Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 117 | 120 | 145 | |||||
Provision charged (credited) to income | (2) | [1] | 43 | (30) | [1] | 122 | ||
Charge offs | 0 | (12) | 0 | [1] | (12) | |||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net (charge offs) recoveries | 0 | (12) | 0 | (12) | ||||
Allowance for credit losses - end of period | 115 | 117 | 151 | 115 | 151 | |||
Reduction to the provision for credit losses | 24 | |||||||
Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 284 | 434 | 375 | |||||
Provision charged (credited) to income | (38) | [1] | (36) | (115) | [1] | 283 | ||
Charge offs | (13) | (2) | (29) | [1] | (69) | |||
Recoveries | 1 | 5 | 3 | 8 | ||||
Net (charge offs) recoveries | (12) | 3 | (26) | (61) | ||||
Allowance for credit losses - end of period | 234 | 284 | 401 | 234 | 401 | |||
Commercial Loans [Member] | Global Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 131 | 424 | 287 | |||||
Provision charged (credited) to income | (9) | [1] | (103) | (153) | [1] | 183 | ||
Charge offs | 0 | (1) | (12) | [1] | (20) | |||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net (charge offs) recoveries | 0 | (1) | (12) | (20) | ||||
Allowance for credit losses - end of period | 122 | 131 | 320 | 122 | 320 | |||
Commercial Loans [Member] | Other Commercial [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 6 | 5 | 7 | |||||
Provision charged (credited) to income | (2) | [1] | 3 | (3) | [1] | 3 | ||
Charge offs | 0 | 0 | 0 | [1] | 0 | |||
Recoveries | 0 | 0 | 0 | 1 | ||||
Net (charge offs) recoveries | 0 | 0 | 0 | 1 | ||||
Allowance for credit losses - end of period | 4 | 6 | 8 | 4 | 8 | |||
Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Charge offs | 56 | |||||||
Reduction to the provision for credit losses | 100 | 100 | ||||||
Consumer Loans [Member] | Residential Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | (6) | (19) | (9) | |||||
Provision charged (credited) to income | (9) | [1] | 12 | (3) | [1] | 62 | ||
Charge offs | 0 | (1) | (10) | [1] | (1) | |||
Recoveries | 4 | 3 | 11 | 8 | ||||
Net (charge offs) recoveries | 4 | 2 | 1 | 7 | ||||
Allowance for credit losses - end of period | (11) | (6) | (5) | (11) | (5) | |||
Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 15 | 16 | 22 | |||||
Provision charged (credited) to income | (2) | [1] | (1) | (10) | [1] | 1 | ||
Charge offs | (3) | (1) | (5) | [1] | (3) | |||
Recoveries | 1 | 1 | 4 | 4 | ||||
Net (charge offs) recoveries | (2) | 0 | (1) | 1 | ||||
Allowance for credit losses - end of period | 11 | 15 | 15 | 11 | 15 | |||
Consumer Loans [Member] | Credit Cards [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 0 | 190 | 161 | |||||
Provision charged (credited) to income | (1) | [1] | (2) | (78) | [1] | 96 | ||
Charge offs | 0 | (23) | (88) | [1] | (71) | |||
Recoveries | 1 | 2 | 5 | 5 | ||||
Net (charge offs) recoveries | 1 | (21) | (83) | (66) | ||||
Allowance for credit losses - end of period | 0 | 0 | 167 | 0 | 167 | |||
Consumer Loans [Member] | Other consumer [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 0 | 22 | 27 | |||||
Provision charged (credited) to income | (1) | [1] | 9 | (18) | [1] | 24 | ||
Charge offs | 0 | (4) | (11) | [1] | (8) | |||
Recoveries | 1 | 0 | 2 | 1 | ||||
Net (charge offs) recoveries | 1 | (4) | (9) | (7) | ||||
Allowance for credit losses - end of period | $ 0 | $ 0 | $ 27 | $ 0 | 27 | |||
As Previously Reported [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 637 | |||||||
As Previously Reported [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 153 | |||||||
As Previously Reported [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 239 | |||||||
As Previously Reported [Member] | Commercial Loans [Member] | Global Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 106 | |||||||
As Previously Reported [Member] | Commercial Loans [Member] | Other Commercial [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 9 | |||||||
As Previously Reported [Member] | Consumer Loans [Member] | Residential Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 12 | |||||||
As Previously Reported [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 6 | |||||||
As Previously Reported [Member] | Consumer Loans [Member] | Credit Cards [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 105 | |||||||
As Previously Reported [Member] | Consumer Loans [Member] | Other consumer [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 7 | |||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | (170) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | (112) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | (60) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Loans [Member] | Global Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | 51 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Loans [Member] | Other Commercial [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | (5) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer Loans [Member] | Residential Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | (86) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | 7 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer Loans [Member] | Credit Cards [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | 32 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer Loans [Member] | Other consumer [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | [2] | 3 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 467 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Loans [Member] | Real Estate, Including Construction [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 41 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Loans [Member] | Business and Corporate Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 179 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Loans [Member] | Global Banking [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 157 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Loans [Member] | Other Commercial [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 4 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Consumer Loans [Member] | Residential Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | (74) | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Consumer Loans [Member] | Home Equity Mortgages [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 13 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Consumer Loans [Member] | Credit Cards [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | 137 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Consumer Loans [Member] | Other consumer [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses - beginning of period | $ 10 | |||||||
[1] | During the second quarter of 2021, we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale. As a result of transferring these loans to held for sale, during the nine months ended September 30, 2021, we recognized $56 million of the existing allowance for credit losses on consumer loans as charge-offs, primarily related to non-performing credit cards, and released $100 million of the existing allowance for credit losses on consumer loans as reductions to the provision for credit losses, primarily related to credit cards. The existing commercial allowance for credit losses on the retail business banking loan portfolio transferred to held for sale was not material. See Note 3, "Branch Assets and Liabilities Held for Sale." | |||||||
[2] | (2) See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Allowance for Credit Losses - C
Allowance for Credit Losses - Change in Liability for Off-balance Sheet Credit Exposures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||||
Balance at beginning of period | $ 128 | $ 253 | $ 237 | $ 158 | ||
Provision charged (credited) to income | (18) | (28) | (127) | 67 | ||
Balance at end of period | 110 | 110 | ||||
Accounting Standards Update 2016-13 [Member] | ||||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||||
Balance at beginning of period | 0 | 0 | 0 | [1] | 54 | [1] |
As Previously Reported [Member] | ||||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||||
Balance at beginning of period | $ 128 | 253 | $ 237 | 104 | ||
Balance at end of period | $ 225 | $ 225 | ||||
[1] | See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Accrued Interest Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total accrued interest receivables | $ 229 | $ 229 | $ 264 | ||
Allowance for credit losses | 0 | 0 | 2 | ||
Accrued interest receivables, net | 229 | 229 | 262 | ||
Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total accrued interest receivables | 125 | 125 | 140 | ||
Charge-off of accrued interest receivables | 1 | $ 1 | 3 | $ 5 | |
Securities Held-to-maturity [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total accrued interest receivables | 15 | 15 | 23 | ||
Other Financial Assets Measured at Amortized Cost [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total accrued interest receivables | 2 | 2 | 1 | ||
Securities available-for-sale [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total accrued interest receivables | $ 87 | $ 87 | $ 100 |
Loans Held for Sale (Details)
Loans Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | $ 4,927 | $ 337 | |
Credit Cards [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | $ 1,100 | ||
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 1,291 | 129 | |
Commercial Loans [Member] | Real Estate, Including Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 1,123 | 10 | |
Commercial Loans [Member] | Business and Corporate Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 105 | 0 | |
Commercial Loans [Member] | Global Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 63 | 119 | |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 3,636 | 208 | |
Consumer Loans [Member] | Residential Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 2,449 | 208 | |
Consumer Loans [Member] | Home Equity Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 257 | 0 | |
Consumer Loans [Member] | Credit Cards [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 785 | 0 | |
Consumer Loans [Member] | Other Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | $ 145 | $ 0 |
Loans Held for Sale - Additiona
Loans Held for Sale - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | $ 4,927,000,000 | $ 4,927,000,000 | $ 337,000,000 | |||
Revenue (losses) associated with the economic hedging program | (73,000,000) | $ 276,000,000 | 729,000,000 | $ (22,000,000) | ||
Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Lower of amortized cost or fair value adjustment | $ 0 | |||||
Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 1,291,000,000 | 1,291,000,000 | 129,000,000 | |||
Valuation allowance | 0 | 0 | 1,000,000 | |||
Commercial Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 105,000,000 | 149,000,000 | 105,000,000 | |||
Lower of amortized cost or fair value adjustment | 0 | |||||
Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 3,636,000,000 | 3,636,000,000 | 208,000,000 | |||
Valuation allowance | 1,000,000 | 1,000,000 | 0 | |||
Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 3,584,000,000 | 3,616,000,000 | 3,584,000,000 | |||
Lower of amortized cost or fair value adjustment | 0 | |||||
Commercial Real Estate Loans - Transferred to Held for Sale [Member] | Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 1,123,000,000 | 1,123,000,000 | ||||
Lower of amortized cost or fair value adjustment | 0 | |||||
Commercial Loans - Fair Value Option [Member] | Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 63,000,000 | 63,000,000 | 36,000,000 | |||
Commercial Loans - Transferred to Held for Sale [Member] | Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 0 | 0 | 93,000,000 | |||
Residential Mortgage [Member] | Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 2,449,000,000 | 2,449,000,000 | 208,000,000 | |||
Residential Mortgage [Member] | Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 2,397,000,000 | 2,364,000,000 | 2,397,000,000 | |||
Home Equity Mortgages [Member] | Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 257,000,000 | 257,000,000 | 0 | |||
Home Equity Mortgages [Member] | Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 257,000,000 | 265,000,000 | 257,000,000 | |||
Credit Cards [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 1,100,000,000 | |||||
Credit Cards [Member] | Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 785,000,000 | 785,000,000 | 0 | |||
Credit Cards [Member] | Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 785,000,000 | 829,000,000 | 785,000,000 | |||
Other Consumer [Member] | Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 145,000,000 | 145,000,000 | $ 0 | |||
Other Consumer [Member] | Consumer Loans [Member] | Exit of Mass Market Retail Banking Business and Remaining Retail Credit Card Portfolio [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for sale | 145,000,000 | $ 158,000,000 | 145,000,000 | |||
Other Income (Loss) [Member] | Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Lower of amortized cost or fair value adjustment | (1,000,000) | 16,000,000 | 4,000,000 | 25,000,000 | ||
Residential mortgage banking revenue (expense) [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Revenue (losses) associated with the economic hedging program | $ (1,000,000) | $ 0 | $ (2,000,000) | $ (1,000,000) |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 458 | $ 458 | $ 458 | $ 458 | $ 458 | |
Accumulated impairment loss | 1,819 | 1,819 | $ 1,819 | |||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | $ 784 | ||
Wealth and Personal Banking [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment charge | $ 784 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivatives and Balance Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $ 18,751 | $ 32,468 | |
Derivative Liabilities | 16,440 | 31,461 | |
Netting assets | [1],[2] | 13,172 | 25,537 |
Netting liabilities | [1],[2] | 13,172 | 25,537 |
Less: Gross amounts of cash collateral received subject to enforceable master netting agreements | [1],[3] | 3,577 | 4,079 |
Less: Gross amounts of cash collateral posted subject to enforceable master netting agreements | [1],[3] | 1,518 | 3,377 |
Derivative Asset | 2,002 | 2,852 | |
Derivative Liability | 1,750 | 2,547 | |
Less: Gross amounts of financial instrument collateral received not offset | 222 | 817 | |
Less: Gross amounts of financial instrument collateral posted not offset | 74 | 691 | |
Net amount of derivative asset | 1,780 | 2,035 | |
Net amount of derivative liability | 1,676 | 1,856 | |
Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Less: Gross amounts of cash collateral received subject to enforceable master netting agreements | 2,310 | 2,763 | |
Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Less: Gross amounts of cash collateral posted subject to enforceable master netting agreements | 1,518 | 3,377 | |
Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4] | 6 | 0 |
Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4] | 16 | 55 |
Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [5],[6] | 3,088 | 6,598 |
Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [5],[6] | 2,979 | 6,622 |
Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6] | 11,798 | 18,467 |
Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6] | 11,544 | 18,549 |
Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 886 | 4,009 | |
Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 696 | 4,200 | |
Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6] | 1,408 | 1,323 |
Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6] | 952 | 1,578 |
Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4] | 0 | 0 |
Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4] | 55 | 64 |
OTC Cleared [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 18 | 0 |
OTC Cleared [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 0 | 58 |
OTC Cleared [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 60 | 168 |
OTC Cleared [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 0 | 0 |
OTC Cleared [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 0 | 0 |
OTC Cleared [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 13 | 14 |
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 3,068 | 6,584 |
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 2,978 | 6,555 |
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 55 | 89 |
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 2 | 1 |
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 11,738 | 18,299 |
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 11,542 | 18,549 |
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 0 | 0 |
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 1 | 1 |
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 885 | 4,009 |
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 692 | 4,200 |
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 1,469 | 1,607 |
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 128 | 91 |
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 1,404 | 1,323 |
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 951 | 1,550 |
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 36 | 367 |
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 23 | 233 |
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 0 | 0 |
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 42 | 50 |
Bilateral OTC [Member] | Other Contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7],[8] | 5 | 8 |
Bilateral OTC [Member] | Other Contracts [Member] | Not Designated as Hedging Instrument, Other [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7],[8] | 44 | 67 |
Bilateral OTC [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 0 | 0 |
Bilateral OTC [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 16 | 2 |
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [4],[7] | 6 | 0 |
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [4],[7] | 0 | 53 |
Exchange Traded [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 2 | 14 |
Exchange Traded [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 1 | 9 |
Exchange Traded [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 0 | 0 |
Exchange Traded [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | 2 | 0 |
Exchange Traded [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 1 | 0 | |
Exchange Traded [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 4 | 0 | |
Exchange Traded [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [6],[7] | 4 | 0 |
Exchange Traded [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument, Trading [Member] | Trading Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | [6],[7] | $ 1 | $ 28 |
[1] | Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. | ||
[2] | Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements. | ||
[3] | Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements. | ||
[4] | Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet. | ||
[5] | The decreases in interest rate derivative assets and liabilities at September 30, 2021 primarily reflects reduced positions driven by the exit or transfer of certain contracts as part of our Restructuring Plan. See Note 2, "Strategic Initiatives," for additional information. | ||
[6] | Trading related derivative assets / liabilities are recorded in trading assets / trading liabilities on the consolidated balance sheet. (4) The decreases in interest rate derivative assets and liabilities at September 30, 2021 primarily reflects reduced positions driven by the exit or transfer of certain contracts as part of our Restructuring Plan. See Note 2, "Strategic Initiatives," for additional information. | ||
[7] | Over-the-counter ("OTC") derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to each of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining requirements. In addition, OTC-cleared interest rate and credit derivatives with certain central clearing counterparties are settled daily. | ||
[8] | Consists of swap agreements entered into in conjunction with the sales of Visa Inc. ("Visa") Class B common shares ("Class B Shares"). |
Derivative Financial Instrume_4
Derivative Financial Instruments - Carrying Value of Hedged Items in Fair Value Hedge (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Securities available-for-sale [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Carrying amount of hedged items | [1] | $ 7,871 | $ 7,966 | |
Active hedged asset adjustments | (92) | 681 | ||
Discontinued hedged asset adjustments | 1,033 | 738 | ||
Total hedged asset adjustments | 941 | 1,419 | ||
Deposits [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Carrying amount of hedged liability items | 1,621 | [1] | 5,214 | |
Active hedged liability adjustments | (11) | 214 | ||
Discontinued hedged liability adjustments | 132 | 0 | ||
Total hedged liability adjustments | 121 | 214 | ||
Long-term Debt [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Carrying amount of hedged liability items | [1] | 5,646 | 2,227 | |
Active hedged liability adjustments | (12) | 242 | ||
Discontinued hedged liability adjustments | 158 | (15) | ||
Total hedged liability adjustments | $ 146 | $ 227 | ||
[1] | The carrying amount of securities AFS represents the amortized cost basis. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains and Losses on Hedged Items in Fair Value Hedges (Detail) - Net Interest Income [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | $ 28 | $ 159 | $ 174 | $ (638) |
Gain (Loss) on Hedged Items | (34) | (172) | (177) | 587 |
Securities available-for-sale [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | 29 | 182 | 221 | (962) |
Gain (Loss) on Hedged Items | (4) | (135) | (144) | 1,095 |
Deposits [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (3) | 33 | (35) | 153 |
Gain (Loss) on Hedged Items | (13) | (69) | (5) | (250) |
Long-term Debt [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | 2 | (56) | (12) | 171 |
Gain (Loss) on Hedged Items | $ (17) | $ 32 | $ (28) | $ (258) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Losses related to discontinued cash flow hedge relationships amortized to earnings | $ 6 | $ (1) | $ 9 | $ (11) | |
Next twelve months, reclassification of remaining losses to earnings resulting from cash flow hedges | 1 | ||||
Aggregate fair value of all derivative instruments with credit-risk related contingent features | 355 | 355 | $ 221 | ||
Collateral already posted aggregate fair value | $ 117 | $ 117 | $ 67 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Gains and Losses on Derivative Instruments Designated and Qualifying As Hedging Instruments in Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI on Derivatives | $ (3) | $ (14) | $ (28) | $ 99 |
Gain (Loss) Reclassified From AOCI into Income | 6 | (1) | 9 | (11) |
Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI on Derivatives | 0 | 0 | (1) | 0 |
Foreign exchange contracts [Member] | Net Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified From AOCI into Income | 0 | 0 | 0 | 0 |
Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI on Derivatives | (3) | (14) | (27) | 99 |
Interest rate contracts [Member] | Net Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified From AOCI into Income | $ 6 | $ (1) | $ 9 | $ (11) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Gains and Losses on Derivative Instruments Held For Trading Purpose (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | $ (27) | $ 116 | $ (475) | $ 18 |
Trading revenue (expense) [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | 45 | 773 | 197 | 655 |
Trading revenue (expense) [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | (56) | (355) | 112 | (1,164) |
Trading revenue (expense) [Member] | Equity contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | (20) | (385) | (1,000) | 683 |
Trading revenue (expense) [Member] | Precious metals contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | 74 | 67 | 115 | 450 |
Trading revenue (expense) [Member] | Credit contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivatives | $ (70) | $ 16 | $ 101 | $ (606) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Gains and Losses on Derivative Instruments Held For Other Purpose (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | $ (73) | $ 276 | $ 729 | $ (22) | ||
Gain on Instruments Designated at Fair Value and Related Derivatives [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | (80) | 283 | 719 | (40) | ||
Gain on Instruments Designated at Fair Value and Related Derivatives [Member] | Interest rate contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | (8) | (13) | (62) | 256 | ||
Gain on Instruments Designated at Fair Value and Related Derivatives [Member] | Foreign exchange contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | 0 | 0 | 0 | (2) | ||
Gain on Instruments Designated at Fair Value and Related Derivatives [Member] | Equity contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | (62) | 306 | 810 | (307) | ||
Gain on Instruments Designated at Fair Value and Related Derivatives [Member] | Credit contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | 0 | 0 | 0 | 37 | ||
Other Income (Loss) [Member] | Interest rate contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | (1) | 0 | (2) | (1) | ||
Other Income (Loss) [Member] | Credit contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | (5) | (15) | (17) | (2) | ||
Other Income (Loss) [Member] | Other Contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Income on Derivatives held for other purposes | $ 3 | $ (2) | $ 0 | [1] | $ (3) | [1] |
[1] | Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. |
Derivative Financial Instrum_10
Derivative Financial Instruments - Credit-Risk Related Contingent Features (Detail) $ in Millions | Sep. 30, 2021USD ($) |
One-notch Downgrade [Member] | |
Derivative [Line Items] | |
Amount of additional collateral to be posted upon downgrade | $ 20 |
Two-notch Downgrade [Member] | |
Derivative [Line Items] | |
Amount of additional collateral to be posted upon downgrade | $ 67 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Notional Value of Derivative Contracts (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Total | $ 1,606,786 | $ 2,021,133 | |
Interest rate contracts [Member] | |||
Derivative [Line Items] | |||
Total | 375,427 | 509,403 | |
Interest Rate Futures and Forwards [Member] | |||
Derivative [Line Items] | |||
Total | 53,008 | 37,098 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Total | 298,670 | 406,609 | |
Interest Rate Options Written [Member] | |||
Derivative [Line Items] | |||
Total | 11,924 | 33,269 | |
Interest Rate Options Purchased [Member] | |||
Derivative [Line Items] | |||
Total | 11,825 | 32,427 | |
Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Total | 1,144,323 | 1,359,284 | |
Foreign Exchange Swaps, Futures and Forwards [Member] | |||
Derivative [Line Items] | |||
Total | 1,011,881 | 1,195,449 | |
Foreign Exchange Options Written [Member] | |||
Derivative [Line Items] | |||
Total | 34,689 | 53,200 | |
Foreign Exchange Options Purchased [Member] | |||
Derivative [Line Items] | |||
Total | 34,772 | 53,595 | |
Foreign Exchange Spot [Member] | |||
Derivative [Line Items] | |||
Total | 62,981 | 57,040 | |
Commodities, equities and precious metals contracts [Member] | |||
Derivative [Line Items] | |||
Total | 78,333 | 98,619 | |
Commodities, Equities and Precious Metals, Swaps, Futures and Forwards [Member] | |||
Derivative [Line Items] | |||
Total | 64,012 | 54,458 | |
Commodities, Equities and Precious Metals Options Written [Member] | |||
Derivative [Line Items] | |||
Total | 2,708 | 17,078 | |
Commodities, Equities and Precious Metals Options Purchased [Member] | |||
Derivative [Line Items] | |||
Total | 11,613 | 27,083 | |
Credit contracts [Member] | |||
Derivative [Line Items] | |||
Total | 7,465 | 52,611 | |
Other Contracts [Member] | |||
Derivative [Line Items] | |||
Total | [1] | $ 1,238 | $ 1,216 |
[1] | Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. |
Fair Value Option - Additional
Fair Value Option - Additional Information (Details) - Loans Held For Sale [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value option, loans 90 days or more past due | $ 0 | $ 0 |
Fair value option loan in nonaccrual status | $ 0 | $ 0 |
Fair Value Option - Summary of
Fair Value Option - Summary of Fair Value and Unpaid Principal Balance (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Student Loans Held for Investment [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, designated under fair value option | $ 27 | $ 32 |
Loans held for investment, Unpaid Principal Balance | 29 | 34 |
Fair value over (under) unpaid principal balance | (2) | (2) |
Loans Held For Sale [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Commercial loans held for sale, Fair Value | 63 | 36 |
Commercial loans held for sale, Unpaid Principal Balance | 63 | 36 |
Fair value over (under) unpaid principal balance | 0 | 0 |
Long-term debt [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value over (under) unpaid principal balance | 204 | 289 |
Fixed rate long-term debt, Fair Value | 945 | 1,030 |
Fixed rate long-term debt, Unpaid Principal Balance | 741 | 741 |
Long-term debt [Member] | Structured Notes [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value over (under) unpaid principal balance | 1,181 | 1,363 |
Hybrid instruments, Unpaid Principal Balance | 7,609 | 8,332 |
Hybrid instruments, structured notes, Fair Value | 8,790 | 9,695 |
Structured Deposits [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value over (under) unpaid principal balance | 264 | 311 |
Hybrid instruments, structured deposits, Fair Value | 2,970 | 4,155 |
Hybrid instruments, Unpaid Principal Balance | $ 2,706 | $ 3,844 |
Fair Value Option - Components
Fair Value Option - Components of Gain (Loss) on Instruments at Fair Value and Related Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items] | ||||||
Mark-to-market on related derivatives | $ (73) | $ 276 | $ 729 | $ (22) | ||
Gain (loss) on instruments designated at fair value and related derivatives | 8 | 15 | 33 | 15 | ||
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | ||||||
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items] | ||||||
Interest rate and other components | 78 | (274) | (716) | [1] | 84 | [1] |
Credit risk component, total | 0 | (4) | 1 | [2] | (53) | [2],[3] |
Total mark-to-market on financial instruments designated at fair value | 78 | (278) | (715) | 31 | ||
Mark-to-market on related derivatives | (80) | 283 | 719 | (40) | ||
Net realized gain on related long-term debt derivatives | 10 | 10 | 29 | 24 | ||
Gain (loss) on instruments designated at fair value and related derivatives | 8 | 15 | 33 | 15 | ||
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Loans [Member] | ||||||
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items] | ||||||
Interest rate and other components | 0 | 0 | 0 | [1] | 0 | [1] |
Credit risk component, assets | 0 | (4) | 1 | [2] | (53) | [2],[3] |
Total mark-to-market on financial instruments designated at fair value | 0 | (4) | 1 | (53) | ||
Mark-to-market on related derivatives | 0 | 0 | 0 | 37 | ||
Net realized gain on related long-term debt derivatives | 0 | 0 | 0 | 0 | ||
Gain (loss) on instruments designated at fair value and related derivatives | 0 | (4) | 1 | (16) | ||
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Long-term debt [Member] | ||||||
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items] | ||||||
Interest rate and other components | 16 | 18 | 75 | [1] | (114) | [1] |
Credit risk component, liabilities | 0 | 0 | 0 | [2] | 0 | [2],[3] |
Total mark-to-market on financial instruments designated at fair value | 16 | 18 | 75 | (114) | ||
Mark-to-market on related derivatives | (19) | (24) | (85) | 126 | ||
Net realized gain on related long-term debt derivatives | 10 | 10 | 29 | 24 | ||
Gain (loss) on instruments designated at fair value and related derivatives | 7 | 4 | 19 | 36 | ||
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Hybrid Instrument [Member] | ||||||
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items] | ||||||
Interest rate and other components | 62 | (292) | (791) | [1] | 198 | [1] |
Credit risk component, liabilities | 0 | 0 | 0 | [2] | 0 | [2],[3] |
Total mark-to-market on financial instruments designated at fair value | 62 | (292) | (791) | 198 | ||
Mark-to-market on related derivatives | (61) | 307 | 804 | (203) | ||
Net realized gain on related long-term debt derivatives | 0 | 0 | 0 | 0 | ||
Gain (loss) on instruments designated at fair value and related derivatives | $ 1 | $ 15 | $ 13 | $ (5) | ||
[1] | As it relates to hybrid instruments, interest rate and other components primarily includes interest rate, foreign exchange and equity contract risks. | |||||
[2] | The fair value movement on fair value option liabilities attributable to our own credit spread is recorded in other comprehensive income (loss). | |||||
[3] | During the nine months ended September 30, 2020, the loss in the credit risk component for loans and loans held for sale was attributable to the widening of credit spreads associated with certain commercial loans held for sale which were impacted by the COVID-19 pandemic. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | $ 17,026 | ||||||||
Balance at end of period, common equity | $ 16,972 | $ 17,075 | 16,972 | $ 17,075 | |||||
Accumulated Other Comprehensive Loss [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | 81 | 830 | 679 | (277) | |||||
Balance at end of period, common equity | (3) | 834 | (3) | 834 | |||||
Accumulated Other Comprehensive Loss [Member] | As Previously Reported [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | 679 | (279) | |||||||
Balance at end of period, common equity | 834 | 834 | |||||||
Unrealized Gains (Losses) on Investment Securities [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | 172 | 750 | (114) | ||||||
Net unrealized gains (losses) arising during the period, net of tax | (86) | 84 | (636) | 990 | |||||
Reclassification adjustment for (gains) losses realized in net income (loss) | (3) | [1] | (39) | [1] | (39) | [2] | (84) | [2] | |
Reversal of provision for credit losses realized in net income (loss), net of tax | [1] | 0 | (1) | 0 | (1) | ||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax | [3] | 3 | 12 | 11 | 19 | ||||
Total other comprehensive income (loss) for period | (86) | 56 | (664) | 924 | |||||
Balance at end of period, common equity | 86 | 86 | |||||||
Unrealized Gains (Losses) on Investment Securities [Member] | As Previously Reported [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | 754 | (116) | |||||||
Balance at end of period, common equity | 810 | 810 | |||||||
Unrealized Gains (Losses) on Investment Securities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | [4] | 2 | |||||||
Unrealized Gains (Losses) on Fair Value Option Liabilities Attributable to Our Own Credit Spread [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | 15 | 137 | 15 | (9) | |||||
Net unrealized gains (losses) arising during the period, net of tax | 9 | (40) | 9 | 106 | |||||
Total other comprehensive income (loss) for period | 9 | (40) | 9 | 106 | |||||
Balance at end of period, common equity | 24 | 97 | 24 | 97 | |||||
Unrealized Gains (Losses) on Derivatives Designated as Cash Flow Hedges [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | (100) | (58) | (79) | (151) | |||||
Net unrealized gains (losses) arising during the period, net of tax | (2) | (10) | (21) | 75 | |||||
Reclassification adjustment for (gains) losses realized in net income (loss) | [5] | (5) | 0 | (7) | 8 | ||||
Total other comprehensive income (loss) for period | (7) | (10) | (28) | 83 | |||||
Balance at end of period, common equity | (107) | (68) | (107) | (68) | |||||
Pension and Postretirement Benefit Liability [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Balance at beginning of period, common equity | (6) | (3) | (7) | (3) | |||||
Net unrealized gains (losses) arising during the period, net of tax | 0 | (2) | 1 | (2) | |||||
Total other comprehensive income (loss) for period | 0 | (2) | 1 | (2) | |||||
Balance at end of period, common equity | $ (6) | $ (5) | $ (6) | $ (5) | |||||
[1] | Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in our consolidated statement of income (loss). | ||||||||
[2] | Amount reclassified to net income (loss) is included in other securities gains, net in our consolidated statement of income (loss). | ||||||||
[3] | Amount amortized to net income (loss) is included in interest income in our consolidated statement of income (loss). During 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses related to the transferred securities which are being amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. | ||||||||
[4] | See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion. | ||||||||
[5] | Amount reclassified to net income (loss) is included in net interest income in our consolidated statement of income (loss). |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Unrealized Gains (Losses) on Investment Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax on net unrealized gains (losses) arising during period | $ (27) | $ 26 | $ (201) | $ 312 | |
Tax on reclassification adjustment | (1) | (13) | (12) | (27) | |
Tax on reversal of provision for credit losses realized in net income (loss) | 0 | (1) | 0 | (1) | |
Tax on amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss) | 1 | 4 | 3 | 6 | |
Unrealized Gains (Losses) on Fair Value Option Liabilities Attributable to Our Own Credit Spread [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax on net unrealized gains (losses) arising during period | 3 | (13) | 3 | 33 | |
Unrealized Gains (Losses) on Derivatives Designated as Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax on net unrealized gains (losses) arising during period | (1) | (4) | (7) | 24 | |
Tax on reclassification adjustment | (1) | 1 | (2) | 3 | |
Pension and Postretirement Benefit Liability [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax on net unrealized gains (losses) arising during period | $ 0 | $ (1) | $ 1 | $ (1) | |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized Gains (Losses) on Investment Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax on cumulative effect adjustment | $ 1 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits-Net Periodic Benefit Cost (Detail) - HSBC North America [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
HSBC North America Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on projected benefit obligation | $ 11 | $ 11 | $ 32 | $ 35 |
Expected return on plan assets | (15) | (14) | (44) | (53) |
Amortization of net actuarial loss | 0 | 0 | 0 | 4 |
Administrative costs | 1 | 1 | 3 | 3 |
Pension (income) expense | (3) | (2) | (9) | (11) |
Postretirement Plans Other Than Pensions [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension (income) expense | $ 1 | $ 1 | $ 1 | $ 1 |
Fee Income from Contracts wit_3
Fee Income from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | $ 267 | $ 269 | $ 837 | $ 814 | ||
Other non-fee revenues | (25) | 87 | 93 | 393 | ||
Total other revenues | [1] | 242 | 356 | 930 | 1,207 | |
Deferred fee income | 5 | 5 | $ 3 | |||
Credit card fees, net [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 0 | 10 | 23 | 30 | ||
Interchange fees | 24 | 18 | 68 | 53 | ||
Rewards program costs | 26 | 10 | 50 | 28 | ||
Trust and investment management fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 26 | 34 | 81 | 98 | ||
Account services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 73 | 66 | 216 | 185 | ||
Credit facilities [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 76 | 67 | 248 | 204 | ||
Other fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 11 | 11 | 32 | 36 | ||
Other fees and commissions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 160 | 144 | 496 | 425 | ||
Servicing and other fees from HSBC affiliates [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | 79 | 79 | 232 | 255 | ||
Insurance [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Fee income from contracts with customers | [2] | $ 2 | $ 2 | $ 5 | $ 6 | |
[1] | See Note 16, "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] | Included within other income (loss) in the consolidated statement of income (loss). |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Assets: | ||||||
Cash and due from banks | $ 1,018 | $ 1,302 | ||||
Interest bearing deposits with banks | 62,140 | 14,353 | ||||
Securities purchased under agreements to resell | 7,480 | 35,746 | ||||
Trading assets | 21,985 | 27,284 | ||||
Other | 5,409 | 6,084 | ||||
Total assets | 201,150 | [1] | 196,434 | [1] | $ 200,946 | |
Liabilities: | ||||||
Deposits | 152,368 | 145,150 | $ 150,328 | |||
Trading liabilities | 2,670 | 5,397 | ||||
Short-term borrowings | 6,377 | 4,952 | ||||
Long-term debt | 18,105 | 19,979 | ||||
Other | 3,233 | 2,665 | ||||
Total liabilities | [1] | 182,913 | 178,143 | |||
Affiliated Entity [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 313 | 516 | ||||
Interest bearing deposits with banks | 2 | 187 | ||||
Securities purchased under agreements to resell | [2] | 873 | 3,941 | |||
Trading assets | 190 | 314 | ||||
Loans | 2,857 | 1,100 | ||||
Other | [3] | 289 | 319 | |||
Total assets | 4,524 | 6,377 | ||||
Liabilities: | ||||||
Deposits | 15,624 | 15,163 | ||||
Trading liabilities | [4] | 223 | 2,375 | |||
Short-term borrowings | 390 | 270 | ||||
Long-term debt | 5,528 | 2,878 | ||||
Other | [3] | 203 | 268 | |||
Total liabilities | $ 21,968 | $ 20,954 | ||||
[1] | Assets | |||||
[2] | Reflects purchases of securities under which other HSBC affiliates have agreed to repurchase. | |||||
[3] | Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables. | |||||
[4] | The decrease in trading liabilities at September 30, 2021 primarily reflects a decrease in borrowing of gold inventory from HSBC Bank plc to support client activity levels. |
Related Party Transactions - _2
Related Party Transactions - Summary of Related Party Transactions (Income - Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Related Party Transaction [Line Items] | |||||
Interest income | $ 658 | $ 804 | $ 2,035 | $ 2,789 | |
Interest expense | (138) | (256) | (461) | (1,199) | |
Net interest income | 520 | 548 | 1,574 | 1,590 | |
Trading revenue (expense) | (42) | 49 | 1 | 255 | |
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | 267 | 269 | 837 | 814 | |
Gain (loss) on instruments designated at fair value and related derivatives | 8 | 15 | 33 | 15 | |
Support services from HSBC affiliates: | |||||
Total support services from HSBC affiliates | (389) | (391) | (1,148) | (1,162) | |
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income | 6 | 9 | 20 | 47 | |
Interest expense | (52) | (77) | (185) | (276) | |
Net interest income | (46) | (68) | (165) | (229) | |
Trading revenue (expense) | (1,116) | (1,755) | (2,106) | (2,372) | |
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Gain (loss) on instruments designated at fair value and related derivatives | (62) | 307 | 803 | (203) | |
Support services from HSBC affiliates: | |||||
Total support services from HSBC affiliates | (389) | (391) | (1,148) | (1,162) | |
Rental income from HSBC affiliates, net | [1] | 12 | 13 | 32 | 31 |
Stock based compensation expense | [2] | (1) | (3) | (12) | (16) |
HSBC Markets (USA) Inc. (HMUS) and subsidiaries [Member] | |||||
Support services from HSBC affiliates: | |||||
Total support services from HSBC affiliates | (26) | (17) | (72) | (63) | |
Other HSBC affiliates [Member] | |||||
Support services from HSBC affiliates: | |||||
Total support services from HSBC affiliates | (121) | (89) | (322) | (279) | |
HSBC Technology and Services (USA) (HTSU) [Member] | |||||
Support services from HSBC affiliates: | |||||
Total support services from HSBC affiliates | (242) | (285) | (754) | (820) | |
Servicing and other fees from HSBC affiliates [Member] | |||||
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | 79 | 79 | 232 | 255 | |
Servicing and other fees from HSBC affiliates [Member] | Affiliated Entity [Member] | |||||
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | 79 | 79 | 232 | 255 | |
Servicing and other fees from HSBC affiliates [Member] | HSBC Bank plc [Member] | |||||
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | 44 | 43 | 124 | 131 | |
Servicing and other fees from HSBC affiliates [Member] | HSBC Markets (USA) Inc. (HMUS) and subsidiaries [Member] | |||||
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | 22 | 27 | 70 | 84 | |
Servicing and other fees from HSBC affiliates [Member] | Other HSBC affiliates [Member] | |||||
Servicing and other fees from HSBC affiliates: [Abstract] | |||||
Other revenues | $ 13 | $ 9 | $ 38 | $ 40 | |
[1] | We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss). | ||||
[2] | Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 13, "Pension and Other Postretirement Benefits." |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Long-term debt | $ 18,105,000,000 | $ 19,979,000,000 | ||
Repayments of long-term debt | 8,402,000,000 | $ 8,387,000,000 | ||
Notional value of derivative contracts | 1,606,786,000,000 | 2,021,133,000,000 | ||
Preferred stock issued | 1,265,000,000 | 1,265,000,000 | ||
HNAH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 5,500,000,000 | 2,900,000,000 | ||
Repayments of long-term debt | $ 850,000,000 | |||
Maximum borrowing capacity | 4,000,000,000 | |||
Amount outstanding under the loan agreement | 0 | 0 | ||
Loans receivable from related parties | 1,000,000,000 | 0 | ||
Preferred stock issued | 1,265,000,000 | 1,265,000,000 | ||
Preferred stock outstanding | 1,265,000,000 | 1,265,000,000 | ||
HMUS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Extended loans and lines of credit | 11,600,000,000 | 12,000,000,000 | ||
Amount outstanding on line of credit | 1,800,000,000 | 1,100,000,000 | ||
Loans receivable from related parties | 1,755,000,000 | 1,088,000,000 | ||
Other HSBC affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Extended loans and lines of credit | 3,900,000,000 | 4,700,000,000 | ||
Amount outstanding on line of credit | 0 | 0 | ||
Loans receivable from related parties | 102,000,000 | 12,000,000 | ||
HSBC Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 5,528,000,000 | 2,878,000,000 | ||
Loans receivable from related parties | 2,857,000,000 | 1,100,000,000 | ||
Notional value of derivative contracts | 785,100,000,000 | 923,600,000,000 | ||
Fair value of derivative assets and liabilities | 215,000,000 | $ 66,000,000 | ||
Fixed Rate Note Maturing September 2025 [Member] | HNAH [Member] | Senior debt [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 2,000,000,000 | |||
Fixed Rate Note Maturing June 2030 [Member] | HNAH [Member] | Senior debt [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 1,500,000,000 | |||
Fixed Rate Note Maturing June 2025 [Member] | HNAH [Member] | Senior debt [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | $ 2,000,000,000 |
Related Party Transactions - _3
Related Party Transactions - Summary of Loans (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
HMUS [Member] | ||
Related Party Transaction [Line Items] | ||
Loans receivable from related parties | $ 1,755 | $ 1,088 |
HNAH [Member] | ||
Related Party Transaction [Line Items] | ||
Loans receivable from related parties | 1,000 | 0 |
Other short-term affiliate lending [Member] | ||
Related Party Transaction [Line Items] | ||
Loans receivable from related parties | 102 | 12 |
HSBC Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Loans receivable from related parties | $ 2,857 | $ 1,100 |
Business Segments Additional In
Business Segments Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Business Segments - Summary on
Business Segments - Summary on Reconciliation of Results Under Ifrs to Us Gaap (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | $ 475 | $ 485 | $ 1,448 | $ 1,520 | ||||||
Group Reporting Basis Other operating income (expense) | 273 | 433 | 1,027 | 1,303 | ||||||
Group Reporting Basis Total operating income (expense) | 748 | 918 | 2,475 | 2,823 | ||||||
Expected credit losses / provision for credit losses | (42) | (15) | (216) | 600 | ||||||
Group Reporting Basis Revenues | 790 | 933 | 2,691 | 2,223 | ||||||
Operating Expenses | 654 | 1,054 | 2,088 | 3,295 | ||||||
Group Reporting Basis Profit (Loss) Before Income Tax | 136 | (121) | 603 | (1,072) | ||||||
Total Assets | 219,401 | 232,867 | 219,401 | 232,867 | ||||||
Group Reporting Basis Total loans, net | 54,334 | 63,795 | 54,334 | 63,795 | ||||||
Group Reporting Basis Goodwill | 358 | 358 | 358 | 358 | ||||||
Group Reporting Basis Total deposits | 137,131 | 139,779 | 137,131 | 139,779 | ||||||
Net interest income (expense) | 520 | 548 | 1,574 | 1,590 | ||||||
Other operating income | [1] | 242 | 356 | 930 | 1,207 | |||||
Total operating income | 762 | 904 | 2,504 | 2,797 | ||||||
Provision for credit losses | (81) | (105) | (537) | 840 | ||||||
Total income | 843 | 1,009 | 3,041 | 1,957 | ||||||
Operating expenses | 666 | 785 | 2,150 | 3,117 | ||||||
Income (loss) before income tax | 177 | 224 | 891 | (1,160) | ||||||
Total assets | 201,150 | [2] | 200,946 | 201,150 | [2] | 200,946 | $ 196,434 | [2] | ||
Total loans, net | 55,051 | 65,325 | 55,051 | 65,325 | ||||||
Goodwill | 458 | 458 | 458 | 458 | 458 | |||||
Total deposits | 152,368 | 150,328 | 152,368 | 150,328 | $ 145,150 | |||||
Group Reporting Basis Adjustments [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | [3] | 4 | 1 | 17 | 6 | |||||
Group Reporting Basis Other operating income (expense) | [3] | 4 | (22) | (2) | (45) | |||||
Group Reporting Basis Total operating income (expense) | [3] | 8 | (21) | 15 | (39) | |||||
Expected credit losses / provision for credit losses | [3] | (39) | (90) | (321) | 240 | |||||
Group Reporting Basis Revenues | [3] | 47 | 69 | 336 | (279) | |||||
Operating Expenses | [3] | 6 | (276) | 48 | (191) | |||||
Group Reporting Basis Profit (Loss) Before Income Tax | [3] | 41 | 345 | 288 | (88) | |||||
Total Assets | [3] | (18,251) | (31,921) | (18,251) | (31,921) | |||||
Group Reporting Basis Total loans, net | [3] | (1,549) | (1,682) | (1,549) | (1,682) | |||||
Group Reporting Basis Goodwill | [3] | 100 | 100 | 100 | 100 | |||||
Group Reporting Basis Total deposits | [3] | (3,668) | (5,198) | (3,668) | (5,198) | |||||
Group Reporting Basis Reclassifications [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | 41 | 62 | 109 | [4] | 64 | [4] | ||||
Group Reporting Basis Other operating income (expense) | (35) | (55) | (95) | [4] | (51) | [4] | ||||
Group Reporting Basis Total operating income (expense) | 6 | 7 | 14 | [4] | 13 | [4] | ||||
Expected credit losses / provision for credit losses | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Group Reporting Basis Revenues | 6 | 7 | 14 | [4] | 13 | [4] | ||||
Operating Expenses | 6 | 7 | 14 | [4] | 13 | [4] | ||||
Group Reporting Basis Profit (Loss) Before Income Tax | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Total Assets | [4] | 0 | 0 | 0 | 0 | |||||
Group Reporting Basis Total loans, net | [4] | 2,266 | 3,212 | 2,266 | 3,212 | |||||
Group Reporting Basis Goodwill | [4] | 0 | 0 | 0 | 0 | |||||
Group Reporting Basis Total deposits | [4] | 18,905 | 15,747 | 18,905 | 15,747 | |||||
WPB [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | 202 | 200 | 616 | 629 | ||||||
Group Reporting Basis Other operating income (expense) | 57 | 110 | 215 | 283 | ||||||
Group Reporting Basis Total operating income (expense) | 259 | 310 | 831 | 912 | ||||||
Expected credit losses / provision for credit losses | (35) | 12 | (36) | 188 | ||||||
Group Reporting Basis Revenues | 294 | 298 | 867 | 724 | ||||||
Operating Expenses | 279 | 527 | 921 | 1,888 | ||||||
Group Reporting Basis Profit (Loss) Before Income Tax | 15 | (229) | (54) | (1,164) | ||||||
Total Assets | 69,021 | 56,728 | 69,021 | 56,728 | ||||||
Group Reporting Basis Total loans, net | 22,046 | 23,821 | 22,046 | 23,821 | ||||||
Group Reporting Basis Goodwill | 0 | 0 | 0 | 0 | ||||||
Group Reporting Basis Total deposits | 39,762 | 48,477 | 39,762 | 48,477 | ||||||
CMB [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | 200 | 202 | 580 | 616 | ||||||
Group Reporting Basis Other operating income (expense) | 70 | 66 | 208 | 176 | ||||||
Group Reporting Basis Total operating income (expense) | 270 | 268 | 788 | 792 | ||||||
Expected credit losses / provision for credit losses | 24 | (21) | (26) | 283 | ||||||
Group Reporting Basis Revenues | 246 | 289 | 814 | 509 | ||||||
Operating Expenses | 134 | 150 | 437 | 439 | ||||||
Group Reporting Basis Profit (Loss) Before Income Tax | 112 | 139 | 377 | 70 | ||||||
Total Assets | 46,226 | 38,096 | 46,226 | 38,096 | ||||||
Group Reporting Basis Total loans, net | 20,998 | 25,852 | 20,998 | 25,852 | ||||||
Group Reporting Basis Goodwill | 358 | 358 | 358 | 358 | ||||||
Group Reporting Basis Total deposits | 45,239 | 39,736 | 45,239 | 39,736 | ||||||
GBM [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | 74 | 92 | 255 | 304 | ||||||
Group Reporting Basis Other operating income (expense) | 184 | 217 | 613 | 743 | ||||||
Group Reporting Basis Total operating income (expense) | 258 | 309 | 868 | 1,047 | ||||||
Expected credit losses / provision for credit losses | (31) | (6) | (154) | 129 | ||||||
Group Reporting Basis Revenues | 289 | 315 | 1,022 | 918 | ||||||
Operating Expenses | 186 | 251 | 573 | 644 | ||||||
Group Reporting Basis Profit (Loss) Before Income Tax | 103 | 64 | 449 | 274 | ||||||
Total Assets | 102,543 | 136,478 | 102,543 | 136,478 | ||||||
Group Reporting Basis Total loans, net | 11,290 | 14,122 | 11,290 | 14,122 | ||||||
Group Reporting Basis Goodwill | 0 | 0 | 0 | 0 | ||||||
Group Reporting Basis Total deposits | 52,130 | 51,566 | 52,130 | 51,566 | ||||||
CC [Member] | ||||||||||
Operating Statistics [Line Items] | ||||||||||
Net interest income (expense) | (1) | (9) | (3) | (29) | ||||||
Group Reporting Basis Other operating income (expense) | (38) | 40 | (9) | 101 | ||||||
Group Reporting Basis Total operating income (expense) | (39) | 31 | (12) | 72 | ||||||
Expected credit losses / provision for credit losses | 0 | 0 | 0 | 0 | ||||||
Group Reporting Basis Revenues | (39) | 31 | (12) | 72 | ||||||
Operating Expenses | 55 | 126 | 157 | 324 | ||||||
Group Reporting Basis Profit (Loss) Before Income Tax | (94) | (95) | (169) | (252) | ||||||
Total Assets | 1,611 | 1,565 | 1,611 | 1,565 | ||||||
Group Reporting Basis Total loans, net | 0 | 0 | 0 | 0 | ||||||
Group Reporting Basis Goodwill | 0 | 0 | 0 | 0 | ||||||
Group Reporting Basis Total deposits | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
[1] | See Note 16, "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] | Assets | |||||||||
[3] | Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis. | |||||||||
[4] | Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis |
Retained Earnings and Regulat_3
Retained Earnings and Regulatory Capital Requirements - Capital Amounts and Ratios in Accordance With Current Banking Regulations (Details) $ in Millions | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
HSBC USA Inc [Member] | |||
Common equity Tier 1 ratio: | |||
Capital Amount, Common equity Tier 1 | [1] | $ 16,393 | $ 15,891 |
Well-Capitalized Ratio, Common equity Tier 1 | [1],[2],[3] | 0.045 | 0.045 |
Actual Ratio, Common equity Tier 1 | [1] | 0.159 | 0.145 |
Tier 1 capital ratio: | |||
Capital Amount, Tier 1 capital | [1] | $ 17,658 | $ 17,156 |
Well-Capitalized Ratio, Tier 1 capital | [1],[2] | 0.060 | 0.060 |
Actual Ratio, Tier 1 capital | [1] | 0.171 | 0.156 |
Total capital ratio: | |||
Capital Amount, Total capital | [1] | $ 19,910 | $ 20,680 |
Well-Capitalized Ratio, Total capital | [1],[2] | 0.100 | 0.100 |
Actual Ratio, Total capital | [1] | 0.193 | 0.188 |
Tier 1 leverage ratio: | |||
Capital Amount, Tier 1 leverage capital | $ 17,658 | $ 17,156 | |
Well-Capitalized Ratio, Tier 1 leverage capital | [2],[3] | 0.040 | 0.040 |
Actual Ratio, Tier 1 leverage capital | 0.091 | 0.086 | |
Supplementary Leverage Ratio [Abstract] | |||
Capital Amount, Supplementary Leverage Ratio | $ 17,658 | $ 17,156 | |
Well-Capitalized Ratio, Supplementary Leverage Ratio | [2],[4] | 0.030 | 0.030 |
Actual Ratio, Supplementary Leverage Ratio | 0.070 | 0.078 | |
Risk weighted assets: | |||
Banking Regulation, Risk-Weighted Assets, Actual | [1],[5] | $ 103,018 | $ 109,809 |
Adjusted Quarterly Average Assets [Abstract] | |||
Adjusted quarterly average assets | [6] | 193,984 | 198,698 |
Total Leverage Exposure [Abstract] | |||
Total leverage exposure | [7] | 252,239 | $ 221,216 |
HSBC USA Inc [Member] | As Previously Reported [Member] | |||
Common equity Tier 1 ratio: | |||
Actual Ratio, Common equity Tier 1 | 0.147 | ||
Tier 1 capital ratio: | |||
Actual Ratio, Tier 1 capital | 0.159 | ||
Total capital ratio: | |||
Actual Ratio, Total capital | 0.192 | ||
Risk weighted assets: | |||
Banking Regulation, Risk-Weighted Assets, Actual | $ 107,808 | ||
HSBC Bank USA [Member] | |||
Common equity Tier 1 ratio: | |||
Capital Amount, Common equity Tier 1 | [1] | $ 18,664 | $ 18,180 |
Well-Capitalized Ratio, Common equity Tier 1 | [1],[2] | 0.065 | 0.065 |
Actual Ratio, Common equity Tier 1 | [1] | 0.183 | 0.164 |
Tier 1 capital ratio: | |||
Capital Amount, Tier 1 capital | [1] | $ 21,164 | $ 20,680 |
Well-Capitalized Ratio, Tier 1 capital | [1],[2] | 0.080 | 0.080 |
Actual Ratio, Tier 1 capital | [1] | 0.208 | 0.187 |
Total capital ratio: | |||
Capital Amount, Total capital | [1] | $ 23,193 | $ 23,303 |
Well-Capitalized Ratio, Total capital | [1],[2] | 0.100 | 0.100 |
Actual Ratio, Total capital | [1] | 0.227 | 0.211 |
Tier 1 leverage ratio: | |||
Capital Amount, Tier 1 leverage capital | $ 21,164 | $ 20,680 | |
Well-Capitalized Ratio, Tier 1 leverage capital | [2] | 0.050 | 0.050 |
Actual Ratio, Tier 1 leverage capital | 0.110 | 0.103 | |
Supplementary Leverage Ratio [Abstract] | |||
Capital Amount, Supplementary Leverage Ratio | $ 21,164 | $ 20,680 | |
Well-Capitalized Ratio, Supplementary Leverage Ratio | [2],[4] | 0.030 | 0.030 |
Actual Ratio, Supplementary Leverage Ratio | 0.085 | 0.093 | |
Risk weighted assets: | |||
Banking Regulation, Risk-Weighted Assets, Actual | [1],[5] | $ 101,993 | $ 110,682 |
Adjusted Quarterly Average Assets [Abstract] | |||
Adjusted quarterly average assets | [6] | 192,501 | 200,026 |
Total Leverage Exposure [Abstract] | |||
Total leverage exposure | [7] | $ 250,003 | $ 221,334 |
HSBC Bank USA [Member] | As Previously Reported [Member] | |||
Common equity Tier 1 ratio: | |||
Actual Ratio, Common equity Tier 1 | 0.172 | ||
Tier 1 capital ratio: | |||
Actual Ratio, Tier 1 capital | 0.196 | ||
Total capital ratio: | |||
Actual Ratio, Total capital | 0.220 | ||
Risk weighted assets: | |||
Banking Regulation, Risk-Weighted Assets, Actual | $ 105,681 | ||
[1] | During the first quarter of 2021, it was determined that certain collateral did not qualify for risk-weighted asset reduction purposes under U.S. capital rules. As a result, reported risk-weighted assets were understated and reported Common equity Tier 1 capital, Tier 1 capital and Total capital ratios were overstated at HSBC USA and HSBC Bank USA at December 31, 2020. We have revised December 31, 2020 amounts to conform to the current period presentation. | ||
[2] | HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must maintain capital equal to or in excess of the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. | ||
[3] | There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown are the regulatory minimums. | ||
[4] | There is no SLR component in the definition of a well-capitalized banking institution. The ratios shown are the regulatory minimums. | ||
[5] | Calculated using the generally-applicable Standardized Approach. | ||
[6] | Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital. | ||
[7] | Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures. |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities Related to Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Variable Interest Entity [Line Items] | ||||||
Total assets | $ 201,150 | [1] | $ 196,434 | [1] | $ 200,946 | |
Liabilities | [1] | 182,913 | 178,143 | |||
Variable interest entities [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | 71 | 89 | ||||
Liabilities | 18 | 10 | ||||
Low Income Housing Limited Liability Partnership [Member] | Variable interest entities [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | 64 | 79 | ||||
Liabilities | 16 | 9 | ||||
Low Income Housing Limited Liability Partnership [Member] | Variable interest entities [Member] | Other assets [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | 64 | 79 | ||||
Low Income Housing Limited Liability Partnership [Member] | Variable interest entities [Member] | Interest, taxes and other liabilities [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Liabilities | 16 | 9 | ||||
Venture Debt Financing Entity [Member] | Variable interest entities [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | 7 | 10 | ||||
Liabilities | 2 | 1 | ||||
Venture Debt Financing Entity [Member] | Variable interest entities [Member] | Loans [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | 7 | 10 | ||||
Venture Debt Financing Entity [Member] | Variable interest entities [Member] | Interest, taxes and other liabilities [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Liabilities | $ 2 | $ 1 | ||||
[1] | Assets |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests Held by Us and Our Maximum Exposure to Loss Rising From Our Involvements in Those VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Variable Interest Entity [Line Items] | ||||||
Assets | $ 201,150 | [1] | $ 196,434 | [1] | $ 200,946 | |
Liabilities | [1] | 182,913 | 178,143 | |||
Limited Partnership Investments [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Total Assets Held by Unconsolidated VIEs | 4,759 | 4,266 | ||||
Assets | 737 | 629 | ||||
Liabilities | 405 | 285 | ||||
Maximum Exposure to Loss | $ 737 | $ 629 | ||||
[1] | Assets |
Guarantee Arrangements, Pledg_3
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Carrying Value and Contractual Amounts of our Sell Protection Credit Derivatives and Major Off-Balance Sheet Guarantee Arrangements (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Guarantor Obligations [Line Items] | ||||
Carrying Value | $ 8 | $ 144 | ||
Notional/maximum exposure to loss | 10,127 | [1] | 28,045 | |
Credit derivatives [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Carrying Value | [2],[3] | 8 | 144 | |
Notional/maximum exposure to loss | [2],[3] | 2,063 | 19,500 | |
Financial standby letters of credit, net of participations [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Carrying Value | [4],[5] | 0 | 0 | |
Notional/maximum exposure to loss | [4],[5] | 5,364 | 5,703 | |
Performance standby letters of credit, net of participations [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Carrying Value | [4],[5] | 0 | 0 | |
Notional/maximum exposure to loss | [4],[5] | 2,700 | 2,842 | |
Affiliated Entity [Member] | Credit derivatives [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Notional/maximum exposure to loss | 1,691 | 13,550 | ||
Affiliated Entity [Member] | Financial and performance standby letters of credit [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Notional/maximum exposure to loss | $ 1,957 | $ 1,836 | ||
[1] | External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade. | |||
[2] | For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements. | |||
[3] | Includes $1,691 million and $13,550 million of notional issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. | |||
[4] | For standby letters of credit, maximum loss represents losses to be recognized assuming the letters of credit have been fully drawn and the obligors have defaulted with zero recovery. | |||
[5] | Includes $1,957 million and $1,836 million of both financial and performance standby letters of credit issued for the benefit of HSBC affiliates at September 30, 2021 and December 31, 2020, respectively. |
Guarantee Arrangements, Pledg_4
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Net Credit Derivative Positions (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Credit Derivatives [Line Items] | |||
Net position, Carrying/Fair Value | [1] | $ (44) | $ 70 |
Notional | [1] | 3,339 | 13,611 |
Sell-protection credit derivative positions [Member] | |||
Credit Derivatives [Line Items] | |||
Carrying/Fair Value | 8 | 144 | |
Notional | 2,063 | 19,500 | |
Buy-protection credit derivative positions [Member] | |||
Credit Derivatives [Line Items] | |||
Carrying/Fair Value | (52) | (74) | |
Notional | $ 5,402 | $ 33,111 | |
[1] | Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset. |
Guarantee Arrangements, Pledg_5
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Millions | 36 Months Ended | |||
Dec. 31, 2007 | Sep. 30, 2021 | Dec. 31, 2020 | ||
Guarantor Obligations [Line Items] | ||||
Deferred fees | $ 5 | $ 3 | ||
Carrying value of swap | 1,606,786 | 2,021,133 | ||
Pledged assets not separately reported, trading assets | [1] | 2,053 | 1,265 | |
Collateral accepted under security resale agreements, fair value | 9,702 | 41,447 | ||
Collateral accepted under security repurchase agreements but not reported on the balance sheet that can be sold or repledged, fair value | 8,702 | 41,047 | ||
Collateral accepted under security repurchase agreements that has been sold or repledged under repurchase agreements or to cover short sales | 128 | 4,063 | ||
HSBC Securities [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Whole loan securitization | $ 24,000 | |||
Securities available-for-sale [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Securities pledged as collateral that can be sold or repledged by the secured party, fair value | 2,241 | 2,077 | ||
Trading assets [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Pledged assets not separately reported, trading assets | 2,053 | 1,265 | ||
Other liabilities [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Allowance for credit losses on unfunded standby letters of credit | 16 | 32 | ||
Other liabilities [Member] | Standby Letters of Credit [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Deferred fees | 43 | 44 | ||
Swap [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Carrying value of swap | 44 | 67 | ||
Mortgage Securitization Activity Related Litigation [Member] | HSBC Securities [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Mortgage securitization outstanding loan purchase and sold | $ 2,800 | $ 3,100 | ||
[1] | Trading assets are primarily pledged against liabilities associated with repurchase agreements. |
Guarantee Arrangements, Pledg_6
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Summary of Credit Ratings of Credit Risk Related Guarantees (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2020 | |||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | $ 10,127 | [1] | $ 28,045 | |
Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | $ 2,063 | |||
Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Average Life in years | [2] | 2 years 3 months 18 days | ||
Credit Ratings of the Obligors or the Transactions | [2] | $ 1,838 | ||
Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Average Life in years | [2] | 22 years 6 months | ||
Credit Ratings of the Obligors or the Transactions | [2] | $ 225 | ||
Standby Letters of Credit [Member] | ||||
Credit Derivatives [Line Items] | ||||
Average Life in years | [1] | 1 year 2 months 12 days | ||
Credit Ratings of the Obligors or the Transactions | [1] | $ 8,064 | ||
External Credit Rating, Investment Grade [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [1] | 7,738 | ||
External Credit Rating, Investment Grade [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | 1,447 | |||
External Credit Rating, Investment Grade [Member] | Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [2] | 1,232 | ||
External Credit Rating, Investment Grade [Member] | Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [2] | 215 | ||
External Credit Rating, Investment Grade [Member] | Standby Letters of Credit [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [1] | 6,291 | ||
External Credit Rating, Non Investment Grade [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [1] | 2,389 | ||
External Credit Rating, Non Investment Grade [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | 616 | |||
External Credit Rating, Non Investment Grade [Member] | Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [2] | 606 | ||
External Credit Rating, Non Investment Grade [Member] | Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [2] | 10 | ||
External Credit Rating, Non Investment Grade [Member] | Standby Letters of Credit [Member] | ||||
Credit Derivatives [Line Items] | ||||
Credit Ratings of the Obligors or the Transactions | [1] | $ 1,773 | ||
[1] | External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade. | |||
[2] | The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade. |
Guarantee Arrangements, Pledg_7
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Summary of Change in Estimated Repurchase Liability for Loans Sold to GSEs and Other Third Parties (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Estimate of possible losses in excess of recorded liability | $ 150,000,000 | |
Obligation to Repurchase Receivables Sold [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated repurchase liability | 4,000,000 | $ 3,000,000 |
Minimum [Member] | Obligation to Repurchase Receivables Sold [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible losses in excess of recorded liability | 0 | |
Maximum [Member] | Obligation to Repurchase Receivables Sold [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible losses in excess of recorded liability | $ 25,000,000 |
Guarantee Arrangements, Pledg_8
Guarantee Arrangements, Pledged Assets and Repurchase Agreements - Summary of Pledged Assets Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Interest bearing deposits with banks | [1] | $ 773 | $ 2,158 |
Trading assets | [2] | 2,053 | 1,265 |
Securities available-for-sale | [3] | 7,470 | 8,652 |
Securities held to maturity | [3] | 660 | 1,076 |
Loans | [4] | 18,854 | 18,146 |
Other assets | [5] | 1,340 | 2,352 |
Total | $ 31,150 | $ 33,649 | |
[1] | Represents gross amount of cash on deposit with banks related to derivative collateral-support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. | ||
[2] | Trading assets are primarily pledged against liabilities associated with repurchase agreements. | ||
[3] | Securities are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the FHLB and the Federal Reserve Bank of New York. | ||
[4] | Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York. | ||
[5] | Represents gross amount of cash on deposit with non-banks related to derivative collateral support agreements, of which a majority has been netted against derivative liabilities on the consolidated balance sheet. |
Guarantee Arrangements and Pled
Guarantee Arrangements and Pledged Assets and Repurchase Agreements - Offsetting of Resale and Repurchase Agreements and Securities Borrowing and Lending Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Securities purchased under agreements to resell, Gross Amounts Recognized | $ 9,720 | $ 41,382 | |
Securities purchased under agreements to resell, Gross Amounts Offset in the Balance Sheet | [1] | 2,240 | 5,636 |
Securities purchased under agreements to resell, Net amounts Prsented in the Balance Sheet | 7,480 | 35,746 | |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Balance Sheet, Financial Instruments | [2] | 7,480 | 35,746 |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Receive / Pledged | 0 | 0 | |
Securities purchased under agreements to resell, Net amount | [3] | 0 | 0 |
Securities sold under repurchase agreements, Gross Amounts Recognized | 4,510 | 7,401 | |
Securities sold under repurchase agreements, Gross Amounts Offset in the Balance Sheet | [1] | 2,240 | 5,636 |
Securities sold under repurchase agreements, Net Amounts Presented in the Balance Sheet | 2,270 | 1,765 | |
Securities sold under repurchase agreements, Gross Amounts Not Offset in the Balance sheet, Financial Instruments | [2] | 2,256 | 1,762 |
Securities sold under repurchase agreements, Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Received / Pledged | 0 | 0 | |
Securities sold under repurchase agreements, Net amount | [3] | $ 14 | $ 3 |
[1] | Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles. | ||
[2] | Represents securities received or pledged to cover financing transaction exposures. | ||
[3] | Represents the amount of our exposure that is not collateralized / covered by pledged collateral. |
Guarantee Arrangements, Pledg_9
Guarantee Arrangements, Pledged Assets and Repurchase Agreements, Collateral Pledged and Remaining Contractual Maturity of Repurchase Agreements Accounted for as Secured Borrowings (Details) - U.S. Treasury, U.S. Government agencies and sponsored entities [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | $ 4,510 | $ 7,401 |
Maturity Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | 102 | 4,091 |
Maturity up to 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | 2,552 | 2,810 |
Maturity 31 to 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | 1,856 | 500 |
Maturity 91 Days to One Year [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | 0 | 0 |
Maturity Greater than One Year [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral pledged and remaining contractual maturity of repurchase agreements accounted for as secured borrowings | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Netting, Assets | [1],[2] | $ (13,172) | $ (25,537) | ||
Netting Liabilities | [1],[2] | (13,172) | (25,537) | ||
Trading assets | 21,985 | 27,284 | |||
Trading liabilities | 2,670 | 5,397 | |||
Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trading assets | 768 | 7,971 | |||
Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trading assets | 13,287 | 6,043 | |||
Precious metals trading [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trading assets | 3,316 | 4,989 | |||
Trading liabilities | 90 | 2,312 | |||
Derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trading liabilities | 1,633 | 2,358 | |||
Derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trading assets | 1,971 | 2,801 | |||
Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 75,665 | 97,982 | |||
Netting, Assets | [3] | (16,749) | (29,616) | ||
Net Balance, Assets | 58,916 | 68,366 | |||
Gross Balance, Liabilities | 30,182 | 49,380 | |||
Netting Liabilities | [3] | (14,690) | (28,914) | ||
Net Balance, Liabilities | 15,492 | 20,466 | |||
Fair Value, Recurring [Member] | Domestic Deposits [Member] | Domestic Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 2,970 | 4,155 | ||
Net Balance, Liabilities | [4] | 2,970 | 4,155 | ||
Fair Value, Recurring [Member] | Trading liabilities, excluding derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | 1,037 | 3,039 | |||
Net Balance, Liabilities | 1,037 | 3,039 | |||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 16,440 | 31,461 | ||
Netting Liabilities | [3],[5] | (14,690) | (28,914) | ||
Net Balance, Liabilities | [5] | 1,750 | 2,547 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 2,997 | 6,625 | ||
Netting Liabilities | [3],[5] | 0 | 0 | ||
Net Balance, Liabilities | [5] | 2,997 | 6,625 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 11,545 | 18,603 | ||
Netting Liabilities | [3],[5] | 0 | 0 | ||
Net Balance, Liabilities | [5] | 11,545 | 18,603 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 824 | 4,291 | ||
Netting Liabilities | [3],[5] | 0 | 0 | ||
Net Balance, Liabilities | [5] | 824 | 4,291 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 952 | 1,578 | ||
Netting Liabilities | [3],[5] | 0 | 0 | ||
Net Balance, Liabilities | [5] | 952 | 1,578 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 78 | 297 | ||
Netting Liabilities | [3],[5] | 0 | 0 | ||
Net Balance, Liabilities | [5] | 78 | 297 | ||
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 44 | [4] | 67 | [6] |
Netting Liabilities | [3],[5] | 0 | 0 | [6] | |
Net Balance, Liabilities | [5] | 44 | [4] | 67 | [6] |
Fair Value, Recurring [Member] | Derivative financial liabilities [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Netting Liabilities | [3],[5] | (14,690) | (28,914) | ||
Net Balance, Liabilities | [5] | (14,690) | (28,914) | ||
Fair Value, Recurring [Member] | Long-term Debt [Member] | Long-term debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 9,735 | 10,725 | ||
Net Balance, Liabilities | [4] | 9,735 | 10,725 | ||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 2,643 | 5,337 | |||
Net Balance, Assets | 2,643 | 5,337 | |||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Collateralized debt obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 63 | ||||
Net Balance, Assets | 63 | ||||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Residential mortgage asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 15 | ||||
Net Balance, Assets | 15 | ||||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Student loan asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 65 | ||||
Net Balance, Assets | 65 | ||||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 768 | 7,971 | |||
Net Balance, Assets | 768 | 7,971 | |||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 13,287 | 6,043 | |||
Net Balance, Assets | 13,287 | 6,043 | |||
Fair Value, Recurring [Member] | Trading assets, excluding derivatives [Member] | Precious metals trading [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 3,316 | 4,989 | |||
Net Balance, Assets | 3,316 | 4,989 | |||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 18,751 | 32,468 | ||
Netting, Assets | [3],[5] | (16,749) | (29,616) | ||
Net Balance, Assets | [5] | 2,002 | 2,852 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 3,143 | 6,687 | ||
Netting, Assets | [3],[5] | 0 | 0 | ||
Net Balance, Assets | [5] | 3,143 | 6,687 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 11,804 | 18,467 | ||
Netting, Assets | [3],[5] | 0 | 0 | ||
Net Balance, Assets | [5] | 11,804 | 18,467 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 2,355 | 5,616 | ||
Netting, Assets | [3],[5] | 0 | 0 | ||
Net Balance, Assets | [5] | 2,355 | 5,616 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 1,408 | 1,323 | ||
Netting, Assets | [3],[5] | 0 | 0 | ||
Net Balance, Assets | [5] | 1,408 | 1,323 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 36 | 367 | ||
Netting, Assets | [3],[5] | 0 | 0 | ||
Net Balance, Assets | [5] | 36 | 367 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5],[6] | 5 | 8 | ||
Netting, Assets | [3],[5],[6] | 0 | 0 | ||
Net Balance, Assets | [5],[6] | 5 | 8 | ||
Fair Value, Recurring [Member] | Derivative financial assets [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Netting, Assets | [3],[5] | (16,749) | (29,616) | ||
Net Balance, Assets | [5] | (16,749) | (29,616) | ||
Fair Value, Recurring [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 34,126 | 35,408 | ||
Net Balance, Assets | [7] | 34,126 | 35,408 | ||
Fair Value, Recurring [Member] | Securities available-for-sale [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 2,260 | 5,133 | ||
Net Balance, Assets | [7] | 2,260 | 5,133 | ||
Fair Value, Recurring [Member] | Securities available-for-sale [Member] | Home equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 20 | 27 | ||
Net Balance, Assets | [7] | 20 | 27 | ||
Fair Value, Recurring [Member] | Securities available-for-sale [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 101 | 104 | ||
Net Balance, Assets | [7] | 101 | 104 | ||
Fair Value, Recurring [Member] | Loans [Member] | Student Loans [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [4] | 27 | 32 | ||
Net Balance, Assets | [4] | 27 | 32 | ||
Fair Value, Recurring [Member] | Loans [Member] | Loans Held For Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 63 | [4] | 36 | ||
Net Balance, Assets | 63 | [4] | 36 | ||
Fair Value, Recurring [Member] | Other assets [Member] | Mortgage Servicing Rights [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 14 | 7 | |||
Net Balance, Assets | 14 | 7 | |||
Fair Value, Recurring [Member] | Other assets [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 145 | 149 | |||
Net Balance, Assets | 145 | 149 | |||
Fair Value, Recurring [Member] | Other assets [Member] | Equity Securities Measured at Net Asset Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [8] | 144 | 135 | ||
Net Balance, Assets | [8] | 144 | 135 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 32,059 | 43,978 | |||
Gross Balance, Liabilities | 956 | 764 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Domestic Deposits [Member] | Domestic Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading liabilities, excluding derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | 947 | 727 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 9 | 37 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 2 | 9 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 2 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 4 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 1 | 28 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | [4] | 0 | [6] |
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial liabilities [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Long-term Debt [Member] | Long-term debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 2,352 | 5,145 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Collateralized debt obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Residential mortgage asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Student loan asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 606 | 7,953 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 13,287 | 6,043 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Trading assets, excluding derivatives [Member] | Precious metals trading [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 7 | 15 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 2 | 15 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 1 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 4 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5],[6] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Derivative financial assets [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 13,734 | 22,880 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Securities available-for-sale [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 2,073 | 1,942 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Securities available-for-sale [Member] | Home equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Securities available-for-sale [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Loans [Member] | Student Loans [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [4] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Loans [Member] | Loans Held For Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | [4] | 0 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | Other assets [Member] | Mortgage Servicing Rights [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Other assets [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | Other assets [Member] | Equity Securities Measured at Net Asset Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [8] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 43,008 | 53,024 | |||
Gross Balance, Liabilities | 26,980 | 46,996 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Domestic Deposits [Member] | Domestic Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 2,454 | 3,509 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading liabilities, excluding derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | 90 | 2,312 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 16,184 | 30,898 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 2,994 | 6,615 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 11,527 | 18,597 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 636 | 3,845 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 951 | 1,550 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 76 | 291 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | [4] | 0 | [6] |
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial liabilities [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Long-term Debt [Member] | Long-term debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 8,252 | 10,277 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 291 | 192 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Collateralized debt obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 63 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Residential mortgage asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Student loan asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 65 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 162 | 18 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Trading assets, excluding derivatives [Member] | Precious metals trading [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 3,316 | 4,989 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 18,425 | 31,761 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 3,140 | 6,637 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 11,789 | 18,452 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 2,056 | 5,051 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 1,404 | 1,323 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 36 | 298 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5],[6] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Derivative financial assets [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 20,392 | 12,528 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Securities available-for-sale [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 187 | 3,191 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Securities available-for-sale [Member] | Home equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Securities available-for-sale [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Loans [Member] | Student Loans [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [4] | 27 | 32 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Loans [Member] | Loans Held For Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 63 | [4] | 36 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | Other assets [Member] | Mortgage Servicing Rights [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Other assets [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 145 | 149 | |||
Fair Value, Recurring [Member] | Level 2 [Member] | Other assets [Member] | Equity Securities Measured at Net Asset Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [8] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 454 | 845 | |||
Gross Balance, Liabilities | 2,246 | 1,620 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Domestic Deposits [Member] | Domestic Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 516 | 646 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading liabilities, excluding derivatives [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 247 | 526 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 1 | 1 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 16 | 6 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 184 | 446 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 2 | 6 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 44 | [4] | 67 | [6] |
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial liabilities [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Long-term Debt [Member] | Long-term debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Liabilities | [4] | 1,483 | 448 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Collateralized debt obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Residential mortgage asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 15 | ||||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Student loan asset-backed securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | ||||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | Precious metals trading [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 319 | 692 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 1 | 35 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 15 | 15 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Equity contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 298 | 565 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Credit contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 69 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Other Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5],[6] | 5 | 8 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Derivative financial assets [Member] | Derivatives netting [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [5] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Securities available-for-sale [Member] | Foreign debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Securities available-for-sale [Member] | Home equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 20 | 27 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Securities available-for-sale [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [7] | 101 | 104 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Loans [Member] | Student Loans [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [4] | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Loans [Member] | Loans Held For Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | [4] | 0 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Other assets [Member] | Mortgage Servicing Rights [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 14 | 7 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Other assets [Member] | Equity securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | 0 | 0 | |||
Fair Value, Recurring [Member] | Level 3 [Member] | Other assets [Member] | Equity Securities Measured at Net Asset Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gross Balance, Assets | [8] | $ 0 | $ 0 | ||
[1] | Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above. | ||||
[2] | Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements. | ||||
[3] | Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met. | ||||
[4] | See Note 11, "Fair Value Option," for additional information. Excluding the fair value movement on fair value option liabilities attributable to our own credit spread, which is recorded in other comprehensive income (loss), fair value option assets and liabilities are recorded at fair value through net income (loss). | ||||
[5] | Includes trading derivative assets of $1,971 million and $2,801 million and trading derivative liabilities of $1,633 million and $2,358 million at September 30, 2021 and December 31, 2020, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives. See Note 10, "Derivative Financial Instruments," for additional information. Excluding changes in fair value of a derivative instrument associated with a qualifying cash flow hedge, which are recognized initially in other comprehensive income (loss), derivative assets and liabilities are recorded at fair value through net income (loss). | ||||
[6] | Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. | ||||
[7] | Securities available-for-sale are recorded at fair value through other comprehensive income (loss). Changes in the allowance for credit losses on securities available-for-sale are recorded through net income (loss). | ||||
[8] | Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Level 3 Assets and Liabilities (Detail) - Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total assets, beginning balance | $ 130 | $ 758 | $ 319 | $ 707 | ||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Earnings | (144) | 29 | (330) | 75 | ||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | (2) | (8) | (3) | (10) | ||||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||||
Assets, Issuances | 1 | 2 | 7 | 4 | ||||||
Assets, Settlements | 260 | (548) | 296 | (553) | ||||||
Assets, Transfers Into Level 3 | (38) | 20 | (30) | 28 | ||||||
Assets, Transfers Out of Level 3 | 0 | (1) | (52) | 1 | ||||||
Total assets, ending balance | 207 | $ 130 | 252 | 207 | 252 | |||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | (1) | 29 | 4 | 90 | ||||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | (2) | (8) | (3) | (10) | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total liabilities, beginning balance | (1,512) | (1,019) | (1,094) | (1,128) | ||||||
Total Realized/Unrealized Gains (Losses) Included in Earnings | 42 | (31) | 11 | 20 | ||||||
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 1 | (3) | 1 | 1 | ||||||
Purchases | 0 | 0 | 0 | 0 | ||||||
Issuances | (660) | (24) | (1,201) | (205) | ||||||
Settlements | 112 | 45 | 323 | 216 | ||||||
Transfers Into Level 3 | (9) | (1) | (154) | (1) | ||||||
Transfers Out of Level 3 | 27 | 11 | 115 | 75 | ||||||
Total liabilities, ending balance | (1,999) | (1,512) | (1,022) | (1,999) | (1,022) | |||||
Current Period Unrealized Gains (Losses) Still Held Included in Earnings | 40 | (25) | 17 | 4 | ||||||
Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | 1 | (3) | 1 | 1 | ||||||
Interest rate contracts [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Derivatives, net, Beginning Balance | [1] | 8 | 33 | 34 | 10 | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Earnings | [1] | (8) | 1 | (34) | 24 | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Purchases | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Issuances | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Settlements | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Ending Balance | [1] | 0 | 8 | 34 | 0 | 34 | ||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [1] | 0 | 1 | (5) | 24 | |||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Foreign exchange contracts [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Derivatives, net, Beginning Balance | [1] | (1) | (2) | 9 | [2] | (1) | ||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Earnings | [1] | 0 | 0 | (10) | (1) | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Purchases | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Issuances | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Settlements | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Ending Balance | [1] | (1) | [2] | (1) | (2) | (1) | [2] | (2) | ||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [1] | 0 | 0 | (11) | (1) | |||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Equity contracts [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Derivatives, net, Beginning Balance | [1] | (13) | 92 | 119 | [2] | 72 | ||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Earnings | [1] | (91) | 50 | (230) | 62 | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Purchases | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Issuances | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Settlements | [1] | 256 | (75) | 283 | (69) | |||||
Derivatives, net, Transfers into Level 3 | [1] | (38) | 0 | (30) | 0 | |||||
Derivatives, net, Transfers out of Level 3 | 0 | [1] | (27) | (1) | [1] | (28) | [1] | 1 | [1] | |
Derivatives, net, Ending Balance | [1] | 114 | [2] | (13) | 66 | 114 | [2] | 66 | ||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [1] | (2) | 44 | 22 | 76 | |||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Credit contracts [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Derivatives, net, Beginning Balance | [1] | 46 | 62 | 63 | 59 | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Earnings | [1] | (49) | (16) | (65) | 10 | |||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Purchases | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Issuances | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Settlements | [1] | 1 | 19 | 0 | (4) | |||||
Derivatives, net, Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 | |||||
Derivatives, net, Ending Balance | [1] | (2) | 46 | 65 | (2) | 65 | ||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [1] | 0 | (16) | (2) | (5) | |||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | |||||
Other Contracts [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Derivatives, net, Beginning Balance | [1] | (48) | (64) | (59) | (75) | [3] | ||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Earnings | [1] | 3 | (2) | 0 | (3) | [3] | ||||
Derivatives, net, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Purchases | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Issuances | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Settlements | [1] | 6 | 7 | 20 | 19 | [3] | ||||
Derivatives, net, Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Ending Balance | [1] | (39) | (48) | (59) | [3] | (39) | (59) | [3] | ||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Derivatives, net, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | [3] | ||||
Mortgage Servicing Rights [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total assets, beginning balance | 12 | 4 | 7 | [4] | 4 | [4] | ||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Earnings | 1 | 0 | 0 | [4] | (2) | [4] | ||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Assets, Purchases | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Assets, Issuances | 1 | 2 | 7 | [4] | 4 | [4] | ||||
Assets, Settlements | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Assets, Transfers Into Level 3 | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Assets, Transfers Out of Level 3 | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Total assets, ending balance | 14 | [4] | 12 | 6 | [4] | 14 | [4] | 6 | [4] | |
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | 1 | 0 | 0 | [4] | (2) | [4] | ||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | 0 | 0 | 0 | [4] | 0 | [4] | ||||
Residential mortgage asset-backed securities [Member] | Trading assets, excluding derivatives [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total assets, beginning balance | [5] | 15 | 15 | 17 | ||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Earnings | [5] | 0 | 9 | (2) | ||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [5] | 0 | 0 | 0 | ||||||
Assets, Purchases | [5] | 0 | 0 | 0 | ||||||
Assets, Issuances | [5] | 0 | 0 | 0 | ||||||
Assets, Settlements | [5] | 0 | 0 | 0 | ||||||
Assets, Transfers Into Level 3 | [5] | 0 | 0 | 0 | ||||||
Assets, Transfers Out of Level 3 | (24) | 0 | [5] | (24) | [5] | 0 | [5] | |||
Total assets, ending balance | [5] | 0 | 15 | 0 | 15 | |||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [5] | 0 | 0 | (2) | ||||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [5] | 0 | 0 | 0 | ||||||
Corporate and other domestic debt securities [Member] | Trading assets, excluding derivatives [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total assets, beginning balance | [5] | 501 | 510 | |||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Earnings | [5] | (4) | (13) | |||||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | [5] | 0 | 0 | |||||||
Assets, Purchases | [5] | 0 | 0 | |||||||
Assets, Issuances | [5] | 0 | 0 | |||||||
Assets, Settlements | [5] | (497) | (497) | |||||||
Assets, Transfers Into Level 3 | [5] | 0 | 0 | |||||||
Assets, Transfers Out of Level 3 | [5] | 0 | 0 | |||||||
Total assets, ending balance | [5] | 0 | 0 | |||||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | [5] | 0 | 0 | |||||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | [5] | 0 | 0 | |||||||
Other [Member] | Available-for-sale securities [Member] | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total assets, beginning balance | 126 | 117 | 131 | [6] | 111 | [6] | ||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | [6] | 0 | [6] | ||||
Assets, Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | (2) | (8) | [1] | (3) | [6] | (10) | [6] | |||
Assets, Purchases | 0 | 0 | 0 | [6] | 0 | [6] | ||||
Assets, Issuances | 0 | 0 | 0 | [6] | 0 | [6] | ||||
Assets, Settlements | (3) | (2) | (7) | [6] | (2) | [6] | ||||
Assets, Transfers Into Level 3 | 0 | 20 | 0 | [6] | 28 | [6] | ||||
Assets, Transfers Out of Level 3 | 0 | 0 | 0 | [6] | 0 | [6] | ||||
Total assets, ending balance | 121 | [6] | 126 | 127 | [6] | 121 | [6] | 127 | [6] | |
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Earnings | 0 | 0 | 0 | [6] | 0 | [6] | ||||
Assets, Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | (2) | (8) | (3) | [6] | (10) | [6] | ||||
Domestic Deposits [Member] | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total liabilities, beginning balance | (593) | (672) | (646) | [2],[7],[8] | (774) | [7] | ||||
Total Realized/Unrealized Gains (Losses) Included in Earnings | 9 | (10) | 1 | [7] | 3 | [7] | ||||
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 1 | (3) | 2 | [7] | (1) | [7] | ||||
Purchases | 0 | 0 | 0 | [7] | 0 | [7] | ||||
Issuances | 0 | 0 | 0 | [7] | (43) | [7] | ||||
Settlements | 58 | 27 | 146 | [7] | 109 | [7] | ||||
Transfers Into Level 3 | 0 | 0 | (109) | [7] | 0 | [7] | ||||
Transfers Out of Level 3 | 9 | 8 | 90 | [7] | 56 | [7] | ||||
Total liabilities, ending balance | (516) | [2],[7],[8] | (593) | (650) | [7] | (516) | [2],[7],[8] | (650) | [7] | |
Current Period Unrealized Gains (Losses) Still Held Included in Earnings | 6 | (8) | 3 | [7] | (1) | [7] | ||||
Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | 1 | (3) | 2 | [7] | (1) | [7] | ||||
Long-term debt [Member] | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Total liabilities, beginning balance | (919) | (347) | (448) | [2],[7],[8] | (354) | [7] | ||||
Total Realized/Unrealized Gains (Losses) Included in Earnings | 33 | (21) | 10 | [7] | 17 | [7] | ||||
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | (1) | [7] | 2 | [7] | ||||
Purchases | 0 | 0 | 0 | [7] | 0 | [7] | ||||
Issuances | (660) | (24) | (1,201) | [7] | (162) | [7] | ||||
Settlements | 54 | 18 | 177 | [7] | 107 | [7] | ||||
Transfers Into Level 3 | (9) | (1) | (45) | [7] | (1) | [7] | ||||
Transfers Out of Level 3 | 18 | 3 | 25 | [7] | 19 | [7] | ||||
Total liabilities, ending balance | (1,483) | [2],[7],[8] | $ (919) | (372) | [7] | (1,483) | [2],[7],[8] | (372) | [7] | |
Current Period Unrealized Gains (Losses) Still Held Included in Earnings | 34 | (17) | 14 | [7] | 5 | [7] | ||||
Current Period Unrealized Gains (Losses) Still Held Included in Other Comprehensive Income | $ 0 | $ 0 | $ (1) | [7] | $ 2 | [7] | ||||
[1] | Level 3 net derivatives included derivative assets of $319 million and derivative liabilities of $247 million at September 30, 2021 and derivative assets of $343 million and derivative liabilities of $239 million at September 30, 2020. Gains (losses) on derivatives, net are predominantly included in trading revenue (expense) and gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | |||||||||
[2] | We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table. | |||||||||
[3] | Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Gains (losses) on these swap agreements are included in other income (loss) in the consolidated statement of income (loss). | |||||||||
[4] | Gain (losses) on mortgage servicing rights are included in other income (loss) in the consolidated statement of income (loss). | |||||||||
[5] | Gains (losses) on trading assets, excluding derivatives are included in trading revenue (expense) in the consolidated statement of income (loss). | |||||||||
[6] | Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income (loss). Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income (loss). Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss). | |||||||||
[7] | Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option liabilities are included in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | |||||||||
[8] | Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity and foreign exchange derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes. |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Recurring Fair Value Measurement of Assets and Liabilities Classified as Level 3 (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | ||||||
Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 207 | $ 319 | $ 130 | $ 252 | $ 758 | $ 707 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | (1,999) | (1,094) | (1,512) | (1,022) | (1,019) | (1,128) | |||||
Deposits [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | (516) | [1],[2],[3] | (646) | [1],[2],[3] | (593) | (650) | [1] | (672) | (774) | [1] | |
Long-term debt [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | (1,483) | [1],[2],[3] | (448) | [1],[2],[3] | (919) | (372) | [1] | (347) | (354) | [1] | |
Interest rate contracts [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | 0 | 34 | 8 | 34 | 33 | 10 | ||||
Foreign exchange contracts [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | (1) | [3] | 9 | [3] | (1) | (2) | (2) | (1) | ||
Equity contracts [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | 114 | [3] | 119 | [3] | (13) | 66 | 92 | 72 | ||
Credit contracts [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | (2) | 63 | 46 | 65 | 62 | 59 | ||||
Other Contracts [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | (39) | (59) | (48) | (59) | [5] | (64) | (75) | [5] | ||
Trading assets, excluding derivatives [Member] | Residential mortgage asset-backed securities [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | [6] | 0 | 15 | 15 | 15 | 17 | |||||
Available-for-sale securities [Member] | Other [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 121 | [7] | 131 | [7] | 126 | 127 | [7] | 117 | 111 | [7] | |
Mortgage Servicing Rights [Member] | Level 3 [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 14 | [8] | $ 7 | [8] | $ 12 | $ 6 | [8] | $ 4 | $ 4 | [8] | |
Measurement Input, Prepayment Rates [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.10 | 0.17 | |||||||||
Measurement Input, Prepayment Rates [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.18 | 0.26 | |||||||||
Measurement Input, Prepayment Rates [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.12 | 0.19 | |||||||||
Measurement Input, Prepayment Rates [Member] | Residential mortgage asset-backed securities [Member] | Recurring [Member] | Valuation Technique, Broker Quotes or Consensus Pricing [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Trading, Measurement Input | 0.10 | ||||||||||
Measurement Input, Default Rates [Member] | Residential mortgage asset-backed securities [Member] | Recurring [Member] | Valuation Technique, Broker Quotes or Consensus Pricing [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Trading, Measurement Input | 0.05 | ||||||||||
Measurement Input, Loss Severity Rates [Member] | Residential mortgage asset-backed securities [Member] | Recurring [Member] | Valuation Technique, Broker Quotes or Consensus Pricing [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Trading, Measurement Input | 0.65 | ||||||||||
Measurement Input, Discount Margin [Member] | Residential mortgage asset-backed securities [Member] | Recurring [Member] | Valuation Technique, Broker Quotes or Consensus Pricing [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Trading, Measurement Input | 0.0500 | ||||||||||
Measurement Input, Probability to Fund for Rate Lock Commitments [Member] | Interest rate contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.25 | 0.41 | |||||||||
Measurement Input, Probability to Fund for Rate Lock Commitments [Member] | Interest rate contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 1 | 1 | |||||||||
Measurement Input, Probability to Fund for Rate Lock Commitments [Member] | Interest rate contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [9] | 0.81 | 0.78 | ||||||||
Measurement Input, Interest Rate Yield Curve [Member] | Interest rate contracts [Member] | Recurring [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.08 | ||||||||||
Measurement Input, Interest Rate Yield Curve [Member] | Interest rate contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.04 | ||||||||||
Measurement Input, Interest Rate Yield Curve [Member] | Interest rate contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.07 | ||||||||||
Measurement Input, Interest Rate Yield Curve [Member] | Interest rate contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.06 | ||||||||||
Measurement Input, Interest Rate Transaction Execution [Member] | Interest rate contracts [Member] | Recurring [Member] | Valuation Technique, Market Comparable Adjusted for Probability to Fund [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.90 | ||||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Deposits [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3] | 0.09 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Deposits [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3] | 0.11 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Deposits [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3],[9] | 0.10 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Long-term debt [Member] | Recurring [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.16 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Long-term debt [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.09 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Long-term debt [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.11 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Long-term debt [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3],[9] | 0.10 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.16 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.09 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.11 | |||||||||
Measurement Input, Implied Volatility of Currency Pairs [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3],[9] | 0.10 | |||||||||
Measurement Input, Cross-currency Basis [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | (0.0040) | ||||||||||
Measurement Input, Cross-currency Basis [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | (0.0009) | ||||||||||
Measurement Input, Cross-currency Basis [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0040 | ||||||||||
Measurement Input, Cross-currency Basis [Member] | Foreign exchange contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0024 | ||||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Deposits [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3] | 0.08 | 0 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Deposits [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3] | 0.22 | 0.42 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Deposits [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [2],[3],[9] | 0.16 | 0.15 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Long-term debt [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.08 | 0 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Long-term debt [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.61 | 0.67 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Long-term debt [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3],[9] | 0.25 | 0.23 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Equity contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.08 | 0 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Equity contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.69 | 0.67 | ||||||||
Measurement Input, Equity / Equity Index Volatility [Member] | Equity contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3],[9] | 0.41 | 0.27 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Deposits [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | 0.56 | 0.43 | |||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Deposits [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | 0.85 | 0.47 | |||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Deposits [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Domestic Deposits, Measurement Input | [9] | 0.57 | 0.45 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Long-term debt [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.41 | 0.32 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Long-term debt [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3] | 0.98 | 0.62 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Long-term debt [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Adjusted Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Long-term Debt, Measurement Input | [2],[3],[9] | 0.73 | 0.52 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Equity contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.41 | 0.17 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Equity contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.98 | 0.62 | ||||||||
Measurement Input, Equity/Equity and Equity/Index Correlation [Member] | Equity contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3],[9] | 0.72 | 0.30 | ||||||||
Measurement Input, Equity Dividend Yields and Forward Price [Member] | Equity contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | (0.04) | (0.01) | ||||||||
Measurement Input, Equity Dividend Yields and Forward Price [Member] | Equity contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.01 | 0 | ||||||||
Measurement Input, Equity Dividend Yields and Forward Price [Member] | Equity contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | [3],[9] | 0 | 0 | ||||||||
Measurement Input, Credit Default Swap Spreads [Member] | Credit contracts [Member] | Recurring [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0150 | ||||||||||
Measurement Input, Credit Default Swap Spreads [Member] | Credit contracts [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0077 | ||||||||||
Measurement Input, Credit Default Swap Spreads [Member] | Credit contracts [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0294 | ||||||||||
Measurement Input, Credit Default Swap Spreads [Member] | Credit contracts [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 0.0196 | ||||||||||
Measurement Input, Conversion Rate [Member] | Other Contracts [Member] | Recurring [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Asset (Liability) Net, Measurement Input | 1.6 | 1.6 | |||||||||
Measurement Input, Expected Duration [Member] | Other Contracts [Member] | Recurring [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Derivative Contract, Duration, Measurement Input | 1 year 2 months 12 days | 2 years | |||||||||
Measurement Input, Comparability Adjustment [Member] | Other [Member] | Recurring [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Available-for-sale, Measurement Input | 0.04 | ||||||||||
Measurement Input, Comparability Adjustment [Member] | Other [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Available-for-sale, Measurement Input | 0.03 | ||||||||||
Measurement Input, Comparability Adjustment [Member] | Other [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Available-for-sale, Measurement Input | 0.04 | ||||||||||
Measurement Input, Comparability Adjustment [Member] | Other [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Debt Securities, Available-for-sale, Measurement Input | 0.03 | ||||||||||
Measurement Input, Estimated Annualized Costs to Service [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 72 | 73 | |||||||||
Measurement Input, Estimated Annualized Costs to Service [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 93 | 157 | |||||||||
Measurement Input, Estimated Annualized Costs to Service [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 75 | 76 | |||||||||
Measurement Input, Discount Rate [Member] | Recurring [Member] | Minimum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.08 | 0.09 | |||||||||
Measurement Input, Discount Rate [Member] | Recurring [Member] | Maximum [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.13 | 0.10 | |||||||||
Measurement Input, Discount Rate [Member] | Recurring [Member] | Weighted Average [Member] | Valuation Technique, Discounted Cash Flows [Member] | |||||||||||
Fair Value Measurements, Recurring, Valuation Techniques [Line Items] | |||||||||||
Servicing Asset, Measurement Input | 0.08 | 0.09 | |||||||||
[1] | Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option liabilities are included in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | ||||||||||
[2] | Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity and foreign exchange derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes. | ||||||||||
[3] | We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table. | ||||||||||
[4] | Level 3 net derivatives included derivative assets of $319 million and derivative liabilities of $247 million at September 30, 2021 and derivative assets of $343 million and derivative liabilities of $239 million at September 30, 2020. Gains (losses) on derivatives, net are predominantly included in trading revenue (expense) and gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | ||||||||||
[5] | Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Gains (losses) on these swap agreements are included in other income (loss) in the consolidated statement of income (loss). | ||||||||||
[6] | Gains (losses) on trading assets, excluding derivatives are included in trading revenue (expense) in the consolidated statement of income (loss). | ||||||||||
[7] | Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income (loss). Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income (loss). Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss). | ||||||||||
[8] | Gain (losses) on mortgage servicing rights are included in other income (loss) in the consolidated statement of income (loss). | ||||||||||
[9] | For foreign exchange derivatives, equity derivatives, credit derivatives, structured deposits and structured notes, weighted averages are calculated based on the fair value of the instruments. For all remaining instrument types, weighted averages are calculated based on the notional value of the instruments. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Unfunded commitments, equity securities measured at net asset value | $ 29 | $ 29 | $ 33 | ||||||||||||
Revaluation period | 90 days | ||||||||||||||
Deferred fees | 5 | $ 5 | 3 | ||||||||||||
Derivative financial assets [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 assets | 319 | $ 343 | 319 | $ 343 | |||||||||||
Derivative financial liabilities [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 liabilities | 247 | 239 | 247 | 239 | |||||||||||
Level 3 [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 assets | 207 | $ 130 | 252 | 207 | 252 | 319 | $ 758 | $ 707 | |||||||
Fair value of level 3 liabilities | 1,999 | 1,512 | 1,022 | 1,999 | 1,022 | 1,094 | 1,019 | 1,128 | |||||||
Assets, Transfers Into Level 3 | (38) | 20 | (30) | 28 | |||||||||||
Assets, Transfers Out of Level 3 | 0 | (1) | (52) | 1 | |||||||||||
Fair Value Liability, Transfers Into Level 3 | 9 | 1 | 154 | 1 | |||||||||||
Transfers Out of Level 3 | 27 | 11 | 115 | 75 | |||||||||||
Level 3 [Member] | Equity contracts [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Derivatives, net, Transfers out of Level 3 | 0 | [1] | (27) | (1) | [1] | (28) | [1] | 1 | [1] | ||||||
Derivatives, net, Transfers into Level 3 | [1] | 38 | 0 | 30 | 0 | ||||||||||
Unfunded Loan Commitment [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Deferred fees | 140 | 140 | 137 | ||||||||||||
Deposits [Member] | Level 3 [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 liabilities | 516 | [2],[3],[4] | 593 | 650 | [2] | 516 | [2],[3],[4] | 650 | [2] | 646 | [2],[3],[4] | 672 | 774 | [2] | |
Fair Value Liability, Transfers Into Level 3 | 0 | 0 | 109 | [2] | 0 | [2] | |||||||||
Transfers Out of Level 3 | 9 | 8 | 90 | [2] | 56 | [2] | |||||||||
Long-term debt [Member] | Level 3 [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 liabilities | 1,483 | [2],[3],[4] | 919 | 372 | [2] | 1,483 | [2],[3],[4] | 372 | [2] | 448 | [2],[3],[4] | 347 | 354 | [2] | |
Fair Value Liability, Transfers Into Level 3 | 9 | 1 | 45 | [2] | 1 | [2] | |||||||||
Transfers Out of Level 3 | 18 | 3 | 25 | [2] | 19 | [2] | |||||||||
Asset-backed Securities Available-for-sale [Member] | Level 3 [Member] | Available-for-sale securities [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 assets | 121 | [5] | 126 | 127 | [5] | 121 | [5] | 127 | [5] | 131 | [5] | 117 | 111 | [5] | |
Assets, Transfers Into Level 3 | 0 | 20 | 0 | [5] | 28 | [5] | |||||||||
Assets, Transfers Out of Level 3 | 0 | 0 | 0 | [5] | 0 | [5] | |||||||||
Asset-backed securities collateralized by residential mortgages [Member] | Level 3 [Member] | Trading assets, excluding derivatives [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||
Fair value of level 3 assets | [6] | $ 0 | 15 | 0 | 15 | $ 15 | $ 15 | $ 17 | |||||||
Assets, Transfers Into Level 3 | [6] | 0 | 0 | 0 | |||||||||||
Assets, Transfers Out of Level 3 | $ (24) | $ 0 | [6] | $ (24) | [6] | $ 0 | [6] | ||||||||
[1] | Level 3 net derivatives included derivative assets of $319 million and derivative liabilities of $247 million at September 30, 2021 and derivative assets of $343 million and derivative liabilities of $239 million at September 30, 2020. Gains (losses) on derivatives, net are predominantly included in trading revenue (expense) and gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | ||||||||||||||
[2] | Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option liabilities are included in gain on instruments designated at fair value and related derivatives in the consolidated statement of income (loss). | ||||||||||||||
[3] | Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity and foreign exchange derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes. | ||||||||||||||
[4] | We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table. | ||||||||||||||
[5] | Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income (loss). Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income (loss). Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss). | ||||||||||||||
[6] | Gains (losses) on trading assets, excluding derivatives are included in trading revenue (expense) in the consolidated statement of income (loss). |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Recorded as Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | ||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | $ (15) | $ (13) | $ (7) | $ (1,030) | |||||
Consumer loans held for sale [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [1] | (1) | 0 | (1) | 0 | ||||
Consumer loans [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [2] | 2 | 4 | 8 | 11 | ||||
Commercial loans held for sale [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [3] | 0 | (16) | (12) | (25) | ||||
Commercial Loans [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | (12) | 6 | 57 | [4] | (164) | [4] | |||
Real Estate Owned [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [5] | 0 | 1 | ||||||
Goodwill [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [6] | 0 | (784) | ||||||
Leases [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Total Gains (Losses) | [7] | (4) | $ (7) | (59) | $ (69) | ||||
Fair Value, Nonrecurring [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | 1,236 | 1,236 | $ 658 | ||||||
Fair Value, Nonrecurring [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||||
Fair Value, Nonrecurring [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | 207 | 207 | 385 | ||||||
Fair Value, Nonrecurring [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | 1,029 | 1,029 | 273 | ||||||
Fair Value, Nonrecurring [Member] | Consumer loans held for sale [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [1] | 804 | 804 | 4 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans held for sale [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [1] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans held for sale [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [1] | 9 | 9 | 4 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans held for sale [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [1] | 795 | 795 | 0 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [2] | 198 | 198 | 312 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [2] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [2] | 198 | 198 | 312 | |||||
Fair Value, Nonrecurring [Member] | Consumer loans [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [2] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Commercial loans held for sale [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [3] | 92 | 92 | 68 | |||||
Fair Value, Nonrecurring [Member] | Commercial loans held for sale [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [3] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Commercial loans held for sale [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [3] | 0 | 0 | 68 | |||||
Fair Value, Nonrecurring [Member] | Commercial loans held for sale [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [3] | 92 | 92 | 0 | |||||
Fair Value, Nonrecurring [Member] | Commercial Loans [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [4] | 142 | 142 | 270 | |||||
Fair Value, Nonrecurring [Member] | Commercial Loans [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [4] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Commercial Loans [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [4] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Commercial Loans [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [4] | 142 | 142 | 270 | |||||
Fair Value, Nonrecurring [Member] | Real Estate Owned [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [5] | 1 | |||||||
Fair Value, Nonrecurring [Member] | Real Estate Owned [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [5] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Real Estate Owned [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [5] | 1 | |||||||
Fair Value, Nonrecurring [Member] | Real Estate Owned [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [5] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Goodwill [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [6] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Goodwill [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [6] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Goodwill [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [6] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Goodwill [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [6] | 0 | |||||||
Fair Value, Nonrecurring [Member] | Leases [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [7] | 0 | 0 | 3 | |||||
Fair Value, Nonrecurring [Member] | Leases [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [7] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Leases [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [7] | 0 | 0 | 0 | |||||
Fair Value, Nonrecurring [Member] | Leases [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [7] | $ 0 | $ 0 | $ 3 | |||||
Wealth and Personal Banking [Member] | Fair Value, Nonrecurring [Member] | Goodwill [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||||||||
Assets, Fair Value Disclosure | [6] | $ 0 | |||||||
[1] | At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain consumer loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. | ||||||||
[2] | Represents residential mortgage loans held for investment whose carrying amount was adjusted during the period based on the fair value of the underlying collateral. | ||||||||
[3] | At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain commercial loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. | ||||||||
[4] | Certain commercial loans are individually assessed for impairment. We measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy. | ||||||||
[5] | Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs. | ||||||||
[6] | During the first quarter of 2020, the goodwill allocated to our previously separate RBWM and PB businesses were both written down to $0 million. See Note 9, "Goodwill," in this From 10-Q for further discussion of the results of our goodwill impairment testing, including the events and circumstances leading to the impairments. | ||||||||
[7] | During the second quarter of 2021, we determined that we would exit certain branches and, as a result, the lease ROU assets, leasehold improvement assets and equipment assets associated with these branches were written off. During the three and nine months ended September 30, 2021, we also wrote down the lease ROU assets and leasehold improvement assets primarily associated with certain office space that we determined we would exit. During the first quarter of 2020, we determined that we would exit certain branches and, as a result, the lease ROU assets and leasehold improvement assets associated with these branches were written down based on their estimated remaining useful lives. During the third quarter of 2020, we also wrote down the lease ROU assets associated with certain office space that we determined we would exit. See Note 2, "Strategic Initiatives," in this Form 10-Q for further discussion. |
Fair Value Measurements - Qua_2
Fair Value Measurements - Quantitative Information about Nonrecurring Fair Value Measurement of Assets and Liabilities Classified as Level 3 (Detail) - Fair Value, Nonrecurring [Member] $ in Millions | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | $ 1,236 | $ 658 | |
Consumer loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [1] | 804 | 4 |
Commercial loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [2] | 92 | 68 |
Impaired commercial loans [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [3] | 142 | 270 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 1,029 | 273 | |
Level 3 [Member] | Consumer loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [1] | 795 | 0 |
Level 3 [Member] | Commercial loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [2] | 92 | 0 |
Level 3 [Member] | Impaired commercial loans [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [3] | $ 142 | $ 270 |
Measurement Input, Adjusted Market Price [Member] | Level 3 [Member] | Consumer loans held for sale [Member] | Minimum [Member] | Market comparables and internal assumptions [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 0.95 | ||
Measurement Input, Adjusted Market Price [Member] | Level 3 [Member] | Consumer loans held for sale [Member] | Maximum [Member] | Market comparables and internal assumptions [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 1 | ||
Measurement Input, Adjusted Market Price [Member] | Level 3 [Member] | Consumer loans held for sale [Member] | Weighted Average [Member] | Market comparables and internal assumptions [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 0.99 | ||
Measurement Input, Adjusted Market Price [Member] | Level 3 [Member] | Commercial loans held for sale [Member] | Market comparables and internal assumptions [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 0.94 | ||
Measurement Input, Loss Severity Rates [Member] | Level 3 [Member] | Impaired commercial loans [Member] | Minimum [Member] | Valuation of third party appraisal on underlying collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 0.08 | 0 | |
Measurement Input, Loss Severity Rates [Member] | Level 3 [Member] | Impaired commercial loans [Member] | Maximum [Member] | Valuation of third party appraisal on underlying collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | 0.78 | 0.76 | |
Measurement Input, Loss Severity Rates [Member] | Level 3 [Member] | Impaired commercial loans [Member] | Weighted Average [Member] | Valuation of third party appraisal on underlying collateral [Member] | |||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | |||
Loans, Measurement Input | [4] | 0.30 | 0.35 |
[1] | At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain consumer loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. | ||
[2] | At September 30, 2021 and December 31, 2020, the fair value of the loans held for sale was below cost. During the second quarter of 2021, certain commercial loans were transferred to held for sale for which significant inputs in estimating fair value were unobservable. | ||
[3] | Certain commercial loans are individually assessed for impairment. We measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy. | ||
[4] | Weighted average is calculated based on the carrying value of the loans.N/A Not Applicable |
Fair Value Measurements - Add_2
Fair Value Measurements - Additional Information Relating To Asset-Backed Securities and Collateralized Debt Obligations (Detail) - Level 3 [Member] $ in Millions | Sep. 30, 2021USD ($) | |
Asset-backed Securities Available-for-sale [Member] | BBB -B Rating [Member] | ||
Fair Value Of Other Financial Instrument [Line Items] | ||
Trading asset-backed securities and related collateral | $ 101 | [1] |
Available-for-sale securities [Member] | ||
Fair Value Of Other Financial Instrument [Line Items] | ||
Trading asset-backed securities and related collateral | 121 | |
Alt [Member] | Home equity [Member] | AAA - A Rating [Member] | ||
Fair Value Of Other Financial Instrument [Line Items] | ||
Trading asset-backed securities and related collateral | $ 20 | [1] |
[1] | We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Federal funds sold and securities purchased under agreements to resell | $ 7,480 | $ 35,746 | |
Loans, net of allowance for credit losses | 55,051 | $ 65,325 | |
Loans held for sale | 4,927 | 337 | |
Deposits | 152,368 | 145,150 | $ 150,328 |
Long-term debt | 18,105 | 19,979 | |
Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans held for sale | 1,291 | 129 | |
Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans held for sale | 3,636 | 208 | |
Level 1 [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Short-term financial assets, net of allowance for credit losses | 1,018 | 1,302 | |
Federal funds sold and securities purchased under agreements to resell | 0 | 0 | |
Securities held-to-maturity, net of allowance for credit losses | 0 | 0 | |
Short-term financial liabilities | 0 | 0 | |
Deposits | 0 | 0 | |
Deposits held for sale | 0 | ||
Long-term debt | 0 | 0 | |
Level 1 [Member] | Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Level 1 [Member] | Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Level 2 [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Short-term financial assets, net of allowance for credit losses | 62,140 | 14,353 | |
Federal funds sold and securities purchased under agreements to resell | 7,480 | 35,746 | |
Securities held-to-maturity, net of allowance for credit losses | 6,097 | 9,369 | |
Short-term financial liabilities | 6,377 | 4,952 | |
Deposits | 140,072 | 141,001 | |
Deposits held for sale | 9,321 | ||
Long-term debt | 8,878 | 9,720 | |
Level 2 [Member] | Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 0 | 0 | |
Loans held for sale | 0 | 93 | |
Level 2 [Member] | Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 0 | 0 | |
Loans held for sale | 53 | 217 | |
Level 3 [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Short-term financial assets, net of allowance for credit losses | 46 | 12 | |
Federal funds sold and securities purchased under agreements to resell | 0 | 0 | |
Securities held-to-maturity, net of allowance for credit losses | 0 | 0 | |
Short-term financial liabilities | 48 | 13 | |
Deposits | 0 | 0 | |
Deposits held for sale | 0 | ||
Long-term debt | 0 | 0 | |
Level 3 [Member] | Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 39,026 | 41,417 | |
Loans held for sale | 1,231 | 0 | |
Level 3 [Member] | Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 16,140 | 19,865 | |
Loans held for sale | 3,685 | 0 | |
Estimate of fair value [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Short-term financial assets, net of allowance for credit losses | 63,204 | 15,667 | |
Federal funds sold and securities purchased under agreements to resell | 7,480 | 35,746 | |
Securities held-to-maturity, net of allowance for credit losses | 6,097 | 9,369 | |
Short-term financial liabilities | 6,425 | 4,965 | |
Deposits | 140,072 | 141,001 | |
Deposits held for sale | 9,321 | ||
Long-term debt | 8,878 | 9,720 | |
Estimate of fair value [Member] | Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 39,026 | 41,417 | |
Loans held for sale | 1,231 | 93 | |
Estimate of fair value [Member] | Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 16,140 | 19,865 | |
Loans held for sale | 3,738 | 217 | |
Carrying Value [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Short-term financial assets, net of allowance for credit losses | 63,204 | 15,667 | |
Federal funds sold and securities purchased under agreements to resell | 7,480 | 35,746 | |
Securities held-to-maturity, net of allowance for credit losses | 5,866 | 8,981 | |
Short-term financial liabilities | 6,425 | 4,965 | |
Deposits | 140,077 | 140,995 | |
Deposits held for sale | 9,321 | ||
Long-term debt | 8,370 | 9,254 | |
Carrying Value [Member] | Commercial Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 38,439 | 40,785 | |
Loans held for sale | 1,228 | 93 | |
Carrying Value [Member] | Consumer Loans [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Loans, net of allowance for credit losses | 16,585 | 20,256 | |
Loans held for sale | $ 3,636 | $ 208 |
Litigation and Regulatory Mat_2
Litigation and Regulatory Matters - Additional Information (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2021 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Estimate of reasonably possible loss | $ 150,000,000 | |
FX DPA [Member] | HSBC Holdings plc [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement agreement, compliance period | 3 years |