v3.26.1
Loans (Tables)
 6 Months Ended
Jun. 30, 2026
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
June 30, 2026December 31, 2025
(in millions)
Commercial loans:
Commercial mortgages$944 $1,439 
Business and corporate banking
30,926 28,305 
Other commercial:
Affiliates(1)
6,411 6,035 
Other3,390 3,565 
Total other commercial9,801 9,600 
Total commercial41,671 39,344 
Consumer loans:
Residential mortgages19,584 19,789 
Other consumer848 761 
Total consumer20,432 20,550 
Total loans$62,103 $59,894 
(1)See Note 11, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
Summary of Past Due Status of Loans
Past DueTotal Past Due 30 Days or More
30 - 89 Days90+ Days
Current(1)
Total Loans
(in millions)
At June 30, 2026
Commercial loans:
Commercial mortgages$— $— $— $944 $944 
Business and corporate banking
45 69 114 30,812 30,926 
Other commercial114 — 114 9,687 9,801 
Total commercial159 69 228 41,443 41,671 
Consumer loans:
Residential mortgages173 119 292 19,292 19,584 
Other consumer12 9 21 827 848 
Total consumer185 128 313 20,119 20,432 
Total loans$344 $197 $541 $61,562 $62,103 
At December 31, 2025
Commercial loans:
Commercial mortgages$— $106 $106 $1,333 $1,439 
Business and corporate banking
239 15 254 28,051 28,305 
Other commercial41 — 41 9,559 9,600 
Total commercial280 121 401 38,943 39,344 
Consumer loans:
Residential mortgages
178 100 278 19,511 19,789 
Other consumer6 8 14 747 761 
Total consumer184 108 292 20,258 20,550 
Total loans$464 $229 $693 $59,201 $59,894 
(1)Loans less than 30 days past due are presented as current.
Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:
Nonaccrual LoansAccruing Loans Contractually Past Due 90 Days or MoreNonaccrual Loans With No Allowance For Credit Losses
(in millions)
At June 30, 2026
Commercial loans:
Commercial mortgages$247 $— $1 
Business and corporate banking353 — 92 
Total commercial600 — 93 
Consumer loans:
Residential mortgages(1)
208 — 95 
Other consumer8 3 6 
Total consumer216 3 101 
Total nonperforming loans$816 $3 $194 
At December 31, 2025
Commercial loans:
Commercial mortgages$257 $— $2 
Business and corporate banking273 — 46 
Other commercial3 — 2 
Total commercial533 — 50 
Consumer loans:
Residential mortgages(1)
206 — 67 
Other consumer9 4 6 
Total consumer215 4 73 
Total nonperforming loans$748 $4 $123 
(1)At June 30, 2026 and December 31, 2025, includes $126 million and $99 million, respectively, of residential mortgage loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
Summary of Modified Loans
The following table presents information about loan payment modifications made to commercial borrowers experiencing financial difficulty by type of modification, including the period-end carrying value and as a percentage of total loans:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended June 30, 2026
Commercial loans:
Commercial mortgages$— $— $84 $— $84 8.9 %
Business and corporate banking— — 17 20 37 .1 
Total commercial$— $— $101 $20 $121 .3 
Three Months Ended June 30, 2025
Commercial loans:
Business and corporate banking$23 $— $103 $3 $129 .4 %
Total commercial$23 $— $103 $3 $129 .3 
Six Months Ended June 30, 2026
Commercial loans:
Commercial mortgages$— $— $101 $— $101 10.7 %
Business and corporate banking— — 128 20 148 .5 
Total commercial$— $— $229 $20 $249 .6 
Six Months Ended June 30, 2025
Commercial loans:
Business and corporate banking$23 $— $113 $3 $139 .5 %
Total commercial$23 $— $113 $3 $139 .3 
(1)Represents loans with more than one type of payment modification during the period.
The following table summarizes the financial effect of loan payment modifications made to commercial borrowers experiencing financial difficulty by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)		Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended June 30, 2026
Commercial loans:
Commercial mortgages— %$— 5.5
Business and corporate banking3.1 — 2.8
Three Months Ended June 30, 2025
Commercial loans:
Business and corporate banking.2 %$— 1.0
Six Months Ended June 30, 2026
Commercial loans:
Commercial mortgages— %$— 4.7
Business and corporate banking3.1 — 2.4
Six Months Ended June 30, 2025
Commercial loans:
Business and corporate banking.2 %$— 1.0
Summary of Past Due Status of Loans with Payment Modification
The following table presents the past due status of loans to commercial borrowers experiencing financial difficulty with a payment modification during the previous 12 months:
Past Due
30 - 89 Days90+ Days
Current(1)
Total
(in millions)
At June 30, 2026
Commercial loans:
Commercial mortgages$— $— $101 $101 
Business and corporate banking— 7 208 215 
Total commercial$— $7 $309 $316 
At December 31, 2025
Commercial loans:
Commercial mortgages$— $18 $77 $95 
Business and corporate banking— 9 249 258 
Total commercial$— $27 $326 $353 
(1)Loans less than 30 days past due are presented as current.
Commercial loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Credit Quality Indicator
The following table summarizes the criticized status of our commercial loans, including a disaggregation of the loans by year of origination:
20262025202420232022PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2026
(in millions)
Commercial mortgages:
Pass rated$— $1 $1 $229 $67 $250 $— $— $548 
Criticized— — 18 — 71 307 — — 396 
Total commercial mortgages— 1 19 229 138 557 — — 944 
Business and corporate banking:
Pass rated3,623 5,065 2,826 1,625 931 4,177 10,973 7 29,227 
Criticized39 245 403 73 40 214 683 2 1,699 
Total business and corporate banking3,662 5,310 3,229 1,698 971 4,391 11,656 9 30,926 
Other commercial:
Pass rated— 32 64 — 5 13 9,687 — 9,801 
Total other commercial— 32 64 — 5 13 9,687 — 9,801 
Total commercial$3,662 $5,343 $3,312 $1,927 $1,114 $4,961 $21,343 $9 $41,671 
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2025
(in millions)
Commercial mortgages:
Pass rated$2 $18 $237 $266 $34 $278 $— $— $835 
Criticized— 1 — 120 — 483 — — 604 
Total commercial mortgages2 19 237 386 34 761 — — 1,439 
Business and corporate banking:
Pass rated4,634 3,496 1,504 1,486 798 4,887 8,316 1,040 26,161 
Criticized326 609 183 162 75 307 471 11 2,144 
Total business and corporate banking4,960 4,105 1,687 1,648 873 5,194 8,787 1,051 28,305 
Other commercial:
Pass rated484 319 87 319 338 1,192 6,861 — 9,600 
Total other commercial484 319 87 319 338 1,192 6,861 — 9,600 
Total commercial$5,446 $4,443 $2,011 $2,353 $1,245 $7,147 $15,648 $1,051 $39,344 
Summary of Gross Charge-Offs The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination:
20262025202420232022PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
(in millions)
Six Months Ended June 30, 2026
Business and corporate banking$17 $— $— $— $— $15 $16 $— $48 
Total commercial$17 $— $— $— $— $15 $16 $— $48 
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
(in millions)
Six Months Ended June 30, 2025
Commercial mortgages$— $— $— $— $— $27 $— $— $27 
Business and corporate banking— — 7 — — — 33 — 40 
Total commercial$— $— $7 $— $— $27 $33 $— $67 
Consumer loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Credit Quality Indicator
The following table summarizes dollars of two-months-and-over contractual delinquency for our residential mortgage loan portfolio, including a disaggregation of the loans by year of origination:
20262025202420232022PriorTotal at Jun. 30, 2026
(in millions)
Residential mortgages:
Current - 59 days past due$1,363 $2,817 $2,179 $1,239 $2,047 $9,792 $19,437 
60 days or more past due(1)(2)
— 3 1 6 9 128 147 
Total residential mortgages$1,363 $2,820 $2,180 $1,245 $2,056 $9,920 $19,584 
20252024202320222021PriorTotal at Dec. 31, 2025
(in millions)
Residential mortgages:
Current - 59 days past due$3,203 $2,575 $1,378 $2,100 $3,673 $6,723 $19,652 
60 days or more past due(1)(2)
— 3 9 10 — 115 137 
Total residential mortgages$3,203 $2,578 $1,387 $2,110 $3,673 $6,838 $19,789 
(1)At June 30, 2026 and December 31, 2025, includes $85 million and $57 million, respectively, of residential mortgage loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)At June 30, 2026 and December 31, 2025, includes $63 million and $30 million, respectively, of residential mortgage loans that were in the process of foreclosure.