Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2025

The following tables present related party balances and the income (expense) generated by related party transactions:


	September 30, 2025		December 31, 2024
	(in millions)
Assets:
Cash and due from banks	$	645	$	188
Interest bearing deposits with banks	7		4
Securities purchased under agreements to resell(1)	—		405
Trading assets	6		120
Loans	6,417		5,449
Other(2)	444		468
Total assets	$	7,519	$	6,634
Liabilities:
Deposits	$	9,953	$	8,351
Trading liabilities	140		77
Short-term borrowings	1,158		1,549
Long-term debt	10,136		8,388
Other(2)	352		252
Total liabilities	$	21,739	$	18,617

(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. Other assets also includes receivables from HSBC Bank plc associated with certain client share repurchase transactions.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)
Income (Expense):
Interest income	$	76	$	66	$	223	$	181
Interest expense	(201)		(140)		(557)		(423)
Net interest expense	(125)		(74)		(334)		(242)
Trading revenue (expense)	274		(2,194)		(2,259)		(5,275)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc	57		50		181		147
HSBC Markets (USA) Inc. ("HMUS")	23		24		65		74
Other HSBC affiliates	19		25		53		59
Total servicing and other fees from HSBC affiliates	99		99		299		280
Gain on instruments designated at fair value and related derivatives	381		218		645		316
Support services from HSBC affiliates:
HSBC Technology & Services (USA) Inc. ("HTSU")	(249)		(238)		(725)		(707)
HMUS	(43)		(66)		(162)		(183)
Other HSBC affiliates	(140)		(124)		(405)		(356)
Total support services from HSBC affiliates	(432)		(428)		(1,292)		(1,246)
Rental income from HSBC affiliates(1)	12		11		35		39
Stock based compensation expense(2)	(7)		(7)		(23)		(22)

(1)We receive rental income from our affiliates for certain office space, which is recorded as a component of occupancy expense, net in our consolidated statement of income.

(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. 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 22, "Pension and Other Postretirement Benefits," in our 2024 Form 10-K.

Schedule of Loan Balances Outstanding with Affiliates

At September 30, 2025 and December 31, 2024, we had the following loan balances outstanding with HSBC affiliates:


	September 30, 2025		December 31, 2024
	(in millions)

HMUS and subsidiaries	$	2,616	$	2,013

HSBC North America	3,800		3,000



Other short-term affiliate lending	1		436
Total loans	$	6,417	$	5,449

HSBC USA INC /MD/ 10-Q