HSBC USA Inc. said it spent about $15.3 billion buying credit card and auto finance receivables last week from another unit of HSBC Holdings PLC, HSBC Finance Corp.
In a filing Wednesday with the Securities and Exchange Commission, HSBC USA said it purchased a portfolio of $6.3 billion in receivables from the General Motors MasterCard program on Jan. 8 and $6.1 billion from the AFL-CIO Union Plus MasterCard/Visa program on Jan. 9.
Also on Jan. 9, the company purchased auto finance receivables with an aggregate balance of $3 billion.
HSBC USA said its net interest income and fee income will increase in future periods. Those gains will be reduced by costs associated with provisions for credit losses and servicing fees paid to HSBC Finance.
HSBC USA said it previously disclosed its intention to make the purchases and received regulatory approval to do so in January.
HSBC USA said it received $1.7 billion in capital contributions from its immediate parent, HSBC North America Inc., to ensure that its units hold sufficient capital with respect to the transferred receivables.
