EX-12 2 hbio33113ex12.htm EXHIBIT 12 HBIO 3.31.13 EX12


EXHIBIT 12
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS


 
Three Months Ended March 31,
2013
 
2012
 
(dollars are in millions)
Income (loss) from continuing operations
$
304

 
$
(505
)
Income tax (expense) benefit
(152
)
 
288

Income (loss) from continuing operations before income tax (expense) benefit
456

 
(793
)
Fixed charges:
 
 
 
Interest expense
379

 
499

Interest portion of rentals(1)
1

 
2

Total fixed charges
380

 
501

Total earnings from continuing operations as defined
$
836

 
$
(292
)
Ratio of earnings to fixed charges
2.20

 
(.58
)
Preferred stock dividends(2)
$
48

 
$
48

Ratio of earnings to combined fixed charges and preferred stock dividends
1.95

 
(.53
)
 
(1)
Represents one-third of rentals, which approximates the portion representing interest.
(2)
Preferred stock dividends are grossed up to their pretax equivalents.