EX-12 3 hbio93013ex12.htm EXHIBIT 12 HBIO 9.30.13 EX12


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


 
Nine Months Ended September 30,
2013
 
2012
 
(dollars are in millions)
Income (loss) from continuing operations
$
771

 
$
(2,209
)
Income tax (expense) benefit
(376
)
 
1,325

Income (loss) from continuing operations before income tax (expense) benefit
1,147

 
(3,534
)
Fixed charges:
 
 
 
Interest expense
1,060

 
1,382

Interest portion of rentals(1)
3

 
6

Total fixed charges
1,063

 
1,388

Total earnings from continuing operations as defined
$
2,210

 
$
(2,146
)
Ratio of earnings to fixed charges
2.08

 
(1.55
)
Preferred stock dividends(2)
$
145

 
$
142

Ratio of earnings to combined fixed charges and preferred stock dividends
1.83

 
(1.40
)
 
(1)
Represents one-third of rentals, which approximates the portion representing interest.
(2)
Preferred stock dividends are grossed up to their pretax equivalents.