EX-12 2 c51012exv12.htm EX-12 EX-12
EXHIBIT 12
 
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Three Months Ended March 31,   2009     2008  
   
    (dollars are
 		 
    in millions)  
 
Income from continuing operations
  $ 872     $ 238  
Income tax benefit
    855       185  
                 
Income before income tax benefit
    1,727       423  
                 
Fixed charges:
               
Interest expense
    1,167       1,773  
Interest portion of rentals(1)
    22       10  
                 
Total fixed charges
    1,189       1,783  
                 
Total earnings from continuing operations as defined
  $ 2,916     $ 2,206  
                 
Ratio of earnings to fixed charges
    2.45       1.24  
Preferred stock dividends(2)
    14       14  
Ratio of earnings to combined fixed charges and preferred stock dividends
    2.42       1.23  
 
 
(1) Represents one-third of rentals, which approximates the portion representing interest.
 
(2) Preferred stock dividends are grossed up to their pretax equivalents.