EX-12 2 c65159exv12.htm EX-12 exv12
EXHIBIT 12
 
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Six Months Ended June 30,   2011     2010  
   
    (dollars are in millions)  
 
Loss from continuing operations
  $ (64 )   $ (1,175 )
Income tax
    285       689  
                 
Loss from continuing operations before income tax
    (349 )     (1,864 )
                 
Fixed charges:
               
Interest expense
    1,313       1,625  
Interest portion of rentals(1)
    5       2  
                 
Total fixed charges
    1,318       1,627  
                 
Total earnings (loss) from continuing operations as defined
  $ 969     $ (237 )
                 
Ratio of earnings to fixed charges
    .74       (.15 )
Preferred stock dividends(2)
    100       28  
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends
    .68       (.14 )
 
 
(1) Represents one-third of rentals, which approximates the portion representing interest.
 
(2) Preferred stock dividends are grossed up to their pretax equivalents.