EXHIBIT 12

HSBC FINANCE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

										March 29		January 1
		Year Ended			Year Ended		Year Ended			Through		Through
		December 31,			December 31,		December 31,			December 31,		March 28,
		2006			2005		2004			2003		2003			2002
		(Successor)			(Successor)					(Successor)		(Predecessor)			(Predecessor)
		(in millions)
Net income		$	1,443		$	1,772	$	1,940		$	1,357	$	246		$	1,558
Income taxes			844			891		1,000			690		182			695
Income before income taxes			2,287			2,663		2,940			2,047		428			2,253
Fixed charges:
	Interest expense		7,374			4,832		3,143			2,031		898			3,879
	Interest portion of rentals(1)		59			61		54			40		18			68
Total fixed charges			7,433			4,893		3,197			2,071		916			3,947
Total earnings as defined		$	9,720		$	7,556	$	6,137		$	4,118	$	1,344		$	6,200
Ratio of earnings to fixed charges			1.31	(3)		1.54		1.92	(4)		1.99		1.47	(5)		1.57	(6)
Preferred stock dividends(2)			58			125		108			86		32			91
Ratio of earnings to combined fixed charges and preferred stock dividends			1.30	(3)		1.51		1.86	(4)		1.91		1.42	(5)		1.54	(6)

(1)	Represents one-third of rentals, which approximates the portion representing interest.
(2)	Preferred stock dividends are grossed up to their pretax equivalents.
(3)	The 2006 ratios have been positively impacted by the $78 million (after-tax) gain on sale of our investment in Kanbay. Excluding this item, our ratio of earnings to fixed charges would have been 1.30 percent and our ratio of earnings to combined fixed charges and preferred stock dividends would have been 1.29 percent. These non-U.S. GAAP financial ratios are provided for comparison of our operating trends only.
(4)	The 2004 ratios have been negatively impacted by $121 million (after-tax) from the adoption of FFIEC charge-off policies for our domestic private label (excluding retail sales contracts at our consumer lending business) and credit card portfolios in December 2004 and positively impacted by the $423 million (after-tax) gain on the bulk sale of our domestic private label receivables (excluding retail sales contracts at our consumer lending business) to HSBC Bank USA in December 2004. Excluding these items, our ratio of earnings to fixed charges would have been 1.83 percent and our ratio of earnings to combined fixed charges and preferred stock dividends would have been 1.77 percent. These non-U.S. GAAP financial ratios are provided for comparison of our operating trends only.
(5)	The 2003 ratios have been negatively impacted by the $167 million (after-tax) of HSBC acquisition related costs and other merger related items incurred by HSBC Finance Corporation. Excluding these charges, our ratio of earnings to fixed charges would have been 1.69 percent and our ratio of earnings to combined fixed charges and preferred stock dividends would have been 1.63 percent. These non-U.S. GAAP financial ratios are provided for comparison of our operating trends only.
(6)	The 2002 ratios have been negatively impacted by the $333 million (after-tax) settlement charge and related expenses and the $240 million (after-tax) loss on the disposition of Thrift assets and deposits. Excluding these charges, our ratio of earnings to fixed charges would have been 1.80 percent and our ratio of earnings to combined fixed charges and preferred stock dividends would have been 1.76 percent. These non-U.S. GAAP financial ratios are provided for comparison of our operating trends only.