EX-12 2 d328529dex12.htm EX-12 EX-12

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,    2012     2011  
     (dollars are in millions)  

Loss from continuing operations

    $ (507 )    $ (220 ) 

Income tax

      277        303   
  

 

 

    

 

 

  

Loss from continuing operations before income tax

      (784 )      (523 ) 
  

 

 

    

 

 

  

Fixed charges:

     

Interest expense

      499        647   

Interest portion of rentals(1)

      2        2   
  

 

 

    

 

 

  

Total fixed charges

      501        649   
  

 

 

    

 

 

  

Total earnings (loss) from continuing operations as defined

    $ (283 )    $ 126   
  

 

 

    

 

 

  

Ratio of earnings to fixed charges

      (.56 )      .19   

Preferred stock dividends(2)

    $ 49      $ 52   

Ratio of earnings (loss) to combined fixed charges and preferred stock dividends

      (.51 )      .18   

 

 

(1) 

Represents one-third of rentals, which approximates the portion representing interest.

 

(2) 

Preferred stock dividends are grossed up to their pretax equivalents.