EX-12 2 exhibit129301310-q.htm EXHIBIT 12 Exhibit 12 9.30.13 10-Q


EXHIBIT 12
HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
Nine Months Ended September 30,
  
2013
 
2012
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income (loss) from continuing operations
$
367

 
$
(1,295
)
Income tax expense
164

 
357

Less: Undistributed equity earnings
—

 
—

Fixed charges:
 
 
 
Interest on:
 
 
 
Borrowed funds
28

 
24

Long-term debt
492

 
502

Others
40

 
27

One third of rents, net of income from subleases
26

 
22

Total fixed charges, excluding interest on deposits
586

 
575

Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings
1,117

 
(363
)
Ratio of earnings to fixed charges
1.91

 
(.63
)
Total preferred stock dividend factor(1)
$
78

 
$
78

Fixed charges, including the preferred stock dividend factor
$
664

 
$
653

Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends
1.68

 
(.56
)
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
586

 
$
575

Add: Interest on deposits
147

 
243

Total fixed charges, including interest on deposits
$
733

 
$
818

Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings
$
1,117

 
$
(363
)
Add: Interest on deposits
147

 
243

Total
$
1,264

 
$
(120
)
Ratio of earnings to fixed charges
1.72

 
(.15
)
Fixed charges, including the preferred stock dividend factor
$
664

 
$
653

Add: Interest on deposits
147

 
243

Fixed charges, including the preferred stock dividend factor and interest on deposits
$
811

 
$
896

Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends
1.56

 
(.13
)
 
(1)
Preferred stock dividends grossed up to their pretax equivalents.