EX-12 2 exhibit123311410-q.htm EXHIBIT 12 Exhibit 12 3.31.14 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
 
 
Three Months Ended March 31,
  
2014
 
2013
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income (loss) from continuing operations
$
104

 
$
183

Income tax expense
149

 
125

Less: Undistributed equity earnings

 

Fixed charges:
 
 
 
Interest on:
 
 
 
Borrowed funds
9

 
9

Long-term debt
170

 
167

Others
12

 
16

One third of rents, net of income from subleases
7

 
9

Total fixed charges, excluding interest on deposits
198

 
201

Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings
451

 
509

Ratio of earnings to fixed charges
2.28

 
2.53

Total preferred stock dividend factor(1)
$
30

 
$
30

Fixed charges, including the preferred stock dividend factor
$
228

 
$
231

Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends
1.98

 
2.20

Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
198

 
$
201

Add: Interest on deposits
35

 
43

Total fixed charges, including interest on deposits
$
233

 
$
244

Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings
$
451

 
$
509

Add: Interest on deposits
35

 
43

Total
$
486

 
$
552

Ratio of earnings to fixed charges
2.09

 
2.26

Fixed charges, including the preferred stock dividend factor
$
228

 
$
231

Add: Interest on deposits
35

 
43

Fixed charges, including the preferred stock dividend factor and interest on deposits
$
263

 
$
274

Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends
1.85

 
2.01

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