Retained Earnings and Regulatory Capital Requirements (Tables)

6 Months Ended

Jun. 30, 2015

Capital Amounts and Ratios in Accordance With Current Banking Regulations

The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with banking regulations in effect as of June 30, 2015 and December 31, 2014:



	June 30, 2015							December 31, 2014
	Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio		Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio
	(dollars are in millions)
Total capital ratio:⁽³⁾
HSBC USA	$	24,670	10.00	%		16.31	%	$	21,017	10.00	%		15.78	%
HSBC Bank USA	26,828		10.00			18.44		22,760		10.00			17.86
Tier 1 capital ratio:⁽³⁾
HSBC USA	18,859		6.00			12.47		15,205		6.00			11.41
HSBC Bank USA	22,212		8.00			15.26		17,215		8.00			13.51
Common equity Tier 1 ratio:⁽³⁾
HSBC USA	17,810		4.50		⁽²⁾	11.77		13,754		4.50		⁽²⁾	10.33
HSBC Bank USA	19,857		6.50			13.65		17,215		6.50			13.51
Tier 1 leverage ratio:
HSBC USA	18,859		4.00		⁽²⁾	9.50		15,205		4.00		⁽²⁾	8.54
HSBC Bank USA	22,212		5.00			11.58		17,215		5.00			10.06
Risk weighted assets:⁽³⁾
HSBC USA	151,286							133,211
HSBC Bank USA	145,521							127,456

⁽¹⁾

HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. The regulatory ratios for an institution to be well-capitalized under Basel III became effective beginning January 1, 2015 and the new ratios are shown for both periods.


⁽²⁾	There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown in both periods are the required regulatory minimum ratios beginning in 2015.


⁽³⁾	Risk weighted assets are calculated under the Basel III Standardized Approach which came into effect on January 1, 2015, replacing the Basel I risk-based approach used in 2014.