EX-12 2 exhibit123311610-q.htm EXHIBIT 12 Exhibit


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,
  
2016
 
2015
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
154

 
$
164

Income tax expense
79

 
76

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
18

 
11

Long-term debt
197

 
167

Others
6

 
3

One third of rents, net of income from subleases
7

 
9

Total fixed charges, excluding interest on deposits
228

 
190

Earnings from continuing operations before taxes and fixed charges
$
461

 
$
430

Ratio of earnings to fixed charges
2.02

 
2.26

Preferred stock dividends(1)
$
22

 
$
30

Fixed charges, including preferred stock dividends
$
250

 
$
220

Ratio of earnings to fixed charges, including preferred stock dividends
1.84

 
1.95

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
228

 
$
190

Add: Interest on deposits
105

 
46

Total fixed charges, including interest on deposits
$
333

 
$
236

Earnings from continuing operations before taxes and fixed charges
$
461

 
$
430

Add: Interest on deposits
105

 
46

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
566

 
$
476

Ratio of earnings to fixed charges, including interest on deposits
1.70

 
2.02

Fixed charges, including preferred stock dividends
$
250

 
$
220

Add: Interest on deposits
105

 
46

Fixed charges, including interest on deposits and the preferred stock dividend factor
$
355

 
$
266

Ratio of earnings to fixed charges, including interest on deposits and preferred stock dividends
1.59

 
1.79

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