EX-12 2 exhibit126301610-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
 
 
Six Months Ended June 30,
  
2016
 
2015
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
133

 
$
251

Income tax expense
74

 
174

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
39

 
22

Long-term debt
400

 
340

Others
7

 
8

One third of rents, net of income from subleases
13

 
14

Total fixed charges, excluding interest on deposits
459

 
384

Earnings from continuing operations before taxes and fixed charges
$
666

 
$
809

Ratio of earnings to fixed charges
1.45

 
2.11

Preferred stock dividends(1)
$
45

 
$
57

Fixed charges, including preferred stock dividends
$
504

 
$
441

Ratio of earnings to fixed charges, including preferred stock dividends
1.32

 
1.83

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
459

 
$
384

Add: Interest on deposits
222

 
100

Total fixed charges, including interest on deposits
$
681

 
$
484

Earnings from continuing operations before taxes and fixed charges
$
666

 
$
809

Add: Interest on deposits
222

 
100

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
888

 
$
909

Ratio of earnings to fixed charges, including interest on deposits
1.30

 
1.88

Fixed charges, including preferred stock dividends
$
504

 
$
441

Add: Interest on deposits
222

 
100

Fixed charges, including interest on deposits and the preferred stock dividend factor
$
726

 
$
541

Ratio of earnings to fixed charges, including interest on deposits and preferred stock dividends
1.22

 
1.68

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