EX-12 2 exhibit129301610-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
 
 
Nine Months Ended September 30,
  
2016
 
2015
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
166

 
$
455

Income tax expense
100

 
285

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
61

 
35

Long-term debt
613

 
524

Others
12

 
10

One third of rents, net of income from subleases
19

 
22

Total fixed charges, excluding interest on deposits
705

 
591

Earnings from continuing operations before taxes and fixed charges
$
971

 
$
1,331

Ratio of earnings to fixed charges
1.38

 
2.25

Preferred stock dividends(1)
$
45

 
$
81

Fixed charges, including preferred stock dividends
$
750

 
$
672

Ratio of earnings to fixed charges, including preferred stock dividends
1.29

 
1.98

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
705

 
$
591

Add: Interest on deposits
344

 
177

Total fixed charges, including interest on deposits
$
1,049

 
$
768

Earnings from continuing operations before taxes and fixed charges
$
971

 
$
1,331

Add: Interest on deposits
344

 
177

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
1,315

 
$
1,508

Ratio of earnings to fixed charges, including interest on deposits
1.25

 
1.96

Fixed charges, including preferred stock dividends
$
750

 
$
672

Add: Interest on deposits
344

 
177

Fixed charges, including interest on deposits and the preferred stock dividend factor
$
1,094

 
$
849

Ratio of earnings to fixed charges, including interest on deposits and preferred stock dividends
1.20

 
1.78

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