Retained Earnings and Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2016

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 at December 31, 2016 and 2015:



	December 31, 2016							December 31, 2015
	Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio		Capital Amount		Well-Capitalized Ratio⁽¹⁾			Actual Ratio
	(dollars are in millions)
Common equity Tier 1 ratio:
HSBC USA	$	17,544	4.5	%	⁽²⁾	13.7	%	$	17,766	4.5	%	⁽²⁾	12.0	%
HSBC Bank USA	19,577		6.5			15.7		19,796		6.5			13.8
Tier 1 capital ratio:
HSBC USA	18,640		6.0			14.5		18,764		6.0			12.6
HSBC Bank USA	21,971		8.0			17.6		22,109		8.0			15.4
Total capital ratio:
HSBC USA	23,549		10.0			18.3		24,425		10.0			16.5
HSBC Bank USA	26,325		10.0			21.1		26,670		10.0			18.6
Tier 1 leverage ratio:
HSBC USA	18,640		4.0		⁽²⁾	9.2		18,764		4.0		⁽²⁾	9.5
HSBC Bank USA	21,971		5.0			11.1		22,109		5.0			11.6
Risk weighted assets:
HSBC USA	128,482							148,421
HSBC Bank USA	124,666							143,393
Adjusted quarterly average assets:⁽³⁾
HSBC USA	203,000							197,639
HSBC Bank USA	197,944							191,254


⁽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.


⁽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 are the regulatory minimum ratios.


⁽³⁾	Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital for the three months ended December 31, 2016 and 2015, respectively.