EX-12 2 exhibit123311710-q.htm EXHIBIT 12 Exhibit


EXHIBIT 12
HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
Three Months Ended March 31,
  
2017
 
2016
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
296

 
$
154

Income tax expense
152

 
79

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
23

 
18

Long-term debt
242

 
197

Others
3

 
6

One third of rents, net of income from subleases
7

 
7

Total fixed charges, excluding interest on deposits
275

 
228

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
$
723

 
$
461

Ratio of earnings to fixed charges, excluding interest on deposits
2.63

 
2.02

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
275

 
$
228

Add: Interest on deposits
150

 
105

Total fixed charges, including interest on deposits
425

 
333

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
723

 
461

Add: Interest on deposits
150

 
105

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
873

 
$
566

Ratio of earnings to fixed charges, including interest on deposits
2.05

 
1.70