EX-12 2 exhibit126301710-q.htm EXHIBIT 12 Exhibit


EXHIBIT 12
HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
Six Months Ended June 30,
  
2017
 
2016
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
500

 
$
133

Income tax expense
260

 
74

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
55

 
39

Long-term debt
493

 
400

Others
11

 
7

One third of rents, net of income from subleases
16

 
13

Total fixed charges, excluding interest on deposits
575

 
459

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
$
1,335

 
$
666

Ratio of earnings to fixed charges, excluding interest on deposits
2.32

 
1.45

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
575

 
$
459

Add: Interest on deposits
319

 
222

Total fixed charges, including interest on deposits
894

 
681

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
1,335

 
666

Add: Interest on deposits
319

 
222

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
1,654

 
$
888

Ratio of earnings to fixed charges, including interest on deposits
1.85

 
1.30