Retained Earnings and Regulatory Capital Requirements (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 and December 31, 2016:



	September 30, 2017							December 31, 2016
	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	$	18,258	4.5	%	⁽²⁾	15.3	%	$	17,544	4.5	%	⁽²⁾	13.7	%
HSBC Bank USA	20,082		6.5			17.1		19,577		6.5			15.7
Tier 1 capital ratio:
HSBC USA	19,512		6.0			16.3		18,640		6.0			14.5
HSBC Bank USA	22,561		8.0			19.2		21,971		8.0			17.6
Total capital ratio:
HSBC USA	23,628		10.0			19.8		23,549		10.0			18.3
HSBC Bank USA	26,432		10.0			22.5		26,325		10.0			21.1
Tier 1 leverage ratio:
HSBC USA	19,512		4.0		⁽²⁾	9.9		18,640		4.0		⁽²⁾	9.2
HSBC Bank USA	22,561		5.0			11.5		21,971		5.0			11.1
Risk-weighted assets:
HSBC USA	119,598							128,482
HSBC Bank USA	117,458							124,666
Adjusted quarterly average assets:⁽³⁾
HSBC USA	198,043							203,000
HSBC Bank USA	195,544							197,944


⁽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 September 30, 2017 and December 31, 2016, respectively.