EX-12 2 exhibit123311810-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
 
 
Three Months Ended March 31,
  
2018
 
2017
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Net income (loss)
$
(238
)
 
$
296

Income tax expense
92

 
152

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
33

 
23

Long-term debt
257

 
242

Others
10

 
3

One third of rents, net of income from subleases
8

 
7

Total fixed charges, excluding interest on deposits
308

 
275

Earnings before taxes and fixed charges, excluding interest on deposits
$
162

 
$
723

Ratio of earnings to fixed charges, excluding interest on deposits
.53

 
2.63

Preferred stock dividends(1)
$
—

 
$
—

Fixed charges, including preferred stock dividends
$
308

 
$
275

Ratio of earnings to fixed charges, including preferred stock dividends
.53

 
2.63

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
308

 
$
275

Add: Interest on deposits
222

 
150

Total fixed charges, including interest on deposits
530

 
425

Earnings before taxes and fixed charges, excluding interest on deposits
162

 
723

Add: Interest on deposits
222

 
150

Earnings before taxes and fixed charges, including interest on deposits
$
384

 
$
873

Ratio of earnings to fixed charges, including interest on deposits
.72

 
2.05

Fixed charges, including preferred stock dividends
$
308

 
$
275

Add: Interest on deposits
222

 
150

Fixed charges, including interest on deposits and preferred stock dividends
$
530

 
$
425

Ratio of earnings to fixed charges, including interest on deposits and preferred stock dividends
.72

 
2.05

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