Retained Earnings and Regulatory Capital Requirements (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018 and December 31, 2017:



	June 30, 2018							December 31, 2017
	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	$	17,142	4.5	%	⁽²⁾	13.8	%	$	17,428	4.5	%	⁽²⁾	14.2	%
HSBC Bank USA	19,061		6.5			15.7		19,294		6.5			16.7
Tier 1 capital ratio:
HSBC USA	18,407		6.0			14.8		18,696		6.0			15.3
HSBC Bank USA	21,561		8.0			17.7		21,786		8.0			18.8
Total capital ratio:
HSBC USA	21,900		10.0			17.6		22,565		10.0			18.4
HSBC Bank USA	25,135		10.0			20.7		25,522		10.0			22.1
Tier 1 leverage ratio:
HSBC USA	18,407		4.0		⁽²⁾	10.2		18,696		4.0		⁽²⁾	9.9
HSBC Bank USA	21,561		5.0			12.1		21,786		5.0			11.7
Supplementary leverage ratio ("SLR"):
HSBC USA	18,407		3.0		⁽³⁾	7.4							N/A
HSBC Bank USA	21,561		3.0		⁽³⁾	8.7							N/A
Risk-weighted assets:
HSBC USA	124,276							122,584
HSBC Bank USA	121,652							115,667
Adjusted quarterly average assets:⁽⁴⁾
HSBC USA	179,850							188,774
HSBC Bank USA	177,685							186,551
Total leverage exposure:⁽⁵⁾
HSBC USA	250,273							N/A
HSBC Bank USA	247,296							N/A


⁽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⁾	Beginning January 1, 2018, HSBC USA and HSBC Bank USA are required to maintain the regulatory minimum SLR of 3 percent. There is no SLR component in the definition of a well-capitalized banking institution.


⁽⁴⁾	Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital.


⁽⁵⁾	Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures.

N/A Not Applicable