EX-12 2 exhibit126301810-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
 
 
Six Months Ended June 30,
  
2018
 
2017
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Net income
$
31

 
$
500

Income tax expense
174

 
260

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
76

 
55

Long-term debt
540

 
493

Others
18

 
11

One third of rents, net of income from subleases
16

 
16

Total fixed charges, excluding interest on deposits
650

 
575

Earnings before taxes and fixed charges, excluding interest on deposits
$
855

 
$
1,335

Ratio of earnings to fixed charges, excluding interest on deposits
1.32

 
2.32

Preferred stock dividends(1)
$
50

 
$
61

Fixed charges, including preferred stock dividends
$
700

 
$
636

Ratio of earnings to fixed charges, including preferred stock dividends
1.22

 
2.10

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
650

 
$
575

Add: Interest on deposits
480

 
319

Total fixed charges, including interest on deposits
1,130

 
894

Earnings before taxes and fixed charges, excluding interest on deposits
855

 
1,335

Add: Interest on deposits
480

 
319

Earnings before taxes and fixed charges, including interest on deposits
$
1,335

 
$
1,654

Ratio of earnings to fixed charges, including interest on deposits
1.18

 
1.85

Fixed charges, including preferred stock dividends
$
700

 
$
636

Add: Interest on deposits
480

 
319

Fixed charges, including interest on deposits and preferred stock dividends
$
1,180

 
$
955

Ratio of earnings to fixed charges, including interest on deposits and preferred stock dividends
1.13

 
1.73

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