Retained Earnings and Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2019

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 the Basel III rule at December 31, 2019 and 2018:



	December 31, 2019							December 31, 2018
	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	$	15,876	4.5	%	⁽²⁾	13.1	%	$	17,459	4.5	%	⁽²⁾	13.6	%
HSBC Bank USA	18,043		6.5			15.2		19,456		6.5			15.7
Tier 1 capital ratio:
HSBC USA	17,141		6.0			14.1		18,724		6.0			14.6
HSBC Bank USA	20,543		8.0			17.3		21,956		8.0			17.7
Total capital ratio:
HSBC USA	19,743		10.0			16.3		21,972		10.0			17.2
HSBC Bank USA	22,724		10.0			19.2		25,293		10.0			20.4
Tier 1 leverage ratio:
HSBC USA	17,141		4.0		⁽²⁾	9.9		18,724		4.0		⁽²⁾	11.0
HSBC Bank USA	20,543		5.0			12.0		21,956		5.0			13.1
Supplementary leverage ratio ("SLR"):
HSBC USA	17,141		3.0		⁽³⁾	6.9		18,724		3.0		⁽³⁾	7.6
HSBC Bank USA	20,543		3.0		⁽³⁾	8.4		21,956		3.0		⁽³⁾	9.1
Risk-weighted assets:⁽⁴⁾
HSBC USA	121,407							127,917
HSBC Bank USA	118,618							124,112
Adjusted quarterly average assets:⁽⁵⁾
HSBC USA	173,270							170,565
HSBC Bank USA	170,722							168,154
Total leverage exposure:⁽⁶⁾
HSBC USA	247,590							245,796
HSBC Bank USA	244,008							242,264


⁽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 minimums.


⁽³⁾	There is no SLR component in the definition of a well-capitalized banking institution. The ratios shown are the regulatory minimum ratios.


⁽⁴⁾	Calculated using the generally-applicable Standardized Approach.


⁽⁵⁾	Represents the Tier 1 leverage ratio denominator which reflects quarterly average assets adjusted for amounts permitted to be deducted from Tier 1 capital.


⁽⁶⁾	Represents the SLR denominator which includes adjusted quarterly average assets plus certain off-balance sheet exposures.