Retained Earnings and Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019:



	March 31, 2020							December 31, 2019
	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	$	15,622	4.5	%	⁽²⁾	11.9	%	$	15,876	4.5	%	⁽²⁾	13.1	%
HSBC Bank USA	17,814		6.5			14.0		18,043		6.5			15.2
Tier 1 capital ratio:
HSBC USA	16,887		6.0			12.9		17,141		6.0			14.1
HSBC Bank USA	20,314		8.0			15.9		20,543		8.0			17.3
Total capital ratio:
HSBC USA	20,932		10.0			16.0		19,743		10.0			16.3
HSBC Bank USA	23,063		10.0			18.1		22,724		10.0			19.2
Tier 1 leverage ratio:
HSBC USA	16,887		4.0		⁽²⁾	9.0		17,141		4.0		⁽²⁾	9.9
HSBC Bank USA	20,314		5.0			11.0		20,543		5.0			12.0
Supplementary leverage ratio ("SLR"):
HSBC USA	16,887		3.0		⁽³⁾	6.5		17,141		3.0		⁽³⁾	6.9
HSBC Bank USA	20,314		3.0		⁽³⁾	8.0		20,543		3.0		⁽³⁾	8.4
Risk-weighted assets:⁽⁴⁾
HSBC USA	130,901							121,407
HSBC Bank USA	127,499							118,618
Adjusted quarterly average assets:⁽⁵⁾
HSBC USA	187,962							173,270
HSBC Bank USA	184,851							170,722
Total leverage exposure:⁽⁶⁾
HSBC USA	258,783							247,590
HSBC Bank USA	254,907							244,008


⁽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.