EX-12.01 2 d25171_ex12-01.txt COMPUTATION OF RATIOS Exhibit 12.01 HSBC USA Inc. Computation of Ratio of Earnings to Fixed Charges (in millions, except ratios)
Year Ended December 31, 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ Excluding interest on deposits Net income $ 568 $ 464 $ 527 $ 471 $ 380 Applicable income tax expense 340 308 238 193 171 Less undistributed equity earnings 8 4 2 2 2 Fixed charges: Interest on: Borrowed funds 445 130 204 197 121 Long-term debt 420 112 96 112 48 One third of rents, net of income from subleases 22 15 14 14 12 ------ ------ ------ ------ ------ Total fixed charges 887 257 314 323 181 Earnings before taxes based on income and fixed charges $1,787 $1,025 $1,077 $ 985 $ 730 ------ ------ ------ ------ ------ Ratio of earnings to fixed charges 2.01 3.99 3.43 3.05 4.03 ------ ------ ------ ------ ------ Including interest on deposits Total fixed charges (as above) $ 887 $ 257 $ 314 $ 323 $ 181 Add: Interest on deposits 2,334 853 867 679 481 ------ ------ ------ ------ ------ Total fixed charges and interest on deposits $3,221 $1,110 $1,181 $1,002 $ 662 ------ ------ ------ ------ ------ Earnings before taxes based on income and fixed charges (as above) $1,787 $1,025 $1,077 $ 985 $ 730 Add: Interest on deposits 2,334 853 867 679 481 ------ ------ ------ ------ ------ Total $4,121 $1,878 $1,944 $1,664 $1,211 ------ ------ ------ ------ ------ Ratio of earnings to fixed charges 1.28 1.69 1.65 1.66 1.83 ------ ------ ------ ------ ------
89