EX-12.02 3 d25171_ex12-02.txt COMPUTATION OF RATIOS Exhibit 12.02 HSBC USA Inc. Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (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 ------ ------ ------ ------ ------ Total fixed charges $ 887 $ 257 $ 314 $ 323 $ 181 Preferred dividends 28 - - 1 6 Ratio of pretax income to income after applicable income tax expense 1.60 1.66 1.45 1.41 1.45 ------ ------ ------ ------ ------ Total preferred stock dividend factor 44 - - 2 9 Fixed charges, including preferred stock dividend factor $ 931 $ 257 $ 314 $ 325 $ 190 ------ ------ ------ ------ ------ Ratio of earnings to combined fixed charges and preferred dividends 1.92 3.99 3.43 3.03 3.84 ------ ------ ------ ------ ------ Including interest on deposits Total fixed charges, including preferred stock dividend factor (as above) $ 931 $ 257 $ 314 $ 325 $ 190 Add: Interest on deposits 2,334 853 867 679 481 ------ ------ ------ ------ ------ Fixed charges, including preferred stock dividend factor and interest on deposits $3,265 $1,110 $1,181 $1,004 $ 671 ------ ------ ------ ------ ------ 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 combined fixed charges and preferred dividends 1.26 1.69 1.65 1.66 1.80 ------ ------ ------ ------ ------
90