EX-12.01 3 d50014_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, 2001 2000* 1999 1998 1997 ----------------------------------------------------------------------------------------------------- Excluding interest on deposits Income before cumulative effect of accounting change $ 354 $ 569 $ 464 $ 527 $ 471 Applicable income tax expense 226 339 308 238 193 Less undistributed equity earnings 9 8 4 2 2 Fixed charges: Interest on: Borrowed funds 337 445 130 204 197 Long-term debt 328 420 112 96 112 One third of rents, net of income from subleases 18 22 15 14 14 ----------------------------------------------------------------------------------------------------- Total fixed charges 683 887 257 314 323 Earnings before taxes and cumulative effect of accounting change based on income and fixed charges $1,254 $1,787 $1,025 $1,077 $ 985 ----------------------------------------------------------------------------------------------------- Ratio of earnings to fixed charges 1.84 2.01 3.99 3.43 3.05 ----------------------------------------------------------------------------------------------------- Including interest on deposits Total fixed charges (as above) $ 683 $ 887 $ 257 $ 314 $ 323 Add: Interest on deposits 1,857 2,334 853 867 679 ----------------------------------------------------------------------------------------------------- Total fixed charges and interest on deposits $2,540 $3,221 $1,110 $1,181 $1,002 ----------------------------------------------------------------------------------------------------- Earnings before taxes and cumulative effect of accounting change based on income and fixed charges (as above) $1,254 $1,787 $1,025 $1,077 $ 985 Add: Interest on deposits 1,857 2,334 853 867 679 ----------------------------------------------------------------------------------------------------- Total $3,111 $4,121 $1,878 $1,944 $1,664 ----------------------------------------------------------------------------------------------------- Ratio of earnings to fixed charges 1.22 1.28 1.69 1.65 1.66 -----------------------------------------------------------------------------------------------------
*Restated to exclude an investment in an entity transferred to HSBC North America Inc. during 2001. 103