EX-12.1 3 d54178_ex12-1.txt COMPUTATION OF RATIO Exhibit 12.01 HSBC USA Inc. Computation of Ratio of Earnings to Fixed Charges (in millions, except ratios)
----------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 ----------------------------------------------------------------------------------------------------------------- Excluding interest on deposits Income before cumulative effect of accounting change $ 855 $ 354 $ 569 $ 464 $ 527 Applicable income tax expense 510 226 339 308 238 Less undistributed equity earnings 7 9 8 4 2 Fixed charges: Interest on: Borrowed funds 232 337 445 130 204 Long-term debt 263 328 420 112 96 One third of rents, net of income from subleases 17 18 22 15 14 ----------------------------------------------------------------------------------------------------------------- Total fixed charges 512 683 887 257 314 Earnings before taxes and cumulative effect of accounting change based on income and fixed charges $1,870 $1,254 $1,787 $1,025 $1,077 ----------------------------------------------------------------------------------------------------------------- Ratio of earnings to fixed charges 3.65 1.84 2.01 3.99 3.43 ----------------------------------------------------------------------------------------------------------------- Including interest on deposits Total fixed charges (as above) $ 512 $ 683 $ 887 $ 257 $ 314 Add: Interest on deposits 936 1,857 2,334 853 867 ----------------------------------------------------------------------------------------------------------------- Total fixed charges and interest on deposits $1,448 $2,540 $3,221 $1,110 $1,181 ----------------------------------------------------------------------------------------------------------------- Earnings before taxes and cumulative effect of accounting change based on income and fixed charges (as above) $1,870 $1,254 $1,787 $1,025 $1,077 Add: Interest on deposits 936 1,857 2,334 853 867 ----------------------------------------------------------------------------------------------------------------- Total $2,806 $3,111 $4,121 $1,878 $1,944 ----------------------------------------------------------------------------------------------------------------- Ratio of earnings to fixed charges 1.94 1.22 1.28 1.69 1.65 -----------------------------------------------------------------------------------------------------------------
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