EX-12.2 4 d54178_ex12-2.txt COMPUTATION OF RATIO 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, 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 ------------------------------------------------------------------------------------------------------------------- Total fixed charges (as above) $ 512 $ 683 $ 887 $ 257 $ 314 Preferred dividends 23 25 28 - - Ratio of pretax income to income before cumulative effect of accounting change 1.60 1.64 1.60 1.66 1.45 ------------------------------------------------------------------------------------------------------------------- Total preferred stock dividend factor 37 41 44 - - Fixed charges, including preferred stock dividend factor $ 549 $ 724 $ 931 $ 257 $ 314 ------------------------------------------------------------------------------------------------------------------- Ratio of earnings to combined fixed charges and preferred dividends 3.41 1.73 1.92 3.99 3.43 ------------------------------------------------------------------------------------------------------------------- Including interest on deposits Fixed charges, including preferred stock dividend factor (as above) $ 549 $ 724 $ 931 $ 257 $ 314 Add: Interest on deposits 936 1,857 2,334 853 867 ------------------------------------------------------------------------------------------------------------------- Total fixed charges, including preferred stock dividend factor and interest on deposits $1,485 $2,581 $3,265 $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 combined fixed charges and preferred dividends 1.89 1.21 1.26 1.69 1.65 -------------------------------------------------------------------------------------------------------------------
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