EX-12 2 d75242_ex12.htm STATEMENT RE: COMPUTATION OF RATIO

Exhibit 12

HSBC USA Inc.
Computation of Ratio of Earnings to Fixed Charges and
Earnings to Combined Fixed Charges and Preferred Stock Dividends
(in millions, except ratios)

 

 

 

 

 

 

 

 

Nine months ended September 30

 

2008

 

2007

 

 

 

 

 

 

 

 

 

Ratios excluding interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(588

)

$

585

 

Income tax (benefit) expense

 

 

(334

)

 

237

 

Less: Undistributed equity earnings

 

 

23

 

 

5

 

Fixed charges:

 

 

 

 

 

 

 

Interest on:

 

 

 

 

 

 

 

Borrowed funds

 

 

227

 

 

266

 

Long-term debt

 

 

766

 

 

1,087

 

One third of rents, net of income from subleases

 

 

18

 

 

21

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

 

1,011

 

 

1,374

 

 

 

 

 

 

 

 

 

Earnings before taxes and fixed charges, net of undistributed equity earnings

 

$

66

 

$

2,191

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

0.07

 

 

1.59

 

 

 

 

 

 

 

 

 

 

 

 

 

Total preferred stock dividend factor (1)

 

$

92

 

$

105

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

1,103

 

$

1,479

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

0.06

 

 

1.48

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios including interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

$

1,011

 

$

1,374

 

Add: Interest on deposits

 

 

1,956

 

 

2,841

 

 

 

 

 

Total fixed charges, including interest on deposits

 

$

2,967

 

$

4,215

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before taxes and fixed charges, net of undistributed equity earnings

 

$

66

 

$

2,191

 

Add: Interest on deposits

 

 

1,956

 

 

2,841

 

 

 

 

 

Total

 

$

2,022

 

$

5,032

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

0.68

 

 

1.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

1,103

 

$

1,479

 

Add: Interest on deposits

 

 

1,956

 

 

2,841

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor and interest on deposits

 

$

3,059

 

$

4,320

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

0.66

 

 

1.16

 

 

 

 

 

 

 

(1)

Preferred stock dividends grossed up to their pretax equivalents.

107