EX-12 2 c52329exv12.htm EX-12 EX-12
EXHIBIT 12
 
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF LOSS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Six Months Ended June 30,   2009     2008  
   
    (dollars are
 
    in millions)  
 
Loss from continuing operations
  $ (5,087 )   $ (1,210 )
Income tax benefit
    660       616  
                 
Loss before income tax benefit
    (5,747 )     (1,826 )
                 
Fixed charges:
               
Interest expense
    2,229       3,352  
Interest portion of rentals(1)
    28       19  
                 
Total fixed charges
    2,257       3,371  
                 
Total earnings (loss) from continuing operations as defined
  $ (3,490 )   $ 1,545  
                 
Ratio of earnings (loss) to fixed charges
    (1.55 )     .46  
Preferred stock dividends(2)
    28       29  
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends
    (1.53 )     .45  
 
 
(1) Represents one-third of rentals, which approximates the portion representing interest.
 
(2) Preferred stock dividends are grossed up to their pretax equivalents.