EXHIBIT 12

HSBC FINANCE CORPORATION

COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Six Months Ended June 30,	2014		2013
	(dollars are in millions)
Income from continuing operations	$	348	$	575
Income tax expense	95		285
Income from continuing operations before income tax expense	443		860
Fixed charges:
Interest expense	541		732
Interest portion of rentals(1)	2		3
Total fixed charges	543		735
Total earnings from continuing operations as defined	$	986	$	1,595
Ratio of earnings to fixed charges	1.82		2.17
Preferred stock dividends(2)	$	97	$	97
Ratio of earnings to combined fixed charges and preferred stock dividends	1.54		1.92

(1) Represents one-third of rentals, which approximates the portion representing interest.

(2) Preferred stock dividends are grossed up to their pretax equivalents.