EX-12 2 exhibit129301710-q.htm EXHIBIT 12 Exhibit


EXHIBIT 12
HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
Nine Months Ended September 30,
  
2017
 
2016
 
(dollars are in millions)
Ratios excluding interest on deposits:
 
 
 
Income from continuing operations
$
594

 
$
166

Income tax expense
321

 
100

Fixed charges:
 
 
 
Interest on:
 
 
 
Short-term borrowings
94

 
61

Long-term debt
749

 
613

Others
15

 
12

One third of rents, net of income from subleases
23

 
19

Total fixed charges, excluding interest on deposits
881

 
705

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
$
1,796

 
$
971

Ratio of earnings to fixed charges, excluding interest on deposits
2.04

 
1.38

 
 
 
 
Ratios including interest on deposits:
 
 
 
Total fixed charges, excluding interest on deposits
$
881

 
$
705

Add: Interest on deposits
507

 
344

Total fixed charges, including interest on deposits
1,388

 
1,049

Earnings from continuing operations before taxes and fixed charges, excluding interest on deposits
1,796

 
971

Add: Interest on deposits
507

 
344

Earnings from continuing operations before taxes and fixed charges, including interest on deposits
$
2,303

 
$
1,315

Ratio of earnings to fixed charges, including interest on deposits
1.66

 
1.25