EX-12 2 c51013exv12.htm EX-12 EX-12
HSBC USA Inc.
 
EXHIBIT 12
 
HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Three Months Ended March 31   2009     2008  
   
    (dollars are in millions)  
 
Ratios excluding interest on deposits:
               
Net (loss)
  $ (89 )   $ (278 )
Income tax expense(benefit)
    41       (164 )
Less: Undistributed equity earnings
           
Fixed charges:
               
Interest on:
               
Borrowed funds
    19       99  
Long-term debt
    237       303  
One third of rents, net of income from subleases
    5       6  
                 
Total fixed charges, excluding interest on deposits
    261       408  
Earnings before taxes and fixed charges, net of undistributed equity earnings
  $ 213     $ (34 )
                 
Ratio of earnings to fixed charges
    0.82       (0.08 )
                 
Total preferred stock dividend factor(1)
  $ 10     $ 35  
                 
Fixed charges, including the preferred stock dividend factor
  $ 271     $ 443  
                 
Ratio of earnings to combined fixed charges and preferred stock dividends
    0.79       (0.08 )
                 
Ratios including interest on deposits:
               
Total fixed charges, excluding interest on deposits
  $ 261     $ 408  
Add: Interest on deposits
    313       799  
                 
Total fixed charges, including interest on deposits
  $ 574     $ 1,207  
                 
Earnings before taxes and fixed charges, net of undistributed equity earnings
  $ 213     $ (34 )
Add: Interest on deposits
    313       799  
                 
Total
  $ 526     $ 765  
                 
Ratio of earnings to fixed charges
    0.92       0.63  
                 
Fixed charges, including the preferred stock dividend factor
  $ 271     $ 443  
Add: Interest on deposits
    313       799  
                 
Fixed charges, including the preferred stock dividend factor and interest on deposits
  $ 584     $ 1,242  
                 
Ratio of earnings to combined fixed charges and preferred stock dividends
    0.90       0.62  
                 
 
 
(1) Preferred stock dividends grossed up to their pretax equivalents.