EX-12.01 3 d58550_ex12-01.htm COMPUTATION OF RATIO OF EARNINGS Untitled Document

Exhibit 12.01
 
HSBC USA Inc.
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)
 
Year Ended December 31,      2003    2002    2001    2000    1999  

   
 
 
 
 
 
Excluding interest on deposits    
     
Income before cumulative effect of    
  accounting change     $ 941   $ 855   $ 354   $ 569   $ 464  
Applicable income tax expense       570     510     226     339     308  
Less undistributed equity earnings       6     7     9     8     4  
Fixed charges:    
    Interest on:    
      Borrowed funds       91     232     337     445     130  
      Long-term debt       205     225     281     420     112  
    One third of rents, net of income    
      from subleases       18     17     18     22     15  
     
 
 
 
 
 
Total fixed charges       314     474     636     887     257  
Earnings before taxes and cumulative    
  effect of accounting change based    
  on income and fixed charges     $ 1,819   $ 1,832   $ 1,207   $ 1,787   $ 1,025  
     
 
 
 
 
 
                                   
Ratio of earnings to fixed charges       5.79     3.86     1.90     2.01     3.99  
     
 
 
 
 
 
     
Including interest on deposits    
                                   
Total fixed charges (as above)     $ 314   $ 474   $ 636   $ 887   $ 257  
Add: Interest on deposits       666     974     1,904     2,334     853  
     
 
 
 
 
 
Total fixed charges and interest    
  on deposits     $ 980   $ 1,448   $ 2,540   $ 3,221   $ 1,110  
     
 
 
 
 
 
     
Earnings before taxes and cumulative    
  effect of accounting change based on    
  income and fixed charges (as above)     $ 1,819   $ 1,832   $ 1,207   $ 1,787   $ 1,025  
Add: Interest on deposits       666     974     1,904     2,334     853  
     
 
 
 
 
 
Total     $ 2,485   $ 2,806   $ 3,111   $ 4,121   $ 1,878  
     
 
 
 
 
 
                                   
Ratio of earnings to fixed charges       2.54     1.94     1.22     1.28     1.69  
     
 
 
 
 
 


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