EX-12.01 3 d67306_ex12-01.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.01 HSBC USA Inc. Computation of Ratio of Earnings to Fixed Charges (in millions, except ratios)
------------------------------------------------------------------------------------------------------------------------------------ Year Ended December 31 2005 2004 2003 2002 2001 ------------------------------------------------------------------------------------------------------------------------------------ Excluding interest on deposits: Income before cumulative effect of accounting change .......................................................... $ 976 $ 1,258 $ 941 $ 855 $ 354 Applicable income tax expense ..................................... 566 718 570 510 226 Less: Undistributed equity earnings ............................... 73 21 6 7 9 Fixed charges: Interest on: Borrowed funds ........................................... 276 132 91 232 337 Long-term debt ........................................... 1,019 380 206 225 281 One third of rents, net of income from subleases ............ 19 19 17 17 18 -------- -------- -------- -------- -------- Total fixed charges ............................................... 1,314 531 314 474 636 Earnings before taxes and cumulative effect of accounting change based on income and fixed charges ......................................................... $ 2,783 $ 2,486 $ 1,819 $ 1,832 $ 1,207 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges ................................ 2.12 4.68 5.79 3.86 1.90 ======== ======== ======== ======== ======== Including interest on deposits: Total fixed charges (as above) .................................... $ 1,314 $ 531 $ 314 $ 474 $ 636 Add: Interest on deposits ......................................... 1,771 825 666 974 1,904 -------- -------- -------- -------- -------- Total fixed charges and interest on deposits ...................... $ 3,085 $ 1,356 $ 980 $ 1,448 $ 2,540 ======== ======== ======== ======== ======== Earnings before taxes and cumulative effect of accounting change based on income and fixed charges (as above) .............................................. $ 2,783 $ 2,486 $ 1,819 $ 1,832 $ 1,207 Add: Interest on deposits ......................................... 1,771 825 666 974 1,904 -------- -------- -------- -------- -------- Total ............................................................. $ 4,554 $ 3,311 $ 2,485 $ 2,806 $ 3,111 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges ................................ 1.48 2.44 2.54 1.94 1.22 ======== ======== ======== ======== ========
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