EX-12 2 d69843_ex12.htm STATEMENT COMPUTATION OF RATIOS

Exhibit 12

HSBC USA Inc.
Computation of Ratio of Earnings to Fixed Charges and
Earnings to Combined Fixed Charges and Preferred Stock Dividends
(in millions, except ratios)

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30

 

 

 

 

2006

 

 

2005

 

Ratios excluding interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

838

 

$

780

 

Income tax expense

 

 

429

 

 

450

 

Less: Undistributed equity earnings

 

 

19

 

 

28

 

Fixed charges:

 

 

 

 

 

 

 

Interest on:

 

 

 

 

 

 

 

Borrowed funds

 

 

241

 

 

205

 

Long-term debt

 

 

1,073

 

 

720

 

One third of rents, net of income from subleases

 

 

18

 

 

13

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

 

1,332

 

 

938

 

 

 

 

 

 

 

 

 

Earnings before taxes and fixed charges, net of undistributed equity earnings

 

$

2,580

 

$

2,140

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

1.94

 

 

2.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Total preferred stock dividend factor (1)

 

$

95

 

$

45

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

1,427

 

$

983

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

1.81

 

 

2.18

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios including interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

$

1,332

 

$

938

 

Add: Interest on deposits

 

 

2,246

 

 

1,199

 

 

 

 

 

Total fixed charges, including interest on deposits

 

$

3,578

 

$

2,137

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before taxes and fixed charges, net of undistributed equity earnings

 

$

2,580

 

$

2,140

 

Add: Interest on deposits

 

 

2,246

 

 

1,199

 

 

 

 

 

Total

 

$

4,826

 

$

3,339

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

1.35

 

 

1.56

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

1,427

 

$

983

 

Add: Interest on deposits

 

 

2,246

 

 

1,199

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor and interest on deposits

 

$

3,673

 

$

2,182

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

1.31

 

 

1.53

 

 

 

 

 

 

 

(1)

Preferred stock dividends grossed up to their pretax equivalents.

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