EX-12.1 2 d74645_ex12.htm STATEMENT RE: 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)

 

 

 

 

 

 

 

 

Six months ended June 30

 

2008

 

2007

 

Ratios excluding interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(452

)

$

564

 

Income tax (benefit) expense

 

 

(282

)

 

253

 

Less: Undistributed equity earnings

 

 

13

 

 

—

 

Fixed charges:

 

 

 

 

 

 

 

Interest on:

 

 

 

 

 

 

 

Borrowed funds

 

 

167

 

 

176

 

Long-term debt

 

 

541

 

 

723

 

One third of rents, net of income from subleases

 

 

12

 

 

14

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

 

720

 

 

913

 

 

 

 

 

 

 

 

 

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

 

$

(27

)

$

1,730

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

(0.04

)

 

1.89

 

 

 

 

 

 

 

 

 

 

 

 

 

Total preferred stock dividend factor (1)

 

$

65

 

$

72

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

785

 

$

985

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

(0.03

)

 

1.76

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios including interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges, excluding interest on deposits

 

$

720

 

$

913

 

Add: Interest on deposits

 

 

1,381

 

 

1,848

 

 

 

 

 

Total fixed charges, including interest on deposits

 

$

2,101

 

$

2,761

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(27

)

$

1,730

 

Add: Interest on deposits

 

 

1,381

 

 

1,848

 

 

 

 

 

Total

 

$

1,354

 

$

3,578

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

0.64

 

 

1.30

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, including the preferred stock dividend factor

 

$

785

 

$

985

 

Add: Interest on deposits

 

 

1,381

 

 

1,848

 

 

 

 

 

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

 

$

2,166

 

$

2,833

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

0.63

 

 

1.26

 

 

 

 

 

(1) Preferred stock dividends grossed up to their pretax equivalents.

98