Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - HSBC USA INC /MD/ | c59136e10vq.htm |
| EX-32 - EX-32 - HSBC USA INC /MD/ | c59136exv32.htm |
| EX-31 - EX-31 - HSBC USA INC /MD/ | c59136exv31.htm |
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
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Six Months Ended June 30, | 2010 | 2009 | ||||||
|
(dollars are |
||||||||
| in millions) | ||||||||
|
Ratios excluding interest on deposits:
|
||||||||
|
Net income (loss)
|
$ | 854 | $ | (338 | ) | |||
|
Income tax expense (benefit)
|
444 | (12 | ) | |||||
|
Less: Undistributed equity earnings
|
6 | - | ||||||
|
Fixed charges:
|
||||||||
|
Interest on:
|
||||||||
|
Borrowed funds
|
43 | 34 | ||||||
|
Long-term debt
|
288 | 447 | ||||||
|
One third of rents, net of income from subleases
|
14 | 11 | ||||||
|
Total fixed charges, excluding interest on deposits
|
345 | 492 | ||||||
|
Earnings before taxes and fixed charges, net of undistributed
equity earnings
|
$ | 1,637 | $ | 142 | ||||
|
Ratio of earnings to fixed charges
|
4.74 | 0.29 | ||||||
|
Total preferred stock dividend
factor(1)
|
$ | 55 | $ | 38 | ||||
|
Fixed charges, including the preferred stock dividend factor
|
$ | 400 | $ | 530 | ||||
|
Ratio of earnings to combined fixed charges and preferred stock
dividends
|
4.09 | 0.27 | ||||||
|
Ratios including interest on deposits:
|
||||||||
|
Total fixed charges, excluding interest on deposits
|
$ | 345 | $ | 492 | ||||
|
Add: Interest on deposits
|
315 | 580 | ||||||
|
Total fixed charges, including interest on deposits
|
$ | 660 | $ | 1,072 | ||||
|
Earnings before taxes and fixed charges, net of undistributed
equity earnings
|
$ | 1,637 | $ | 142 | ||||
|
Add: Interest on deposits
|
315 | 580 | ||||||
|
Total
|
$ | 1,952 | $ | 722 | ||||
|
Ratio of earnings to fixed charges
|
2.96 | 0.67 | ||||||
|
Fixed charges, including the preferred stock dividend factor
|
$ | 400 | $ | 530 | ||||
|
Add: Interest on deposits
|
315 | 580 | ||||||
|
Fixed charges, including the preferred stock dividend factor and
interest on deposits
|
$ | 715 | $ | 1,110 | ||||
|
Ratio of earnings to combined fixed charges and preferred stock
dividends
|
2.73 | 0.65 | ||||||
| (1) | Preferred stock dividends grossed up to their pretax equivalents. |