HSBC Holdings Regulatory News (HSBA)

5 Mar 2007 12:46

HSBC Holdings PLC05 March 2007 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) ----------------------------------------------------------------------------------------------------------------Year Ended December 31 2006 2005 2004 2003 2002---------------------------------------------------------------------------------------------------------------- Ratios excluding interest on deposits: Net income ........................................... $ 1,036 $ 976 $ 1,258 $ 941 $ 855 Income tax expense ................................... 530 566 718 570 510 Less: Undistributed equity earnings .................. 34 73 21 6 7 Fixed charges: Interest on: Borrowed funds ................................. 300 276 132 91 232 Long-term debt ................................. 1,457 1,019 380 206 225 One third of rents, net of income from subleases .. 25 19 19 17 17 -------- -------- -------- -------- -------- Total fixed charges, excluding interest on deposits .. 1,782 1,314 531 314 474 Earnings before taxes and fixed charges, net of undistributed equity earnings .............. $ 3,314 $ 2,783 $ 2,486 $ 1,819 $ 1,832 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges ................... 1.86 2.12 4.68 5.79 3.86 ======== ======== ======== ======== ======== Total preferred stock dividend factor (1) ............ $ 133 $ 71 $ 36 $ 36 $ 37 -------- -------- -------- -------- -------- Fixed charges, including the preferred stock dividend factor ................................... $ 1,915 $ 1,385 $ 567 $ 350 $ 511 ======== ======== ======== ======== ======== Ratio of earnings to combined fixed charges and preferred stock dividends ......................... 1.73 2.01 4.38 5.20 3.59 ======== ======== ======== ======== ========Ratios including interest on deposits: Total fixed charges, excluding interest on deposits .. $ 1,782 $ 1,314 $ 531 $ 314 $ 474 Add: Interest on deposits ............................ 3,113 1,771 825 666 974 -------- -------- -------- -------- -------- Total fixed charges, including interest on deposits .. $ 4,895 $ 3,085 $ 1,356 $ 980 $ 1,448 ======== ======== ======== ======== ======== Earnings before taxes and fixed charges, net of undistributed equity earnings .............. $ 3,314 $ 2,783 $ 2,486 $ 1,819 $ 1,832 Add: Interest on deposits ............................ 3,113 1,771 825 666 974 -------- -------- -------- -------- -------- Total ................................................ $ 6,427 $ 4,554 $ 3,311 $ 2,485 $ 2,806 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges ................... 1.31 1.48 2.44 2.54 1.94 ======== ======== ======== ======== ======== Fixed charges, including the preferred stock dividend factor ................................... $ 1,915 $ 1,385 $ 567 $ 350 $ 511 Add: Interest on deposits ............................ 3,113 1,771 825 666 974 -------- -------- -------- -------- -------- Fixed charges, including the preferred stock dividend factor and interest on deposits .......... $ 5,028 $ 3,156 $ 1,392 $ 1,016 $ 1,485 ======== ======== ======== ======== ======== Ratio of earnings to combined fixed charges and preferred stock dividends ......................... 1.28 1.44 2.38 2.45 1.89 ======== ======== ======== ======== ======== (1) Preferred stock dividends grossed up to their pretax equivalents. 221 This information is provided by RNS The company news service from the London Stock Exchange