HSBC USA Inc 3Q06 10Q ex 12

HSBC Holdings PLC
13 November 2006




                                                                      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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