HSBC Finance (HSBCFC) 10-Q 2015 Q2 Quarterly report

EXHIBIT 12

HSBC FINANCE CORPORATION

COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Six Months Ended June 30,	2015			2014
	(dollars are in millions)
Income (loss) from continuing operations	$	(213	)	$	348
Income tax expense (benefit)	(228		)	95
Income (loss) from continuing operations before income tax expense	(441		)	443
Fixed charges:
Interest expense	487			541
Interest portion of rentals(1)	2			2
Total fixed charges	489			543
Total earnings from continuing operations as defined	$	48		$	986
Ratio of earnings to fixed charges	.10			1.82
Preferred stock dividends(2)	$	97		$	97
Ratio of earnings to combined fixed charges and preferred stock dividends	.08			1.54

⁽¹⁾  Represents one-third of rentals, which approximates the portion representing interest.

⁽²⁾  Preferred stock dividends are grossed up to their pretax equivalents.