HSBC Finance (HSBCFC) 10-Q 2016 Q3 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

Nine Months Ended September 30,	2016			2015
	(dollars are in millions)
Loss from continuing operations	$	(606	)	$	(250	)
Income tax benefit	(322		)	(357		)
Loss from continuing operations before income tax expense	(928		)	(607		)
Fixed charges:
Interest expense	414			701
Interest portion of rentals(1)	3			3
Total fixed charges	417			704
Total earnings from continuing operations as defined	$	(511	)	$	97
Ratio of earnings to fixed charges	(1.23		)	.14
Preferred stock dividends(2)	$	133		$	145
Ratio of earnings to combined fixed charges and preferred stock dividends	(.93		)	.11

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

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