HSBC Finance (HSBCFC) 10-Q 2011 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,	2011			2010
	(dollars are in millions)
Loss from continuing operations	$	(1,711	)	$	(2,350	)
Income tax		1,154			1,334
Loss from continuing operations before income tax		(2,865	)		(3,684	)
Fixed charges:
Interest expense		1,831			2,230
Interest portion of rentals(1)		7			4
Total fixed charges		1,838			2,234
Total earnings (loss) from continuing operations as defined	$	(1,027	)	$	(1,450	)
Ratio of earnings to fixed charges		(.56	)		(.65	)
Preferred stock dividends(2)		148			42
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends		(.52	)		(.64	)

(1)	Represents one-third of rentals, which approximates the portion representing interest.
(2)	Preferred stock dividends are grossed up to their pretax equivalents.