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    Hugh Moorhead

    Banks and Diversified Financials Equity Analyst at Berenberg

    Hugh Moorhead is a Banks and Diversified Financials Equity Analyst at Berenberg, specializing in European financial institutions with coverage of companies such as ING Groep and Nordea Bank. He boasts an exceptional performance track record, ranking in the top 15% of all Wall Street analysts with a 100% success rate and an average return of 24.4% per rating over the past year. Moorhead began his analyst career prior to 2023 and joined Berenberg in London, where he provides in-depth research and recommendations on major banks operating in the US, UK, Germany, and France. His professional credentials include extensive expertise in equity research for financials, though specific securities licenses or FINRA registrations are not confirmed.

    Hugh Moorhead's questions to ING GROEP (ING) leadership

    Hugh Moorhead's questions to ING GROEP (ING) leadership • Q2 2024

    Question

    Hugh Moorhead asked if the strong performance in insurance fee income was a one-off or a structural trend. He also questioned the normalization of risk costs and the evolution of management overlays, requesting quantification of the impact from transferring Russian exposures to Stage 3.

    Answer

    Executive Steven van Rijswijk described the fee growth as structural, driven by acquiring more customers and increasing cross-sell of investment and insurance products from a low base. CRO Ljiljana Cortan clarified that risk costs were 18 basis points including overlays. She specified that the net impact of the Russian exposure transfer on this quarter's risk costs was €39 million, resulting from a €133 million Stage 3 addition partially offset by a Stage 2 release.

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    Hugh Moorhead's questions to ING GROEP (ING) leadership • Q2 2024

    Question

    Hugh Moorhead asked about the drivers of strong fee income from insurance, questioning if it was structural or a one-off. He also inquired about risk cost normalization, the use of overlays, and the quantified impact of transferring Russian exposures to Stage 3.

    Answer

    CEO Steven van Rijswijk explained that the strong fee performance is structural, driven by growth in mobile primary customers and increased cross-selling of investment and bespoke insurance products from a low base. CRO Ljiljana Cortan detailed the risk costs, stating the net impact from the Russian exposure transfer was EUR 39 million in additional risk costs for the quarter. She clarified that overlays are included in the through-the-cycle risk cost calculation and are used when models don't fully capture environmental risks.

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