Suncorp (ASX:SUN) To Take $125 Million Provision Ahead

November 16, 2020 12:23 PM AEDT
Team Kalkine

Insurance giant Suncorp Group Limited (ASX:SUN) released an update regarding the anticipated effects of COVID-19 pandemic on its general insurance and banking businesses, New Zealand capital requirements and the APRA September quarter general insurance analysis.

During the first half of the FY2021, the impact of the COVID-19 pandemic is expected to be largely neutral.

As included in the APS 330 on 10 November, the Group’s credit quality stays robust. The overall impairment losses reported for the September quarter stands at $3 million. The bank had $3.0 billion of loans under the temporary loan deferral arrangements, indicating 4% of the housing portfolio and 7.6% of the SME portfolio.

The banking Group shall maintain its conservative approach to capital management. As on 30 June 2020, the Group held $NZ$78 million of excess CET1 above the top end of its target range.

The SUN stock was quoted at $9.26, up 1.091% at 11:56 AM AEDT.

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