Suncorp (ASX:SUN) on the hook for $40-$70M payroll remediation

Company News

by Katrina Bullock

Suncorp Group (ASX:SUN) today released its quarterly update as at 31 March 2020. The company expects a collective provision of $133 million due to the impact of covid-19.

Suncorp Group CEO Steve Johnston say “we have already received thousands of requests for financial hardship from both our bank and insurance customers and have provided discounts and premium waivers to 12,300 insurance customers in Australia and New Zealand and approved $4.05 billion in loan deferrals”.

The company has also identified potential incorrect payments to some employees and expects remediation costs to total between $40 and $70 million.

The Group also advised that its CEO of Banking and Wealth, Lee Hatton will be leaving the organisation at the end of May after just 3 months in the role.

Shares in Suncorp Group (ASX:SUN) are trading 1.68 per cent higher at $9.06.