I'd cut away a little more, especially along the top, cut it right back to the brick. Clean off the whole area, clear out all the old loose mortar, damp down and repoint. If it was me, i'd then cover the area with some wire lath/mesh, to cover all the cracked areas, then damp down again, pva, then bring it out to flush with bonding coat. You could scratch it in with render first, then use bonding, or you could use render to bring it right out, either way, finish it off with multi.