Bank of Ireland were up 1.82% at €0.11 at the close of trade this evening.
The bank issued a trading update this morning ahead of its annual general court, or AGM, today.
It said its operating income continues to be adversely impacted by the cost of funding and the impact of intense deposit competition in the Irish market.
It said that the Government guarantee fees and reductions in earning assets continue to affect its income and net interest margin.
Today's statement said that trading conditions for the first three months of 2012 remain ''challenging''.
Bank of Ireland said the economic environment remains difficult with interest rates expected to remain lower for longer that expected.
It also said that residential property prices do not appear, as yet, to have fully stabilised.
The bank said its asset quality remains ''broadly in line with expectations''.
It said it still expects to see impairment charges reducing from the ''elevated levels'' seen last year.
It said the pace of reduction would depend on the performance of its Irish residential mortgage book and commercial property markets.
But it added that arrears in its Irish residential mortgage book have continued to increase due to the difficult economic environment and high levels of unemployment.
''We are engaging with residential mortgage customers who are in difficulty and are seeking to provide sustainable mortgage restructures where appropriate and possible, and continue to enhance our product range and restructuring solutions,' the bank said in its trading update.
Bank of Ireland also said that its operating costs remain under strict control and the strong cost discipline implemented across the group continues to deliver cost savings as anticipated.
Bank of Ireland not in talks on moving tracker mortgages
Bank of Ireland told shareholders today that it was not engaged in discussions with the Government over its plans to move loss-making "tracker" mortgages off the balance sheets of some Irish banks.
The Government wants to shift mortgages that track the ECB interest rate from AIB and Irish Life and Permanent. Bank of Ireland's chief executive said that it did not come into the talks as it was not fully in state hands.
"Bank of Ireland are not engaged in any such discussions with the state or the Irish Bank Resolution Corporation but we are obviously keeping a close eye on potential developments," Richie Boucher told the bank's annual general court meeting (AGM) in UCD today.
"We are not owned by the state so it wouldn't occur for us to be involved," he added.
He also said that tracker mortgages are proving ''expensive'' for the bank at the moment. He said the bank is trying to enhance its margins in terms of funding.
Mr Boucher told its annual general court meeting that some things are worse than expected but some things better and he gave no commitment on dividends.
He said that growing arrears in the bank's buy to let mortgage book is ''problematic''. He said that 500 staff are now working on arrears cases. He also said the bank is appointing rent receivers to landlords who hoard rent and do not give it to the bank.
Mr Boucher said the bank's job is to maximise recovery of loans it lent. ''Litigation is a last resort,'' he stated.
The bank also indicated that further jobs cuts are possible in addition to its existing redundancy plan which will see 750 staff leave the bank.
Bank of Ireland's chairman Pat Molloy said that increasing deposits is a high priority for the bank.
He said the bank's leadership has been 'exceptional' given what it has had to deal with. Mr Molloy also said that salaries are compliant with agreements with the State.
