Bank of Ireland has said its loan portfolios continue to perform in line with expectations.
The bank released an interim management statement ahead of its annual general court meeting today.
It said it continues to make steady progress in the provision of ''appropriate restructuring arrangements to co-operating customers'' who have difficulties meeting their repayments.
It also said that it expects impairment charges to reduce from their current elevated levels to a more normalised levels as the Irish economy recovers.
The bank said it welcomed the expiry of the exceptional Eligible Liabilities Guarantee Scheme last month, adding that it has not experienced any adverse impacts on its deposit volumes since the expiry of the scheme.
''It remains our expectation that the cost of ELG will reduce quickly, thereby positively impacting on the Group's income,'' today's interim management statement said.
In today's statement, Bank of Ireland said the positive momentum seen in the second half of last year has continued into 2013.
It said it continued to rebuild its net interest margin, a measurement of the profitability of its lending that rose to 1.25% at the end of last year from 1.2% six months earlier.
Deposit levels remained stable at €75 billion, showing no knock-on effects from the tax on savers imposed under Cyprus' bailout last month.
The bank's loan to deposit ratio, cut significantly under a disposal plan that forms part of the country's EU/IMF rescue, fell to a bailout target of 120% ahead of schedule, down from 123% at the end of December.
Bank of Ireland said that talks on reducing a pension deficit that has trebled to €1.2 billion at the end of 2012 are ongoing.
Bank of Ireland wants to 'reward' taxpayers
Bank of Ireland chairman Archie Kane has told the bank's annual general court that one of its key objectives is to reduce the taxpayers' risk to the bank and to reward them for their support.
Addressing his first court as chair, Mr Kane said the current net cash position that the State holds in the bank amounts to around €1 billion.
Against the investment of €4.8 billion, the State has received cash payments of €3.8 billion.
Mr Kane said the removal of the ELG had not impacted on deposits, adding that deposits were ''still performing well''.
He also told delegates at today's meeting that the bank was well prepared for the mortgage arrears guidelines set out by the Central Bank. Mr Kane said Bank of Ireland had a range of solutions that would see it complying with the resolutions.
Yesterday, the Government ruled out using its 15% shareholding in the bank to vote against the remuneration of chief executive Richie Boucher, who received €800,000 in pay and other benefits last year.
Meanwhile, Independent TD Shane Ross has called on Mr Kane to volunteer to cut his remuneration in half.
Speaking at the bank's court meeting today, Mr Ross described Mr Kane's remuneration as ''outrageous and absurd'', as well as that of Mr Boucher.
Mr Ross said Mr Kane was being remunerated to the tune of €10,000 per week, €2,000 more than the previous chair.
Banks to outline cost cutting plans within two weeks - Kenny
Taoiseach Enda Kenny has said the banks are to outline cost-cutting plans within two weeks, which will include a “substantial contribution” from the leadership of the banks.
Speaking in the Dáil, Mr Kenny said Mr Noonan had put in place a process of pay scales and pension packages which had been reported to Government by Mercers.
He said Government required the banks to reduce their cost base by between 6%-10%.
He said that the minister expects to receive a response to the Mercers report within the next two weeks with a substantial contribution on pay and pensions.