Mortgage arrears in Bank of Ireland’s loan book stabilised in the third quarter to the end of September, according to the bank, with the number of early-stage arrears falling.

The group, in which the State has a 15% shareholding, said it was meeting all of its targets in relation to providing restructuring arrangements for “cooperating customers” who are facing repayment difficulties.

It said the economies of Ireland and Britain had remained stable in the first of the year, with the bank’s loan portfolio performing in line with expectations.

Bank of Ireland also said its loan to deposit ratio fell below 120% in September as the restructuring of its balance sheet remained on-track.

The bank said its net loan volumes were marginally below the €87 billion figure reported at the end of June, while deposits were above €72 billion.

The bank, which the State has a 15% shareholding in, said its average net interest margin had grown to 190 basis points during the third quarter as a result of continuing attempts to reduce the cost of money to the bank.

It said its use of wholesale funding had fallen further in recent months, while the issuing of a seven year security in September showed it had access to international markets.