AIB has said that its trading performance in the three month period from July to September continues to improve in line with expectations.
In an interim management statement, AIB reported signs of stabilisation in the credit quality of its loan portfolios, with the pace of new impairments slowing "significantly" year on year.
The bank said that the pace of new impairments in its mortgage book slowed in the third quarter, while the rate of increase in total mortgage arrears was also down significantly compared to the first six months of the year.
"Overall impairment charges on the bank's loan portfolios are trending lower in line with expectations," the bank said without giving any definite figures.
AIB said that it continues to meet its targets in relation to the resolution of both SME and mortgage customers in arrears, describing it as a "key immediate priority" for the bank.
In today's statement, the bank said that operating expenses, including staff costs, have reduced. Its voluntary severance programme is continuing, it added.
AIB has estimated a charge of about €60m a year for 2014, 2015 and 2116 after the introduction of the banking levy in the Budget last month.
The bank also said that talks with the European Commission in relation to its final restructuring plan are now at "an advanced stage".