Bank of Ireland has said it continues to trade in line with expectations with good momentum across all of its businesses both in Ireland and internationally.
In a trading update for the third quarter to the end of September, Bank of Ireland said its net interest income was boosted by lower funding costs and the positive impact of new lending.
The bank's net interest margin averaged 2.18% in the three month period.
Bank of Ireland said that the economic environment and outlook in Ireland and the UK - its key markets - continue to be favourable.
The bank also said that asset quality trends have continued to improve in line with expectations.
It said its defaulted loans have fallen by €800m since June to €12.5 billion by the end of September, with reductions across all asset classes.
"These reductions reflect our ongoing progress with resolution strategies that include appropriate and sustainable support to customers who are in financial difficulty, the improving economic background and the ongoing recovery in collateral values," the bank stated.
It added that it expects the level of defaulted loans to continue to reduce.
The bank also said that new lending is in line with expectations, adding that it continues to see increasing demand for credit in Ireland.
Its UK business is also continuing to grow, which it said was due to the strength of its partnerships with and through the Post Office. However, it said the weakening of sterling period resulted in a reduction in reported loan volumes to €84 billion at September.
Analysts described today's interim management statement as slightly disappointing.
Meanwhile, Bank of Ireland has rowed back on a proposal to force all customers to make automated transactions for withdrawals of less than €700 or lodgements of less than €3,000.
The bank has insisted that elderly customers will still be able to use the in-branch services after they had announced new restrictions on the amount of money customers can withdraw or lodge in a branch with a teller.
Earlier today, the bank said customers will soon no longer be able to withdraw less than €700 or lodge less than €3,000 at the counter in some of its branches.
The bank was criticised by a number of politicians and charities who said the bank was ignoring the needs of its older customers with the new rules.
In a statement this afternoon, the bank clarified that elderly customers will still be able to use the in-branch services.
"Bank of Ireland would like to confirm that vulnerable customers, together with those elderly customers who are not comfortable using self-service channels or other technology solutions, will be assisted by branch staff to use the available in-branch services," the bank said.
Minister for Finance Michael Noonan had described the bank's decision as "unnecessary and surprising".
According to the National Digital Strategy, the majority of people aged 60 and over have never been online. It said only 3% of people aged over 75 have ever used the internet.
Bank of Ireland shares were lower in Dublin trade today.
