Bank of Ireland said its capital adequacy remained robust over the first three months of the year after organic capital growth mostly offset a rise in its pension deficit.
In an interim management statement, the bank said its defined benefit pension deficit rose to €900m from €700m at the end of 2015.
Its Core Tier 1 capital ratio, which dipped in two of the previous four quarters due to the deficit, stood at 11.2% of assets at the end of March compared to 11.3% at the end of December.
In today's update, Bank of Ireland said that it continued to trade in line with expectations during the first three months of the year.
The bank said that the macroeconomic environments in Ireland and the UK - its key markets - have remained favourable.
Bank of Ireland noted that the Irish export sector continues to expand and domestic activity increase as improving labour market conditions and other factors positively affect consumer spending.
The bank also said its asset quality trends continued to improve in line with its expectations.
Non-performing loan volumes have fallen by €0.9 billion since December 2015 to €11.1 billion at the end of March, with reductions across all asset classes.
It added that the level of defaulted loans reduced by €0.8 billion during the three months to €9.8 billion.
Bank of Ireland said these reductions reflect its "ongoing progress with resolution strategies that include appropriate and sustainable support to customers who are in financial difficulty, the positive economic environment and the ongoing recovery in collateral values".
Ahead of its annual general court today, the bank said that customer loans were impacted by a fall in the value of sterling.
Customer loans volumes reduced to €81 billion at the end of March from €85 billion but the bank said that new lending volumes increased year-on-year.
It net interest margin - which shows how profitable its lending is - also dropped to 2.11% from 2.17% in the second half of last year.
The bank said today it was maintaining its guidance for full-year loan growth.
Bank of Ireland is set next year to become the first Irish lender to reinstate dividend payments since the financial crisis.
