Bank of Ireland has said the group continues to trade in line with expectations and that any further tracker mortgage provisions are "manageable". 

Bank of Ireland has set aside €25m in provisions to deal with the tracker issue, less than the four other banks - AIB, Permanent TSB, Ulster Bank and KBC Bank Ireland.

In a trading statement for the third quarter of 2017, the bank said the economic growth in its core markets of Ireland and the UK remained positive notwithstanding ongoing uncertainties related to Brexit.

Bank of Ireland said its customer loan volumes amounted to €77 billion by the end of September.

It noted that net new lending of €10 billion for the nine months to the end of September was about 3% higher than the same time last year. This figure included a 38% increase in Irish mortgage volumes. 

Meanwhile, customer deposits came to €75 billion and wholesale funding stood at €13 billion. 

The bank said the asset quality of its loan portfolio continued to improve, with non-performing loans down €0.4 billion since the end of June to stand at €7.7 billion at the end of September.

Impaired loans were also lower, falling by €0.4 billion to €5 billion.

Today's trading statement also referred to the tracker mortgage issue with Bank of Ireland saying it will outline the compensation process to customers affected by the issue from November 10.

"To the extent that an additional provision associated with this review is required, the group anticipates this to be manageable in the context of the group's capital position. A further update will be issued in mid-November," the bank said.

Bank of Ireland also said today that its core tier 1 capital ratio - a key measure of financial strength - stood at 12.8% at the end of September under Basel III industry rules, up from 12.5% three months earlier.

Investec and Davy Stockbrokers both said the bank's comments on provisions implied it would not be constrained from resuming dividend payments as planned for the first time since the financial crisis early next year. 

Bank of Ireland said it had taken a further capital deduction in the third quarter to facilitate a payout.

Shares in Bank of Ireland were sharply higher in Dublin trade today after yesterday's losses.