AIB has said it is on track for a full year financial performance in line with market expectations

In a trading statement this morning, the bank said its net interest margin rose to 2.57% for the first nine months of the year, up from 2.54% in the first half of the year.

Net interest margin is a key measure of profitability and reflects the continued growth in lending at the bank.

In today's trading update, AIB said that its new lending drawdowns were up 15% year on year.

Its impaired loans at the end of the third quarter stood at €7.3 billion, down 20% from €9.1 billion at the end of 2016 and AIB said the strong momentum was continuing into the end of the year.

On the tracker mortgage issue, AIB said that it was "well progressed" on its work on the Central Bank examination and had made a substantial provision for the issue in 2015.

The bank also said that high levels of uncertainty in the global economy and especially with the potential challenges of Brexit, it continues to work with its Irish and UK-based customers to better understand the potential impact of Brexit.

But it added that so far, the Brexit impact has been "modest" for both the Irish and UK economies.

"Any change in provisioning levels, as we conclude, is not expected to have a material impact," the bank added.

"The growth in new lending and earning loan balances combined with further reductions in impaired loans are creating a stronger balance sheet and further improving the bank's risk profile," AIB said.

Meanwhile, AIB has no plans right now to accelerate its dividend trajectory despite growing its level of capital sharply in the third quarter, the bank's chief financial officer said today. 

"It is true that we have had a very strong performance but we would maintain the guidance over a two to three year period seeking to grow dividend flow to between 50-60%," Mark Bourke said.

He made his comments after AIB's core tier one capital grew to 17.6% under fully loaded Basel III industry rules from 15.3% at the end of last December.

Shares in the bank moved 0.9% higher in Dublin trade today.