Bank of Ireland said it continues to trade in line with expectations.

In an interim management statement, Bank of Ireland said that economic growth in its core markets of Ireland and the UK remained positive despite ongoing uncertainties related to Brexit.

New lending in the first nine months of 2018 rose by about 15% compared to the same time in 2017.

This included a 24% increase in new mortgage lending in Ireland where the lender's market share was 28% for the first eight months of 2018. 

The group recently said that it is re-entering the Irish mortgage broker market next month. 

Bank of Ireland said its customer loan volumes amounted to €76.6 billion at the end of September 2018, an increase of €0.5 billion since the end of December 2017.

It also said that asset quality across its loan portfolios continued to improve in line with expectations. 

"Absent a change in the economic environment or outlook, we expect a modest impairment charge in the second half of 2018 and a net impairment gain for the full year 2018," the bank said.

The bank said it continues to maintain tight control over the cost base, while making appropriate investments in its businesses, infrastructure and staff including its business transformation programme which continues to make progress. 

It forecast that operating expenses for the second half of 2018 will be lower than the first half of 2018.

Bank of Ireland said today that its net interest margin - a key measure of bank profitability - for the nine month period stood at 2.23%, which was in line with its expectations. 

Business income has remained in line with the first half of 2018, it added.

Bank of Ireland shares were higher in Dublin trade today.

In a note, Davy Stockbrokers said that Bank of Ireland continues to make progress towards its strategic objectives and looks significantly undervalued.