AIB says its positive performance last year continued in Q1 of 2016

The bank is reported to be considering the sale of some troubled loans

AIB says its positive performance last year continued in Q1 of 2016

Juilen Behal / PA

In a trading statement issued ahead of its AGM in Dublin this morning, the bank said the strong profitability, increased lending, and reduction in impaired loans that it recorded in 2015 has continued during the first quarter of the current year.

The bank’s net interest margin on lending rose by 12 basis points during the period to 2.09% while new lending drawn down by customers rose by 17%.

AIB says the value of impaired or non-performing loans reduced by €1bn during the first quarter to €12bn due to its case by case process of implementing restructuring solutions and that it wrote back €109m to profits from reserves held to date against bad loans.

There is no reference in the trading statement to a recent whistleblower allegation that the bank has been moving loans out of the impaired category too quickly and thereby inappropriately boosting profitability.

The claim is being reviewed by both the Central Bank in Dublin and the European Central Bank.

The Irish Times reports that the bank is considering the sale of some troubled mortgages, quoting sources from the bank.

It says that this is one option being reviewed by the bank, a spokesperson said that it will "keep all options under consideration," and added, "however, we have no active project."