Bank of Ireland has also issued an interim management statement for the nine months to the end of September which indicates that new lending continues to grow both in Ireland and the UK.
The value of defaulted loans continues to decline, falling by €0.8bn to €12.5bn during the three months to September.
“These reductions reflect our ongoing progress with resolution strategies that include appropriate and sustainable support to customers who are in financial difficulty, the improving economic background and the ongoing recovery in collateral values,” the bank said in a statement.
The Group continued to build its capital base during the period ahead of an anticipated repayment of the €1.6bn in preference shares held by the Government, in early 2016, though capital formation was impacted in the most recent quarter by negative pension reserve movements.
The Bank made a non-core gain of €57m during the third quarter due to a transaction by its joint venture partner, the UK Post Office.
It said its defaulted loan volumes had fallen by €800m to €12.5bn in the three months to the end of September, with reductions across all asset classes.
