AIB’s mortgage arrears improve

State-owned AIB reported an improvement in a number of its key indicators as well as a stabilisation of its mortgage arrears, according to its latest trading update.

"The bank’s trading performance in Quarter 3 to end-Sept 2013 continued to improve in line with expectations, with ongoing progress made in implementing the bank’s strategic objectives and continued momentum in the bank’s operating profile. Overall operating income benefited from positive expansion in Net Interest Margin (NIM) due to ongoing strategic actions to re-price assets and liabilities and the reduction in Eligible Liabilities Guarantee (ELG) costs,” it said in a statement.

“Excluding ELG costs, average NIM for Quarter 3 2013 was in excess of 1.4%, and in excess of 1.6% excluding ELG and Nama senior bonds. Operating expenses, including staff costs, have reduced due to management’s focus on and control of the cost agenda. The bank’s voluntary severance programme is ongoing,” it added.