AIB says it is on track to return to pre-provision operating profit in 2013.
According to its interim management statement, actions taken in 2012 have delivered an improvement in the bank's overall operating performance in the first quarter of 2013.
AIB's loan portfolios are also performing in line with expectations and its bad debt provisions for this year will be significantly lower than in 2012 - based on expected economic performance.
The bank says it is continuing to offer sustainable permanent solutions for mortgage and SME customers in financial difficulty.
AIB says it is committed to meeting or exceeding targets set by the Central Bank of Ireland in relation to mortgage arrears.