AIB has set aside a further €300m to deal with the tracker mortgage scandal.
The move comes after a decision by the Financial Ombudsman which has yet to be published. It brings the total fund for tracker mortgages at the bank to €570m.
AIB said that following "a preliminary decision issued by the Financial Services and Pensions Ombudsman" that the board "understands that redress may be due to a previously identified group of customers who had an option of a prevailing tracker rate".
The statement added that the board "recognises that there is a range of possible outcomes and has created a provision of €300m which will be taken in full-year 2019 financial results.
"The Board also recognises it is in the interests of the Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of customers.
"The Board expects to propose an ordinary dividend in line with our approach of between 40-60% of attributable earnings, subject to regulatory approval.
"The Group maintains a capital position above regulatory capital requirements and will record a CET1 ratio in excess of 16% at 31 December 2019."
The bank said that they will announce full year 2019 financial results on March 6.
The fine comes "in respect of serious failings to 2,007 tracker mortgage customer accounts which were impacted for the period between August 2004 and October 2018," according to the Central Bank.
This fine was the largest imposed to date by the Central Bank under the Administrative Sanctions Procedure.