AIB returns to the black but holds €10bn of deposits on negative interest rates

AIB said talks to buy Ulster Bank's €4bn commercial loans had "progressed constructively"

Colin Hunt, CEO at AIB Group said the group returned to profitability in the first quarter of 2021.

AIB has predicted the economy will emerge strongly this year from the Covid-19 crisis, saying it is already back in the black but is now carrying €10bn of deposits on negative interest rates.

In an update, the bank said that talks with Ulster Bank parent NatWest to buy €4bn commercial loans had "progressed constructively" and it was awaiting regulatory approval over its plan to buy back broker Goodbody.