The loss-making bank, which has received more 20 billion euros ($26 billion) of state support, set aside 8.2 billion euros for provisions last year, a hangover from the bursting of a huge property bubble.

Tuesday's trading statement also said that AIB has made substantial progress on its restructuring plans.

It is axing 2,500 jobs - almost 20 percent of its workforce - and cutting wages by up to 15 percent in an attempt to turn a profit by 2014, though the continued low interest rate environment remains a challenge, the bank said.

AIB, which remains largely locked out of capital markets, said it would re-engage in a measured manner after rival Bank of Ireland raised 1 billion euros last week in its most significant bond issue in more than three years.

Deposits continued to increase at AIB despite outflows of 1.4 billion euros as a result of the previously announced closure of its operations in Isle of Man and Channel Islands.

Those closures are part of an extensive deleveraging plan set under Ireland's EU-IMF bailout and the bank said that at October 31 it had achieved 83 percent of its deleveraging target of 20 billion euros by the end of 2013.