Personal lending in Ireland was up 9% to €1.0bn while new lending to small and medium sized businesses increased by 4% to €1.2bn.

“We expect customer loans to grow by 5-6% in 2024, upgraded from previous guidance of 4%,” the bank said.

AIB’s net interest income (NII) was 12% higher during the same period compared to the same time last year primarily as a result of higher interest rates and an increase in average loan volumes.

The bank’s full year NII guidance is around €4bn which assumes an European Central Bank deposit rate of 3% in December.

AIB’s other income decreased 15% on the equivalent prior year period, reflecting lower income from forward contracts with the completion of the onboarding of Ulster Bank loans. This income stream is expected to be above €700m for the year.

AIB chief executive Colin Hunt said he is pleased with the company’s performance during the third quarter “continuing the momentum from the first half”.

“We remain confident in our outlook for the remainder of 2024 and beyond given our 3.3 million customer base, competitive market positioning, growing loan book and resilient and diversifying income,” he said.

Customer accounts increased by €3.2bn to €108.0bn - compared to €104.8bn as of the end of December. Of all their customer accounts, 92% are based in the Republic of Ireland.

The mix between current accounts and deposits remains broadly unchanged from December last year.

The bank said that costs are up 6% in line with their guidance due to increased staff numbers to support higher business volumes, inflation and enhanced employee benefits.

AIB said that bank levies and regulatory fees are expected to be around €145m.

“As we close out the first year of our new strategic cycle, the Group is on track to deliver a very strong performance in 2024. Our confidence in our outlook for the remainder of 2024 and beyond is underpinned by our leading customer franchise, competitive market positioning and strong balance sheet,” the bank said.