BANK of Ireland said it will not need to raise additional capital after regulators carried out an assessment of its balance sheet.
Separately, Allied Irish Banks (AIB) said it is well capitalised following its assessment.
The review of Irish banks’ balance sheets is part of the Government’s plan to exit the bailout later this month.
The results will be incorporated into next year’s stress-test by European regulators.
Bank of Ireland, led by Chief Executive Richie Boucher, is also preparing to repay part of its government bailout.
Regulators estimated the lender may have to increase provisions for Irish residential mortgages by as much as €400m, and those for business, real-estate and construction loans by €486m.
The bank may also need to book an additional €274m-euro loan-loss charge as a result of a new regulatory treatment of defaulted assets that will take effect next year.
Finance Minister Michael Noonan said there was no great surprise in the results.
“We always expected that some of the buffers we put in two years ago would be eaten away as debt was crystallised and that has happened,” Mr Noonan said.
“We hope when the stress tests are done right across the European banking system next year that we’d be adequately provisioned.”
The results “remain the subject of ongoing engagement between the Central Bank of Ireland and Bank of Ireland,” Bank of Ireland said.
“The bank remains confident of its own methodologies, calculations and impairment provisions.”
Bank of Ireland fell 3.2pc to €27.7 at 9:07 am in Dublin trading.