The pace of new mortgage arrears in AIB is slowing, but the problem continues to grow and three out of 10 restructured homeloans are falling back into trouble, the bank said in its interim management statement.
AIB was included in recent criticism by the Central Bank's Fiona Muldoon of the banking sector's approach to the mortgage crisis.
Yesterday, it said the "design and build phase" of the Mortgage Arrears Resolution Strategy (MARS) approach was now complete.
A dedicated unit within the bank has been created to work with customers in difficulty, and significant progress is expected in the next six to 12 months.
The pace of arrears in the mortgage book has slowed, and overall provisions for customer bad debts will materially reduce from 2011's elevated levels.