AIB has reported an operating loss of €2.8 billion for 2012. That is down 65% from €8.1 billion the previous year.

Dependence on European Central Bank (ECB) lending dropped at the bank by €9 billion last year to €22 billion at the end of December 2012.

9.1% of AIB residential mortgages are in arrears of over 90 days. While almost 18% of buy-to-let mortgage accounts are in arrears.

The bank says the key points in this report are:

• Operating loss before exceptionals of €2.8bn for 2012, down 65% from €8.1bn in 2011
• Group provisions charge of €2.5bn for 2012, a reduction of 70% from 2011 
• A reduction of €9bn (29%) in reliance on ECB funding to €22bn at December 2012 from €31bn at December 2011
• €2.9bn (5%) growth in customer accounts in 2012 despite the announcement to close certain offshore businesses (c.8% increase excluding the closure of these operations)
• Including contracted sales, 89% of year end 2013 deleveraging target of €20.5bn achieved by end 2012 
• Loan to deposit ratio of 115% at December 2012, a 23% reduction from December 2011

CEO of AIB is David Duffy. He told Breakfast here on Newstalk that they have begun issuing long-term mortgage solutions to distressed customers in the last quarter. He says he is confident the bank will hit the targets set out by the Central Bank.