AIB has posted its first full year profit since 2008.
The bank made a pre-tax profit of €1.1 billion in 2013 - this compares with a €1.7 billion loss in 2013.
A statement from the bank says that it has seen a significant reduction in the in the number of customers in arrears on their loans.
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This profit includes a €188m write-back of money that has been previously set aside to cover expected bad debts.
The State owned bank says lending approvals hit 13.2 billion euro in 2014 - a 37 percent increase on the previous year.
It's also reported a 22 percent drop in the number of owner-occupier mortgages in arrears and says it has provided solutions to 36,000 of its customers in financial trouble.
CEO David Duffy says the trend is a positive one:
