Bank of Ireland's pre-tax profit almost doubled to €725m in the first six months of this year.
That compares with €399m for the same time last year.
The value of defaulted loans at the bank was reduced by €1bn in the six month period and is now down by more than 25% from its peak level.
Bank of Ireland says its gross new lending increased to €6.5bn in the six months to the end of June, up from €4.3bn a year ago.