AIB Chief Executive Eugene Sheehy has said the bank is reviewing its mortgage interest rates, but has no current plans to increase them.
He was speaking after the AIB Group reported a pre-tax loss of €900m for the first six months of its financial year.
In the six-month period, customer loans decreased by 2% and customer deposits fell by 12%.
Shares in the bank closed up almost 8.5% at €1.86 in Dublin this evening.
AIB says its operating environment continues to be extremely difficult.
Both a player in and a victim of Ireland's economic difficulties, AIB's books have been hit by a massive charge of €2.37bn for impaired loans.
Parts of the business that banks consider assets, like loans to property developers and for mortgages, have dropped massively in value, and 25% of the bank's loans are now being watched closely by the bank. 8.1% of its loans are impaired.
AIB says it supports plans for the National Assets Management Agency, or NAMA, which will try to address property, building and construction problems, but that it is too early to say what its impact will be on AIB's capital.
It says the Irish economy is still in a very challenging phase.
Meanwhile, the Lloyds Banking Group has written off more than €1.16bn in bad loans relating to its Irish business.
In its half-year results published today, the London-based bank, which owns Bank of Scotland (Ireland), said total loan impairments from its international business were £1.4bn.
