The proposed sale of the First Trust Bank is under review, it has emerged.
Allied Irish Bank put its UK operations up for sale in March. First Trust is the bank's Northern Ireland business.
In a statement, AIB said that "in light of current market conditions, progress in relation to the disposal of that business has been challenging".
It said it "continues to keep the sale process under review and will update the market in due course".
Following the bank's EGM in Dublin on Monday, the new executive chairman of AIB, David Hodgkinson, said that "there was an attempt to sell it and it could not be sold on satisfactory terms".
"So, we are now going to work with the UK bank to try and strengthen it, stabilise it and we will start re-examining all the options for it," he said following the bank's EGM in Dublin on Monday.
First Trust employs about 1,300 people in Northern Ireland.
In a statement, the Irish Bank Officials' Association (IBOA) general secretary Larry Broderick said that it was "aware that the proposal to dispose of AIB's UK Division was to be considered by the Board of AIB within the next few weeks,"
He said neither the union nor staff "had been told that the decision to withdraw the business from sale had already been taken".
"Staff in First Trust Bank and AIB (GB) are entitled to feel somewhat confused in the present situation."
IBOA said it was seeking a meeting with the AIB's executive chairman to discuss the issue.