Staff at Bank of Scotland Ireland (BOSI) have become more optimistic about the future of the business in the absence of any definitive plan for Halifax, its retail arm, and its troubled property development assets, according to union officials.

According to Unite regional officer Brian Gallagher, who represents 900 out of 1,700 employees at BOSI, the lack of communication from management has settled nerves in the rank and file after a summer of reports anticipating the closure of some parts of the bank.

"The longer it goes on, the more employees are beginning to feel – maybe naively – more confident," said Gallagher.

Gallagher said the recent €750,000 TV3 sponsorship deal and reported plans to launch new products imminently have also persuaded staff that BOSI's executive committee has changed course and will not be shutting down Halifax or transferring billions in assets to Britain's treasury's asset protection scheme.

Sources close to the executive committee told the Sunday Tribune in July that BOSI was preparing to announce the closure of its retail banking arm and the transfer of €20bn in assets back to the UK as a result of a widespread review called 'Project Primrose', which was initiated late last year as Lloyds was taking over BOSI's then-parent HBOS.

BOSI chief executive Joe Higgins then informed union officials of an unspecified "significant development" which could reverse this course, but no further announcement was made.

It now appears Higgins' trump card was a deal to sell BOSI's loan book at a significant discount to US private equity firm Blackstone, but that deal is believed to have blown up at the last minute, leaving BOSI in confusion.

During all this unrest, top executives Antoinette Dunne, Paul Cunningham and Richard McDonnell left the bank. At first it was thought they left because of BOSI's limited prospects, but sources now believe at least two of the three are involved with the Blackstone approach with an eye to running book on behalf of the private equity firm.

In the meantime, management has communicated nothing more to the unions in the last six weeks, although Gallagher says the review of operations is "ongoing".

Lloyds chairman Win Bischoff is also now reconsidering its participation in the UK asset protection scheme on account of its expected cost of over £15bn.