The National Australia Bank has said that it will not be selling its Yorkshire and Clydesdale banks in the UK even as a difficult year has forced the company to record its first fall in profit since the global financial crisis.

The net profit of the bank fell 22 per cent to $4.08 billion during the one year period till September, 2012. The fall was mainly due to an expenditure of about $1 billion that was sued to boost its business in the UK. Chief executive Cameron Clyne has said that the bank’s liabilities have now reduced and the future performance will depend upon the Britain's economy.

He said that even as the UK’s economy has recorded a surprise growth of 1 per cent, indicating an exit from recession, there is still a slowdown in the market. He also noted that the UK’s recovery has been slow.

“I think our businesses perform well, we've grown momentum in the Australian franchise and the Australian economy will still probably outperform most developed economies. But it obviously looks like it's going to be a challenging 2013,” Mr Clyne said.