National Australia Bank's full year profit has fallen 22% to $A4.08 billion due to problems in Britain.
AAP reports the result for the year to 30 September included provision of $A250 million for bad debts at its British banks, plus impairment and restructuring costs.
NAB's net profit fell from $A5.22 billion in the previous 12 months. Full year cash profit, which excludes one-off financial items, was $A5.43 billion, down slightly from $5.46 billion in the previous year.
Chief executive Cameron Clyne said NAB's Australian and New Zealand businesses posted improved performances in the year to September, but that was overshadowed by the problems in Britain.
He said conditions there remain challenging, with the economic recovery proving to be slower than the recovery from the Great Depression.
"Hopefully we are seeing the bottom of the cycle in the UK," Mr Clyne said on Wednesday.
Mr Clyne said economic conditions in Australia would be challenging in fiscal 2013, with consumer sentiment low and business conditions weak.
NAB would continue to focus on attracting new customers and cutting operating costs in order to achieve revenue growth.
AAP reports the bank cut employee numbers by 1309 in the year to September, to 43,336.