The group made profits of A$4.1bn (£2.6bn) in the year, down 21.8 per cent from A$5.2bn last year.
The UK arm – made up of the Clydesdale bank, based in Glasgow, and the Yorkshire Bank – lost £139m in the year.
Higher funding costs and a £355m increase in bad debt charges contributed, with business lending being hit by the Eurozone crisis.
The units have also been hit by the payment protection insurance (PPI) mis-selling scandal, setting aside £108m to pay compensation so far, and the final amount is not known.
It has also set aside £48m for interest rate swap mis-selling claims.
But despite those losses, the group does not plan to sell off the UK divisions any time soon, as any sale would mean a shareholder loss.
NAB’s shares slid 0.35 per cent on the day.