National Australia Bank is no longer chasing an acquisition to transform its British and Irish operations, but will instead focus on bringing its four banks closely together.

Australia's largest bank was left reeling last month when it was forced to write off 360 million Australian dollars (€221 million) after a rogue trading scandal. Since then it has announced plans to sell off strategic stakes in three Australian companies - including life assurer AMP - which could raise up to A$1 billion.

Mr John Stewart, the new chief executive of NAB Europe, dismissed fears that the scandal in Australia might force NAB to rein back plans for its operations here. Mr Stewart said NAB planned to invest in National Irish Bank (NIB), Northern Bank, Yorkshire Bank and Clydesdale rather than search for a deal. In the past it has been named as a potential bidder for Abbey National and Alliance & Leicester.

Mr Stewart said: "Late last year NAB took the view that you can't wait for acquisitions to come along. It's like waiting for a taxi on a rainy day - they never come.

"We reached a point where we have to do things and can't rely on acquisitions so we will focus on organic growth integrating the businesses.

"On acquisitions, what I would say is 'Never say never', \ the thrust of the strategy is organic," he said.

NAB is due to update investors on plans for its European operations in April. It intends to integrate the banks more closely and move them on to one information technology operating system instead of four.

More staff will also be moved into customer-facing roles rather than administrative posts although a large jobs cull is not expected.

NAB also wants to integrate its two Irish banks - NIB and Northern - into one legal entity. - (Financial Times Service)