Banking group Abbey National said its restructuring was on track despite forecasts of lower-than-expected profits at its core business.
The company, which is trying to recover from two years of heavy losses, told shareholders that further pressure on margins had left first-quarter profits in personal finances slightly lower than the second half of 2003.
That has caused the outlook at the company's core high street business to be "moderately weaker" than originally expected.
However, Abbey said it would still show a return to the black in the current financial year - after losses hit £686 million sterling in 2003 and £947 million in the year before that.
Abbey has responded to the crisis with a three-year restructuring drive has seen it sell non-core assets and reorganise its operations.