In the first quarter of 2011, pre-tax profit stood at $463 million compared to $1800 million in the first quarter of 2010. Lower profitability is reflective of a balance sheet reduction that includes losses on sales of non-core treasury assets of $694 million and lower net interest margin (NIM). Net interest margin was 2.07% compared to 2.08% a year earlier, driven by higher costs related to increase in wholesale funding.
Impairment charge was $4251 million, $315 million higher than in the year-ago period, impacted by higher declines in Ireland's commercial real estate prices. The cost-to-income ratio was 52.9% compared to 45.8% in the first quarter of 2010 owing to losses on disposal of non-core treasury assets.At the end of March, Tier-1 ratio was 11.4% and capital ratio was 14.8%. On average, analysts expect the stock to gain 45% over the next one year.