The company, which is 41 per cent-owned by the taxpayer, said it expected to continue to make profits throughout the rest of the year.
It said the rate of "impairments" has improved – which effectively means it has fewer bad debts.
Group chief executive Eric Daniels said in a statement: "The Group is continuing to see positive trends in line with our recent trading update on 19 March 2010.
"In particular, impairments have slowed significantly in the first few months of the year giving us confidence that we will achieve a better financial performance than previously guided.
"I am pleased to report that we returned to profitability in the first quarter and expect this momentum to be sustained throughout 2010."