Société Générale, France’s second-largest bank, said it expects to report “slightly positive” net income in the second quarter, helped by its corporate and investment banking division.

Net banking income will be hurt by a €1.3 billion ($1.8 billion) writedown on credit default swaps used to hedge the bank’s loan portfolio and debt securities, the lender said.

Société Générale has raised €3.4 billion in state funds. – (Bloomberg)