Société Générale is set to report €1.3bn ($1.8bn) in losses from credit default swaps when it reports second-quarter results next month, muting its return to profitability.

The French bank said it expected to register on August 5 only “slightly” positive net income in the quarter, in spite of strong results from its corporate and investment banking arm. It forecast a “significant negative impact” from CDSs and from mark-to-market losses on its debt.