UPDATE 1-SocGen says Q2 net income to be slightly positive

* Says net banking income to have 1.3 billion euro hit

* Says cost of risk comparable to its level in Q1

* Tier one and core tier one ratios close to March 31 levels

* Q2 results to be published on Aug. 5

* Shares down 1.5 pct

(Adds detail)

PARIS, July 6 (Reuters) - Societe Generale (SOGN.PA) expects to post a small second-quarter net profit helped by its corporate and investment banking division, the French bank said in a statement on Monday.

The bank said net banking income would be hit by a negative impact of 1.3 billion euros resulting from credit default swaps used to hedge its loan portfolio and debt instruments used by the group.

The cost of risk is expected to reach a level comparable to the first quarter, SocGen added.

The group's Tier One and Core Tier One ratios are expected to be close to their levels at March 31 pro-forma of the issuance of preference shares to the French state, the bank said.

SocGen said it will publish full second-quarter results on Aug. 5.

"Net income is expected to be slightly positive," the bank said.

"Solid operational performances, in particular in Corporate & Investment Banking, will absorb the significant negative impact on the accounts of the substantial tightening of credit spreads stemming from an improving market environment and reduced aversion to risk since mid-March."

Shares in the bank were down 1.5 percent at 37.35 euros shortly after trading began on Monday. The French CAC 40 index .FCHI was 0.8 percent weaker.

Societe Generale slumped to a surprise loss in the first quarter as higher-than-expected writedowns and provisions hit the bank's earnings. [ID:nL6995599] (Reporting by James Regan)