Swiss financial giant UBS AG said it will likely break even, or record a slight loss, in its fiscal second quarter.

The firm announced that its results for the second quarter ended June 30, which will be released on August 12, “are likely to be at or slightly below break-even.”

The investment banking division will record another loss, which is being more or less offset by earnings in the wealth management and asset management groups, the company said. “Further market deterioration led to writedowns and losses on previously disclosed investment bank risk positions, in particular credit valuation adjustments on monoline insurance exposures,” the bank said. “Write-downs were mitigated by continued exposure reductions and by hedge benefits.”

The bank also said that its second-quarter results include a tax credit of approximately 3 billion Swiss francs, relating to losses recorded to date.

At the end of the quarter, UBS expects its Tier 1 capital ratio to be approximately 11.5%, and therefore has no need to raise new equity, it says.