THE French state owned bank Credit Lyonnais, bailed out by the government last year after racking up huge losses, is today expected to report a face saving break even result or even a slight profit for 1995. Credit Lyonnais has a 52 per cent stake in Woodchester Investments.

There had been reports the bank might dive into the red again after stunning financial markets with a 12.1 billion French franc (£1.51 billion) loss in 1994, the legacy of a heady expansion spree that brought it to the brink of collapse.

But analysts said that even if the bank stayed out of the red for 1995, its problems were not over. This would be due in large part to the financing costs of the bailout, as well as to the dismal overall banking environment in France, marked by fierce competition and wafer thin margins.