PARIS - French bank Natixis said yesterday it swung to a loss in the third quarter after setting aside money for its exposure to the bankruptcy of Lehman Brothers and Icelandic banks, and warned that "chaotic" market conditions would lead to further losses this year

France's fourth-largest investment bank lost 234 million euros ($293 million) in the July to September period, compared to a profit of 437 million euros a year earlier, as the bank's revenue declined and its cost of risk surged due to the global financial crisis, Natixis said.

The bank's corporate and investment banking division lost 335 million euros ($420 million) in the quarter, after taking hundreds of millions of euros in depreciations on its exposure to bond insurers and structured investment products, Natixis said.The division's earnings were also hit by a loss of 143 million euros ($179 million) because of Lehman Brothers' collapse as well as a smaller loss caused by the nationalization of Icelandic banks brought low by the crisis.