FILE – In thos June 22, 2012 file photo a man walks past the logo of the UBS bank in Zurich, Switzerland.

GENEVA (AP) — Shares in UBS plunged after the Swiss banking giant posted a worse than expected 58 percent fall in second quarter profits Tuesday due to losses from the Facebook stock listing and a downturn at its investment banking division.

Hit by lower trading revenue and fewer commissions and client fees, Switzerlands largest bank said the 58 percent net profit drop reflects "challenging conditions marked by increased volatility and greater client caution.

"(AP Photo/Keystone, Alessandro Della Bella, File)GENEVA (AP) — Shares in UBS plunged after the Swiss banking giant posted a worse than expected 58 percent fall in second quarter profits Tuesday due to losses from the Facebook stock listing and a downturn at its investment banking division.

The bank, which said in Februaryit was targeting assets of 150 billion Swiss francs by 2015, didnot provide an update on that target.

“The Zurich based bank missed analysts’ estimates for more than 1 billion francs in profit, and its shares fell 6.5 percent to 10.22 francs ($10.44).UBS AG incurred a 349 million francs loss due to problems executing electronic trades on the day of Facebook’s listing on the Nasdaq exchange in May. That pushed the investment banking unit to a pretax loss of 130 million francs for the second quarter.Because of those technical errors, which gave UBS more shares than its clients ordered, the bank said it will take unspecified legal action against Nasdaq to recoup the losses.”.

Deutsche Bank AG (DBK), Germany’s biggestbank, said it will reduce risk to meet a 2013 capital ratio goalafter second quarter profit missed analysts’ estimates onexpenses tied to a weaker euro.

We will take appropriate legal action against Nasdaq to address its gross mishandling of the offering and its substantial failures to perform its duties,” the bank said.Chief Executive Sergio P. Ermotti, who is cutting the investment bank’s size by more than half, told investors in a statement that going forward UBS will focus more on wealth management to comply with the need for greater capital cushions. He said the bank would continue to focus on “prudent liquidity management, further reducing risk weighted assets and delivering the best possible service to our clients.

“The bank said it had surpassed requirements to increase its capital cushion and prudently cut costs that should lead to better results by the end of 2013. UBS said it plans to boost capital by 15.3 billion francs this year to comply with the urgings of the Swiss central bank.It also said it was continuing to reduce its exposure to risky assets by 45 billion francs in the second quarter, following recent scandals such as a $2 billion loss attributed to a former London trader accused of fraud. The bank now plans to reduce its exposure to 270 billion francs of such assets by 2013.UBS is cutting about 3,500 jobs, and had 63,520 staff at the end of June.Its outlook remained cautious, however, because of Europe’s sovereign debt crisis and the gloomy world economic outlook, even as it expressed confidence that it would continue to attract net new assets.”.

Jason Murdoch is a business journalist based in Hobart, Australia. Jason has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Jason spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.