UBS and Deutsche Bank profits hit by eurozone crisis

European lenders UBS and Deutsche Bank have reported sharply lower profits for the three months ending in June due to lower fees and commissions in the economic downturn.

UBS made $425m Swiss francs ($434m; £276m) compared with 1bn francs a year earlier, down 58%.

UBS also said it had suffered a 349m Swiss franc loss on Facebook shares.

Deutsche's quarterly earnings fell 63% to 375m euros ($460m, £293m) from 969m euros last year.

Both banks blamed the economic downturn in Europe and the US for lower profits.

UBS warned it would look into making further cost savings. The Swiss group is already in the process of cutting 3,500 jobs.

In a joint statement, Deutsche's co-chairmen Jürgen Fitschen and Anshu Jain said: "The European sovereign debt crisis continues to weigh on investor confidence and client activity across the bank."