BOSTON ( TheStreet) -- UBS ( UBS) was among the top performers of the financial sector Tuesday after the Swiss bank swung to a second-quarter profit as net client outflows shrank.

UBS swung to a profit of 2 billion Swiss francs ($1.9 billion) from a year-earlier loss of 1.4 billion francs. UBS said net outflows at its private banking business were 5.2 billion francs in the second quarter, down from 8 billion francs in the first quarter.

UBS said it expected an end to its U.S. regulatory problems now that the Swiss parliament has approved closer cooperation with the Internal Revenue Service.

Shares of UBS trading in New York were climbing by $1.27, or 8.4%, to $16.42.

Several other banks were out with quarterly results Tuesday. Deutsche Bank ( DB) said second-quarter net profit rose to €1.17 billion from €1.07 billion in the year-ago quarter, although revenue fell to €7.2 billion from €7.9 billion a year earlier. Shares of Deutsche Bank were lately up 3.7% to $68.60.

In the U.S., Regions Financial ( RF) reported a net loss of 11 cents a share, adjusted to reflect a charge related to Morgan Keegan. That was narrower than the Thomson Reuters average estimate for a loss of 21 cents a share. Shares of Regions advanced 3.7% to $7.35.

Nasdaq OMX Group ( NDAQ) rose 3.3% to $19.63 after the exchange notched a second-quarter profit of 52 cents a share on revenue of $390 million. That came in ahead of the Thomson Reuters average estimate for earnings of 49 cents a share on revenue of $377.1 million.

Wilshire Bancorp ( WIBC) shares rallied by 11.6% to $7.82 even after the bank holding company swung to a second-quarter loss of 15 cents a share from a year-ago profit of 44 cents a share. Still, Wilshire's loss was narrower than the 16-cent-a-share loss analysts had predicted, according to Thomson Reuters.

On the other hand, CIT Group ( CIT) shares fell 2.3% to $38.10 after the lender reported second-quarter financial results. CIT Group said it had a second-quarter profit of 71 cents a share, coming in well ahead of the Thomson Reuters consensus estimate of 33 cents a share. However, net interest revenue declined 14.6% from the first quarter of 2010 to $179.9 million.

Away from earnings, many U.K. bank stocks were trading up. Lloyds Banking Group ( LYG) rose 7.3% to $4.40, Royal Bank of Scotland ( RBS) was up 7.1% to $15.60, and Barclays ( BCS) climbed 6.3% to $21.04.

On the downside, Allied Irish Banks ( AIB) sank 4.5% to $2.53, and Bank of Ireland ( IRE) fell 1.8% to $4.39.

Among the major U.S. bank stocks, Goldman Sachs ( GS) shares slipped after the company said it has launched its Derivatives Clearing Services (DCS) business. "DCS provides clients with a comprehensive global OTC clearing service for interest rates, credit, foreign exchange, equities and commodities," Goldman said in a statement.

Goldman shares were off 0.4% to $147.60.

Other U.S. bank stocks were trading higher Tuesday. JPMorgan Chase ( JPM) shares advanced 1.1% to $40.76, Morgan Stanley ( MS) rose 0.8% to $27.22, Bank of America ( BAC) added 0.7% to $14.25, and Citigroup ( C) was higher by 0.6% to $4.18.

-- Written by Robert Holmes in Boston.

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