By Jeff McKinney
The Cincinnati Enquirer

A big decline in loan losses and growth in revenue helped the parent of Provident Bank post profits last year and in the fourth quarter, the company said Wednesday.

Provident Financial Group Inc., which has wrestled with credit losses in recent years, said it earned $119.4 million, or $2.35 a share, in 2002, up from $23.3 million, or 46 cents a share, in 2001.

In the fourth quarter, the Cincinnati-based banking company made $31.9 million, or 63 cents a share, versus a net loss of $28.9 million, or 59 cents a share, during the fourth quarter of 2001.

The higher earnings in 2002 came after Provident posted losses and big profit declines in 2001 and 2000, most of which were tied to covering bad business loans hurt by the weak economy, the Sept. 11 terrorist attacks and exposure in the commercial aircraft lending and leasing business.

After taking aggressive actions to reduce its credit risk profile in recent quarters, Provident last year was able to significantly reduce its commercial loan losses.

Provident said provisions for loan losses declined to $106 million last year, versus $226 million in 2001. The bank was able to reduce its credit risk as it gradually left some businesses, including commercial aircraft lending and sub-prime lending.

"We had a tough year in 2001," said Chris Carey, Provident's chief financial officer. "So, we're very pleased with the progress we made in the fourth quarter and for the year in 2002."

The company also said revenues rose 8 percent last year to $755 million, up from $699 million in 2001. The gain came as the bank boosted fee income for the year 10 percent to almost $250 million.

E-mail jmckinney@enquirer.com