Exiting some businesses, lowering its credit risks and investing in other businesses caused Provident Financial Group Inc. to post a 6.6 percent decline in second-quarter profits.

        The Cincinnati-based parent of Provident Bank earned $29.8 million, or 58 cents a share, down from $31.9 million, or 63 cents a share, a year ago. Although profits dropped, Provident's management said the bank is optimistic because it's meeting internal targets and market expectations.

        Chris Carey, Provident's chief financial officer, said the bank is seeing the fruits of its efforts to change its business strategy and boost profitability slowly materialize.

        He said charge-offs for bad loans — something that has hurt Provident's profits for almost the past two years — are beginning to stabilize; the bank's efforts to boost business in its retail banking unit is beginning to pay off; and the level of nonperforming loans is falling.

        Mr. Carey said the bank will focus on de-emphasizing the structured finance and sub-prime lending businesses, something that could help reduce credit risk.

        Still, Wall Street analysts said Provident's biggest challenges will be improving credit quality and boosting loan growth, an issue for many U.S. banks as the economy slowly recovers.

        Provident had second-quarter revenues of $191.7 million, up from $180 million, a year ago.

        In other reports:

        First Financial Bancorp: The parent of the First National Bank of Southwestern Ohio had second-quarter earnings of $13.4 million, or 29 cents a share, up from $9.8 million, or 21 cents a share, a year ago.

        The Hamilton-based banking company said quarterly share earnings jumped 38 percent as credit costs and charge-offs on problem loans returned to more normalized levels. First Financial also said net interest income rose to $41.7 million, up 4 percent from last year's second quarter.

        KeyCorp: The parent of Key Bank earned $246 million, or 57 cents a share, rebounding from a loss of $160 million, 38 cents a share, during last year's second quarter.

        The stronger earnings came as the KeyCorp set aside less money to cover problem loans and cut costs, including eliminating 813 jobs during the past year as the economy slowed down. Revenues rose 4.7 percent to $1.17 billion.

        Chief executive Henry Meyer III eliminated 3.7 percent of his work force as a sluggish economy prompted KeyCorp to cut expenses. Demand for loans fell while the bank set aside $135 million for loans that aren't likely to be repaid, down from a year-earlier $401 million.

        Bank One Corp.: The Chicago-based, sixth-biggest U.S. bank with operations in Greater Cincinnati, said second-quarter profit rose 27 percent as it added credit card customers and as fees from deposits and credit cards jumped.

        Net income climbed to $843 million, or 71 cents a share, from $664 million, or 56 cents, the company said. Analysts expected earnings of 68 cents a share, according to Thomson First Call.

        Chief executive officer Jamie Dimon, who took over the Chicago bank in March 2000, is trying to squeeze profit from businesses other than traditional corporate lending. He has cut expenses and boosted marketing at First USA Inc., the third-largest U.S. card issuer. The unit's profit rose 53 percent to $296 million in the quarter and fee revenue increased 54 percent.

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