May 30 (Reuters) - Canadian Imperial Bank of Commerce ( CM )

on Thursday reported a better-than-expected quarterly

profit, driven by robust performance in its capital markets

business and U.S. commercial banking segment.

The bank's capital markets and direct financial services

segment reported a net income of C$560 million ($408.2 million)

in the second quarter, up 13% from a year earlier.

CIBC said provision for credit losses was C$514 million in

the quarter, up C$76 million from a year earlier, but lower than

analysts' estimates of C$557 million, according to LSEG data.

Higher interest rates have raised the risk of customers

defaulting on their loan repayments, prompting lenders to build

bigger rainy-day funds.

The bank said it recorded lower loan loss provisions in its

commercial banking segment in Canada and the U.S., a market

where it was previously hit due to its exposure to office real

estate office. But it continued to set aside more funds for the

personal banking business.

Net income jumped 73% in the U.S. due to the lower provision

for credit losses and higher revenue.

The bank's adjusted net income rose to C$1.72 billion, or

C$1.75 per share, in the three months ended April 30, from

C$1.63 billion, or C$1.70 per share, a year earlier.

Analysts had forecast earnings of C$1.65 per share.

($1 = 1.3719 Canadian dollars)

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by

Shailesh Kuber and Sriraj Kalluvila)