TORONTO, May 30 (Reuters) - Royal Bank of Canada ( RY )

, the country's No.1 bank, on Thursday surpassed

analysts' expectations for quarterly profit, driven by strength

in its capital market business and its core personal banking

segment.

Canadian Imperial Bank of Commerce ( CM ), the country's

fifth largest bank, also beat profit expectations on capital

markets strength and as it set aside smaller than expected loan

loss provisions.

A resurgence in M&A activity after a long lull as

interest rates soar has helped Canadian banks in recent

quarters, even as loan loss provisions continue to weigh on

profits.

The top six Canadian banks, which together control more

than 90% of the country's banking market, have been struggling

amid high interest rates that weighed on consumers' wallets as

monthly mortgage payments, credit card bills and living costs

rose.

RBC's personal and commercial banking unit, which now

includes HSBC's domestic unit after a $10 billion acquisition,

recorded a 7% rise in net income, primarily driven by higher net

interest income - the difference between what a bank earns on

loans and pays on deposits.

Still, provisions for credit losses came in at C$920

million, higher than analysts' forecast of C$880 million,

according to LSEG data.

CIBC 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.

RBC's capital markets segment recorded net income of $1.26

billion, a 31% rise from a year ago, helped by higher M&A, loan

syndication activity, and equity and debt origination across

most regions.

RBC's quarter highlighted "an impressive top-line

performance, manageable credit costs, and a solid capital

position following the close of the HSBC Canada acquisition,"

KBW analyst Mike Rizvanovic said.

"A solid quarter overall," he said on CIBC's performance.

The results round out a mixed earnings season for Canada's

big six lenders, which have been looking for opportunities to

diversify south of the border and are seeking alternative paths

for growth as competition intensifies in a saturated market at

home.

RBC's profit climbed 7% to C$3.95 billion. On a per-share

basis, it earned C$2.92, beating the average estimate of C$2.75.

CIBC earned C$1.75 per share, topping the estimate of C$1.65

per share.

($1 = 1.3719 Canadian dollars)