Aug 28 (Reuters) - Canadian lenders TD Bank and

CIBC topped analysts' expectations for quarterly profit

on Thursday, bolstered by lower than expected loan loss

provisions and strength in their domestic businesses.

Canada's second and fifth largest banks respectively wrapped

up big bank earnings for the third quarter and continued a

broader trend of lower than expected provisions as some

pressures of the U.S.-Canada trade tensions eased, while

signaling caution.

TD reported loan loss provisions - a sum of money the banks

stash during times of economic uncertainty to protect themselves

against bad loans - of C$971 million ($702.76 million), much

lower than analysts' estimate of C$1.21 billion, according to

LSEG data.

The lender earned C$2.20 per share, well above the estimate

of C$2.05.

CIBC recorded provisions of C$559 million, compared with the

average estimate of C$575.71 million. That, along with a 17% net

income jump in its domestic business and an 87% rise in capital

markets, helped beat profit estimates. On a per share basis,

CIBC earned C$2.16, beating the estimate of C$2.

The banks had built up reserves during the second quarter

fearing a macroeconomic slowdown when trade tensions were at a

peak amid U.S. President Donald Trump's tariff war threats.

While Canada is yet to achieve a trade deal with the United

States, the outlook has improved considerably from early April.

Canadian lenders are still cautious about the economy at

home and in the U.S. amid the trade uncertainty.

TD's shares have rallied over 37% this year, as of their

last close, eclipsing double-digit gains by the rest of the big

six Canadian banks.

The rally in TD's shares follows a tumultuous 2024 - when it

agreed to pay over $3 billion in penalties to U.S. regulators

for money laundering charges - ending the year down 10.6%.

The penalty also sparked a broader makeover including

changes at the top and the board to comply with the U.S.

government-ordered anti-money laundering remediation program.

Earlier this week, peers Bank of Montreal ( BNKD ), Bank of

Nova Scotia ( BNS ), and Royal Bank of Canada ( RY ) beat

third-quarter earnings estimates on smaller-than-expected loan

loss provisions.

($1 = 1.3817 Canadian dollars)