Aug 29 (Reuters) - Canadian Imperial Bank of Commerce ( CM )

topped quarterly profit estimates on Thursday as the

lender set aside smaller than expected funds to cover potential

loan losses.

Canada's fifth largest bank has prioritized personal banking

and its private wealth franchise in Canada and the United States

while focusing on its digital banking offering.

That helped drive 26% growth at its personal and business

banking unit at home, it biggest income source.

It set aside a provision for credit losses of C$483 million

($359 million), C$253 million less than a year earlier and well

below the C$569 million expected by analysts, LSEG data showed.

That reflected lower losses in U.S. commercial real estate,

a market where it was previously hit by its exposure.

Its U.S. commercial banking and wealth management business

reported a net income of C$215 million, up 187% from a year

earlier.

However Jefferies analyst John Aiken noted: "Enthusiasm may

be moderated by some concerns that the precipitous drop in

provisions enjoyed by its U.S. segment may be transitory."

Overall the bank's adjusted net income rose 28.5% to C$1.90

billion for the three months ended July 31.

It earned C$1.93 per share, well above the C$1.74 expected

by analysts.

Helping was a 14% rise in net interest income, reflecting

earnings from interest on loans and payments on deposits.

CIBC is the last of the big six Canadian banks to report

third-quarter results, a mixed quarter that included credit

worries and broader economic uncertainties.

($1 = 1.3456 Canadian dollars)