Feb 29 (Reuters) - Canada's CIBC and TD Bank reported first-quarter profits ahead of expectations on the back of higher loan volumes and an increase in deposits.
The quarterly results mirror similar gains at rivals Royal Bank of Canada, Bank of Nova Scotia and National Bank of Canada after they reporter better-than-expected earnings earlier this week.
On an adjusted basis, CIBC earned C$1.81 per share, compared with LSEG estimates of C$1.66, while TD Bank reported a profit of C$2.00 ahead of expectations of C$1.89.
Improved loan volumes and margins in the first quarter fuelled a 10% jump in earnings at CIBC's Canadian banking unit, and a 3% growth in profit at TD's Canadian personal and commercial banking unit.
The strong performance in Canada softened the blow from weakness at the banks' U.S. units.
CIBC's U.S. commercial banking and wealth management unit posted a loss of C$9 million ($6.63 million) for the first quarter, while earnings at TD's U.S. retail bank plunged 43%.
Elevated interest rates have raised the chances of more borrowers defaulting on their loan repayments in an uncertain economic environment, prompting lenders to set aside bigger rainy-day funds.
Toronto-based TD Bank's provision for credit losses rose to C$1 billion in the first quarter from C$690 million a year earlier.
CIBC built C$585 million in provisions, up C$290 million from a year earlier. ($1 = 1.3577 Canadian dollars) (Reporting by Mehnaz Yasmin and Arasu Kannagi Basil in Bengaluru and Nivedita Balu in Toronto; Editing by Shinjini Ganguli and Shounak Dasgupta)
