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May 27 (Reuters) - Canadian bank BMO Financial BMO.TO reported a jump in second-quarter profit on Wednesday, lifted by robust performance in its capital markets business.

Profit for the three months ended April 30 was C$2.63 billion ($1.90 billion), or C$3.53 per share, compared with C$1.96 billion, or C$2.50 per share, a year earlier.

Worries about the impact of AI on software companies and the U.S.-Israel war against Iran rattled global financial markets in the reported quarter, triggering bouts of selloffs. Market volatility tends to be a boon for trading desks at large banks, as investors increasingly rejig portfolios to hedge against risks.

Second-quarter profit at BMO's capital markets unit rose 47% from a year earlier to C$638 million.

Meanwhile, provisions for credit losses stood at C$739 million in the reported quarter, compared with C$1.05 billion a year earlier.

Rival Scotiabank BNS.TO on Wednesday also reported a jump in second-quarter profit driven by strong performance in its capital markets business.

($1 = 1.3823 Canadian dollars)