(Bloomberg) -- Two of Singapore’s largest lenders struck a cautiously upbeat tone after profit in the third quarter beat forecasts driven by gains on fees from wealth and lending, and lower provisions for bad loans.

Oversea-Chinese Banking Corp., the city state’s second-biggest bank, reported a 19% rise in net income to S$1.22 billion ($904 million), while United Overseas Bank Ltd. posted a 57% jump to S$1.05 billion. Both results came in slightly ahead of analyst estimates. 

Earnings for both lenders were helped by their wealth businesses with OCBC’s income from insurance, private banking and other units making up 35% of the group’s income. UOB also saw higher fees from wealth and credit cards -- a key indicator of improved economic activity. Wealth fees rose almost 6%, while assets under management also expanded.

The results reflect a growing optimism in Singapore where gross domestic product expanded 6.5% in the third quarter. The city state has been slowly recovering and gradually reopening its borders after a turbulent year when economies were hit by the global coronavirus pandemic.

“Amid near-term uncertainties, the gradual reopening of borders bodes well for business flows and we remain positive of strong activities along the Greater China-Asean trade corridors,” UOB Chief Executive Officer Wee Ee Cheong said in the statement Wednesday, referring to the group of 10 Southeast Asian nations.

OCBC CEO Helen Wong said the bank remains “positive on the long-term outlook but are watchful of the near-term headwinds from the pandemic.”

Singapore’s largest bank, DBS Group Holdings Ltd., is due to report earnings on Nov. 5. 

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