Demand for structured products from its Hong Kong client base helped push Hang Seng bank's trading income up 36.4% to HK$1.04bn ($134.2m) from HK$759m ($97.9m) a year earlier.
The increase was attributed partly to increased trading interest income as well as strong customer demand for foreign exchange-linked structured products.
Overall, Hang Seng, which is majority-owned by HSBC, yesterday reported a 29% decline in first-half net profit and said it expects the business environment to remain challenging until next year.
Net profit for the six months ended June 30 fell year on year to HK$6.45bn ($832.3m) from HK$9.06bn ($1.17bn), owing to declines in net interest and income from fees.
"With Hong Kong's economy heavily reliant on trade, the outlook for the rest of the year, and into 2010, remains cloudy," said chief executive Margaret Leung in a statement.