Net income in Hong Kong lender Hang Seng Bank went up 8.4 per cent in the first half to HK$6.96 billion ($896 million), owing mostly to an impressive performance at its wealth management arm.

Wealth management income surged 15 per cent during the period, trumping narrow lending margins caused by consistently low interest rates. Rates are likely to remain low for the rest of the year, however, leading the bank to shift its focus to boosting non-interest income from wealth management and other units, instead of depending solely on its core operations.

"The recovery remains fragile, particularly in the major advanced economies that are Asia's key export markets, clouding the outlook for Hong Kong's externally oriented economy for the rest of the year," Margaret Leung, the chief executive officer of Hang Seng Bank, said in a statement.

Net fees and commissions were up 23 per cent from HK$1.93 billion in the year-earlier period to HK$2.37 billion due to increased sales of investment products. On the other hand, net interest income from the bank's core lending operations was down 7.7 per cent to HK$6.71 billion.

Hang Seng is 62 per cent owned by HSBC Holdings and has over 220 branches in Hong Kong.