UBS has lifted the salaries of some investment bankers to avoid key staff defections, Switzerland's largest bank was quoted as saying yesterday, but did not add whether these increases also applied to the wealth management side of its operations.

UBS declined to comment further when contacted by WealthBriefing about the matter.

"There have been off-cycle salary increases at UBS Investment Bank to retain employees in critical positions," a UBS spokesperson was quoted as saying in media reports. The spokesperson added it was usual to adjust compensation to the market environment.

Earlier on Sunday Swiss paper Sonntag reported that hundreds of UBS managing directors at the investment bank, with salaries of around SFr270,000 ($243,200) on average, were receiving 50 per cent higher wages to compensate for the loss of usual bonuses.

The bank is losing key staff in important areas to competitors and had to react, chairman Kaspar Villiger was reported as saying on Saturday.