Large investment banks in Hong Kong are still on the prowl for private bankers but are being more conservative about who they hire.

Credit Suisse, Deutsche Bank and UBS are at the forefront of a hiring campaign driven by the need to service wealthy clients in mainland China, says Alice Liu, a director at search firm Pelham.

The credit crunch hasn’t stopped these banks from recruiting, but it has made them more cautious about candidates’ work experience, she adds. “This year, in contrast to 2007, banks don’t won’t to take risks, so they aren’t looking so much at people with corporate or retail banking experience. They are demanding a track record in private banking, rather than in other areas.”

James Carss, a director at recruitment company Hudson, agrees: “In the last year some clients have been open to corporate banking backgrounds, however, they are now becoming increasingly selective.”

Liu believes that senior front-office professionals are the most sought after because Hong Kong banks are focusing their recruitment on staff who can hit the ground running and generate revenue. Carss adds: “The demand is for experienced bankers, with all firms expanding their wealth management teams. The roles are relatively senior at VP and above.”

Private bankers who jump ship can expect pay increases of about 20%, a fall from last year’s peak when 40% rises were fairly common, Liu says. Basic salaries at VP-level average about HK$1m, with directors earning between HK$1.2m and HK$1.6m. She expects bonuses to be lower this year, with some firms paying in equity options.

The regional industry is expanding, with HSBC opening private banking services in China, Morgan Stanley planning to grow across Asia, and Macquarie Private Bank launching a new office in Singapore.