UBS Group AG has put salary increases on hold at its investment bank, including for employees who are promoted, as it waits to see how compensation at competitors develops - adjustments will probably be made in mid-year, a practice the Zurich-based bank used last year as well. The decision to defer pay increases doesn’t affect bonuses.

UBS has pulled back from bond trading in recent years to focus on wealth management, meaning the bank missed out when bond trading picked up in the 4th quarter. Revenue from forex, rates and credit trading dropped 12% to $342 million. Andrea Orcel, who heads the securities unit, said in an interview last month that the bank pays for performance, and while 2016 was “not bad,” it wasn’t as good as the prior year.

Orcel told employees at a recent townhall meeting that they will have to work with the resources at hand – i.e., employees needed to take market share in the businesses the bank is in, because he won’t expand massively in areas such as rates and credit trading that consume too much capital.

UBS’s investment bank employed about 4,700 people at the end of last year, down from about 5,200 a year earlier. Orcel said in Davos that the bank is now the right size.