IT salaries in the investment banking sector held steady during the first three months of 2008, despite the feared impact of the credit crunch.

The average wage grew 1.2 per cent compared with the fourth quarter of last year, according to recruitment firm JM Group.

The standard annual salary for a senior development manager was £85,000. Pay packages for associate and senior programme managers were recorded at £65,000 and £85,000 respectively, while the average for project co-ordinators was £45,000.

The key area of demand over the quarter has been with business analysts with average salaries varying from £55,000 to £85,000, depending on rank and role.

While the solid figures are a positive sign for the industry, the effects of economic instability may appear later in the year, said the JM Group.

"Despite the backdrop of the global credit crunch we have yet to see any direct impact on salaries in the sector. That is not to suggest that we are inoculated from such influence, more that any tangible impact is more likely to be witnessed in the forthcoming quarters."

"The next quarter may prove critical to the stability of salaries within investment banking technology."