UBS's Urs Zeltner has stepped down this week with immediate effect as head of the Swiss bank's German and Austrian offshore wealth management activities, a source familiar with the matter told Reuters Friday.

The resignation of Zeltner, the older brother of the Swiss bank's overall private banking head Juerg Zeltener, comes shortly after UBS folded its European onshore branches for the wealthy into a unit of its larger European private bank under Jakob Stott.

Urs Zeltner will remain with the bank in an as-yet-undecided capacity, then source said.

(Reporting By Katharina Bart)