Swiss banking giant UBS has chosen Frankfurt as its new European Union (EU) headquarters in Brexit contingency planning.

Speaking to Bloomberg Television, the bank’s CEO Sergio Ermotti said that the bank was prepping up for the worst-case scenario of a no-deal Brexit.

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“The financial system is already operating on the assumption that there is no agreement. Whatever is going to happen from now onwards, it’s not going to make the exercise less expensive,” he was quoted as saying by Bloomberg.

Ermotti further said that while Frankfurt has been selected as the key EU hub, the bank will adhere to a decentralised strategy in Europe with offices in Paris, Milan, and Madrid offices.

However, the CEO made no disclosure on the number of employees affected by the transfer of operations to Frankfurt.

UBS earlier said that it has to bear expenses of more than CHF100m owing to Brexit, which include relocation and legal costs.

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Ermotti said that the Brexit impact has already been felt by various companies.

“It’s a complication that undermines the willingness to make investments. In the U.K. and in general in Europe this has been something that has prevented people taking action and investing for the future,” Ermotti was quoted as saying.

A day earlier, Deutsche Bank also announced plans to shift assets from London to Frankfurt in response to Brexit.