American banking giant JPMorgan Chase is reportedly planning to consolidate its three banking subsidiaries in the European Union (EU) to slash costs.

The lender is planning to fold the three units into a single legal hub, which will be based in Frankfurt, Germany, Bloomberg reported.

The new organisation will include JPMorgan’s banking businesses in Germany, Ireland, and Luxembourg.

The hub will be named as “J.P. Morgan S.E.”, the report added citing people familiar with the matter.

The latest amalgamation will not require the bank’s employees to relocate as well as no offices will be closed.

According to Bloomberg, the plan is expected to be completed in 2022.

In an email, JPMorgan spokeswoman Kate Haywood said: “Having a simplified European legal entity structure to make interactions easier (for clients) has been a long-term goal for JPMorgan.

“This strategy has no significant impact on our UK operations, and will not change the location of our European offices or our people.”

The latest plan complements JPMorgan’s move to shift nearly $230bn in assets from the UK to Germany to prepare for Britain’s exit from the EU.

The bank has recently appointed Stefan Povaly to spearhead the German unit and named Stefan Behr as chairman.

It also promoted Dorothee Blessing as the co-head of investment banking unit in Europe, the Middle East and Africa.

In September, JPMorgan was in the news for planning to relocate nearly 200 London employees in view of the no-deal Brexit.

Apart from JPMorgan, non-EU banks Goldman Sachs and UBS also created subsidiaries in Frankfurt, the Bloomberg report added.

In August, Finland-based challenger bank Holvi pulled out of the UK market due to the disruption brought about by the no-deal Brexit and the Covid-19 pandemic.