The terms of Britain’s exit from the bloc are going to be crucial for most notable players in the region.

Bank of America Corp has disclosed that its results and businesses are likely to be adversely affected since it may have to incur additional costs if Britain’s exit from the European Union bloc limits its ability to conduct business.

In a regulatory filing, Bank of America has said the referendum has introduced “complexities and variables” in calculating fair values of certain businesses.

Incidentally, Bank of America’s exposure to the UK market is limited to sovereign clients and MNCs with a net amount of $56.31 billion as of June 30.

However, it has said its legal expenses are likely to be near $1.1 billion beyond accrued liability, which is down from $2.4 billion as of March 30.

Significantly, the lender has said that Brexit could create “political stress or financial instability” in Italy, Spain, Greece and Portugal. As of June 30, its net exposure to Spain, Greece and Portugal was $2.6 billion, $261 million and $10 million, respectively.

In comparison, Citigroup Inc. had disclosed that it is not likely to experience any “significant negative impact” on its results or client activity as a result of the British referendum.

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