Tax and advisory boosts KPMG global revenues

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Growth in the tax and advisory lines helped boost KPMG’s global revenues last year to $23.03bn

In the year ending 30 September 2012, advisory revenues grew by 8.3% to $7.86bn, while tax revenues were up 6.3% on the previous year, to $4.86bn.

Audit revenue grew slightly to $10.31bn, up 0.9% on last year.

Michael J Andrew, chairman of KPMG International, said, “The growth in advisory and tax underlines the strength of client demand for professional services. On the audit side the market has never been more competitive and we are focused on continuing to improve that audit quality, as evidenced by our significant investments in our global audit platform that surpassed $50m, in addition to the $100m invested over the past several years.”

He said that the firm would continue to make acquisitions in these key areas to build its services.

On the audit side the market has never been more competitive

Michael Andrew

Andrew also attributes its growth to a “strategic focus on investments in emerging markets and key service areas” plus “aggressive recruitment of top talent.”

Throughout the year, KPMG increased its global workforce by 5% to 152,000 partners and staff. More than 450 new partners were appointed, bringing the number of partners across the firm to 8,600, the highest level ever.

KPMG also recruited more than 18,000 graduates last year and intends to recruit 60,000 graduates over the next three years.

Strong first half growth of 6.4% also helped boost the Big Four firm’s revenues, compared with a weaker second half.

Regionally, operations across EMEA were down slightly compared to last year, falling by 1.3% to $11.51bn. KPMG saw strong growth across the Americas, where revenues were up 5.7% compared to the US dollar, to $7.45bn.

Specific regions in developing economies also recorded soaring growth, with increases of 20% or more in local currency terms in Argentina, Brazil, Chile, India and Turkey.

Revenue growth in Africa and Indonesia also passed 10% through the year.

The firm also formed a special general partnership in China.

Andrew said he was “proud” that the Chinese firm had grown from 30 employees 20 years ago to 9,000 partners and staff today. He said there was “significant potential for future growth.”

KPMG UK has made 275 members of staff redundant after a review of the business over the last couple of months.

Rival PwC reported global revenues of $31bn in October for the last year, a rise of 8% on the previous year, boosted by strong growth in China, India and the US. Deloitte announced aggregate member firm revenues of $31.3bn in September.

 

Helen Roxburgh

 

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