|By PR Newswire||
|December 12, 2012 11:00 PM EST||
- Growth seen across all service lines and industries
- Bolstered by strategic investments in key service areas, emerging markets and talent recruitment
HONG KONG, Dec. 13, 2012 /PRNewswire/ -- KPMG International (KPMG) today announced record-high combined revenues of US$23.03 billion for the fiscal year ending 30 September 2012, representing a 4.4% increase over the previous year in local currency terms. When adjusted to US dollars revenues increased by 1.4%, reflecting the relative strength of the US dollar. At a time of ongoing global economic challenges, the growth reflects our continued strategic focus on investments in emerging markets and key service areas, as well as aggressive recruitment of top talent. In the latest Universum rankings, business students from leading universities around the world voted KPMG as one of the most attractive employers for the third consecutive year, ranking second overall and highest among the Big 4 firms.
Michael J. Andrew, Chairman of KPMG International, commented:
"2012 was a year of two distinct halves; with growth strongest at 6.4% in the first six months of the year and relatively weaker growth of 2.1% in the six months to September. Growing our business against such a challenging economic backdrop is testament to the quality of our people and the strength of their relationships with clients."
KPMG recorded increased revenues across all functions with particularly strong growth generated in Financial Services, Industrial Markets and Infrastructure, Government and Healthcare. Advisory revenues grew by 8.3%, to $7.86 billion; Tax revenues grew by 6.3%, to $4.86 billion; and Audit revenues grew by 0.9%, to $10.31 billion.
"The growth in Advisory and Tax underlines the strength of client demand for professional services," said Michael. "On the Audit side, the market has never been more competitive and we are focused on continuing to improve audit quality, as evidenced by our significant investments in our global audit platform that surpassed $50 million, in addition to the $100 million invested over the past several years. KPMG member firms are also actively engaged with their regulators around the world in constructive dialogue, with the goal of continuing to improve audit quality."
At a regional level, the Americas delivered strong growth for the year, with revenues rising by 7%. The Europe, Middle East and Africa region reported increased revenues of 4% across the region, despite the ongoing economic uncertainty caused by the Eurozone crisis. The Asia Pacific region reported revenue growth of 1.1%, reflecting subdued growth in North Asia.
KPMG's commitment to investment in rapidly growing economies was reflected by exceptional annual growth of 20% or more at KPMG firms in Argentina, Brazil, Chile, India and Turkey. Revenue growth was also strong in Africa and Indonesia, rising by more than 10% in each area over the last fiscal year. The decision to convert our Chinese member firm from a joint venture to a special general partnership was also a bold step and will enable KPMG's Chinese firm to continue to contribute to the development of the Chinese accounting profession.
"I am proud that our Chinese member firm has grown from 30 employees only 20 years ago to 9,000 partners and staff today, with significant potential for future growth," said Michael. "Opening a new KPMG office in Myanmar last month was a sign of our commitment to helping to rebuild that country's economy, and to playing a leading role in the economic development of the region." KPMG also established member firms in Iraq and Mongolia during the course of the year and now operates in 156 countries. The decision to locate KPMG’s chairman in Asia is a further indication of the commitment to the important role of this region in the global economy.
In addition to investing in its global audit platform and emerging markets, KPMG also focused on bolstering advisory and tax services. Michael noted that KPMG "will continue to make acquisitions that will help build market-leading positions and capabilities in key areas that are important to clients, as we have done in shared services and outsourcing advisory and indirect tax compliance services, as well as in procurement and supply chain management, through our recent acquisition of BrainNet. We are making these investments to help provide the highest quality, most innovative services to clients." He added, "I'm confident the investments we are making will create growth and career advancement opportunities for our professionals."
Recruiting top talent remained a priority in FY12. Over the course of the year, KPMG increased its global workforce by over 5%, to more than 152,000 partners and staff, the highest number of individuals ever employed across the network. More than 450 new partners were appointed over the year, bringing the number of partners across the network to more than 8,600, another record. KPMG recruited more than 18,000 graduates last year and plans to recruit a further 60,000 graduates over the next three years, marking the highest planned recruitment levels in KPMG's history. With its strong focus on training and advancement, KPMG has become one of the top tier employers in the business community.
Other FY12 highlights:
- KPMG in China consolidated its leading position in M&A consulting by advising on three of the four largest Chinese business outbound merger and acquisitions during the course of the year.
- KPMG's Management Consulting practice, part of the Advisory business, achieved growth of 15% for the year and has grown to a business with revenues of $2.2 billion in just seven years.
- KPMG continued to invest in its global Centers of Excellence for Financial Services, Government & Infrastructure, Healthcare and Management Consulting. The Centers bring together KPMG experts with specialized skills and expertise to bring solutions to assist clients in navigating the fast-changing and complex business environment.
- KPMG's firms now serve more than 82% of the Global Fortune 500 list of companies.
- KPMG reinforced its commitment to sustainability by winning the prestigious International Accounting Bulletin "Sustainable Firm of the Year" award.
- KPMG has for the first time issued its International Annual Review, Transparency Report and Communication on Progress towards the UN Global Compact goals along with the network's financial results.
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have more than 152,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
The financial information set forth on these pages represents combined – not consolidated – information of the separate member firms of KPMG International that performed professional services for clients and is combined here solely for presentation purposes. KPMG International performs no professional services for clients.
For further information, please contact:
Brian Bannister, Head of Global Communications
Seth Oster, Chief Communications Officer, KPMG U.S.
Tel +1 201 307 8644
Europe, Middle East, Africa, South Asia, (EMA):
Gavin Houlgate, Director of Communications
Nina Mehra, Head of Media, KPMG China
Notes to editors:
Combined revenues of KPMG member firms by region (U.S. $ billion)
Comparison in local currency
Comparison in US dollars (%)
Europe, Middle East, Africa*
Combined revenues of KPMG member firms by service line (U.S. $ billion)
Comparison in local currency
Comparison in US dollars (%)
Combined average headcount (FTE) of KPMG member firms
The following global reports have also been issued by KPMG International today:
KPMG International Annual Review:
The International Annual Review reflects on our record of achievement over the past fiscal year and outlines the platform for growth that we have developed by: sharpening our focus on high growth markets, enhancing our ability to deliver a consistently high level of client service, enriching our service capabilities in key functional areas, growing our headcount in priority markets and sectors, and acting with integrity and quality in everything we do. kpmg.com/annualreview
KPMG International Transparency Report:
This report provides insights and details on how we continually strive to enhance audit quality, which is a direct reflection of our network's unwavering commitment to audit quality, an integral element of our business and culture. The report is available to clients or potential clients, regulators, policy makers and any other stakeholders with an interest in the KPMG network. kpmg.com/transparency
UN Global Compact – 2012 Communication on Progress:
KPMG International has been a signatory to the United Nations Global Compact since 2002. Participation demonstrates our commitment to advancing the business agenda as an active corporate citizen. It is an opportunity to explain how the professionalism, experience and values of KPMG member firms can contribute to a wider movement for more responsible, legal and ethical behavior. All signatories are required to produce a 'Communication on Progress' report which describes the ways in which they are implementing the ten principles of the Compact and supporting broader development objectives. kpmg.com/cop