Record revenue at KPMG as firms start spending

Elizabeth Fournier
GLOBAL fee income at accountancy firm KPMG have hit a record high of $23.4bn this year – 3.7 per cent higher than in 2012.

The firm said that businesses’ renewed confidence had led to an uptick in demand for its advisory and audit services, with emerging markets showing particularly strong growth.

Revenues in India grew by 16.3 per cent, while Mexican revenues rose by 14.3 per cent and Africa grew 13.1 per cent.

But growth in Asia Pacific was just 1.1 per cent above last year, which KPMG put down to the “difficult economic situation affecting some of the largest economies in the region and the slow IPO (initial public offering) market.”

The firm’s advisory department saw the biggest jump in revenues, rising 6.5 per cent to $8.24bn, while tax grew to $4.97bn and audit work got a 1.2 per cent to $10.21bn.

During the year, KPMG won several new high profile audit clients, including Panasonic, Syngenta and Unilever.

“Over the past year we have seen the first widespread signs of economic confidence returning to clients and this has led to improving demand for services around the world, accelerating growth in the second half of the year,” said Michael J Andrew, chairman of KPMG International.

“Continuing to make significant investments in a difficult economic period while delivering operating efficiencies has ensured we are well-placed to meet this upturn in demand, and will drive stronger growth in the future.”

But despite the record revenues, KPMG lagged behind its big four rivals.

Earlier this year EY announced combined global revenues of $25.8bn, while PwC’s gross revenues were $32.1bn and Deloitte made $32.4bn.