KPMG International announces strong growth across the network in a challenging global economy
KPMG International has announced aggregated network revenues of US$25.42 billion for the fiscal year ending September 30, 2016 (FY16), representing an 8.0% increase in local currency terms.
There was strong growth across Audit, Tax and Advisory services, including exceptional year-over-year growth of 11.5% in Advisory services, as well as growth in all three regions.
Investments in innovation, alliances and people drove strong growth across core services. Overall, across the KPMG network, more than 37,000 new graduates and other associates were hired, with the total workforce growing to a record-high of 189,000 people.
Some key highlights:
Strong regional growth
- Americas revenues increased by 9.6%, driven by growth in Advisory services of 12.0%, growth in Tax of 11.6% and growth in Audit of 6.4%. Strong US growth of 9.4% was driven by double-digit growth for non-Audit services.
- Asia Pacific delivered stronger growth than FY15, with revenues increasing by 9.8%, versus 8.2% in the previous year, led by exceptionally strong growth of 20.7% in Advisory.
- EMA revenues increased by 6.0%, up from a 4.0% increase in the previous year. Within the region, revenues were driven by strong performance in the Advisory business, with growth of 8.7% more than the previous year.
Growth in business lines
- Audit: Total Audit revenues were up by 4.5%, to US$10.12 billion, building on last year’s exceptional growth of 6.1%. KPMG firms continued to win a number of important audit appointments across the globe, particularly in Europe, where FY16 marked the first year of European Union audit reforms.
- Tax revenues grew 8.8% more than the previous year, to US$5.56 billion, with Tax revenues in Asia Pacific improving by 11.1%. Strong tax performance was driven by high demand for tax compliance services, as well as M&A-related services, in all three regions.
- Total Advisory revenues for the year were up 11.5%, to US$9.74 billion, an increase over the growth of 9.2% in FY15, with stronger year-over-year growth seen across each of KPMG’s three Advisory service groups. Management Consulting services’ growth (16.3%), was led, in-part, by technology-enabled transformation engagements. Risk Consulting grew 10.2% and Deal Advisory saw growth of 12.1%. The Global Strategy Group contributed to the strong growth across Advisory.
Once again, our annual results were issued alongside our International Annual Review (IAR). The IAR tells a story of investment in growth, both in terms of the services we provide, our global workforce and the strong sense of purpose we bring to our work with clients and the communities within which we work.
Click here for the overview of the KPMG’s Global Combined Revenues FY16 captured in the infographics.