KPMG global revenues grow to record US$29bn in FY 2018
KPMG MESA reports aggregated revenue growth of 17.2 percent during the same period
Dubai, 15 December 2018: KPMG International has announced record aggregated network revenues of US$29 billion for the fiscal year ending 30 September 2018 (FY18), up from $26.40 billion in FY17.
In the Middle East and South Asia (MESA) region, KPMG member firms reported an aggregated revenue growth of 17.2 percent for the fiscal year ending 30 September 2018 and revenues across the core functions of Audit, Tax and Advisory grew by double digits.
Global member firm progress was driven by investments in quality, technology, innovative services, alliances and a record number of new recruits. The Advisory business is increasing at 9.9 percent, the fastest growing of KPMG’s three functions, while Audit and Tax services have also grown.
KPMG firms grew across all three geographic regions:
- Americas revenues grew 6.2 percent in FY18, up from 4.4 percent in FY17
- Asia Pacific delivered strong growth with revenues increasing 8.7 percent in FY18, an increase on the 8.1 percent recorded in FY17
- Europe, Middle East and Africa (EMA, including India) revenues increased 7.3 percent in FY18, up from 4 percent in FY17
Nader Haffar, CEO, KPMG Lower Gulf, said: “KPMG’s accelerated investment in a multi-year program focused on driving quality, innovation and new technologies, to enhance client services and solutions, is paying off. It has been a tremendous year for us as a business globally, and in the region. Looking ahead, we will remain focused on developing and delivering advanced technology-led solutions, designed to meet the specific needs of our clients”.
Globally, KPMG member firms have made more than 55,000 new hires, including 39,000 new graduates and other entry-level professionals, with almost 10,000 new jobs created, taking the global workforce to a record-high of 207,000 people.
KPMG member firms continue to focus on building an inclusive and diverse culture, increasing female diversity among leadership ranks to 24 percent of Partners and Directors, while broadly maintaining gender parity across the total workforce.
“We are making record investments in our business to help clients capitalize on the unprecedented transformation they are going through,” said Bill Thomas, Chairman, KPMG International. “We are committed to continuously improving the quality of every service we provide, recognizing the vital role we perform for clients and capital markets.”
He added: “KPMG is continuing with a multi-year global investment program, investing more than US$4 billion in innovative new services, technology, and acquisitions over the next four years. This investment program is focused on transformative technologies, such as artificial intelligence and intelligent automation, cyber security, and our intelligent audit and tax platforms. Just as we are working with our clients around the world to transform their businesses, we’re also harnessing the power of digital transformation to drive our growth and raise the level of efficiency, innovation and quality.”
Vijay Malhotra, Chairman, KPMG Lower Gulf, added: “In the Lower Gulf, we are extremely fortunate to have a positive economic outlook with strong growth indicators as a result of a number of economic stimuli announced by the Government. These initiatives have boosted investor confidence in the region, and the UAE in particular, and given the industry reason to be optimistic. Furthermore, the region has embarked on a digital transformation drive to support its economic agenda, and this very much aligns with KPMG’s vision to further invest in growing its business in the region.”
Growth in business lines – Audit, Tax and Advisory
Audit revenues for the year grew globally by 4.8 percent to US$11.15 billion, up from US$10.39 billion and 3.1 percent growth in the year prior. The 5.7 percent Audit growth in EMA was the strongest this decade. KPMG member firm continued to win a number of significant audit appointments, particularly in Europe, where the impact of the second full year of EU audit reforms continues to drive increased movement of audit engagements.
Tax revenues grew 6.3 percent in FY18 to US$6.34 billion up from 5.9 percent growth in FY17, driven by strong demand for Tax Compliance services and further enhanced by Domestic and International Tax Advisory Services. Also performing strongly were Transfer Pricing and VAT & Sales Tax Advisory.
Advisory, as the fastest growing function, grew revenues by 9.9 percent in FY18 to US$11.47 billion a strong increase from the 6 percent growth in FY17. This included the 4th year of double-digit advisory growth in Asia Pacific. Very strong consulting growth supporting KPMG clients’ highest priorities, including transformative business solutions and cyber-security; double-digit growth across Deal Advisory, driven by strong Transaction Services growth; and continued high demand for Accounting Advisory Services.
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