WASHINGTON: Total advisory revenues for the year were up 11.5%, to $9.74bn, 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 saw growth of 16.3%, while risk consulting grew 10.2% and deal advisory posted a 12.1% increase.
In comparison, total audit revenues for the year rose by 4.5%, to $10.12bn, below the previous year’s growth of 6.1%. Tax revenues grew 8.8% over the previous year, to $5.56bn, with tax revenues in Asia Pacific improving by 11.1%. KPMG said strong tax performance was driven by high demand for tax compliance services, as well as international and M&A related services, in all three regions. America’s revenues increased by 9.6%, driven by growth in advisory services of 12%, 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. In other Americas markets, Brazil saw 12.7% growth and Mexico had 8.8% growth.
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. KPMG reports particularly strong growth was seen in Australia, which again recorded double-digit growth, Japan at 13.3%, Korea at 9.4% and China at 9.2%, which all grew faster versus FY15.
However, performance was less strong in the Europe, Middle East and Africa region (EMA, including India), where revenues increased by 6%, up from a 4% increase in the previous year, which KPMG said reflected ‘an improving but challenging business environment’. Within the region, revenues were driven by strong performance in the advisory business, with growth of 8.7% over the previous year. EMA saw strong growth in a number of firms, including India at 18.6%, Middle East and South Asia (MESA) at 10.7% and Ireland at 8.6%.
John Veihmeyer, chairman, KPMG International, said: ‘KPMG’s strong FY16 results, in what remains a slow-growth global environment, are a testament to the passion and innovative thinking we bring to our work. ‘In today’s volatile business climate, our strategic investments in technology, alliances, and our people, are fuelling our growth across our geographies and service lines.’
KPMG reported the firm is planning investments of more than$2.5bn over the next three years in new services, technology, alliances and acquisitions, focused particularly on deals and acquisitions, strategy, cyber, digital labour and audit. In FY16, more than 37,000 new graduates and other entry-level professionals joined KPMG member firms, and more than 300 new external partners and more than 600 promoted KPMG partners were welcomed into the leadership ranks. KPMG’s global workforce grew by more than 8% to almost 189,000 partners and staff, the highest number of individuals ever employed across the network.
