KPMG outperforms Big Four rivals as audit and tax units shine

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KPMG narrowed the gap with its major rivals last year, according to figures posted on Tuesday showing it had the fastest revenue growth of the Big Four accounting and consulting firms.

The company recorded global revenue of $38.4bn in the 12 months to September 30, a 5.4 per cent increase on the previous year. Removing the effect of currency fluctuations, the increase was 5.1 percent.

That covers the growth of Deloitte, EY and PwC, and each KPMGThe three main lines of business posted growth rates that were at or near the top of the pack. Strong revenue growth has narrowed a gap that has widened in recent years between KPMG and the other three firms.

The companies’ advisory businesses have been hampered since the end of the pandemic by slowing demand for technology services and a lack of mergers and acquisitions work.

But there were stronger performances in the less economically sensitive audit business, KPMG’s revenues rose 6.2 per cent to $13.4bn, and tax advice. KPMG’s global tax and legal services business rose 9.6 per cent to $8.7bn.

Bill Thomas, KPMG’s global chief executive, said the growth reflects the investments the company has made in technology and training, and faster growth in business lines such as artificial intelligence and environmental, social and governance (ESG). ) job. A year later, KPMG extended Thomas’ leadership term by 12 months to September 2026 to see a three-year investment program.

“The commitment to our multidisciplinary model has also led to many synergies, growth and cross-border collaboration in our network,” he said.

The headline growth rates hide huge differences in different parts of the world. In Asia-Pacific, where professional services companies are struggling with an economic slowdown in China and a political backlash against Australia’s Big Four, KPMG’s local currency growth was only 0.5 percent. It also reduced its headcount in the region by 2 percent in the year to September.

Revenue rose 4.2 per cent to $15.2bn in the Americas, its biggest region, but it also reduced its workforce there, through smarter hiring, tougher performance reviews of existing staff and some eliminations in the advisory business segments, as it works to protect the partner’s income.