KPMG Outperforms Big Four Rivals As Audit And Tax Units Shine

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KPMG has closed the gap on its biggest rivals over the past year, according to figures released on Tuesday that showed it had the biggest revenue growth of the big four accounting and consulting firms.

The company posted global revenue of $38.4 billion in the 12 months to September 30, an increase of 5.4 percent from a year earlier. Excluding the effect of currency fluctuations, the increase was 5.1 percent.

That eclipsed the growth of Deloitte, EY and PwC, and each of KPMG’s three main business lines posted growth rates that were at or near the top of the pack. The strong revenue growth narrowed a gap that had widened in recent years between KPMG and the other three companies.

The companies’ advisory businesses have been slowed since the end of the pandemic by a slowdown in demand for technology services and a shortage of M&A work.

But there have been better results in the less economically sensitive audit business – KPMG’s revenue rose 6.2 percent to $13.4 billion – and in tax advisory. KPMG’s global tax and legal services business rose 9.6 percent to $8.7 billion.

Bill Thomas, KPMG’s global chief executive, said the growth reflected investments the firm had made in technology and training, and faster-growing business lines such as artificial intelligence and environmental, social and governance (ESG) work. ). A year ago, KPMG extended Thomas’ mandate by 12 months until September 2026 to carry out a three-year investment programme.

“The commitment to our multidisciplinary model has also driven greater synergies, growth and cross-border collaboration across our network,” he said.

Overall growth rates masked significant differences in different parts of the world. In Asia-Pacific, where professional services firms have been struggling with an economic slowdown in China and a political backlash against the Big Four in Australia, KPMG’s local currency growth was just 0.5 percent. It also reduced its workforce in the region by 2 per cent in the year to September.

Revenue rose 4.2 percent to $15.2 billion in the Americas, its largest region, but it also reduced its workforce there, through more judicious hiring, stricter performance reviews of existing staff and some layoffs in parts of the advisory business, as he worked to protect partners’ profits.