EY reports 'record' growth figures
EY has reported a combined global revenue growth of $29.6 billion (£23.25bn), the firm's sixth consecutive year of ‘record breaking’ growth.
The figure represents an overall revenue growth rate of 9% in local currency.
When breaking down the growth to the Big Four firm's service divisions, advisory and transaction advisory services saw the biggest upturn, growing by 13.1% and 14.2% respectively. Assurance grew by 4.8% and tax by 9.6%.
Mark Weinberger, EY Global Chairman and CEO, said that he was particularly pleased with the results as they were “achieved in a difficult business environment.”
He continued: “We are seeing continued global economic headwinds including geopolitical uncertainties, divergent monetary policy and turbulent emerging markets. Businesses are facing unprecedented disruption in their business models due to the pace and scale of technological innovation.”
Following last week’s announcement that Deloitte is teaming up with Apple to help its clients digitally transform their business, and the “geopolitical uncertainties” that Mark mentions, it is clear that advisory services are becoming increasingly sought after.
PwC also reported figures earlier this week, with a figure of $35.9 billion. Although this was also a ‘record breaking’ result for the firm, it saw Deloitte take over as the world’s largest firm with an aggregate network revenue of $36.8 billion.
Deloitte creates ‘North West Europe’ firm
In other Big Four news, Deloitte announced this week that it will be combining it’s Belgian, Danish, Dutch, Finnish, Icelandic, Norwegian and Swedish firms with its UK and Swiss operations to create ‘Deloitte North West Europe”.
The merger is reported to come into effect on 1 June 2017 and will have “28,000 partners and people, generating over €5bn in annual revenue,” according to Deloitte’s website.
David Sproul, Deloitte’s UK chief executive and chief executive-elect of Deloitte North West Europe, admits that this is a “bold move” from the firm, but that it displays Deloitte’s growth ambitions.
He continued: “Europe is already the fastest growing region for Deloitte and we believe that by combining across these markets we will further increase the growth potential of Deloitte regionally and globally, as well as our ability to influence positively the growth of our clients.”