Despite PwC’s global growth of 6% to $34bn in the year to 30 June 2014, Deloitte will for the first time remain the largest global accounting firm by revenue for the second year running with fee income of $34.2bn in the year to 31 May 2014.
PwC’s said its revenues increased across all service lines with assurance growing 3% to 15.1bn and representing 45% of the network’s overall revenue; tax practice revenues were up 8% to $8.8bn and advisory fee income increased 10% year-on-year to $10bn.
Despite the acquisition of global consultancy Booz&Co., now named Strategy&, earlier in the year which is likely to significantly boost PwC’s advisory revenue, the benefits are yet to be accounted for as the network said, "the Strategy& acquisition was only completed in the last quarter of FY 2014 and therefore its full impact will not be felt until FY 2015".
By region the network said the Middle East and Africa practice showed growth of 16%, "reflecting PwC’s sustained investment and the growing demand for our services as these economies rapidly develop and mature".
South America revenues increased 13%, North America 7%, Europe 4% and Asia revenues were up 9%, an improvement from last year’s 2% growth.
"PwC firms continued to perform very well in FY 2014. This strong performance was despite economic challenges in some countries, increased regulation and stiff competition in all our markets," PwC global chairman Dennis Nally said.
"PwC’s growth in emerging markets outpaced that in the developed economies. The emerging markets are an increasingly important part of our business. They now make up 20% of our global revenues and are expected to grow substantially over the next five years."
"We also saw excellent results from our largest firms in the developed world. Revenues were up in the US by 6%, in the UK by 5%, Germany by 4%, and in Japan by 10%. Even in countries such as Italy and France where the economic conditions remain tough, we have seen growth of 8% and 5% respectively," Nally added.
The network’s staff count increased to 195,000, up by 6%. The firm added 45,000 people including 20,000 graduates worldwide.
PwC’s results mean that for the first time Deloitte will be the largest accounting firm globally for the second year running. Last year Deloitte took over PwC by only $300m after losing its leading spot to PwC in 2012 after it overtook its close rival for the first time in 2011.
Consultancy main driver for Deloitte’s 5.7% growth: Salzberg
Deloitte overtakes PwC as largest global network