KPMG to invest $1 billion in Asia Pacific as global revenues
KPMG has achieved record global revenues of $29 billion for its 2018 financial year, with its leading growth market the Asia Pacific set for $1 billion in new investments.
The Asia Pacific continues to be the Big Four quartet’s fastest growing market, contributing $4.9 billion in revenues at an increase of 8.7 percent to KPMG’s record global total of $29 billion for its 2018 financial year to the end of September. The growth in the region builds on the 8.1 percent rise recorded by KPMG in the Asia Pacific last year, while worldwide the firm has seen year-on-year growth of 7.1 percent in local currency terms.
With KPMG the last of the Big Four accounting and advisory firms to report, all of Deloitte, PwC and Ernst & Young have already this year announced their own record revenue hauls and accelerating growth in Asia – Deloitte with a staggering $43.2 billion take and Asia Pacific growth of 13.3 percent, PwC with 15 percent Asia Pacific growth and $41.3 billion in global revenues, and EY with $34.8 billion and 10.5 percent local growth.
Yet, while KPMG slips off the back of the pack a little, struggling to keep up with a supercharged Deloitte and with marginally slower growth than EY, this year’s 7.1 percent rise is a fair jump of the 4.8 percent growth recorded by the firm in the previous year – and from a regional perspective, the slower Asia Pacific growth is somewhat representative of an already stronger local market share, where KPMG earns greater total fees than EY and pulls in a higher ratio of its global revenues than the other members of the Big Four.Reflecting the importance of the region, KPMG following the release of its annual report announced a huge $1 billion investment locally over the coming four years – with the intention to establish the region as the firm’s global hub for innovation. As part of the project, which will focus on ‘digital ignition centres, platform solutions, cyber security and cloud services’, KPMG in the Asia Pacific plans to hire over 25,000 new skilled professionals.
Referring to the firm’s record $4.9 billion in revenues generated by its Asia Pacific operations and its fourth consecutive year of double-digit growth in advisory, regional Chairman Honson To said, “To build on this momentum, we are today announcing our new regional strategy predicated on trust and growth with our ambition to double in size over the next five years,” with the firm adding that it planned to expand its footprint across all 20 countries and jurisdictions where it operates.
To added: “This is a very exciting time for our firm and I am optimistic about the future. We plan to create more jobs, and invest more money in innovation and solution development than at any other point in our history. The scale and pace of this investment is critical to support the changing needs and complexities facing our clients with a number of them expanding their global capabilities and footprint, particularly our Regional Brand Defining clients… KPMG globally is increasingly looking to this region to act as a growth engine for innovation.”
Advisory was also the fastest growing service line at the global level (as is the case for the other members of the Big Four), with KPMG recording an increase of 9.9 percent for a total take of $11.47 billion – up from the 6 percent growth in advisory revenues recorded for 2017. Meanwhile, the firm welcomed more than 55,000 new hires worldwide last year, taking its global headcount beyond the 200,000 mark – with over 43,000 based in the Asia Pacific.
“KPMG is continuing with a multi-year global investment programme, investing more than $4 billion in innovative new services, technology, and acquisitions over the next four years,” KPMG global chairman Bill Thomas said in conclusion. “Just as we are working with our clients around the world to transform their businesses, we’re also harnessing the power of digital transformation to drive our growth and raise the level of efficiency, innovation and quality.”
Related: BDO global revenues reach $11 billion.