KPMG closes year with solid results thanks to market proximity 

Audit took some further important steps toward systematic process optimization. The auditing software “e AudIT” contributed considerably to this, significantly improving auditing quality and efficiency as well as the corresponding documentation. However, despite acquiring some key new engagements, competition for market share led to revenue falling to CHF 223.8 million (-4.3 percent). At both Swiss and international level, impending new regulations plus others under consideration will place further demands on the auditing sector. Nevertheless, thanks to comprehensive assurance services and excellent positioning in the Financial Services and Healthcare segments, Audit has promising growth potential.

 

Tax managed to exceed the previous year’s record high with total revenue reaching CHF 117.0 million (+1.2 percent). Particularly key to the positive result were the escalating national debt of Switzerland’s principal trading partners and increasingly intensive international tax competition. These factors accelerated the influx of major companies and wealthy individuals. Tax compliance has become indispensable, compelling legal entities and private individuals alike to substantially beef up their relevant competences and resources. This has put the search for outsourcing solutions center stage and has boosted KPMG’s Global Tax Management Services.

 

Following the last financial and economic crisis, Advisory carried out a systematic realignment. Bolstered by excellent results from Transaction Advisory and Real Estate, revenue increased to CHF 89.2 million (+4.8 percent). The market forces driving the good result were confidence with regard to investments, which fueled the mergers and acquisitions business, and the greater demand for support in major transformation processes. The latter are a consequence of the market environment having changed, sometimes radically, as well as new regulatory requirements that are necessitating a change to business models in many areas, such as in the financial services sector.

The outlook for the 2012 business year is characterized by uncertainties as far as future market development is concerned. Economic forecasts are cautious and if the major trading nations do not get a handle on their debt problems, then readiness to invest, consumer trust and general confidence will not return.

 

Nevertheless, KPMG is positive going into the new business year: “We have systematically oriented our positioning in the market toward growth areas and are following our strategy consistently, which will pay off in the long term,” says Hubert Achermann, CEO of KPMG Switzerland. “Our auditors and tax and management consultants are close to the market, are familiar with the complex challenges their clients face and will continue to support them in the New Year with great personal commitment and clear solutions. The fact that 100 CFOs and 500 graduates of the University of St. Gallen rated us as number two among the “big four” in Switzerland in an independent survey relating to reputation underlines our excellent market position.”

 

KPMG Switzerland			2010/2011
	Share of revenue in %	Change in %	in CHF million
Gross revenues by service line1
Audit	52.0	-4.3	223.8
Tax (incl. Legal)	27.2	1.2	117.0
Advisory	20.8	4.8	89.2
Total gross revenue	100	-1.0	430
Net revenues by service line2
Audit	55.1	-2.3	201.5
Tax (incl. Legal)	27.3	0.3	99.7
Advisory	17.6	0.5	64.4
Total net revenue	100	-1.1	365.7

 

1 Gross revenues include out-of-pocket expenses and services of subcontractors and other KPMG member firms charged through KPMG Switzerland.

2 Net revenues refer to services rendered by KPMG Switzerland.

 

 

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For further information, please contact:

 

KPMG AG

Andreas Hammer

Head of Public Relations & Public Affairs

Telephone: +41 44 249 48 20

Mobile: +41 79 335 75 06

E-mail: kpmgmedia@kpmg.ch

www.kpmg.ch