Having generated revenue of CHF 435 million (-0.9 percent) during the past business year, KPMG Switzerland fell just short of matching the previous year's record high. Tax saw continued strong growth with total revenue reaching CHF 116 million (+6.9 percent). Audit and Advisory lagged behind the previous year's results and generated CHF 234 million (-2.5 percent) and CHF 85 million (-6.5 percent), respectively. KPMG's ability to transform complex regulatory circumstances and changes into innovative services as well as improvements in the economic environment have contributed greatly to this solid overall result. The new slogan Cutting through complexity builds on this strength.
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In a vastly improved yet still extremely volatile market environment, KPMG Switzerland succeeded in generating gross revenue of CHF 435 million (-0.9 percent) in the business year ending September 30, 2010, to close the year with a good result on a par with that of the previous year.
Regulatory growth drivers and inhibitors of investments
Audit posted revenue of CHF 234 million (-2.5 percent). The auditing of financial institutes and - on account of fundamental regulatory changes in the banking sector - audit-related services showed strong growth which produced an outstanding result. On the other hand, intense (price) competition for a share of the auditing market for businesses providing non-financial services led to greater pressure on margins and slightly lower revenue overall. Nevertheless, KPMG has still greatly improved its starting point for the coming year by acquiring some key new audit engagements including a few extremely innovative Swiss SMEs.
Tax saw significant growth - considerably above the industry average - with total revenue reaching CHF 116 million (+6.9 percent). Here the key was the ability to both react swiftly to the strong increase in the number of foreign bank clients looking to legalize their assets at Swiss banks as well as provide them the competent assistance they required. In light of massive national debt in the USA and several EU countries, KPMG is seeing a rise in the number of international companies and private clients moving to Switzerland, with its attractive tax benefits, who need help finding effective solutions to complex tax issues.
While Advisory achieved key successes in advising clients on how to boost performance levels, how to develop risk and compliance models as well as in the area of transactions, continued uncertainty among major market players and industrial sectors together with the accompanying reluctance to make investment decisions were partly to blame for the drop in revenue to CHF 85 million (-6.5 percent). The coming months will show whether the investment standstill will dissipate in the near future and ring in the long-anticipated wave of mergers and acquisitions in the area of private banks.
New positioning - Cutting through complexity
Clients of KPMG expect a profitable business relationship. In other words: experts who can be called in on short notice and who work in multidisciplinary teams to shed light on future implications on their industry and their business. A local source of sound, cross-border expertise that facilitates clear, consistent solutions which translate into the commercial success of our clients. In this competitive market, KPMG wants to draw on its proven strengths to clearly and positively distinguish itself from the competition. Our ability to analyze and understand business models as well as to present complex situations in simple terms provides a starting point for our value chain and our actions:
"High performing people cutting through complexity to deliver clear solutions that our clients value”
We are passionately committed to this in our day-to-day work with stakeholders and the public. That is why clients come to KPMG. Not just corporate clients but SMEs and high net worth individuals, too. We embrace and keep this promise at all times toward employees and the supervisory authority alike.
Optimistic glance into the future
In light of the considerably improved yet still highly uncertain economic situation, KPMG is satisfied with its results. "We were able to increase our market share in an extremely competitive market environment and finish the year with revenue practically on a par with that of the previous year,” comments Hubert Achermann, CEO of KPMG Switzerland. Important core competences were strengthened while at the same time the workforce was cut by a net total of 3.6 percent.
The 2009/2010 business year at KPMG Switzerland was also shaped by its 100th anniversary. Employees' unique commitments and an innovative fundraising campaign on the Growth Generator internet platform (http://www.growthgenerator.ch/) helped KPMG succeed in raising around a half million Swiss francs during its anniversary year. The money was awarded in the form of five KPMG's Inspiration Grants which went to pioneering research projects of ETH Zurich and Ecole Polytechnique Fédérale de Lausanne (EPFL) that are developing promising solutions in the areas of healthcare and the environment. "We sent an important message,” says Hubert Achermann. "And that's not the end of it all: The rousing success of this project has persuaded KPMG to continue both its commitment to sustainable, socially relevant solutions to benefit upcoming generations as well as its established partnership with ETH Zurich and EPFL in the years to come.”
| KPMG Switzerland |
|
|
2009/2010 |
| |
Share of revenue in % |
Change in % |
in CHF million |
| Gross revenues by service line1 |
|
|
|
| Audit |
54 |
-2.5 |
234 |
| Tax (incl. Legal) |
27 |
6.9 |
116 |
| Advisory |
19 |
-6.5 |
85 |
| Total gross revenue |
100 |
-0.9 |
435 |
| Net revenues by service line2 |
|
|
|
| Audit |
56 |
-4.2 |
206 |
| Tax (incl. Legal) |
27 |
13.6 |
100 |
| Advisory |
17 |
-7.6 |
64 |
| Total net revenue |
100 |
-0.7 |
370 |
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.
The online version of the annual report of KPMG Europe LLP will be available here starting December 22, 2010: www.kpmg.eu/annualreport
***
Zurich, December 16, 2010
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
http://www.kpmg.ch/
