Digital transformation in business, persistently low interest rates and geopolitical uncertainty: Those were the key drivers of KPMG’s past fiscal year. During that time, KPMG provided its clients effective support and considerably boosted revenue in each of its functions: Net revenues rose to a total of CHF 448.5 million (+5.9%) with gross revenues amounting to CHF 602.6 million (+8.6%). Audit generated net revenues of CHF 225.9 million (+6.5%), Tax & Legal CHF 123.6 million (+2.5%) and Advisory CHF 99.0 million (+9.0%).
Digital transformation and low interest rates as main drivers
The key driver was increasingly intense digital transformation in the business world: It lets us perform comprehensive analyses of client data in Audit, automate standardized processes in Tax & Legal and create innovative process optimization platforms in Advisory. Persistently low interest rates were a second driver; they created fertile ground for numerous mergers and acquisitions yet also increased overleveraging risk. Growing uncertainty in the geopolitical environment had the biggest dampening effect and prompted export-oriented clients to at least delay possible investments both in Switzerland and abroad.
Big investments and important commitments
KPMG invested substantially again this year: in staff development, in technological innovations and in key partnerships. Last year, KPMG invested some 6% of its revenue in software and technological advances plus more than CHF 7 million in training and further development opportunities for staff. Some 666 new specialists were hired during the same period of time.
KPMG has opened its digital Insights Center in Zurich: This entirely new type of innovation center analyzes company data and visualizes them for clients. Thanks to a blend of state-of-the-art technology, predictive analytics and expertise, our clients discover not only new correlations and opportunities, but also looming threats. KPMG has also joined forces with UK-based cyber security firm Immersive Labs to launch the Digital Cyber Academy, which is freely accessible to students at all Swiss universities. KPMG’s acquisition of software developer Terria Mobile put it in a position to expand its range of digital transformation services in a targeted manner.
KPMG has been a key contributor toward efforts to position Switzerland as an attractive, sustainable and trustworthy business location, particularly within the scope of its commitments at economiesuisse, digitalswitzerland and many other national, regional and specialized networks as well as the KPMG CyberLab at Digital Festival Zurich.
Audit with new, comprehensive data analytics
Audit improved its results even further with net revenues now up to CHF 225.9 million (+6.5%). This positive development is in part attributable to new technological capabilities on both ends: not only do they enable financial and leadership processes to be completely redesigned on the clients’ end, but also let KPMG standardize, automate and centralize key audit tasks.
Tax & Legal featuring computer-aided automation
Tax & Legal boosted its net revenues to CHF 123.6 million (+2.5%). The function’s good results were partly attributable to high demand for compliance services and related outsourcing solutions, with KPMG guaranteeing its clients integrated solutions. With the use of blockchain and initial coin offerings (ICO) on the rise, KPMG not only offers its clients a one-stop-shop for support on all types of fiscal and regulatory matters, it also helps more traditional companies deal with the new tax rules for digital goods.
Advisory with numerous M&As and new digital strategies
Advisory increased its net revenues to CHF 99.0 million (+9%). This performance was mainly driven by the large number of major transactions involving Swiss companies for which KPMG provided comprehensive deal advisory services. The largest M&A deals were attributable to the industrial goods, consumer goods, technology, life science and pharmaceutical industries, with the number of cross-sector transactions on the rise. Given that peak returns in the real estate business are still on a downward trend, it is becoming even more important to adequately assess a deal’s potential value and risks.
Clarity on KPMG Switzerland in 100 seconds
This year’s annual report presents the most essential insights into the firm in a digital and interactive format. Find out more: Clarity on KPMG Switzerland