KPMG chief denies global split, as the consulting arm drives growth in revenues

KPMG’s global chief today rejected suggestions that it might follow EY to pursue the global split. Instead, he claimed that EY’s strong financial performance “validates” its current approach.

KPMG CEO Bill Thomas denied plans to split and claimed that the Big Four results “underscore an undying commitment to service delivery… through a holistic approach.”

The comments come as KPMG’s global revenue grew 14 per cent to $35 billion (£28 billion) on the back of a 19 per cent increase in sales from its global advisory business to $34.64 billion.

KPMG’s advisory arm is driving KPMG’s revenue. This is due to growing demand for its transactions and deals, and continuing demand for technology advisory services in light of cloud computing deployments.

KPMG’s less lucrative auditing segment saw revenue rise at 8 percent to $11.85billion, while revenue from its tax and legal services segment grew 10 percent to $7.35billion.

Thomas argued, however, that KPMG’s multidisciplinary approach gives it “the stability, flexibility, and investment ability to invest even in difficult times.” He also claimed that KPMG’s broad exposure helps KPMG to “provide solutions to tough client challenges.”

These comments come as EY continues to move forward with plans for separating its audit division from its advisory arms in an effort not to be bound by conflict-of-interest rules that prohibit it from selling audit advice.

EY’s global split, if complete, will mark the end of the Big Four’s most significant shake-up in decades, following the collapse in 2002 of Arthur Andersen.

KPMG’s Americas business saw the fastest growth, growing 16 percent to $13.71 Billion. KPMG’s Asia Pacific business saw a 13 percent increase to $6.31 Billion.

However, KPMG’s Europe, Middle East and Africa (EMA), which accounts for the bulk of KPMG’s revenue, grew 11 percent to $34.64 million.

KPMG is under intense scrutiny by regulators for its role in a series high-profile scandals. This growth comes as KPMG is experiencing significant growth.

In July, the company was fined a record £14m by the UK’s Financial Reporting Council (FRC) for misleading officials who inspected Regenesis and Carillion’s audits.

The Big Four also faces a £1.3bn lawsuit over its audit of Carillion, over allegations that it failed to identify the failing construction giant’s faults.

The US accounting watchdog has recently fined the company $7.7million for a number of offences, including failing to properly handle widespread exam cheating scandals.