We saw revenues grow across all of our lines of business and in all of our major markets which is a testament to PwC’s investment in innovation, technology and quality. Most of all, this growth is due to the hard work of our 223,000 people around the world and their dedication to delivering a culture of excellent client service.
In North America and the Caribbean, revenues grew by 8%. Revenues across South and Central America grew by 9% with sales from PwC remaining buoyant.
Growth was steady in Western Europe, up by 6% with some very strong performances from Germany, Italy and Switzerland. In the UK, our second largest market in the world, we had another strong performance, driven by good results right across the business.
Central and Eastern Europe posted robust revenue growth of 10%.
Revenues from Australasia and the Pacific grew by 5% across the region.
As predicted, more of our revenue growth is now coming from developing markets and this was particularly true in Asia where revenues grew by 10%, with strong performances in India and China.
Across the Middle East and Africa region, revenue growth was 7%.
Aggregated revenues of PwC firms by geographic region (US$ millions)
|FY16 at FY16 ex. rates||FY15 at FY15 ex. rates||% change||% change at constant ex. Rate|
|Australasia and Pacific Islands||1,452
|Central and Eastern Europe||678
|Middle East and Africa||1,294
|North America and the Caribbean||14,916
|South and Central America||826
FY16 revenues are the aggregated revenues of all PwC firms and are expressed in US dollars at average FY16 exchange rates. FY15 aggregated revenues are shown at average FY15 exchange rates. Gross revenues are inclusive of expenses billed to clients. Fiscal year ends 30 June.
Aggregated revenues of PwC firms by service line (US$ millions)
|FY16 at FY16
|FY15 at FY15 ex. rates||% change||% change at constant ex. Rate|
|Expenses and disbursements on client assignments||(2,257)||(2,535)||-4.0%||0.1%|
Our Assurance operations continued to grow strongly, increasing by 6% to US$15.3 billion. Demand for our core audit and assurance services remained high despite fierce competition across the world and the continuing impact of mandatory audit firm rotation across Europe.
The strength of our brand, the quality of our people and the innovation we are bringing to our services make PwC the choice of many of the leading organisations across the world for audit and assurance services.
Technology continues to reconfigure the market for audit and assurance services driving demand for broader assurance services such IT, risk and data assurance – all areas where we continue to invest and innovate to provide the latest most insightful and cost-effective solutions to our clients.
We also enjoyed strong growth in the sale of our capital markets accounting services, driven by a steady flow of deals and corporate restructurings across the world; growth that we anticipate will continue in the years ahead.
PwC’s Advisory operations continued to deliver strong growth in FY16 increasing by 8% to US$11.5 billion. Advisory, which accounts for nearly one third of PwC’s revenues, will continue to grow strongly into the future as more and more PwC firms around the world further develop their capacity and capabilities.
The growth in Advisory is driven by an increased demand from clients for our strategy through execution services, with excellent growth across a broad range of consulting, forensics and deals-related work. Good growth in cyber security, digital and data & analytics services benefited from our significant recent investments.
More generally, the technology, retail & consumer, government, insurance and communications sectors experienced double-digit growth. We will continue to invest heavily in new technology-based client services in the year ahead.
The strong market for deals also positively impacted on our Tax operations globally, with revenues increasing by 7% to US$9.1 billion. In addition to the boost from deals-related tax, work we saw continuing demand for compliance, corporate consulting and transfer pricing work globally.
Our Tax operations also include revenues from PwC Legal, our legal services business, that now employs 2,000 lawyers serving clients in many parts of the world. Our legal business enjoyed strong growth in FY16 particularly in Asia where our legal operations have been rapidly expanding.
Revenues from our People and Organisation network also continue to grow strongly as people move more frequently across borders and continents in search of work, and companies require advice on visa and work permit requirements. We continue to invest heavily in this business and now have over 12,000 people in this area serving clients in nearly every corner of the world.
1 – Audit clients include both sole and joint audits.
Non-audit clients are those companies where PwC did not provide statutory audit services and where revenues exceeded US$500,000 in FY16.