Baker & McKenzie Posts Gains in Revenue and Profits
28 Aug, 2013
Baker & McKenzie today (28 August) reported record global fee income and double-digit profits per partner (PPP) growth for its FY13 financial year ended June 30, 2013.
Global fee income totaled US$2.419 billion, up 5%, while PPP rose 10%, to US$1.2 million, on net income of US$862 million.
Revenue growth was steady in all regions, reflecting strong organic growth and expansion into new offices in Casablanca, Lima and Seoul. The breakdown of revenue by region is EMEA: 37%, Asia Pacific: 28%, Americas: 35%.
Demand was particularly strong for matters related to finance, securities, energy, mining and infrastructure, tax planning, labor relations litigation, real estate, corporate reorganizations and corporate compliance/anti-corruption.
“Our strong emphasis on becoming a more client-driven firm has had a positive effect on both our revenue and profits even in another challenging year for the global economy,” said Eduardo Leite, Chairman of the Executive Committee. “We continue to control our costs while still making investments in our talent and global platform to serve our clients better.
Clients see great promise in emerging markets, and in the interconnectivity between these high-growth markets and mature economies. We remain cautious about the overall economic outlook, but confident that we have a sound strategy to compete successfully and continue to help our clients pursue opportunities in a rapidly changing world.”
Over the last year, Baker & McKenzie has added 60 lateral partners in key practice areas and jurisdictions, bringing the total number of lawyers to more than 4,100 in 74 offices in 46 countries.
The Firm continues to be recognized as the strongest law firm brand worldwide by Acritas’s annual Sharplegal survey, and again named to BTI Consulting’s Client Service A-Team list.
Among the notable multi-jurisdictional transactions the Firm worked on last year were: Carlsberg Group’s US$1.2 billion public offer to buy Baltika Breweries; Toyota Tsusho’s agreement with PPR to expand its automotive business in Africa; and Mizuho Corporate Bank Ltd, Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ Ltd and Deutsche Bank AG US$19.6 billion debt financing of Softbank’s acquisition of a 70% interest in Sprint.
Activity by Region
Europe, Middle East & Africa – Matters related to energy, mining & infrastructure, tax and antitrust & competition were bright spots, with solid gains. Securities work also increased despite the tough corporate environment in many markets. A new office was opened in Casablanca and announced in Dubai.
Asia Pacific – The region has been very active in advising clients doing business in high growth markets. Areas where the Firm saw particular growth include banking and finance, particularly acquisition and project financing, securities, international arbitration, intellectual property and tax. The Firm was namedBest International Firm Asia Pacific Practice and Most Innovative Firm at the Euromoney Australasia Women in Business Law Awards 2013, and the Deal Firm of the Year in Indonesia, Malaysia and Thailand at the ALB Southeast Asia Law Awards 2013. The Firm established a Myanmar Center in Bangkok and opened a new office in Seoul.
Americas – Strong gains in energy, mining & infrastructure, tax, disputes, employment, real estate, and trade & commerce work in Latin America, while antitrust, trade & commerce matters, especially those related to export controls and sanctions and anti-corruption, disputes, and tax and pharmaceutical & healthcare work were the strong spots in North America. The Firm was named top international law firm in Latin America by Latinvex and ranked one of the top 5 corporate law firms in the US by Corporate Board Member magazine. A new office was opened in Lima.