Finance
Deloitte announces record revenues of $34.2 billion
Growing demand for services produces fifth consecutive year of aggregate member firm growth, at 6.5 percent in local currency for FY14
- Demand for consulting was particularly strong with growth at 10.3 percent
- Strong growth was also experienced by Tax & Legal (7.7 percent), Financial Advisory (6.8 percent), and Enterprise Risk Services (4.2 percent)
- Consistent with the Deloitte network’s commitment to delivering value to its broader communities, the network invests nearly $190 million in communities around the world to address social and humanitarian challenges
New York, 24 September 2014 – Deloitte member firms (Deloitte) reported record aggregate revenues today of US $34.2 billion for the fiscal year ending 31 May 2014. In its fifth consecutive year of growth, Deloitte saw accelerated demand for its range of services in all regions of the world. The organization’s aggregate revenues represent growth of 6.5 percent in local currency, or 5.7 percent in U.S. dollars.
Growth was led by Consulting, which experienced double-digit growth (10.3 percent in local currency), followed by Tax & Legal (7.7 percent). Financial Advisory and Enterprise Risk Services also experienced strong growth with 6.8 percent and 4.2 percent, respectively. Audit experienced growth of 2.5 percent, reflecting growth even after accounting for the network’s significant investment in quality around its audit service.
Deloitte’s growth reflects its commitment to providing clients with high quality services through a multi-disciplinary model, delivering innovative solutions from strategy to implementation. Increasing client needs stemming from globalization and changes in business models, technology, and regulations are expected to drive further opportunities in the year ahead. The network is also steadfastly committed to the growth and development of its people, with more than 63,000 professionals receiving training via its Deloitte University curricula in the past fiscal year.
“By repeatedly forging new ground, Deloitte continues to stay ahead of the considerable disruption facing clients, our people, and the society in which we operate,” said Barry Salzberg, Deloitte Touche Tohmatsu Limited CEO. “Member firms remain sharply focused on their unique ability to address the specific needs of their clients through distinctive breadth of skills, deep industry knowledge and strategic investments, while bolstering trust in the marketplace, hiring and developing the best talent, and delivering value to society.”
Global Industry Leadership
Facing disruption from many directions—digital transformation, geopolitical change and economic volatility, as well as the need to analyze big data, address cyber risk, navigate new regulations, and manage crises—clients look to Deloitte for innovative solutions. As such, Deloitte will continue to invest heavily in innovation, with an emphasis on driving differentiation in its core businesses. This includes investment in technology, advanced analytics, new business models and sector-specific solutions, as well as people, globally, to provide top-of-the-line services.
One such example is Deloitte’s commitment to audit quality and innovation. The audit plays a critical role in building trust in public and capital markets and is a cornerstone of Deloitte’s work. Deloitte’s quality focused and innovative audit service provides a comprehensive suite of capabilities that deliver deeper insights and value, including state-of-the-art technologies, most notably advanced data analytics and enhanced auditor’s reporting.
“As leaders in our profession, Deloitte engages with regulators worldwide to promote necessary reforms and improve quality for all stakeholders. Deloitte is one of the world’s most trusted providers of audit services and our network will continue to focus on delivering a uniquely high-quality experience in this important responsibility to business, capital markets and society,” added Salzberg.
Deloitte continues to be recognized by national and global clients, analysts, and other stakeholders as global leaders in professional services across the most diverse set of capabilities. This past year Deloitte member firms have received a record number of accolades and have been recognized in established and emerging services, such as Analytics, Digital and Data Transformation, Cyber Security, Finance Transformation, Human Capital, Risk, Strategy & Operations, Sustainability, Tax, and Technology and in industries such as Financial Services, Life Sciences & Health Care, and Public Sector, among others.
Global Growth
- Americasmember firms led regional growth with an aggregate 7.5 percent in local currency; the strongest growth occurred in Spanish-speaking Latin America or LATCO (14.1 percent) and Brazil (10.6 percent).The United States, the largest member firm in the network, produced particularly strong growth, led by an 11.3 percent increase in Consulting.
- Europe, Middle East, and Africa (EMEA) member firms grew by an aggregate 5.8 percentin local currency. In particular, Italy (11.5 percent), Germany (11.8 percent) and France (10.5 percent) demonstrated strong performance over FY13. Aggregate revenues for the sub region of Africa grew by an impressive 17.6 percent.
- Asia Pacific member firms experienced combined growth of 4.9 percent in local currency, up from 3.1 percent in FY13. Japan was a key contributor to regional results at 5.1 percent growth, and India and New Zealand both grew in the double digits.
- Deloitte continues to invest in emerging and growth markets around the globe. These strategic markets grew an aggregated 10.9 percent in FY14.
Growth Across All Global Businesses
- Consulting,the largest business in the network, also showed the strongest growth globally in FY14, at 10.3 percent in local currency, driven by impressive performance in Strategy & Operations (10.5 percent growth), Technology (10.3 percent growth), and Human Capital (9.6 percent growth) service lines. The business experienced growth across all industries, led by a 26 percent increase in Life Sciences & Health Care revenues and double-digit growth in Energy & Resources; Public Sector; and Technology, Media & Telecommunications.
- Audit grewan aggregate 2.5 percent in local currency, up from 1.9 percent in FY13. Most industries reported positive growth for Audit, most notably Financial Services; Consumer Business; Technology, Media & Telecommunications; and Energy & Resources. The Financial Services industry makes up 30 percent of the network’s Audit revenue globally.
- Enterprise Risk Services grew across the network by a strong 4.2 percent in local currency. In FY15, there will be a particular focus on further developing growth areas including controls transformation and assurance, cyber risk services and governance, regulatory, and risk services.
- Financial Advisorygrew by a total of 6.8 percent in local currency, led by increased demand for M&A services arising from strong growth in global M&A activity and expanding Deloitte’s global capabilities, and growth in the organization’s Crisis business driven particularly by increased regulatory focus in the FSI industry.
- Tax & Legalgrew 7.7 percent in local currency, with strong growth across all regions highlighted by exceptional growth in Global Employer Services, Tax Management Consulting, Global Business Tax Services, Indirect Tax, and Outsourcing Services. Growing client needs stemming from continued globalization, business model changes, technology advances, and regulatory activity are expected to drive increased opportunities in FY15.
- Industries:Life Sciences & Health Care led growth among industries posting 17.4 percent total growth in local currency, a significant increase from FY13 growth of 12.9 percent, followed by Public Sector, which grew by 11.9 percent. Additionally, Technology, Media & Telecommunications grew by an aggregate 9.1 percent, and Financial Services also posted strong growth at 5.9 percent.
Global Careers
As Deloitte’s businesses have grown around the world, the network has continued to recruit and develop the next generation of global and member firm leaders, training them to anticipate and tackle clients’ most complex domestic and international challenges. In FY14, Deloitte member firms hired 54,000 professionals across the globe, growing its workforce by 3.7 percent to 210,400. During this time, 63,000 Deloitte professionals—from 81 countries across all regions—have attended leader-led programs at the three Deloitte University facilities in the United States (DU), Europe (DU EMEA), and India (DU India in Hyderabad).
“Deloitte professionals deliver outstanding value to clients and give back to the communities they live in, and we’re committed to investing in their development as leaders. That is why we continue to expand the deployment of the Deloitte University curriculum around the globe,” noted Salzberg. “These investments help to enrich careers, generate thought leadership, and ultimately deliver the services and solutions clients value most.”
The Bigger Picture: Delivering Social Value
As the world faces new economic and social challenges, the Deloitte network is forging new ground, linking business objectives to social, humanitarian, and environmental advances. With an aggregate investment in 2014 of nearly US $190 million in societal impact initiatives and over 940,000 volunteer and pro bono hours in communities around the world, the organization is committed to deepening and strengthening relationships that advance progress on society’s biggest challenges. Deloitte has teamed with Social Progress Imperative—a non-profit entity committed to improving the lives of people around world—and launched the Humanitarian Innovation Program to provide innovative scalable solutions to improve the humanitarian sector’s readiness to respond to crises.
“In the last few years it’s become clear that the only way we can truly address the major challenges facing society is through collective action. Deloitte recognizes our responsibility—and ultimately the benefit—to develop relationships with governments, non-governmental organizations, and other businesses to tackle these issues,” continued Salzberg. “The expectation that businesses should take a leadership role in addressing the challenges facing society will continue to grow, and I’m proud that Deloitte is at the forefront of this movement.”
BUSINESSDAY-
The Central Bank of Nigeria (CBN) has refuted claims of devaluing the.
Earlier reports suggested that the CBN had devalued the Naira, lowering its exchange rate from N631 to the dollar, compared to the previous day’s rate of N461.60 at the Importers and Exporters (I&E) window.
However, the Central Bank of Nigeria (CBN) released a statement on Thursday through its Acting Head of Corporate Communications, Dr. Isa Abdulmumin, categorizing the report as false information.
In the statement titled ‘CBN Has Not Devalued The Naira’, he said the attention of the apex bank was drawn to the news report by an Abuja based newspaper edition of June 1, 2023, titled “CB Devalues Naira To 630/51”.
However, the CBN stated categorically that the news report was replete with outright FALSEHOODS and destabilizing innuendos, ‘reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.’
“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters (I&E) window traded this morning (June 1, 2023) at N465/USS1 and has been stable around this rate for a while.
“The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market,” the CBN spokesman added.
He, therefore, advised media practitioners to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.
The interest rate in Nigeria has been raised to 18.5 percent, up by 0.5 percent, from 18 percent where it was pegged in March 2023.
The Central Banks of Nigeria’s (CBN) Monetary Policy Committee (MPC) resolved to this effect at its third meeting of 2023 in Abuja, on Wednesday.
Governor, CBN, Godwin Emefiele, made the disclosure in the communiqué of the MPC’s meeting, thereafter.
While engaging the media at the end of the two-day meeting, Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.
In the view of the MPC, rising inflation rate is traceable to the high energy cost and challenges around the supply chain, among others, which lie outside the corridors of the CBN.
Emefiele said, “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”
Biztellers reports that the CBN had effected six consecutive interest rate increases, which has seen the rate move from 11.5 percent in March 2022 to 18.5 percent in May 2023.
In Nigeria, people have been forced to come up with creative solutions to cope with the effects of inflation and the economic crisis.
These improvised strategies have not only helped individuals save money, but also enabled them to stay afloat during difficult times.
In a concerning development, the recent trend of boycotting the high cost of cooking gas cylinders in Nigeria may pose a greater risk to lives than it does in terms of saving money.
Economy&Lifestyle investigations have revealed that the soaring prices of gas cylinders have reached a point where it has become increasingly challenging for average households to afford them, let alone refill them with gas.
The situation is further exacerbated by the fact that the pump price of kerosene, which would typically serve as an alternative, has become prohibitively expensive.
Upon investigation, it was found that the prices of gas cylinders vary depending on their sizes. A 3kg gas cylinder is priced at N14,000, while a 5kg cylinder costs N16,000. The larger cylinders are even more costly, with a 6kg cylinder priced at N17,000 and a 12.5kg cylinder costing N19,000.
Additionally, the expense continues when it comes to filling these cylinders with cooking gas, as it costs N2,600 for a 3kg cylinder, N5,200 for a 6kg cylinder, N8,950 for a 10.5kg cylinder, and N10,650 for a 12.5kg cylinder.
Consequently, an average household that needs to replace a worn-out 5kg cylinder would have to come up with N20,250 to purchase a new cylinder and fill it with gas, which can be a difficult feat to achieve.
As a result, many people have resorted to refurbishing their old cylinders and trying to use them as best as they can. However, this approach poses a significant danger.
Mrs. Rukayat Adesoji, a trader, shared her experience regarding her gas cylinder, which had become rusted and could no longer stand upright since last month. Due to the exorbitant prices of purchasing new cylinders, she resorted to seeking the assistance of a welder.
The welder patched the legs of the cylinder, repainted it, and ever since then, she has been using the refurbished cylinder for her cooking needs.
She said ““My gas cylinder which was 6kg got rusted and no longer stands erect since last month. When I asked for the price, I was told it was N17, 500. I was discussing it with a friend who advised me to take it to a welder to paint it and construct a new stand. I heeded to her advice and at the end spent just N3, 000 to turn my cooking gas to a brand new.”
Apart from refurbishing cylinders, some people don’t even know when their cylinders will expire. Mrs. Mercy Opara, a hair stylist, falls in that category as she explained: “I am taking my gas cylinder to the welder to spray it for me. It just cost N1, 500.
“The cost of buying a new cylinder is high. I have been using my cylinder for over 7 years and I don’t even know the expiry date. I just pray God blesses me so that I can buy a new one. But this one I am managing will look neat after spraying it for another two years.”
Mr. Adekanbi Joseph, a wielder, said he paints cylinder and “To paint and rebuild a cylinder stand, I charge N4, 500. Many people come here to paint as a new cylinder is now very expensive to get.”
Highlighting the potential dangers of using refurbished cylinders, Mr. Benjamin Hope, the Chief Executive Officer of FKT Cooking gas and general goods, emphasized the risks involved.
He stated that even a brand new cylinder can pose a risk of explosion if the locks are not properly secured after use or if the cylinder filled with gas is moved from one location to another.
He said “A brand new cylinder can explode if the locks are not well keyed after using and if the cylinder filled with gas was moved from one place.
“There are many reasons for the high cost of gas cylinders in Nigeria. One is the cost of importation due to the exchange rate. Another is the increased migration from the use of kerosene to cooking gas which has necessitated increased demand for gas cylinders. You know that in such a case there will be increased importation of cylinders.”he added
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