EY Switzerland sees stronger growth: overall business up by 8.7% in 2015/16 to new record of CHF 661 million
EY Switzerland increased its total revenue by a solid 8.7% to CHF 661.2 million in the financial year 2016. This growth was driven by advisory services, primarily for the financial industry: EY advises companies with regard to their transformation to the digital world in the relevant areas of business. Audit and Assurance Services also grew on the back of valuable additional services. To intensify the growth trend in a market environment that remains as challenging as ever, EY developed new client solutions, invested heavily in the next generation and further training, and created more than 200 new jobs within the space of a year.
ZURICH, 25 NOVEMBER 2016 – EY Switzerland closed the financial year 2016 on 30 June 2016 with total revenue of CHF 661.2 million (+8.7%), thus once again accelerating the growth rate of recent years. Net revenue, excluding services rendered by EY organizations abroad and expenses, increased by 4.2% to CHF 514.3 million. “The market for advisory as well as auditing and assurance services remains competitive. We are therefore very satisfied with our result. During my time as CEO, I was able to make substantial investments in quality, technology and employees, and the organization was in good shape when I handed it over to my successor at the end of the reporting year. We aim to remain the most globally integrated professional services organization in the future, too, and aim to further expand our strong market position in the coming year,” says Bruno Chiomento, Chairman of the Board of Directors of EY Switzerland.
Double-digit growth in advisory services
Advisory Services and Transaction Advisory Services posted a significant 21.7% rise in revenue, increasing to CHF 210.8 million. The increase in revenue in Advisory Services at EY was primarily generated in the Financial Services Clients division. “Our teams are at the forefront in the relevant areas, particularly in strategy consulting, and supported clients in profit-related matters. We expect revenue to increase further in the current financial year, particularly outside the financial sector,” says Marcel Stalder, who has been CEO of EY Switzerland since 1 July 2016.
EY Switzerland provides clients with integrated advisory services on their digital transformation and assumes that companies will work more closely together in future and offer consumers cross-sector solution packages. “All sectors are undergoing a fundamental transformation process triggered by digitalization. EY provides its clients with integrated support during this transformation, covering the relevant areas of consulting, from strategy, through the development of new business models, to the adaptation of support functions, the IT architecture and corporate culture. In terms of traditional services, such as auditing and assurance services and tax advisory services, we rely on state-of-the-art technologies and data analysis methods. We therefore offer not only security, but also clear added value,” explains Marcel Stalder.
The advisory and auditing business for the financial industry has again shown strong momentum. EY Switzerland generated 46% of its revenue from services for clients in the financial services industry. “Since taking up my position, we have launched various measures to replicate our success of the past few years in the financial industry in other sectors of the economy,” says Marcel Stalder.
Competitive environment in Audit and Assurance Services
The environment for Audit and Assurance Services remains competitive: the new audit rotation rules in the EU will also lead to more calls for tenders in Switzerland, and new standards also always mean new challenges for the auditors. Gross revenue rose by 1.8%, almost the same as the previous year, to CHF 265.9 million. “Thanks to new technologies, such as data analysis and robotics software, EY analyses not only random samples, but also complete sets of data, and audits these on an automated basis. As a result, we identify hidden patterns and trends, can compare results directly using benchmarks, and highlight relevant opportunities and risks. This gives the board members, investors and other addressees of the audit clear added value,” says Bruno Chiomento.
Increased demand for Tax and Legal Services
Growth in Tax and Legal Services remained strong in the outgoing financial year, at 6.1%, with revenue of CHF 184.4 million. “Extensive tax reforms and tighter transparency regulations mean greater expenses for many companies. In times of great upheaval, we offer our clients security and work closely together with them. We are also observing the impending consolidation measures in the legal services market and will take these as an opportunity to make further strategic investments. We want to play an active role in this,” says Marcel Stalder.
Constant investment in the workforce
At the end of June 2016, EY Switzerland had a workforce of 2,627 employees from 61 countries. Once again in this reporting year, EY invested heavily in recruitment and in the support and development of existing staff. The number of full-time employees was up by 7.4% at the end of the financial year. In total, 335 university graduates made a promising start to their career with a job at EY, and 78 individuals returned to work at EY again. “EY makes a valuable contribution to ensuring that the Swiss economy has an adequate supply of specialists. We assume this responsibility throughout all economic cycles, and will continue to do so in future,” says Bruno Chiomento. Each employee undertook an average of just under 70 hours of training in the year under review, which corresponds to an increase of just over 20%.
Figures for the financial year from 1 July 2015 to 30 June 2016
Revenue by service line (gross):
|Service line|| 2014/15 |
| 2015/16 |
| Change |
|Audit and Assurance Services||261.1||265.9||+1.8|
|Tax and Legal Services||173.8||184.4||+6.1|
Revenue by service line (net):
|Service line|| 2014/15 |
| 2015/16 |
| Change |
|Audit and Assurance Services||228.9||229.6||+0.3|
|Tax and Legal Services||138.0||133.2||-3.9|
EY Switzerland: employees and training
|2014/15||2015/16|| Change |
|Training per employee (hours)||57.4||69.5||+21.1|
About the global EY organization
The global EY organization is a leader in assurance, tax, transaction, legal and advisory services. We leverage our experience, knowledge and services to help build trust and confidence in the financial markets and in economies all over the world. We are ideally equipped for this task – with well-trained employees, strong teams, excellent services and outstanding client relations. Our global mission is to drive progress and make a difference by building a better working world – for our people, for our clients and for our communities.
The global EY organization refers to all member firms of Ernst & Young Global Limited (EYG). Each EYG member firm is a separate legal entity and has no liability for another such entity’s acts or omissions. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information, please visit www.ey.com.
EY’s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with ten offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, “EY” and “we” refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.