PwC UK profit falls as partner pay drops to £862,000 against backdrop of AI push
PwC UK has reported single-digit growth in revenue but against the backdrop of the group’s profit and partner pay dropping, again.
PwC UK group, which includes the UK, Middle East and Channel Island businesses, grew by nine per cent over the last financial year to £6.3bn, up from £5.8bn.
The firm generated three per cent growth in the UK and nine per cent from the Channel Islands, but it was the Middle East leading with a rise of 26 per cent in its revenue.
The strongest business division for this was its consulting arm, which was up 18 per cent overall (£2.03bn). The firm’s audit’s practice followed with a 10 per cent increase (£1.49bn).
The tax group was up by four per cent and its deals business increased by five per cent.
While its risk revenues were marginally down from last years results, falling by one per cent.
Despite the increase in revenue, the total group profit for the financial year of £1.14bn, down from £1.3bn it reported last year. Additionally, last year’s results saw the firms fall from the previous year, where it stood at £1.5bn.
PwC UK’s distributed profit per UK partner averaged £862,000, down five per cent on the £906,000 reported in the previous year. This figure last year was also down on the previous year of £920,000.
The Big Four firm has been investing in technology and other strategic priorities, as the firm pumped over £100m into platforms including AI.
In May, the firm agreed a deal with OpenAI which makes PwC the largest user of ChatGPT Enterprise, and its first reseller. It also built a “tailored” GenAI platform for its staff,
Commenting on the results Marco Amitrano, PwC senior partner, said: “Our business has to mirror those of our clients – not just what they’re looking for now, but what they’ll need for the future.”
“Even in a subdued market, we’ve continued to invest while managing our costs and adapting the way we work to respond to new opportunities.”
He added that “different businesses will have different levers for growth – ours include expanding in-person collaboration, new skills training and more rapid adoption of technology.”
“By pulling these levers, we can better support other businesses, improve productivity and help drive inclusive growth. The professional services sector is one of the UK’s real success stories and will continue to be a driving force in the next era of growth,” he added.