Luxembourg – 14 December 2023 –

Reflecting on the financial performance of the firm, David Capocci, Managing Partner at KPMG Luxembourg, said:

“I am incredibly proud of the strategic choices we’ve made within the firm. Our growth allowed us to partially compensate for inflation of overhead expenses, growing costs of labor, and digital transformation investments, which grew by more than 20%. Our focus on Client Centricity, Innovation and People has served as the right recipe for us and our clients. Our business, like the business of our clients, is undergoing ever-evolving challenges and changes. The need to adapt and remain agile is essential to keeping the pace in the face of economic uncertainties. We have concentrated our efforts on strategic products and services, successfully optimizing our processes to be faster, more agile and above all, maintain the highest quality of work. Our people feel empowered when they see the type of work they do as an added value and lets them feel that they can grow within our firm.”

The firm’s Audit practice grew by 22% this year thanks to the trust of our clients, allowing us to win significant audits in all industries. One key factor of this success is due to their smart audit platform – KPMG Clara – that is continuously enhanced to accommodate evolving demands, further integrate existing audit applications, and develop new capabilities to digitalize additional audit processes. KPMG anticipates the technologies that will shape the future and drive the firm’s ambitious innovation agenda to transform the audit experience of its people and its clients. The alliances and leading technologies used across the KPMG global organization improves audit quality by increasing the ability of the firm to focus on the issues that matter.

The firm’s Tax services saw a growth of 14%, mainly due to the increasing demand for tax compliance and fund taxation services. Rapid globalization, tax law developments and the rising number of audits with tax authorities are all impacting the burden on the tax departments of our clients. They recognize that managing tax compliance and tax risks in today’s highly complex economic and tax environment is no easy task. To address this, KPMG – with the support of tax technology tools – provides clients with impact assessments in relation to new laws, regulations and tax reporting requirements such as the Pillar 2 Directive, which introduces a minimum tax of 15% on large MNE groups. Also, with cross-border transactions being under more scrutiny, companies require experts to help them with a wide range of tax services, including transfer pricing and dispute resolution.

The firm’s Advisory practice has grown by 7%, with corporate finance leading the way with an outstanding increase of 50% over the past two years. This change was fueled by the dramatic increase in 2023 interest rates and the consolidation trend in the financial sector. KPMG is now the market reference for large alternative funds valuations and has been very active in transactional support both in M&A and due diligence. Its consulting practice successfully adapted to the consolidation trend in the financial sector through its involvement in some of the largest post-merger integrations in the market. Lastly, its buoyant and comprehensive managed services offered in the sector have significantly sparked the consolidation of KPMG’s capabilities within the European network.

Stanislas Chambourdon, Head of Sales and Markets, emphasizes how client centricity will define the unique proposition of the firm:

“Client centricity is embedded in everything we do. From onboarding new clients to accompanying existing clients, nurturing and developing relations are what makes our business human. When we understand our clients’ businesses, their challenges, and their transformation journey, we are better equipped to innovate and provide the right insights. And when we do what is right, even when it is the hard thing, is so important to building trust and I think this is what customers want, they want honest feedback, they want companies like ours with them in good and bad times.”

“In July, KPMG announced a landmark agreement with Microsoft to put artificial intelligence (AI) at the forefront of professional services. AI and cloud will enable KPMG to accelerate innovation for clients across Audit, Tax and Advisory. This is an exciting time for our clients but also for our people. For our clients, it means they will be given the very best advice, helping them keep up with the fast-evolving AI landscape and solve their business challenges in new ways. For our people, it will open opportunities to unleash their creativity, provide faster analysis and spend more time on strategic advice.

David Capocci, Managing Partner, added how the firm was able to achieve this phenomenal growth thanks to its phenomenal people for the benefit of the entire community:

“People follow people! Keeping and attracting talents remains a priority for the firm. We’ve continued our investment in our people in many aspects both financial and non-financial. We’re also investing in developing our people’s skills at all levels from juniors to leaders to enable them to further grow in their career. We’re strengthening their sense of belonging at every step of their career journey with us.”

“KPMG is a multifaceted firm where career opportunities are boundless. Each and everyone’s insight can create opportunities and contribute to a better future. KPMG wants its people to do work that matters, supported by a community that values diversity and cares about them.”

“We want to continue to create a KPMG that works for everyone. This is why we’re driven by offering an inclusive and caring environment through various initiatives, such as our weeks dedicated to mental health awareness and diversity, volunteering opportunities across the country, and much more. It’s crucial we listen to and connect with our people to understand their hopes, concerns, expectations, and overall feeling in working for our firm.

“One of these expectations that we take seriously is our commitment to ESG. We continue to focus on making it the watermark that runs through our firm, both in Luxembourg and beyond. Thanks in part to our multi-year investments in our ESG commitments, we remain dedicated to reaching our ESG requirements and supporting the ESG goals of our clients. From decarbonization journeys to ESG assurance and reporting, KPMG continues to pave a sustainable path for our clients and our communities.”

“Last but not least, we’re realizing our ambition to create one of the most innovative, healthy and inspiring work environments as we’ve announced our project to build a new headquarters at Kirchberg by end of the decade to meet the growing needs and expectations of our people and our clients. We’re extremely excited to start this journey for the community in Luxembourg to invest in the coming generations and in Luxembourg as a magnet for talent. We’re planning to create a modern, flexible and sustainable workplace, which will encourage connection, collaboration and innovation.”

KPMG’s sustainable growth is achievable thanks to its willingness to create a better future and lead with integrity. This is why KPMG believes that it has an obligation to positively contribute to society, and a responsibility to actively engage in opportunities that benefit our communities, the environment, and society as a whole.