Baker & McKenzie’s turnover grew by 8 per cent to $2.62bn (£1.99bn) last year, reaching a five-year high after a disappointing 4 per cent drop in global revenue from $2.54bn to $2.43bn in 2014/15.
The 2015/16 results represent a revenue increase of 13.9 per cent in the last five years, from £2.3bn to £2.62bn.
Net profit grew by 14 per cent to $904m last year, while profit per equity partner (PEP) increased by 13 per cent to $1.3m.
This also represented a five-year high for the firm, with growth of 19 per cent since 2011/12 from $1.09m to $1.3m.
Billable hours saw a 5 per cent year-on-year increase to 8.2 million last year.
Total staff headcount as of 30 June 2016 was 12,066 compared to 11,336 the year before. Of these 6,045 were fee-earners.
Last year marked the last financial year with global chairman Eduardo Leite at the helm. London managing partner Paul Rawlinson was confirmed as the firm’s first UK-based global chair in June following a partner election after a four-way leadership race.
“I expect Paul to continue the strategy but with a better focus, as he is a creative IP lawyer, with a greater focus on clients,” Leite told The Lawyer, adding he expected further growth in the US in 2017. Leite confirmed he is not planning to retire when he hands over to Rawlinson, but declined to specify what his next position will be.
Speaking of the recent financial results, he said: “We have stronger footprint, our investments have been amortised. We have a strong client programme and conferences. We have done a lot for diversity and inclusion. I’m very proud of that.”
During the last financial year Baker & McKenzie lost several key partners including EMEA M&A chair Sönke Becker to Herbert Smith Freehills in Germany, Hong Kong arbitration head James Kwan to Hogan Lovells, and former Yangon managing partner Chris Hughes to Berwin Leighton Paisner. In London, the firm lost litigation partner Tom Cassels to Linklaters.
The firm made a total of 65 lateral partner hires across its network last year, and promoted a further 85 lawyers to partner. Leite focused on transactional work, M&A, private equity, banking and competition in 2015/16, also growing its tax, compliance and investigations practices.
By geography, EMEA and the Americas continued to be Bakers’ biggest revenue generators, both bringing in 37 per cent of turnover last year, while Asia Pacific generated 26 per cent of revenue.
All of the firm’s regions grew turnover by more than 10 per cent in 2015/16 on a constant currency basis.
“London performed very well,” Leite said, “but that was all practically pre-Brexit. There were some areas where we saw a slowdown, like capital markets and M&A because of our footprint.
“I don’t expect our London office to be as affected as it would be for a more domestic firm. It’s not immune, but it’s protected because of our diverse market position,” he added.
