PwC Malta’s fee income grows by 13 per cent

PricewaterhouseCoopers Malta’s fee income grew by 13 per cent in 2011, to €21.5 million from €19 million in 2010, according to the firm’s 2011 Review, which also incorporates its transparency report. The firm said it won important new mandates across all its lines of service.

International business continued to grow significantly during the year, and has remained a key driver of growth

“International business continued to grow significantly during the year, and has remained a key driver of growth. As Malta matures further as a financial services centre of repute, this sector may reshape the country’s economy, as it has already shaped its professional services sector,” the report said.

In all, overseas work and international business (excluding foreign owned companies operating in the local market) accounted for 54 per cent of the firm’s income in 2011. Statutory audit fees, including fees derived from seconding assurance staff on overseas audits amounted to €11.5 million, accounting for 54 per cent of total billings.

During 2011, the maximum fees PwC earned from any one client or client group amounted to two per cent of the total billings of the firm, the report points out, while 65 per cent of the firm’s advisory and tax fees were earned from clients with whom PwC has no statutory audit relationship. If routine tax compliance work is excluded, this proportion rises to 75 per cent.

The firm has a full time staff complement of 308 at December 31, 2011, as well as 144 students on full time study programmes. The continual growth of the firm has led it to look overseas for additional qualified staff and 37 foreign nationals are now employed within its ranks from France, Germany, Pakistan, the Philippines, South Africa, Romania and Russia. The aggregate staff attendance at training courses during 2011 totalled 42,800 hours while the training of professional staff averaged 160 hours per person in 2011. Last year 48 staff members took part in the global PwC staff mobility programme and gained work experience in Australia, the US, the UK and the Channel Islands.

Kevin Valenzia, PwC Malta Territory Senior Partner said: “2011 has been a year of continued growth for the firm in Malta, and we have recorded a 13 per cent increase in our fee income, which now totals €21.5 million. Much of this growth has been achieved in line with the expansion of the financial services industry in Malta, but it is also the result of an increase in the number of local clients to whom we provide services.

“Local businesses remain the foundation upon which our firm is built, and we are committed to continue to deliver a quality service to them, and all who choose to work with us. We recognise that the choice of a professional advisor or independent auditor is an important one based upon many factors, including adding value and value for money, doing what is right, and having the right skills and resources to be able to deliver on a consistent basis.”

Mr Valenzia added: “Our goal is clear: we want to remain the number one professional services firm in Malta – defined not only by size, but also from the perspectives of quality, brand and talent. This is about more than a ranking; it’s about continuing to be known as the firm that does the right thing for clients, people, communities and the capital markets. We strive to hear and understand the goals of our clients, our people and other stakeholders, and work with them to create value.”

The public interest entities currently audited by the PwC are the following:

Listed bonds: Dolmen Properties plc, Gasan Finance Company plc, Melita Capital plc, Mizzi Organisation Finance plc, Pavi Shopping Complex plc, Tumas Investments plc and United Finance plc.

Listed equity: Go plc, Lombard Bank plc, Maltapost plc, Middlesea Insurance plc, Midi plc, Plaza Centres plc, Simonds Farsons Cisk plc and Unibet plc.

Listed funds: Amalgamated Investments Sicav plc, Global Funds Sicav plc, La Valette Funds Sicav plc, Vilhena Funds Sicav plc, Wignacourt Funds Sicav plc, Rohfund Global Funds Sicav plc, Timeless Precious Metal Fund Sicav plc and The Timeless Energy Fund Sicav plc.

Credit Institutions: CommBank Europe Lt and IIG Bank (Malta) Ltd. Insurance Companies: AarhusKarlshamn Insurance Malta Ltd, Arnold Clark Insurance (Malta) Ltd, Arnold Clark Life Insurance (Malta) Ltd, Atlas Insurance PCC Ltd, Bastion Insurance Ltd, Cafina Assurances Ltd, Elmo Insurance Ltd, Ergon Insurance Ltd, Falcon Insurance Ltd, GasanMamo Insurance Ltd, MSV Life plc, One Insurance Ltd, Rhenas Insurance Ltd, Shield Insurance Company Ltd, SN SecureCorp Insurance Malta Ltd, Taurus Insurance Ltd and Werla Insurance Ltd.